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Rich Dad Education Scam Class Action Lawsuit
By Kimberly Mirando
The creator and the companies behind the Rich Dad, Poor Dad empire have been hit with a class action lawsuit for allegedly using their “free” Rich Dad Education courses and $199 seminars on how to achieve financial success as a high-pressure “sales scam” to sell additional worthless courses for tens of thousands of dollars. Plaintiff Robert Crewe alleges in the Rich Dad class action lawsuit that Rich Dad Education’s “sales scam is built on a misleading three-tiered sales pitch where customers are sold increasingly expensive financial training programs using pressure tactics and false promises concerning the programs’ ability to produce financial results for trainees.”
Crewe says he paid $199 to attend a three-day Rich Dad Education training program on “Stock Success,” which was supposed to provide training and education in trading stocks. Instead, he says, the entire workshop revolved around trying to “up-sell ‘students’ into additional useless but more-expensive coursework and monitoring, which costs up to $64,899 per enrollee.”
Crewe says he did not receive any training or education on trading stocks as promised.
“Rich Dad Education workshops and training do not provide attendees with any financial education that leads to financial success or independence. Rather, they comprise an aggressive sales scam where attendees are encouraged to spend up to tens of thousands of dollars and encumber themselves with crippling debt to buy useless courses,” states the Rich Dad scam class action lawsuit.
Crewe is seeking costs and damages for breach of contract, breach of implied covenant of good faith and fair dealing, violation of the Florida Deceptive and Unfair Trading Practices Act, unjust enrichment, negligent misrepresentation, and fraud.
The Defendants in the Rich Dad Education Class Action Lawsuit are Rich Dad Education, LLC; Rich Global, LLC; Rich Dad Operating Co., LLC; Cashflow Technologies, Inc.; Tigrent, Inc.; Tigrent Learning, Inc.; Tigrent Brands, Inc.; and Robert Kiyosaki.
Updated November 21st, 2011
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18 thoughts onRich Dad Education Scam Class Action Lawsuit
Went to the three day training as well. The full first 3/4 of the first day was sales pitch. Not what I paid $1000 for. They did mention that you can get the course for as little as $70. They also gave false information. Specifically that credit card interest is simple interest and the AYP (annual yearly percentage) rate on a bank mortgage is a monthly rate. Even when pressed and corrected the trainer insisted that the bank was just lying to you. Banks may be interested in a libel suit as well. If there is a class action law suit I would love to join it. As subpoenaable evidence the trainer not only recorded himself, but also claimed the company recorded him (there were two cameras in the room).
I am in all of your boat. Is anyone responding to these comments that is willing to fight for us on a legal side??
I Just finished a 3-day course on Real Estate here in Vegas. Yes they offer additional “elite” courses for a substantial amount of money but most of the time was spent familiarizing the students in ways to make a potentially great living in Real Estate transactions. Although the cost of the higher classes were out of my range for the time being, Having some experience in Selling and renting properties, I did feel that the $300 3-day class was worth it. I learned about things I had never really considered doing.
Those thinking that by going to a weekend course they will become masters of Real Estate are naive. If you are smart you will take the things discussed during the classes and continue learning through more affordable means that meet your situation. If you are looking for a get rich quick system, this is not for you! It takes work and they let you know it. Not to mention I have learned this through personal experience.
Maybe those with poor experiences had poor teachers. Hopefully the quality has changed and this wasn’t a fluke. In past experiences a mentor has been helpful to me so I would also recommend finding someone successful to guide you… if you don’t get compensated financially consider the education.
I paid a total of $11000.00 in training for Rich Dad and I got NOTHING but useless old information. I don’t need Robert to “teach me to think differently” I already have that capability, I want my money back or I want to see to it that Robert is put out of business and EXPOSED!!!
Gina, I paid that same amount as well in good faith. I realized this was a scam. I agree Kiyosaki should be out of business. This is the same scam as Trump’s. Has anyone been successful in getting their money back?
I would also like to know if anyone got their money back. I paid over $9,000 for one course. (That’s more than it cost me to get my Associate’s degree, btw.) After I took the above mentioned course, I was talked into personal coaching which cost another $5,000 (I think… it was 2008, so my memory is a little fuzzy on the exact numbers). Anyway, during the coaching, I was encouraged to take the leap and invest in my first property. It was far to soon for me to take that plunge, and while I do take the majority of the responsibility for the mistakes I made, I also know that I wouldn’t have even considered doing this SO quickly if I hadn’t been pushed. I simply didn’t have enough information to run a real estate business successfully. When it was all said and done, I lost over $35,000, the investment properties, and my home, and had to file for personal bankruptcy.
They try to upsell an outrageously scam based pricing with no statistical breakdown as to who is going to be getting paid what from their sweat equity.
I attended the three day workshop. I learned tons of things. Including two ways to make money when the market is going down. I didn’t have the funding to continue so instead I found my own mentors and took what I learned from the workshop and now make a working wage from the market. They don’t pressure you at all, and I was being taught by one of Robert’s go to guy for stocks. If you thought this was a scam I am not even 30 and used the workshop to my advantage.
I am sitting at the class right now and this is definitely a scam. I agree with Bob Hamilton. I’m packing my bags and leaving. I did not learn anything in this workshop. Their ultimate goal is to talk you into signing up for their 65k programm! Beware!
Please no one sign up to this bs!! If you are going to be stupid find a better way to be stupid
Kiyosaki is absolutely running a scam! He’s been running it for years and he should be shut down and thrown in jail!! I suspect you are part of his organization pretending to be a student. Anyone who has had contact with Kiyosaki’s fake classes and tactics learns its a scam. Shame on you scumbag!!!!!!
I wonder who brings these un-just suits against such dedicated individuals??? I see a few errors in this report that are COMPLETELY mis-leading… I am a satisfied student of the “Rich Dad Scam”!!! The cost is not “Per enrollee” as stated above… I was able to take my partner which realy helped. The cost may seem high but with the help of our MENTOR.. Not Monitor… We have become successful WELL beyond our initial expectations. Attornys are trying to make a living with frivoulous lawsuits instead of doing the right thing. BS