Rich Dad Poor Dad author files for bankruptcy

By |

In the ultimate irony, Robert Kiyosaki, the financial self-help guru behind the bestseller Rich Dad Poor Dad, has filed for bankruptcy.

According to a report in the New York Post, Kiyosaki’s Rich Global LLC filed for bankruptcy after losing a court case and being ordered to pay out US$24m to business partner Bill Zanker, chairman of the Learning Annex.

The settlement was ordered after a jury decided that Kiyosaki should pay a percentage of his profits to the Learning Annex from various speaking engagements that used its platform – including a high-profile gig at Madison Square Garden.

“I took Kiyosaki’s brand and made it bigger... 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’,” Zanker told the New York Post.

“This has taken years in court. I won even more money than I asked for from the jury, then he declared corporate bankruptcy. Oprah believed in him, and Will Smith believed in him, but he didn’t keep his promise to us.”

However, Rich Dad Co. CEO Mike Sullivan hit back, stating that Kiyosaki was still a successful investor.

“The dealings we had with Learning Annex were with a company that hasn’t been in business for a number of years,” he told the New York Post.

“I am not surprised Learning Annex is upset and angry, the money doesn’t exist in that company, and we can’t bring money out of the group.

“Robert and [wife] Kim are not paying out of personal assets. We have a few million dollars in this company, but not 16 or 20. I can’t do anything about a $20 million judgment…. We got hit for what we think is a completely outlandish figure.”

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Top Suburbs : redcliffe , albion , west wodonga , trott park , mt lawley

go back
Comments
  • Barney says on 19/10/2012 05:47:55 PM

    Wow, the irony. The guy who talks about making money fails to pay people money

  • Madeline Lu says on 22/10/2012 09:26:33 AM

    Probably how he made all his money - by not paying people! ha ha ha

Get help financing your investment



Do you need help finding the right loan for your investment?


When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here