'Rich Dad, Poor Dad' author files for bankruptcy

[REWahoo]

Who would have ever guessed...

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...

'Rich Dad, Poor Dad' author files for bankruptcy - Money - TODAY.com

 

[NW-Bound]

His corporation filed chapter 7 due to a contractual lawsuit, but he is still OK.

 

[ShortInSeattle]

Who would have ever guessed...

'Rich Dad, Poor Dad' author files for bankruptcy - Money - TODAY.com

Looks like he failed to pay his business partners, and now that they won in court he's using a "business bankruptcy" to shelter his income and still not pay the bill.

If true, quite shady indeed.

SIS

 

[bssc]

Bad article because it does not do a good job distinguishing between the Rich Dad Corporation that filed Chapter 7 and the author.

I thought Forbes, which was referenced, had a better analysis of why this was strategic. Rich Dad, Poor Dad, Bankrupt Dad? - Forbes

 

[pb4uski]

Looks like he failed to pay his business partners, and now that they won in court he's using a "business bankruptcy" to shelter his income and still not pay the bill.

If true, quite shady indeed.

SIS

+1 I never liked the guy anyway - he seemed to be a flake to me.

 

[frayne]

+1 I never liked the guy anyway - he seemed to be a flake to me.

My thoughts exactly, a huckster of sorts.

 

[NW-Bound]

I heard of him, but never read any of his writings, nor watched him on TV. Thought I would check his book out to satisfy my curiosity, but kept forgetting, just like with so many other financial "gurus".

I thought he was touting mostly real estate, but that was apparently not. I guess I won't bother now, after reading some more of the links above.

 

[Nords]

Kiyosaki's experiences remind me of that ancient Hawaiian saying:

"Karma's a bitch."

Bankruptcy means depositions and statements under oath, right? I bet the state and the IRS are wondering about this particular corporation's tax compliance as well.

Sounds like a good research opportunity for his upcoming book "Rich Dad, Indicted Dad".

 

[foxfirev5]

As with most Guru's it's mostly a bunch of BS expanding upon a simple idea. They feed off our need for more information to confirm or validate what we already know. The bankruptcy issue takes me to another level which will surely raise my blood pressure. Just because something is legal doesn't mean it's right.

 

[Midpack]

Kiyosaki's experiences remind me of that ancient Hawaiian saying:

"Karma's a bitch."

That's a new one...

 

[HFWR]

Sounds like a good research opportunity for his upcoming book "Rich Dad, Indicted Dad".

 

[growing_older]

So, he had a deal with another company to promote him and they did. Then he refused to honor his WRITTEN commitment. A lawsuit followed and the obligation was upheld (twice actually), he does indeed owe the money. But because he segregated all his interests into multiple LLCs he can say that one is bankrupt and will not pay the judgement, but I get to keep all the money I made from it and the others that are supposedly separate independent entities (despite the fact that are all run by him and all related to his Rich Dad empire) because of the legal fiction that they are independent companies. The soon to be bankrupt company has virtually no assets, despite over $400 million sales and $45 million royalties received, but holds millions is receviables from Kiyosaki himself and so far no evidence where the money went.

This is "business" but it seems dishonest. He was also sued by his original co-author and settled that one privately. The guy always seemed like a huckster, but these cases of asset hiding and refusing to pay his obligations seem more than just greedy and opportunistic. He starts to sound criminal.

 

[foxfirev5]

So, he had a deal with another company to promote him and they did. Then he refused to honor his WRITTEN commitment. A lawsuit followed and the obligation was upheld (twice actually), he does indeed owe the money. But because he segregated all his interests into multiple LLCs he can say that one is bankrupt and will not pay the judgement, but I get to keep all the money I made from it and the others that are supposedly separate independent entities (despite the fact that are all run by him and all related to his Rich Dad empire) because of the legal fiction that they are independent companies. The soon to be bankrupt company has virtually no assets, despite over $400 million sales and $45 million royalties received, but holds millions is receviables from Kiyosaki himself and so far no evidence where the money went.

This is "business" but it seems dishonest. He was also sued by his original co-author and settled that one privately. The guy always seemed like a huckster, but these cases of asset hiding and refusing to pay his obligations seem more than just greedy and opportunistic. He starts to sound criminal.

Yep, over and over again we hear these stories. Where has INTEGRITY gone?
I been in sales for over 35 years and this behavior disgusts me. I deal with new sales people on a daily basis and tell them it's not that tough, you always know what the right path is with each situation.

 

[veremchuka]

This guy is a jerk. A few years before I retired he had an article on some financial website about how you should never put money into a 401k. I can't remember his reasoning, that's a euphemism for his bull $hit, but it was totally absurd. He did say that you should only buy real estate. I was dumbfounded reading that crap thinking how I was a year or 2 from retiring and I did it by investing in my 401k. Too bad he isn't broke.

 

[FUEGO]

So, he had a deal with another company to promote him and they did. Then he refused to honor his WRITTEN commitment. A lawsuit followed and the obligation was upheld (twice actually), he does indeed owe the money. But because he segregated all his interests into multiple LLCs he can say that one is bankrupt and will not pay the judgement, but I get to keep all the money I made from it and the others that are supposedly separate independent entities (despite the fact that are all run by him and all related to his Rich Dad empire) because of the legal fiction that they are independent companies. The soon to be bankrupt company has virtually no assets, despite over $400 million sales and $45 million royalties received, but holds millions is receviables from Kiyosaki himself and so far no evidence where the money went.

This is "business" but it seems dishonest. He was also sued by his original co-author and settled that one privately. The guy always seemed like a huckster, but these cases of asset hiding and refusing to pay his obligations seem more than just greedy and opportunistic. He starts to sound criminal.

During bankruptcy I bet Kiyosaki will learn a little about preferential transfers and fraudulent conveyances. Maybe the trustee can claw back a couple bucks to help pay some of that $24M judgment.

What a crooked fellow...