Lenny Dykstra Sues JP Morgan

Ex-Met Lenny Dykstra who went from World Series hero,to Car Wash Czar to Investment Guru to broke, is suing JP Morgan for 100 Million dollars for predatory lending. The dispute is over a 17.5 million dollar house he bought from former hockey superstar Wayne Gretzsky at the Sherwood Country Club in Thousand Oaks California.

Nails, as he was known on the field, feels that he was duped by Washington Mutual, now owned by JP Morgan, into buying the home because he was promised 100% financing. At the last minute he claims the bank reneged and would only lend him 12.5 million, and he was forced to find secondary financing on the property. The inability to pay the interest on the two loans, coupled with the housing crisis forced Dykstra into a spiral of selling his remaining assets, most notably his interest in his car washes. Of course this leads to several questions, why did Nails need to buy a 17.5 million dollar house when his claimed income was only 1.2 million per year?

What happened to his Guru status in investing, where Jim Cramer of Mad Money fame proclaimed him the real deal and gave him a column in his daily paper the TheStreet.com?.And of course nails claimed to have made money on 49 of 49 trades on CNBC, a pretty good batting average even though he says he doesn’t read any research. While there have been great scams in the housing market, and no one can deny the bad loans made with predatory lending by the banks. In the case of Nails, it seems to Manhattan Style the answer is much simpler, the Mighty Lenny has just struck out.

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One Response to “Lenny Dykstra Sues JP Morgan”

1. Your Hockey Site » Blog Archive » The Fightins » Your Lenny Dykstra Disaster Update says:

   May 5, 2010 at 9:06 pm

   [...] of this case, anywhere, I remain cautious in terms of it going too far.Much more Nails-like,  Manhattan Style reported Thursday that The Dyke is suing JP Morgan for 100 million dollars for predatory lending. [...]