If you’re guilty of being seduced by the bestselling Rich Dad Poor Dad concept, don’t feel bad. There are — this writer will bet on it — thousands of other impressionable Americans in your shoes who have yet to figure out these recommended money-making strategies, which include buying real estate with no money down.
Robert Kiyosaki’s company, Rich Global, LLC, recently had to file bankrupty, after losing a $24 million judgment to The Learning Annex and its founder and chairman Bill Zanker.
The Learning Annex was an early backer of Kiyosaki and U.S. District Judge Shira A. Scheindlin in April ordered Rich Global to pay up $23,687,957.21. A jury ruled Kiyosaki needed give the Learning Annex a percentage of his profits after using their platform for speaking engagements, including one in 2002 at Madison Square Garden. Rich Global filed for bankruptcy in Wyoming on Aug. 20.
Zanker tells the New York Post, “I took Kiyosaki’s brand and made it bigger. The deal was I would get a percentage, and he reneged. 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.’ ” 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.”
Kiyosaki published Rich Dad Poor Dad in 1994, and has since written 11 other books; his personal net worth is $80 million — which will not affected by the bankruptcy or the judgment.