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(USGovernment-News.Com, October 15, 2012 ) San Francisco, CA- Robert Kiyosaki, financial-help author of “Rich Dad Poor Dad” has filed for bankruptcy protection following a New York City jury’s judgment against him.
The jury handed Kiyosaki a $24 million judgment against Rich Global LLC. The assets listed for Rich Global is $1.8 million against liabilities measuring over $25 million of the Aug. 20 filing in U.S. Bankruptcy Court in Wyoming. A large portion of the liability was reflected in the summer ruling, while the remaining amount is interest accrued. The judgment was made in favor of Learning Annex Holdings and founder Chairman Bill Zanker.
The dispute was centered on work Learning Annex stated it performed for the purpose of producing a seminar for Rich Global. New York-based learning Annex is a company that produces courses that bring in speakers like Donald Trump and Deepak Chopra.
Zanker stated that he met Kiyosaki when he was an “unknown author” speaking at “Holiday Inns to group of 20 or 30 people.” Zanker claims he helped promote Kiyosaki and took him “All the way to Madison Square Garden, where he spoke in front of thousands,” before Kiyosaki reneged on the payment agreement.
Shane Caniglia, president of a sibling company, Rich Dad Co. stated that Rich Global has been stagnant for more than two years. “The Rich Dad Co. is not filing for bankruptcy,” he said. “The Kiyosakis are not filing for bankruptcy.”
A 2011 jury awarded $14.6 million in damages to the Learning Annex, however the court then granted a new trial. A second jury awarded nearly $16 million in April of 2012. Zanker admitted the final $24 million judgment in favor of his complaint was more than he originally sought.
The two companies’ relationship dated by to 2001, where Kiyosaki became a speaker at the Learning Annex exposition. After for years, the companies agreed to “develop and conduct the free seminar business with follow up free-based courses,” says the court papers.
The Rich Global company reportedly broke off the relationship five years after the start of the relationship and joined with the Whitney Education Group for seminar business work. That partnership netted $438 million in sales, of which the Rich Global company saw nearly $45 million of in royalties, according to court documents.
Zanker believes Rich Global had much higher assets. “So we’ll fight the bankruptcy court to find out what happened to all that money.”
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