Home MLM News Breaking News: Forbes Reports Robert Kiyosaki, Rich ‘Dad,’ Now Bankrupt Dad

Breaking News: Forbes Reports Robert Kiyosaki, Rich ‘Dad,’ Now Bankrupt Dad

by Troy Dooly

Robert Kiyosaki, author of the bestselling Rich, Dad, Poor Dad series of financial advice books, is offering his fans yet another lesson in how the rich are different than you and me: they file for bankruptcy not because of ill health or unemployment related issues, but instead as a strategic business move.

Rich Dad

Rich Global LLC, one of the corporate arms Kiyosaki has done business under, filed for bankruptcy protection in August, after it was ordered to pay just under $24 million to the Learning Annex and its chairman Bill Zanker.

Kiyosaki was one of the small-time wealth guru mountebanks who made it to the big-time in the aughts by telling his forever falling behind audience that they could get ahead, they just had not learned how. The schtick behind the Rich Dad books was that Kiyosaki was sharing secret money-making strategies of the wealthy with his wage slave readers. The tips ran the gamut from ridiculous to illegal and downright hurtful and included advocating for insider trading, arguing for the purchase of multiple real estate properties with little or no money down and telling followers they could purchase stocks on margin via unfunded brokerage accounts.

The Learning Annex was one of Kiyosaki’s earliest backers, and helped arrange a number of his most prominent speaking gigs in the early aughts. They were not alone. Oprah Winfrey had him on her show, and PBS ran his programming during their fundraising weeks.

So how did Kiyosaki, whom the website Celebrity Net Worth estimates is worth a cool $80 million, come to this pass?

Well, he didn’t come to any pass. He now conducts much of his business not via Rich Global LLC but under the rubrik Rich Dad Co. And it’s a corporate bankruptcy, not a personal bankruptcy. When the New York Post, which broke the story, tracked down Mike Sullivan, Rich Dad Co. CEO, he informed them that Kiyosaki would not be putting any of his personal fortune toward the settlement. As for Rich Global, Sullivan claimed it only had a few million in its coffers.

Of course, you could argue that Learning Annex CEO Zanker should have known better. No one has ever proven that Rich Dad, the man who supposedly gave Kiyosaki all his advice for wealthy living, ever existed. Nor has anyone ever documented any vast reserves of wealth earned by Kiyosaki prior to the publication of Rich Dad, Poor Dad in 1997.

Helaine Olen, Contributor

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11 comments

Luke Ryan October 23, 2012 - 11:17

Sounds like he has 80 million ,he is right that it more than his poor dad.

Marc Shamus October 20, 2012 - 22:03

At the end of the day, it is strictly just business. Regardless, on a personal note, I am grateful for the dozens of books his company published and for his 2 Cash Flow Games as they were really incredible to increase my Financial Intelligence and ability to read the bottom line of most financial situations I come across. I wish Robert well.

Clint Fix October 18, 2012 - 17:30

While Kiyosaki may teach some questionable strategies, I really appreciated his book The Cashflow Quadrant. I took a couple key parts out of that: Build a system to do the work for you, rather than trading time to make money. Basically his ESBI quadrant and the parable of the pipeline. I also respected his 3 keys to wealth that are buried on some page in the book: 1. Long term vision, 2. Delayed gratification, and 3. Utilize the power of compounding. This is teaching that can be found elsewhere, but kiyosaki did a great job of teaching it.

Charles Anderson October 18, 2012 - 14:43

Reads John T. Reed’s analysis of Robert Kiyosaki. Talk about an eye opener! It will blow your mind! You’ll wonder how so many people could have been so gullible. Of course, the same thing happened with the presidential election of 2008; so many
people were gullible.

GlimDropper October 15, 2012 - 23:51

Let me tell you a little story about a man named Russ Whitney. Russ was a giant in the “get rich quick” seminar scene for a long time. If you watched late night TV in the late 90’s or early 2000’s you probably saw some of his infomercials. Usually “how to buy real estate for no money down” but he had others as well.

His seminars were part “pump up the enthusiasm” and part high pressure sales pitch and no matter if you came for real estate advice or to learn about Russ’s computer software that would make stock market picks for you the seminars were only selling one thing, the next round of more expensive seminars.

Russ found himself getting sued, not only by a lot of his former customers who felt ripped off by the teaching they received at these high end seminars, but also by more than a few state attorneys general who agreed with those complaints.

Then the internet happened. All of a sudden anyone with the whit to ask questions before they plunked down 8, 10 or 15 thousand dollars could Google Russ’s name and fill hours of their time reading not only thousands of complaints but actual court records describing how Russ Whitney and his company did business.

These people tended to stop giving Russ their money and Russ’s company is publicly traded so he had some share holders to consider and the share holders weren’t happy.

So Russ not only had to change the name of his company but he also had to find a new face of the franchise so to speak. He did both of those things. The new face of Russ’s company is Robert Kyosaki and it’s new name is “Rich Dad Education.” But the number of customer complaints is still high enough to make one doubt they changed the way they do business.

nuri Burville October 17, 2012 - 17:02

Interesting story. Reminds us all to be careful how far and deep we go into any business involvement. I did a beginning “Rich Dad” RK seminar ($500. for 2 days at a hotel near home) and I know I got my money’s worth after the first hour ad a bag of books and DVD’s… however the cost of all the following seminars started with pretty spendy price tags so I took a pass. Frankly I think that people who go to seminars simply let their greed take over and they aren’t ready to do the real thinking that it takes to use the information that they already have. People don’t know that they should start slow and take it one step at a time, they want the guru “magic”.

John Counsel October 15, 2012 - 21:49

Without knowing the details behind the $24 million court order against RK, it’s impossible to know whether there was any illegal, immoral or unethical conduct involved… and by whom.

What was the $24 million for? Did RK scuttle his original company to deliberately avoid paying it? If so, why? And so on.

When a company or other corporate entity is unable to pay its debts, it gets wound up or it files for bankruptcy protection. Airlines have been doing this forever.

The article, which is blatantly biased, isn’t at all clear about any of this stuff. I’ll reserve any opinion until I know more about who did what to whom — and why.

Brandon Ivey October 15, 2012 - 11:14

All I know is the first time I read “Rich Dad, Poor Dad,” I was blown away. My eyes were opened to a way of thinking that I was not exposed to before and I am financially much better off for that information. For that I thank Robert Kyosaki.

John Benham October 14, 2012 - 02:08

I have always been leery of him and could never put my finger on why I felt that way. Call it intuition from being in the industry so long, I just don’t know. People were going crazy over him and I just didn’t see why.

His advice was very questionable then you heard all the rumors that there was no “Rich Dad”, and that it was all a work of fiction, and that he had a fraction of the wealth he claimed, it raised some serious doubt. He is motivational I will give him that, but with this news it seems there is more to the story.

Kelly Tolar October 13, 2012 - 17:05

Hmmm. 1 word. Hmmm.

Jesse Meyer October 13, 2012 - 00:01

And to think I actually read that book…

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