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http://abcnews.go.com/Business/rich-dad-poor-dad-author-files-bankruptcy/story?id=17463158#.UHqTVK6N6So
'Rich Dad, Poor Dad' Author Files for Bankruptcy for His Company
PHOTO: Robert Kiyosaki, the author of "Rich Dad, Poor Dad", recently filed for bankruptcy.
Robert Kiyosaki, the author of "Rich Dad, Poor Dad", recently filed for bankruptcy. (Amazon)
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By SUSANNA KIM (@skimm)
Oct. 12, 2012
Robert Kiyosaki, author of the book, "Rich Dad, Poor Dad" filed for corporate bankruptcy through one of his companies, Rich Global LLC.
Kiyosaki first published "Rich Dad, Poor Dad" in the 1990s, eventually becoming a New York Times best-seller despite criticism of his personal finance tips, such as his emphasis on real estate investing.
He went on to write a number of follow-up books such as "Retire Young, Retire Rich," and "Midas Touch," co-authored with real estate mogul and television personality Donald Trump.
Rich Global LLC filed for Chapter 7 bankruptcy protection on Aug. 20 in a Wyoming bankruptcy court, the New York Post reported this week.
Kiyosaki and his bankruptcy attorney did not immediately respond to requests for comment.
The company had been weighed down by a lawsuit filed by Learning Annex, one of Kiyosaki's earliest backers who had helped arrange his public speaking events earlier on, Forbes reported.
Bill Zanker, the founder and president of Learning Annex, sued Kiyosaki after he allegedly failed to pay a percentage of profits from his speaking engagements. A district judge in New York awarded Learning Annex $23.7 million.
"I took Kiyosaki's brand and made it bigger," Zanker told the New York Post. "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.' "
However, Kiyosaki isn't taking after his poor dad's title just yet. Though Rich Global LLC has filed for bankruptcy, he reportedly conducts business through a number of corporations, including Rich Dad Co.
Mike Sullivan, CEO of Kiyosaki's Rich Dad Co., told the Post, "The dealings we had with 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.
"Robert and [wife] Kim are not paying out of personal assets. 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."
Rich Global LLC's liabilities are nearly $26 million with assets of $1.8 million, according to its bankruptcy filing. Its biggest creditor is the Learning Annex due to its $23.7 million legal claim.
The meeting of creditors was held on Sept. 26 and the deadline for creditors to file claims is Jan. 2., according to the Executive Office for U.S. Trustees.
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