The Los Angeles County district attorney's office said the 48-year-old former New York Mets star faces nearly two dozen counts of fraud, grand theft and drug possession, the Los Angeles Times reported.
Dykstra was to be arraigned later in the day, along with his accountant, Robert Hymers, 27, and friend, Christopher Gavanis, 30.
Authorities allege that in January the trio tried to lease high-end automobiles from local dealerships by allegedly providing fraudulent information and claiming credit through a bogus business.
Dykstra was arrested by city police April 14 when his Encino home was searched and police allegedly found cocaine, Ecstasy and Somatropin, a synthetic human growth hormone, the Times said.
Dykstra could spend up to 12 years in state prison, if convicted.
He also was indicted last month on federal bankruptcy charges for allegedly removing, destroying and selling property without permission of the bankruptcy estate trustee.
Dykstra was a career .285 hitter with 1,298 hits and 404 RBI in 12-year career with the Mets and Philadelphia. He was a three-time all-star and helped the Mets win the 1986 World Series.