'Rich Dad Poor Dad' author files for bankruptcy

Posted at 10/12/12 3:49 PM

MANILA, Philippines – In an ironic twist, the author of the bestselling financial help book “Rich Dad Poor Dad,” Robert Kiyosaki, has filed for bankruptcy.

This after one of his companies lost a $24-million court judgment, according to a report from the New York Post.

“Kiyosaki’s Rich Global LLC filed for bankruptcy after being ordered to pay nearly $24 million to the Learning Annex and its founder and chairman, Bill Zanker,” the report said.

“US district judge Shira A. Scheindlin in April ordered Rich Global to pay up $23,687,957.21 after a jury ruled Kiyosaki must give the Learning Annex a percentage of his profits after using their platform for speaking engagements, including a 2002 gig at Madison Square Garden,” it added.

Ostensibly based on his life, Kiyosaki’s “Rich Dad Poor Dad” book was published in 1994, and was followed by 11 others.

The New York Post report quoted Mike Sullivan, chief executive officer of Kiyosaki’s Rich Dad Co., as saying: “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 his 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.”