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Rich Dad, Poor Dad, Bankrupt Dad

October 12, 2012

Robert Kiyosaki, author of “Rich Dad Poor Dad,” has filed for Chapter 7 corporate bankruptcy with his Rich Global LLC company. He recently lost a $24 million court judgment to the Learning Annex, an early backer of Kiyosaki.

Read the NY Post for the details.

Forbes says that it won’t really dent his pocketbook, since — among other things — he operates as many as ten different companies aside from Rich Global LLC. It’s good business sense to separate his personal finances from his business finances, but ten companies? Doesn’t that sound like someone else we know?

[Editor’s note: Updated with link to a Forbes article on Kiyosaki]

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27 Comments leave one →
  1. Mike Collins permalink
    October 12, 2012 6:13 pm

    Kiyosaki is a fraud who peddles his books to charlatans and their gullible followers

  2. No Team For Me permalink
    October 12, 2012 7:36 pm

    Wait a minute……..didn’t someone write that Orrin & Crew lost a $25 million arbitration?

    so Orrin & Crew lose a $25 million judgement and keep right on rolling, but Kiyosaki declares bankruptcy with one of his companies losing a $24 million judgement. Although, I’m sure Kiyosaki will be okay since his money is shielded in so many corporations, just like Orrin’s.

    But hey, now Orrin will start claiming that George Guzzardo, Hubers, and Darkangelo’s bankruptcies were simply following professional strategies used by such experts as Robert Kiyosaki.

  3. Freedomhaha permalink
    October 13, 2012 6:44 am

    This raises the question for me: Has TEAM cult ever tied themselves to anyone credible that stuck with them? DeMille- Laughable credentials. Kiyosaki- Bankrupt

  4. RAQUEL PETERS permalink
    October 13, 2012 9:26 am

    Oh I wonder if they’ll keep showing the ESBI and then claim they never said Team or Life was residual income… Such liars. If I remember correctly Orrin or one of his leaders said something similar to me after they took our team and our Team income. I will have to look if I have it in written form. I remember Jammie telling me I didn’t deserve to be paid because I wasn’t around and then she even claimed people were.showing the plan wrong!!!! Oh yeah copying Chris, Orrin and George for years and years showing ESBI, and the ole pipeline, bridge building income, we were showing the plan wrong! Give me a break!!!

  5. dan permalink
    October 13, 2012 2:31 pm

    whats esbi?

  6. RAQUEL PETERS permalink
    October 13, 2012 2:43 pm

    ESBI is from Kyosakis book. Team explained E for employee, S for self employee, in both they said you trade time for money. if your not spiending your time your not getting paid. B for business owner and I for investor. Team claimed these people get their time back because they invest time to make money, they don’t spend their time. They use systems to make money, and they would claim it would pay you over and over whether you’re there or not. Of course they claimed they had a system to build communities and you could get your time back. Blah blah…of course Orrin owns the system and supposedly your business not you. They didn’t tell us that part.

  7. RAQUEL PETERS permalink
    October 13, 2012 2:44 pm

    k ideas are good. They just do not apply to team.

  8. October 14, 2012 11:06 am

    Well, I was surprised at first but as I think of it, he’s probably just as shady as the rest of them.

  9. freedomhaha permalink
    October 14, 2012 1:43 pm

    A team member retweeted something from Robert recently. Here is a shocker: His upline has also filed for bankruptcy. I guess they have the duplication part down.

  10. ageofwisdom51 permalink
    October 14, 2012 2:00 pm

    Hey, are you guys talking personal bankruptcy or business bankruptcy? I mean, even “the Donald” has been through business BK at least once.

  11. October 14, 2012 3:33 pm

    Robert K’s learning material are valuable information which you can apply in your own life. Another thing…be careful what you read in the newspapers and online media news. Remember the media likes to post bad or negative info and you first need to verify this information on your own before you believe it as the truth.

    Yes, even the great, rich and experienced ones can make mistakes. But they are usually the ones that can recover from it fairly quick, because of their knowledge and skills-sets.

    Also you have to be careful, cause there is such a thing called the “PARADOX OF MONEY”…which simply states that ….

    “the more money you make, the more opportunities you will be creating at exactly the same time..to lose it all.”

    The trick is to protect and preserve the money and the assets you have and are creating. This is done through gaining the right knowledge and skill-sets by investing in yourself first before you invest in any investment or business.

    Creating and Preserving your money goes hand in hand. You cannot really separate the two, cause once you do, your financial risk increases and you might end up paying huge penalties.

    Another Great mind when it comes to business and investments is Warren Buffet, and he says the following:

    ” Risk is the potential or ability to lose capital ”

    You can also define risk as being ignorant. If you want to invest or run a business but do not have the right knowledge and skill-sets, then you might also put yourself, your business and investment at serious financial risk.

    I can’t say if this article is true, but I know that in a business or investment you need to know exactly what and how it is operating in detail. In a business there can be systems, contracts, entities and partners involved and it is your responsibility to check, verify and analyze everything.

    There is a saying that goes….” Trust, but verify ”

    You see, most business owners and investors think that as long as their is growth, then they don’t need to worry about the other details. This might lead to financial downfall.

    It is NOT the growth..It IS the RISK that KILLS!

    You need to manage the risk down and once you do your growth also increases.

    Did you also know that the majority of people have been conditioned to follow the conventional business and investment strategies through which teach through normal learning channels. Yet, the majority of people simply cannot retire financially free, and statistics proves this. Why is this the case?

    Check out this website for more info on this: http://www.boundlessbeliefs.com

  12. RAQUEL PETERS permalink
    October 14, 2012 3:33 pm

    Wisdom- I believe it was personal bankruptcy. Credit cards and such.

  13. freedomhaha permalink
    October 14, 2012 4:30 pm

    I was talking about personal bankruptcy from the “leaders” in TeamCult.

  14. October 14, 2012 8:06 pm

    I have written the issue hundred times in my blog or comments so far. All motivational writers or financial freedom teachers do not own anything or any legit business apart from their own garbage teaching copywrites. Who cares, they even keep referring each others books and coming up with new books. Amway systems and these book writers are indeed in a mutual understanding of ‘you write the books I want and I can guarantee the sales to you’. And Amway systems anyway have ‘Book of the Month’ bullshit forever to do day-light robbery. I welcome comments in my blog too, as I really wanna see if there are any ‘pro Amway prospects’ who have their great opinion about what they do not know.

  15. October 14, 2012 8:07 pm

    When is Zig Zigler filing bankruptcy? Or is he already bankrupt or committed suicide?

  16. Finally permalink
    October 15, 2012 3:22 am

    Age it was personal bankruptcies of the team leaders we have all mentioned, Kyiosaki is business bankruptcy. I have read the public bankruptcies of the 3 of the team leaders and it was personal bankruptcy. Cullens, Darkangelos and Hubers……….Darkangelo had 250+K in credit card debt………Hubers had a bunch too…….sad but these leaders were all being promoted as financially independent and Huber was called a millionaire many many times…….Again, it is sad and tragic but what is worse is the lies and manipulations that come from these guy’s from stage about their business and the “results” they brag about.

  17. October 15, 2012 2:18 pm

    I stickied the TEAM LIFE Leaders’ bankruptcy post to the top of the blog. Read it again to refresh your memory.

    @freedomhaha – I’m glad that this site was able to help you break free from TEAM LIFE!

  18. musa Sewava permalink
    October 20, 2012 9:32 pm

    A book is an opinion of the author for you to share and forge your own opinion and actions.I believe Robert and all self help authors add alot to sharing of various ways others see the word.
    If you took all they say and acted like a robbot you would be responsible for your consequnces not them.We need more Kiyosakis and i will wait for a book from him to explain how he went out of this situation…It may also be a Best Seller!

  19. Melanie Morgan permalink
    October 21, 2012 1:16 pm

    Tez Williams~

    While I may agree with some of what you say. I would like to know Who or What organization is behind and runs the blog and link you provided and are they “selling” their information? Is that your personal blog and website?

    Thanks for the “free seminar” on your thoughts, beliefs and information. if you had’t put your name up as “Tez Williams” I might have thought you were Chris Brady or someone from the Team LIEF business.

  20. Melanie Morgan permalink
    October 21, 2012 1:46 pm

    Tez~

    One last question..Are you in an MLM, affiliated, or own your own? Interesting and unique name, never heard that one before, is that a real name, nick name or just one you came up with? 🙂

  21. Raquel Peters permalink
    October 21, 2012 2:33 pm

    Access your risk….. A distributors risk in Team Life is GREAT…… All one has to do is read Life P and P’s! Therefore run!

  22. Melanie Morgan permalink
    October 21, 2012 3:38 pm

    Raquel~

    Tez says: “I can’t say if this article is true, but I know that in a business or investment you need to know exactly what and how it is operating in detail. In a business there can be systems, contracts, entities and partners involved and it is your responsibility to check, verify and analyze everything.”

    This is some sound advice but he must not know HOW orrin operated and operates his MLM scam. Orrin manipulated and conned people into “JUST TRUSTING” him because he would NEVER do ANYTHING to HURT ANYONE’S Business! Then ripped them off blind!

    How do you “verify” how you are “paid” or read or even know what is in the “contracts” that you were never given or allowed to Read or told how you are paid!!?

    He knew it was going to catch him…so Orrin had an OH SH*T Moment…because he screwed a whole lot of Leaders that Trusted him out of years of efforts, their businesses and hundreds of thousands of dollars!! They probably had their typical PC pow-wow and made a mad dash to an MLM attorney to “protect and preserve” their love of everyone else MONEY that he stole by ripping off their businesses! The “new” contract was simply to Cover their A$$ then, and future.

    Their P&P is designed by and for a dictatorship.

    I doubt even the rest of the PC even know HOW or allowed to “verify” if their Pay is correct, they “just trust” the untrustworthy like we all did. Orrin messed with people’s pay in Profit-sharing and has his secret little formula he can change and screw people anytime he feels like it.

    This is for anyone reading, even Tez could throw his thoughts in, and those readers that are in Team LIEF profit-sharing or are being recruited in.

    **First….Who on the Planet doesn’t tell you how you are paid and then IF you question how you are paid do you believe you should be “voted out” because you asked?Take as long as you wish to answer. Then I dare ANYONE to ask Orrin how they are PAID and the information they can “verify” their continued pay is accurate, then come back and let us know, how that works out for ya!

    Absolute crook, imo.

  23. No Team For Me permalink
    October 21, 2012 6:32 pm

    Tez – I agree “you must verify information”.. I dare anyone to thoroughly read the Lifescam Policies & Proceedures. That alone, should be enough to keep everyone away. But then when you find how many major leaders who had acess to Orrin have all left Orrin and want nothing to do with his lack of ethics. Then when you realize how many thousands (probably hundreds of thousands) of people have been run through the various names of Teamscam over the years and only produced 7 PC’s? Then you look at the Darkangelo bankruptcy public documents and see one of the biggest leaders in all of Teamscam had over $200,000 of consumer debt within the past year or so.
    who in their right mind would want to be a part of such a mess?

  24. Raquel Peters permalink
    October 22, 2012 2:12 am

    Melanie- Love it!
    @20years of Team exaggerations/misrepresentations + ONLY 7 Current PC + the couples that hit PC that are no longer at PC = PRICELESS! Orrin always said to study the numbers…TEAM is hardly a proven system! I wonder if Orrin and the PC are working overtime to move teams around in LIFE to MAKE another PC to prove the critics wrong?

  25. Melanie Morgan permalink
    October 22, 2012 10:08 am

    Raquel~

    Here is a quote I grabbed:

    “Orrin has co-founded two multi-million dollar leadership companies and serves as the Chairman of the Board of the LIFE Business. He has a B.S. degree from GMI-EMI (now Kettering University) in manufacturing systems engineering. He holds four U.S. patents, and won an exclusive National Technical Benchmarking Award.”

    I know it has been a question before but it seems and this tells me that Team and LIEF are 2 separate companies and 2 separate sources of income. So wonder what the “pay-plan” is for Team and what it is for LIEF? Maybe Mike Collins or Brent Hansen knows?

    Wonder what he would owe all those people he stole their business from if he were made to do the right thing?

    Funny, I have no doubts he has a BS degree. 🙂

  26. Melanie Morgan permalink
    October 22, 2012 12:40 pm

    Perhaps the TEAM “multi-million dollar business” is for the good ole boys MONEY ONLY…the top 7?

    That would be my guess and not much of guess; based more on knowledge of these fraudsters actions and experience!!

Trackbacks

  1. Rich Dad, Poor Dad, Bankrupt Dad « AMTHRAX | Filing Bankruptcy

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