Rich Dad Education Scam? Yes It Is In My Opinion!
Robert Kiyosaki under his Rich Dad brand has been running financial training in the United States, Canada, and the United Kingdom. Marketplace Canada did an exposé of Rich Dad Education in 2010. Kiyosaki acted like he was concerned about what was happening in his training at the end of the exposé. Let’s take a look at how things have changed since 2010 for Rich Dad Education.
In 2010 the following problems were found with the Rich Dad Education in the Marketplace Canada exposé:
- Free Class – It is just a sales pitch for the 3 day class.
- 3 Day Class – It is mainly a sales pitch for more expensive additional training and is used to expand your credit so you can buy the additional training.
- Expensive Additional Training – It provides information that is not useful or too complex.
Here is a students experience with the Rich Dad Education scam in 2011 and 2012:
I purchased a program from Rich Dad Education for a huge sum of money and shortly thereafter discovered a major discrepancy between the claims made by the sales department & the product they actually sold. The marketing strategies at the seminar & what I now know to be a sales pitch by an assistant helped me make the decision to buy a two-year ”education” package from this company, a decision I regret.
I have attended multiple educational institutions, including online, and was also considering obtaining my master’s degree, so their program did not seem unreasonable. I was prepared to do the work necessary to be successful. Because of the words ”education” and ”learning” in the titles, and the content in the three-day seminar, I believed I was investing in a program that would give me knowledge and skill in a subject at which I wanted to become proficient.
The sales assistant was well aware of my circumstances and assured me the package twice the price I was considering was the best package & could be made up in six months because of the company’s excellent training. I doubled this time frame to give myself room to learn. I was aware of the sales tactics employed throughout the seminar but I didn’t believe a company sponsoring education would use manipulative methods to gain prospective students, so I focused on the information that would help me make the best decision. I later discovered that even the best trader in the company would not be able to make up the fees in a year with an account my size!
It is impossible to evaluate this company’s products in the three-day refund window referred to in the contract. The accompanying ”books” (which are mere copies of the power point presentation in small print) do not even arrive for several weeks.
I believed this company would fulfill its obligation to meet the pledge given at the seminar. Once the classes ensued, however, it was evident this was not a program with a curriculum or a system with any kind of protocol, but simply a set of online “classes” taught by people of various trading skill who may or may not be able to teach. There are no standards or training criteria for the instructors. In fact, the company has allegedly hired professionals multiple times to help them create a learning environment but the traders will not adhere to the advice. They each teach their own method, do not follow up on what other instructors teach, & even criticize students for asking questions evoked from the other trainers!
I was also strung along & treated in a passive-aggressive manner, which is shocking to me for a supposed professional system & for the money I paid. I had asked via email & chat where to place stop losses countless times. The reply I received after a year & a half was this: ”It is not my job to tell you where to put your stop losses. You need to make that decision on your own. No one in this company has ever taught you where to put stop losses.” The truth is, my first instructor taught where to put them but no other trainer was able to follow-up on this simple concept.
I informed the company I was struggling & going farther into debt because of them. I was told I would need to spend more money & eventually routed to student services. I was promised “help right away” (which actually came 4-5 months later), help with a “plan to pay down my credit cards” (which we never talked about), & help with the disinformation I was given after my first class. This was also never addressed.
After spending 12-15 hours a day my 1st year and 8-10 hours my second year, learning & un-learning & re-learning, trying to get what this company failed to teach, I was exhausted & sent a message to my mentor. This was his reply (in all cap’s): “YOU DIDN’T LISTEN TO A WORD I SAID. YOU IMPULSE TRADE, YOU DO YOUR OWN THING. YOU COULD HAVE DOUBLED YOUR ACCOUNT BY NOW IF YOU HAD DONE WHAT I SAID.” This is untrue & actually opposite of my experience with him & the company in general. – Source BBB Complaint
On July 2, 2012, a Consent Agreement and Final Order was entered finalizing the Florida Attorney General’s action against the company, alleging violations of Florida’s Unfair and Deceptive Trade Practices Act (Case Number 2012-CA-8543-O, filed in the Circuit Court of the Ninth Judicial Circuit in Orange County, Florida). The terms of the Consent Agreement are:
- The company can only use consumer endorsements that accurately depict the actual experiences of the consumers’ who have used the company’s products or services;
- The company may not use any consumer endorsement that does not accurately depict the experiences that are representative of those that consumers usually achieve from the use of the company’s products or services;
- The company must clearly disclose the total price of the products and services the consumer cited in their endorsement which the consumer received for free or at a discounted price not regularly available to all consumers;
- The company cannot engage in deceptive price comparisons;
- The company must maintain a list of all products and services related to real estate investment education and will clearly disclose the list on any website or person-to-person advertisement it uses to advertise its services related to real estate investment education;
- The company must pay $194,897.83 to consumers identified by the Florida Attorney General’s Office; and
- The company must pay $500,000.00 to the Florida Attorney General’s Office as reimbursement for costs and fees incurred.
In agreeing to the Consent Agreement and Final Order, the business made no admission that it engaged in any wrongdoing or committed any violation of the Florida Statutes or any other law, rule or regulation. – Source BBB
Here is a description of the one and three day training offered by the Rich Dad Education scam during 2011:
On March 7, 2011, Robert Crewe received an email from Rich Dad Education. The email advertised a free Stock Success Workshop. The email promised that workshop attendees would “discover how to ‘Manage Your Own Money’ and ‘Protect Your Profits & Reduce Your Risk.’”. The email also promised that “This 2-hour workshop can teach you how you can trade better – safer – smarter…even if you’ve never bought or sold stock before!”.
During the workshop, they did not teach Robert or the other attendees any “wealth building techniques.” Instead, they broadly discussed “assets and liabilities,” identifying “ignorance” as the chief liability and “education as the chief asset,” and they repeatedly pitched attendees to enhance their “education” by enrolling in a three-day Rich Dad Education Stock Success training program later that month.
WHAT YOU’LL LEARN AT THE STOCK SUCCESS TRAINING . . .
This intensive, 3-day Training curriculum focuses on establishing you as an educated investor. . . . By employing numerous strategies, you’ll learn how you can create profit potential in every type of market. . . . By raising your financial IQ, you’ll be able to use one or several trading strategies to meet your specific goals and achieve your idea of financial success. . .Regardless, you’ll leave the STOCK SUCCESS Training Academy armed with the knowledge and confidence to get started in the trading business. – Source Stock Success 3-Day Training Pamphlet
Between March 31, 2011, and April 2, 2011, Robert Crewe attended the three-day training program, at the Marriott Downtown Hotel in New York City. The trainer held himself out as a “former financial advisor who is currently a professional, full-time trader and a market expert.” The three-day program did not provide Robert Crewe with either the training or “financial education” it had promised. Instead, “the sole purpose of the workshop was to up-sell ‘students’ into additional useless but more expensive coursework and mentoring, which can cost up to $64,899 per enrollee.” Robert Crewe did not sign up for the coursework and mentoring program. – Source Crewe-v-Rich-Dad-Education
Here is a description of the one and three day training offered by the Rich Dad Education scam during 2014:
I paid $299 for a class which was supposed to teach you how to invest in the stock market but it was 3 days of why you need to take more classes. Stock class 9/9/14 – 9/11/14. I wish to express my dissatisfaction with the stocks class given on the above dates. Quite frankly, I feel I was ripped off.
When my friend and I attended the free seminar, the stock class was presented as a way to learn how to invest in stocks and make money. My friend asked if we would be taught how to do options and the response was yes. Since I’m on disability, I thought this sounded like a good way to earn a little extra money when I was able to work on things. Therefore, I paid the $299 to sign up. I had to borrow to do this but figured I could pay it back in a short time with what I learned.
This class did not teach us how to invest in stocks. It was 3 days of convincing people they had to sign up for classes at over $10k to learn how to invest in stocks correctly. Not enough information was given to be able to wisely do anything with the stock market. I feel I spent $299 and 3 nights in a hotel for a hard sell for Rich Dad classes, not to learn how to invest in the stock market. Now I have to figure out how to pay the $299 back to the person I borrowed it from since I can’t do it by investing in the stock market. – Source BBB Complaint
It does not look like much has changed since 2010 for Rich Dad Education.
Rich Dad Education Scam Conclusion
In my opinion, Rich Dad Education has not changed the training scam they have been running. Even though they have been exposed on TV and have had many complaints made about them, they continue to scam people out of their money with their training sessions.
If you have been ripped off by Rich Dad Education prior to 2013, please go to the following link for the Utah Division of Consumer Protection and file a complaint. Don’t let this happen to another person.