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 organise 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.
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 to us,” Zanker said.
Mike Sullivan, CEO of Kiyosaki’s Rich Dad Co., told reporters Kiyosaki would not put personal assets towards the judgment and claimed the judgment 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.