Update April 21, 2011: In late 2009, I reported on Jim Cramer's poor judgment in promoting the investing advice of former baseball player Lenny Dykstra (see article below). Now comes word that Cramer's protege has been arrested by the Feds for fraud and theft and his own brother is even piling on the blame. According to the N.Y. Daily News article:

"Former Mets outfielder Lenny Dykstra deserves his fall from icon to inmate, his brother told the Daily News.

Brian Dykstra said Monday that he figures his once high-flying, now bankrupt brother is at least partially guilty of the fraud and theft charges levied against him last week.

...Brian said Lenny's friend and former bookkeeper Dorothy Van Kalsbeek reached out to relatives in an email that detailed the arrest and his search for a lawyer.

...He and younger brother Kevin have been estranged from Lenny since the former All Star player sold his car-wash business and allegedly reneged on money he owed them.

The now broke ex-baller was arrested at his Encino, Calif., residence Thursday for allegedly buying cars with fraudulent paperwork, Los Angeles police said.

In a separate case filed a day earlier, federal prosecutors accused him of embezzling $400,000 from his bankrupt estate, which includes an $18.5 million mansion purchased from hockey star Wayne Gretzky.

Dykstra, 48, illegally sold a "truckload" of furnishings - including chandeliers, mirrors, a grandfather clock and fireplace screens - from the Gretzky house shortly after filing for bankruptcy in 2009, federal investigators claim.

Once a highflying stock picker and vanity magazine mogul, the now-divorced Dykstra spent the weekend in county jail and moved to a Van Nuys courthouse Monday to get picked up by the FBI, sources said.

The Los Angeles County District Attorney said the feds will get first crack in a courtroom."



In the past when I visited Jim Cramer's web site, TheStreet.com, I remembered being puzzled seeing financial advice being offered by former Major League Baseball player Lenny Dykstra. Mind you, I never found his advice useful. He simply added to the noise of the day analysis of the stock market. He advocated risky trading strategies and often made unsubstantiated claims about the supposed profitability of his trading recommendations. It was clear to me that having a Dykstra column was simply a Cramer marketing gimmick to draw in unsophisticated stock market followers who happened to be sports fans.

	At the April 2008 launch party for The Players Club, Jim Cramer had high praise for Dykstra's stock picks.

And, Cramer got Dykstra started in the investment newsletter business - and get this - Dykstra's newsletter was charging a whopping $1,000 annual fee which was bringing in big bucks to Cramer's web site. (I guess I'm really not charging enough for my premium members!)

Now comes word that Dykstra has filed for bankruptcy! How's that for solid proof of how his risky investing recommendations have turned out for himself and his followers?

This ESPN article, written before Dykstra's bankruptcy was filed, is a detailed summary of Dykstra's dysfunction, including his rise to investment fame thanks to Jim Cramer.

Copyright Eric Tyson, 2008 - 2012 all rights reserved.

Eric Tyson is the only best-selling personal finance author who has an extensive background as an hourly-based financial advisor and who does not accept speaking fees, endorsement deals or fees of any type from companies in the financial services industry or product or service providers recommended in his articles, books and his publications.