'Rich Dad, Poor Dad' Author Files for Chapter 7 Bankruptcy

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Robert KiyosakiBy Jill Krasny

Robert Kiyosaki, author of the bestselling "Rich Dad, Poor Dad" series, has filed for Chapter 7 bankruptcy protection after losing a nearly $24 million court judgment to The Learning Annex, The New York Post reports.

As one of Kiyosaki's earliest backers, The Learning Annex was responsible for arranging the speaking engagements and platform that led to his massive success.

But apparently the fame went to his head because according to court papers obtained by the Post, Kiyosaki, who published his first "Rich Dad" book in 1994, never paid the Annex its rightful share. Said founder and chairman Bill Zanker: "Oprah believed in him, and Will Smith believed in him, but he didn't keep his promise to us."

Kiyosaki's Rich Global company was ordered by a U.S. judge in April to cough up $23,687,957.21, which in turn led him to file for corporate bankruptcy on Aug. 20.

Despite the blow to the personal finance guru's reputation, Kiyosaki probably won't feel the pinch in his wallet. Forbes pegs his net worth around a cool $80 million, and Kiyosaki, who's written 11 books, operates as many as ten other companies. Rich Global was said to be worth a few million when it went under.

Rich Dad, Poor Dad became an overnight sensation when Kiyosaki made the rounds on feel-good daytime TV like "Oprah" and aired his speaking programs on PBS. Cash-strapped consumers identified with his inspirational story of learning how to manage money from a father who struck it big and another other died penniless and alone.

However, not everyone bought into the schtick. As Helaine Olen wrote in Forbes Thursday, the guru's "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."

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36 Comments

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gerald.prentice

Looks like this is just the top of the iceberg for Mr. Kiyosaki. One of his advisers has been caught doing a $100 Million ponzi scheme with information backed by Robert.

SEC Release - http://www.sec.gov/news/press/2012/2012-119.htm

October 15 2012 at 6:20 PM Report abuse rate up rate down Reply
gerald.prentice

Looks like this is just the top of the iceberg for Mr. Kiyosaki. One of his advisers has been caught doing a $100 Million ponzi scheme with information backed by Robert. Check it out -

SEC Release - http://www.sec.gov/news/press/2012/2012-119.htm

October 15 2012 at 6:20 PM Report abuse rate up rate down Reply
gerald.prentice

Looks like this is just the top of the iceberg for Mr. Kiyosaki. One of his advisers has been caught doing a $100 Million ponzi scheme with information backed by Robert. Check it out -

SEC Release - http://www.sec.gov/news/press/2012/2012-119.htm

Youtube video - http://www.youtube.com/watch?v=nzvTyCHHBi8

Check out page page 17 - http://www.bzkpress.com/pdf/2012-Releases.pdf

October 15 2012 at 6:20 PM Report abuse rate up rate down Reply
ilm9p

One of the only absolutely, sure-fired, guaranteed, way to make a quick buck on Wall Street is to find one on the floor of the subway toilet. Another way is to write books about an absolutely, sure-fired, guaranteed, way to make a quick buck on Wall Street; Namely finding one on the floor of the subway toilet.

October 15 2012 at 7:27 AM Report abuse rate up rate down Reply
Raymond

I do not like the way this story was written. From the title, to the end this report sounds completely biassed. When are we going to read a story written by a real journalist, without bias spindoctor tendoncies?

October 14 2012 at 11:02 PM Report abuse -1 rate up rate down Reply
Tucker

What low-class, unsubstantiated, biased journalism! Not only is the title incredibly misleading (one of his companies went under, it's not a personal bk), but the connection between his message of cash flow over instant gratification lacks even a tenuous connection to a business disagreement that ended in a lawsuit. The author should be ashamed of putting her name on this article.

October 14 2012 at 5:52 PM Report abuse -1 rate up rate down Reply
deesd5

******* crook

October 14 2012 at 3:41 PM Report abuse rate up rate down Reply
deesd5

******* crook

October 14 2012 at 3:41 PM Report abuse rate up rate down Reply
deesd5

shitbag crook

October 14 2012 at 3:38 PM Report abuse rate up rate down Reply
deesd5

shitbag crook

October 14 2012 at 3:37 PM Report abuse rate up rate down Reply