Filing for bankruptcy is a legal way of proclaiming that you are unable to pay your bills/debts. It generally is not a good thing but sometimes it must be filed for in order to allow the insolvent (a person who is racking up more in interest charges than they are able to pay) relief from creditors. The financial guru and author of New York Times bestseller 'Rich Dad, Poor Dad' has filed for bankruptcy on one of his companies after losing a $24 million judgement. This April, Robert Kiyosaki's Rich Global LLC was ordered to pay $23,687,957.21 to the Learning Annex and its founder and chairman, Bill Zanker. Kiyosaki had used the Learning Annex platform to organize several high profile speaking engagements, including a 2002 appearance at Madison Square Garden.
A U.S. District Court jury ruled Zanker and the Annex were entitled to a certain percentage of the profits from those engagements. Zanker told the New York Post he was responsible for making Rich Dad, Poor Dad into the global name it is today.
He took Kiyosaki's brand and made it bigger. The deal was that Zanker would get a percentage.
Zanker and Kiyosaki signed a letter of intent. The Learning Annex is the greatest promoter. They promoted 'Rich Dad' brand on a stage and truly prepared Kiyosaki for great fame and riches. But when it was time for him to pay up, he said no.
Rich Dad, Poor Dad, has sold over 26 million copies and earned Kiyosaki widespread fame as a financial commentator and celebrity fans.
Will Smith said he was teaching his son about financial responsibility by reading the book and Oprah Winfrey endorsed it on her show.
Even Donald Trump liked his advice, co-writing the book Why We Want You to be Rich with Kiyosaki in 2006.
The book is so successful it's inspired a musical, Women Must Have Money, to be staged in Shanghai this November.
'Oprah believed in him, and Will Smith believed in him, but he didn't keep his promise with his Business partners.
Digital Journal Reports. (The Complete Details)
Personal finance guru and author of the New York Times bestseller "Rich Dad, Poor Dad," Robert Kiyosaki, has filed for Chapter 7 bankruptcy protection for one of his companies Rich Global LLC, after loosing a $24 million judgment to Learning Annex.
According to the New York Post, Kiyosaki's Rich Global LLC filed for Chapter 7 bankruptcy protection on August 20 after he was ordered to pay nearly $24 million to Learning Annex and its founder/chairman, Bill Zanker.
US District Judge Shira A. Scheindlin in April, ordered Rich Global LLC to pay $23,687,957.21 after a jury ruled that Zanker and his firm Learning Annex, were entitled to a percentage of the profits accruing to Rich Global LLC. According to Forbes, Learning Annex was one of Kiyosaki's earliest backers. Kiyosaki's Rich Global LLC reportedly used the platform of Learning Annex for some high profile speaking engagements, including a 2002 appearance at Madison Square Garden and on Oprah Winfrey show.
According to the Daily Mail, the US District Judge Scheindlin, ruled that Learning Annex was entitled to a certain percentage of the profits from the speaking engagements it helped Kiyosaki obtain. The New York Post reports that Zanker said he and his firm were directly responsible for the success of Kiyosaki's book, "Rich Dad, Poor Dad."
Zanker said: "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. 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."
Zanker continued: "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's 1994 book, "Rich Dad, Poor Dad," became a hit with millions of people looking to rely on his guidance in issues of their personal finances. His book took inspiration from a story of the good financial advise he got from a fictitious rich "father" in contrast to the bad financial advise he got from a fictitious poor "father."
Although he became personal finance guru to millions, he was harshly criticized by others. Forbes' Helaine Olen, for instance, wrote of his "tips [that] 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."
Since he published “Rich Dad Poor Dad” in 1994, Kiyosaki has written 11 other books. ABC News reports his books include, "Retire Young, Retire Rich," and "Midas Touch," which he co-authored with real estate mogul Donald Trump. Trump also co-authored a book "Why We Want You to be Rich" with Kiyosaki in 2006.
According to the Daily Mail, Mike Sullivan, CEO of Kiyosaki's Rich Dad Co., told reporters that Kiyosaki declared bankrupt because he would not put his personal assets towards the judgment. He said the judgement was far more than the value of Rich Global LLC.
According to the Daily Mail, Sullivan said: "The dealings we had with the Learning Annex were with a company that hasn't been in business for a number of years. 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. We got hit for what we think is a completely outlandish figure."
The bankruptcy does not mean that Kiyosaki has gone personally bankrupt. On the contrary, he only made a business move to protect his personal and business assets outside Rich Global LLC. Companies file for bankruptcy when their liabilities are in excess of net realizable value of assets. Kiyosaki, in a business move to protect himself from the full impact of the judgment, has simply moved from doing business under the name of Rich Global LLC to doing business under the name of another company that he owns, Rich Dad Co.
ABC News reports that according to bankruptcy filing, Rich Global LLC's assets are $1.8 million, as against liabilities of nearly $26 million. Learning Annex is the company's major creditor with a claim of $23.7 million.
According to MSNBC, Forbes has estimated Kiyosaki's personal wealth at about $80 million.
Sullivan added for the benefit of Kiyosaki's fans who may think their guru had gone personally bankrupt: “Robert and Kim (wife) are not paying out of personal assets."
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- Vivian Oghenekaro and Polycarpz Igboon like this.
- Showunmi Olawale Michael · 6 mutual friendsI haven't read his book but with this, it's a big dissapointment that he failed to practice what he stood for in his book ' Rich Dad Poor Dad.
- Yahaya Sifau Lami I tot he is a master planner when it comes to financial mgt.This is a lesson to all alwayz give God the glory n never attribute ur fame n success in life to ur smartness n intelligence
- Polycarpz Igboon @Endy,
Robert is a financial guru no doubt,but he is greedy too why?
For your info;...See More - Polycarpz Igboon @Endy,
Robert is a financial guru no doubt,but he is greedy too why?
For your info;...See More - Polycarpz Igboon @Endy,
Robert is a financial guru no doubt,but he is greedy too why?
For your info;...See More - Polycarpz Igboon We dont practice what we preach!!!
Why?
U wanna make a whole lot of money for yourself alone?...See More
