Dykstra Blocks Settlement with JPMorgan Chase Over Predatory Lending Claim

PRLog (Press Release) - May 14, 2010 -
Former Major League Baseball star Lenny Dykstra has moved his predatory lending case against JPMorgan Chase & Co (JPM.N), to a Bankruptcy Court in California.  Originally filed in Federal Court in New York, Dykstra’s $100 Million claim alleges that Washington Mutual Inc, now owned by JPMorgan, actively persuaded him to borrow $20.5 million to buy a mansion from hockey legend Wayne Gretzky even though it knew the sum was "well beyond" his means.

“After we filed the case in New York, JPMorgan quickly moved to have a settlement approved in the California bankruptcy proceeding.  We responded by transferring the predatory lending case to the Bankruptcy Court to block the proposed settlement that fails to recognize the tremendous harm WaMu caused Mr. Dykstra in their equity stripping scheme.” – so contends Dykstra’s Senior Legal Counsel, New York veteran attorney Moshe Mortner.

Says Mortner: “Despite what some have reported, Mr. Dykstra is not (nor has he ever contemplated) dropping his legal action against JPMorgan.  In fact, our belief in the legitimacy and integrity of our action is demonstrated by the fact that Mr. Dykstra has opposed a settlement proposed by the Bankruptcy Trustee and JPMorgan.  We intend to expose WaMus’s unethical and fraudulent loan practices as they relate to my client Lenny Dykstra, and we will show that Mr. Dykstra’s bankruptcy was a direct result of WaMu’s misconduct.”

“Furthermore,” continued Mortner, “we have requested of the Bankruptcy Court – and been granted – a formal Hearing in which to demonstrate our reasons for opposing a settlement with JPMorgan.”

“The mortgage time-bomb that wrecked Mr. Dykstra’ finances was not unlike the toxic loan scenarios that millions of Americans experienced.”  Mr. Mortner concluded.

A Hearing on Dykstra’s opposition to the settlement with JPMorgan is scheduled for late June in Los Angeles.

For Further Information, Please Contact:
MOSHE MORTNER, ESQ.   MM@MORTNERLAW.COM - TEL: 646-783-7544 - FAX:  646-304-3169