Rich Dad Poor Dad author goes into Chapter 7 bankruptcy! Link

I think this is more like his company (1 out of 10+) files for bankruptcy, not Robert Kiyosaki personally.

pretty much, the lawsuit can make a lot companies go under

Oprah has made so many careers. It's unreal.

Why doesn't he just ask Rich Dad how to make money?

poor dad probably trying hard not to enjoy some sick schadenfreude right now

I like this. The guy is a terrible scammer and deserves bad things happening to him.

I've only casually heard about this but from the little I know there will almost certainly be an attempt to pierce the corporate veil and a pretty good chance it will be successful.

While Oprah did endorse the book and that was huge Amway was also a big part of it. Kiyosaki endorsed Amway (despite that people still took advice from this ******) and Amway made his books required reading for all the suckers who got pulled into Amway.

I don't know a ton about it, but my dad has worked in 3 different companies all started by the same guy after selling a previous one, and starting another.

The 2nd one he raised bunch of money, flew around the country in private jets looking at companies to buy (business model was buy xyz company, fix it, then flip it) and never bought anything. He leased office space in downtown Chicago and got them to do 100's of thousands of dollars on remodeling/furnishing.

When nothing happened with the company he bankrupted it and just started another one, leaving everyone else owed money to holding the bag.

Again, not sure how all this plays out but with the right set up and a good attorney on your shoulder I'm pretty confident you can have multiple companies that are successful and bankrupt one and not be responsible personally.

Always been curious about this though.

Strategic corporate bankruptcy.

It used to be a lot harder to pierce than it is now although this will vary by jurisdictions. There are several ways to accomplish this and often it focuses on the owner no respecting the dichotomy between corporation and personal or not completing the formalities required. I have no idea if Kiyosaki did any of that and I actually would say he likely didn't. The courts will also make you personally liable if the purpose of the corporation was to avoid liability. From what I've read it appears that was Kiyosaki's intent. I have no idea if the Learning Annex is going to attempt this but I suspect they will since the amount of money makes it worth taking the shot.

At a minimum this is bad publicity which will hopeful reduce his ability to scam people in the future.

If Kiyosaki practices what he preaches in his book "Loopholes for the Rich" about totally separating the Corporation from Self then there is probably no opportunity to pierce the "corporate veil" in this case.

He's got at least 11 corporations from what is presupposed by the article and is probably very strict in terms of corporate veil piercing defense.

The only way the business that got sued could have liabilities that-- even before the judgement-- greatly exceed assets is if stuff was transfered out. Transferring assets to another corporation with the intent of frustrating creditors can be grounds for piercing the corporate veil.

This. All American icons of business have done this several times (Trump etc). I know Kiyosaki will bounce back better than ever though. I know I am rooting for him. His book Wish it, want it, do it really changed my life.

I think you're confusing him with noted author Brian Griffin.

Why is everyone calling him a scammer? Has he actually been implicated in fraudulent scams or is everyone just calling him a scammer because they think he overcharges for the services he provides?

He is a scammer for selling bad advice as good.

the thing is its often hard to tell the difference between a well intentioned ignorant person and a scammer

in his books he is totally hilariously open about stuff. his book on investing reads as follows:

-in order to be an investor you must start a business
-i started a business it failed and made me broke
-luckily i learnt from my mistakes and started another business writing books on how to start successful businesses, like this book you are reading right now

its pretty amazing really

btw i did think there was some value in his original book

like he is saying incredibly obvious stuff, but he writes in way that can be understood by pretty much anyone, and its stuff that a lot of people have never thought about.

He's not a scammer. He's just another guru, giving basic 101 info and making it out to be some secret formula.

And like other gurus, he has made his money by being a guru, not through is amazing advice.

It goes beyond that. CBC Marketplace infiltrated a Rich Dad Poor Dad seminar in Canada. The person doing the presentation claimed to have made some ridiculous high amount ($30 million if memory serves me right) from applying the Rich Dad Poor Dad system to a mobile home park. The property doesn't even exist. The while thing was just made up.

There best part is that the presenter tells people that they need to charge home renovations to credit cards and that they can't make money from real estate if they don't. I don't consider myself a RE expert but that obviously makes no sense. They actually pause the seminar and have people call their credit card companies so that they can ask for credit increases. The advice makes absolutely no sense unless you frame it as they want you to have credit available for then they pressure you to buy $50,000 seminars at the end.

The show eventually confronts Kiyoaski who basically admits to the problems but makes up a bunch of excuses and blames rouge presenters.

Beyond that I've only casually flipped around his books but never read one completely. I've also seen his advice discussed by fans. It is by far the worst advice you could give anyone. A lot of it is harmful which means that even for free it is a bad deal but charging people $50,000 for it is just criminal.

Even origins of the book is a lie. Originally the claim was that Rich Dad was a real person. Anyone with half a brain could see that wasn't the case and since then I believe he has admitted that Rich Dad does not exist.

To those who do not have basic 101 knowledge (a very large portion of individuals) his books are amazing advice. Not sure why some here are giving him so much heat as one poster already credits him with changing his life.

That person was confused. He was thinking of someone else. Kiyoaski is a pure scam.

You go to a free seminar and they pressure you to sign up for a $500 seminar.

You sign up for a $500 seminar and then they spend three days pressuring you to sign up for a $45,000 seminar. During that seminar they pressure you to increase your credit limit because you need that for RE renovations. They lie to you about the deals they have made to get you to sign up for a seminar.

It turns out that Rich Dad seminars are offered by Whitney Information Network / Whitney International which are known scammers that have been involved with get rich quick schemes since way before Kiyoaski wrote anything. I just re-watched the Marketwatch expose and the ending with Kiyosaki admits that there are major problems with his seminars and that he knows about it is funny as hell. He blames it on a partner of his and that he never wanted to do it but now he is contractually obligated to scam people.

He's at least a pretty big liar, and IYAM using lies to get people to buy your stuff is a kind of scam.

I think your joke is going unnoticed by others (it's a Family Guy reference).