Former MLB Player Jailed On Fraud And Identity Theft Charges

This story caught my attention for reasons you might find surprising. It did not catch my attention because it involves a celebrity. It caught my attention because it shows how employees and independent contractors can become identity theft and fraud victims via an employer.

The Sports Illustrated article, "How Lenny Dykstra Got Nailed" explains how former Major League Baseball player Lenny Dykstra was jailed on identity theft and fraud charges. To fund a lavish lifestyle, Dykstra allegedly asked his employees to use their credit cards, never repaid them for the purchases, and used without authorization their sensitive personal information (e.g., Social Security Number) to apply for loans.

This story also highlights the importance of filing identity-theft and fraud complaints with both local law enforcement, the FTC, and the CFPB. Filed complaints allow law enforcement to discover patterns they might not discover otherwise.

Wilberto Hernandez, a personal credit repair consultant in Los Angeles had phoned local police after he received a notice from a credit agency that his Social Security number had been presented for credit checks at two car dealerships. Hernandez had helped one of Dykstra's business associates with credit repair services. Local police quickly saw a pattern among police reports filed:

"By Christmas 2010, [the police detective] had spoken with 17 people—personal assistants, drivers, private jet pilots and housekeepers—who claimed that Dykstra did not pay them for services, used their credit cards or got hold of their Social Security numbers and opened credit cards in their names."

One victim's situation was particularly instructive:

"Christopher Gavanis, then 30, had just moved to Los Angeles from Pennsylvania. Gavanis... couldn't afford a car to help him find work—but he did have a sterling credit rating. According to an interview police conducted with Gavanis on April 14, 2011, Dykstra promised him the car he desperately needed in return for the use of his credit... Dykstra also promised Gavanis a job with Home Free Systems once clients started rolling in..."