Friday, October 12, 2012
Rich Dad, Poor Dad now a bankrupt dad: Best-selling author files for corporate bankruptcy after losing $24m judgement
The financial guru behind 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
'I took Kiyosaki's brand and made it bigger. The deal was I would get a percentage and he reneged,' Zanker said.
'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.'
Rich Dad, Poor Dad, has sold over 26 million copies and earned Kiyosaki widespread fame as a financial commentator and celebrity fans.
The phenomenon: Kiyosaki's book Rich Dad, Poor Dad catapulted him to stardom selling millions of copies and inspiring a new musical in Shanghai this fall
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 to us,' Zanker said.
Mike Sullivan, CEO of Kiyosaki's Rich Dad Co., told reporters Kiyosaki would not put personal assets towards the judgement and claimed the judgement was far more than Rich Global LLC's value.
'The dealings we had with the Learning Annex were with a company that hasn't been in business for a number of years,' Sullivan said.
'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 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.'