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Dykstra Files Suit, Says He's A Victim Of Predatory Lending

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Former Met Lenny Dykstra has filed a $100 million lawsuit to win back money he claims he lost after a bank tricked him into taking out loans he couldn't afford. The Twizzler lover, car-wash owner, and magazine publisher says an overly friendly loan officer at Washington Mutual convinced him to take out loans that were "untenable" when he was trying to buy former hockey star Wayne Gretsky's $17.2 million California mansion.

According to the Daily News, Dykstra says Washington Mutual agreed to give him a $17.5 million loan to buy the property in 2007, but then decided it would only loan the former ballplayer $12 million. That's when a Washington Mutual loan officer who had "created a special relationship with (Dykstra) that went beyond simply a lender-borrower relationship," convinced the three-time all star to take out an additional one-year, interest-only loan of $8.5 million from another bank. Even though the second loan meant "Nails" was spending $135,000 per month—$10,000 more per month than he was making at the time—his suit alleges that Washington Mutual "was willing to proceed with this untenable transaction" so it could acquire the property "through .... default," the Post reports.

After taking out the second loan, Dykstra claims his loan officer had promised him that Washington Mutual—which has since been taken over by JPMorgan Chase—would refinance his loan within 60 days. But the bank never did and creditors came after Dykstra, forcing him to give up the mansion and his Gulf Stream III jet. He was also forced to sell off promissory notes he held on a chain of California car washes, which he claims cost him about $100 million. Dykstra—whose lifestyle was the subject of a must-read New Yorker piece a few years back—has been in the news before for his financial woes and legal problems. It's unclear where things stand with his potential reality show.

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Comments [rss]

  • jsully
  • jgonzz

    It a shame to see this guy so screwed up.

    He'll be found one day by a maid in a La Quinta, dead, naked rolls of fat, Twizzlers all over the floor..

  • ozik

    A person this rich has accountants check on stuff like this, "I'm are too dumb" doesn't really work here.

  • longacre

    They need to cast Lenny as Kenny Powers' best friend on Eastbound and Down.

  • rcltrh

    He used to be hot. What happened? Hasn't he heard of Just for Men?

  • NannyState

    First he'll need embalming fluid.

  • imadick

    dykstra was the coolest met ever.

    the straw and doc: tied for second.

    those pansies on the team now: have fun in third place

  • Rocknrope

    Where's that video of dumbass Jim Kramer saying that Dykstra was one of the "great ones" of financial analysis and investing.

  • Gotham Extremist

    Tha'ts Dykestra? He looks like his grandpa!

  • ForrestWhitaker

    Sounds plausible. I wouldn't put it past Washington Mutual, or honestly, any other bank at this point.

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