Rich Dad, Poor Dad, Yes Robert Kiyosaki files for bankruptcy. : ThyBlackMan.com

Wednesday, August 27, 2014


Rich Dad, Poor Dad, Yes Robert Kiyosaki files for bankruptcy.

October 11, 2012 by  
Filed under Money, News, Opinion, Weekly Columns

(ThyBlackMan.com) When you make millions giving financial advice to other people, the last thing anyone expects is for you to go bankrupt.   Robert Kiyosaki, author of the best-selling book, “Rich Dad, Poor Dad,” has filed for bankruptcy.  Robert Kiyosaki made the move after being wiped out by a $24 million dollar lawsuit that he lost to the Learning Annex.

The bankruptcy is not an indicator of Robert Kiyosaki having poor financial health.  Instead, it was a business move.  Companies often file for bankruptcy when they have liabilities that exceed the market value of their assets.   Kiyosaki’s company, Rich Global LLC, has filed for bankruptcy protection to  shield itself from the the judgement awarded to the Learning Annex.

Robert Kiyosaki himself is worth $80 million.  Now, instead of doing business under Rich Global LLC, he now does business under Rich Dad Co, another company that he owns.  Mike Sullivan, the CEO of Rich Dad, made it clear that Robert Kiyosaki would not be putting any of his personal assets toward the judgement.

The Learning Annex arranged a large number of high-profile speaking engagements for Kiyosaki, including one at Madison Square Garden.  Bill Zanker, founder and CEO of the Learning Annex, felt that Robert Kiyosaki owed him big for what they’d done for him over the years.  He also says they had a contract, with the court confirming his version of events.

I took Kiyosaki’s brand and made it bigger. The deal was I would get a percentage and he reneged,” Zanker said.

“We had a signed letter of intent. The Learning Annex is the greatest promoter. We put his ‘Rich Dad’ brand on a stage. We truly prepared him for great fame and riches. But when it was time for him to pay up, he said no.”

Based on Zanker’s argument, we doubt that the name of the next Robert Kiyosaki book will be “Rich Dad, Honorable Dad.”  It sounds like he learned a thing or two from the story-telling of Mitt Romney.  If you agree to something in writing and then choose not to pay, you might have all the riches in the world, but your soul could be bankrupt.  Maybe there are things more important than money.

Staff Writer; Dr. Boyce Watkins
 
Dr. Boyce Watkins is the founder of the Your Black World Coalition. For more information, please visit http://BoyceWatkins.com.
 
 
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Comments

17 Responses to “Rich Dad, Poor Dad, Yes Robert Kiyosaki files for bankruptcy.”
  1. Monir says:

    I read this book. It is not applicable for all country

  2. kingsley says:

    U must be prepared for where u re go in to that’s why u go thro the process. Mr Robert is one of the renowned entrepreneurs of our time. He has obviously learnt a lot going thro the process to get to where he is today. As a born Entrepreneur you must know how to get back to the drawing board to restrategize. That is what it takes to see what others cannot see or wud take them multiple years to see. No true Entrepreneur can ever be cut off guard there is always a way out for every situation Robert already saw this coming and already had a Master plan.its a rule for every would be enterpreneurs. I don’t know exactly what happened underground but I know something went wrong. A born Entrepreneur sees the bigger picture but a promoter sees now.

  3. MK Chan says:

    If that was what he’s committed his own company (Rich Global LLC)to pay, then he should do the honourable thing, including paying from his own pocket, if necessary – not try to escape by taking advantage of the bankruptcy law!

  4. John says:

    I think robert is a doer of his book.Learning how and preparing for a fall is the best way to keep standing. This is a practical lesson for those who want to keep standin co’s successful men do have many falls.

  5. Lillian says:

    There are at least two sides to every story. The article does not state Robert Kiyosaki view point on the case. Kiyosaki financial educational books, tapes, seminars, and coaching provides an excellent supplemental source for financial and real estate knowledge and information dispite the fact he has filed bankruptcy on one of his many business ventures.

  6. ife says:

    ?? dnt care wat dey’re sayin, I’m still solely behind kiyosaki and his “Rich dad, poor dad” ideas. Its jst a phase and yea him filing Fø????? bankruptsy dos’nt mean he’s going down.

  7. Scott H says:

    For me, this is a moral issue. Kiyosaki had a business arrangement with The Learning Annex and if the story is accurate, agreed to pay them for their services. Without knowing the business arrangement, its difficult to assess what is fair. However, if the arrangement would have call for Kiyosaki to pay them $24m for the services The Learning Annex provided, then Kiyosaki should pay per the agreement. The fact Kiyosaki found a way out, if he really owed the $24m, is immoral in my opinion. It may be business and legal, but this is not someone I would want to take advice from anymore. If he said he would pay for the services provided, then he should pay.

  8. Patsy says:

    Thanks Olumide for your explanation!

  9. Olumide says:

    If you’ve read Rich Dad’s book well, you will understand that Robert is practising exactly what he is preaching. Filing for bankruptcy is a smart move and protection tactics that corporations use to shield them from people that want to take their wealth away.

    He has always preached that you should be wealthy but own nothing. Bill Zanker got a $28m judgement against one of Robert’s company that did business with him and not against Robert Kiyosaki himself. Rather than pay the $24m, the company simply filed for bankruptcy since the company does not worth the value of the judgement. This is a great application of teaching in Rich Dad, Poor Dad’s books especially as it concerns shielding your wealth with the power of incorporation. Robert in this case is smarter than the Learning Annex/ Bill Zanker. He understands the loophole in the corporation law and he’s exploiting it to the fullest.

  10. Sherlock says:

    FYI: There is only one “e” in judgemnt.

  11. Geno says:

    Rich Dad says he build business around his assets and if advance in their training you learn how to protect your money. One business down several still up.

  12. Paul says:

    Hi Dave,

    What you wrote is really interesting. But what was the company of Abraham Lincoln?

  13. Dave says:

    He is not bankrupt, one of his old companies that was out of business for years declared for bankruptcy because they sued that company for more than the person who was suing asked for. The he company is a corporation and he is not liable to pay out of his own pocket because the old company is its own entity. That was one of his first companies that he no longer was running but now Annex sued him for money the company did not have. SO HE IS NOT BANKRUPT PERSONALLY, HIS OLD COMPANY IS BECAUSE OF THE LAWSUIT. when you get rich everyone is after your money and a lawsuit’s are common for big name companies. here are some people you might know that went bankrupt in a business venture when they started off but they learned from their mistakes and there company now flourishes. That’s what Kiyosaki’s message is in his books, entrepreneurs fail lots of times but they learn from those failures and succeed.

    -Henry Ford, founder of ford motor company
    -Donald Trump
    -Walt Disney
    -H.J. Heinz- founder of Heinz ketchup brand
    -George Foreman-boxer/foreman grill
    -Clarence Saunders- founder of Safeway
    -Milton Hershey- founder of Hershey chocolate brand
    -Larry King
    -William C. Durant-founder of general motors-Chevy
    -Stan Lee- founder of marvel comics brand
    -Abraham Lincoln- president

  14. Henry says:

    I’m reading his book right now…..something must be wrong somewhere

  15. Paul says:

    Oscar,

    You seem to have knowledge in business and on Kiyosaki’s background. Can you enlighten us? I thought he invested in real estates.

  16. Oscar says:

    The only guys that last in the seminar business are those who invest.
    But none of them have the time to invest AND do seminars
    Just get the coaching with real investors (not realtors – they are more broke than you and I)
    There are a couple of seminar companies that also offer the investments – I would stick with those.

  17. Jen says:

    I can’t believe this! I went to a seminar yesterday of Rich Dad.

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