Introduction - Kelley Lynch Appeal Brief - Re. Leonard Cohen

INTRODUCTION

Kelley Lynch worked as Leonard Cohen’s personal manager for approximately 17 years.  In the fall of 2004, she decided - due to the fact that she had been used horrendously as a pawn by Mr. Cohen - to report what she felt was Leonard Cohen’s tax fraud to the Internal Revenue Service.  By that time, Miss Lynch had gathered a tremendous amount of evidence, switched accountants, and hired lawyers.  It was ultimately confirmed that Leonard Cohen had committed criminal tax fraud, the penalties and interest on one entity alone - Traditional Holdings, LLC - were in the vicinity of $10 million, and there were similar penalties and interest on at least two other entities, Blue Mist Touring Company, Inc. and LC Investments, LLC.  Leonard Cohen heard that Miss Lynch was going to the IRS and began pressuring her to meet with him and his tax lawyer, Richard Westin, so that they could unravel their handiwork.  Leonard Cohen, his tax lawyer Richard Westin, and his financial adviser Neal Greenberg, were absolutely hysterical at this point.  Cohen began demanding that Miss Lynch hand over the corporate books and records for these three entities.  She had previously been advised, by his tax lawyer, to rip up non-revocable assignments re. intellectual property assigned to Blue Mist Touring Company, Inc.  She refused and refused to hand over the corporate books and records.  She gave them to her lawyers.  Kelley Lynch was a beneficial owner of Traditional Holdings, LLC and Blue Mist Touring Company, Inc.  She was not a beneficial owner of LC Investments, LLC although K-1 partnership documents were transmitted to the State of Kentucky and IRS, for the years 2003, 2004, 2005 - alleging that she has a 99.5% ownership interest in this entity and wrongfully using her name and social security number.  Leonard Cohen is the sole 100% owner of this entity.

On or about April 15, 2005, Kelley Lynch had a conversation with IRS Revenue Agent Bill Betzer.  She had been working with Agent Betzer to pay the taxes her accountant advised her were due and owing through the year 2003.  He ultimately advised Miss Lynch to report the tax fraud to the Fraud Unit of the IRS which she did . She also filed a complaint with the IRS online and contacted the IRS in Washington.  In October 2004, Kelley Lynch’s lawyers wrote Cohen’s tax lawyer, Richard Westin, questioning the structure of Traditional Holdings, LLC and inquiring as to what liability they had exposed Ms. Lynch to.  Westin had recently written Cohen and Lynch a rather alarming letter advising that the IRS could overturn Traditional Holdings, if they noticed a lack of substance or form.  The IRS might actually notice a lack of a business purpose (the State of Kentucky did), criminal tax fraud on at least three entities, and unconscionable activity on the part of Leonard Cohen and his advisers.  In October 2004, a meeting was scheduled with Cohen, his lawyers, and Miss Lynch’s lawyers.  Miss Lynch refused to attend.  While Leonard Cohen may feel Kelley Lynch is interested in seeing him, and using the IRS matter as a “ruse” (as the prosecutor farcically asserted at trial), he is sadly mistaken.  It is possible that his lifelong (and publicly documented) history of psychiatric ailments, drug and alcohol abuse, lying, falsely accusing his representatives, and theft has taken its toll and come back to haunt him.  Cohen and prosecutor Sandra Jo Streeter also lied to the court and jurors when they presented Ms. Lynch as Leonard Cohen's business manager.  Lynch was not Cohen's business manager and handled nothing having to do with his corporate structures, taxes, finance, accounting, etc.  In fact, Rich Feldstein was - at one point - Cohen's business manager.  He was fired after he advised Cohen that he would like to meet with him personally, felt uncomfortable with Cohen's behind the scenes communications, and was concerned that Cohen wasn't paying his estimated taxes.  Cohen personally wrote an insulting letter in response to Rich Feldstein's concerns, noting that accounting is not a religion.  Cohen has an utter disdain for ordinary taxes, demands complex stock deals, and studied business, commerce, and law so his position that he is merely creative are absurd.  Leonard Cohen knows how to weave a fantastical yarn and has a pattern of lying about others, even if the news media views him as a sage and the prosecutor seemed overwhelmed by the presence of a celebrity.

At the meeting in the fall of 2004, Cohen falsely began accusing Kelley Lynch of receiving overpayments with respect to her personal management fees.  He and his advisers began willfully overlooking her ownership interest in these entities as well as her ownership of 15% of his intellectual property.  Having said that, his lawyer did write to ask if Traditional Holdings, LLC would forgive Leonard Cohen's loans which are actual assets of Traditional Holdings, LLC.

Kelley Lynch also served as Cohen’s publishing administrator, publicist, book publishing agent, assistant, and in other capacities.  At trial, he testified that he also viewed her as his typist.  That is because he has misogynistic tendencies.  She was compensated with 15% of the intellectual property for her prior work.  Miss Lynch’s ownership interest in these entities (and the IP) has nothing whatsoever to do with her personal management fees.  The corporate books, records, stock certificates, notarized documents, her indemnity agreement re. Traditional Holdings, LLC, and many other documents, have been concealed from various courts.  A fraudulent expense ledger was presented to LA Superior Court.  Kelley Lynch's accountant met with Cohen's accountant.,  At that time, Kevin Prins (representing Cohen) advised her accountant that he did not have the corporate back-up documentation necessary to prepare the forensic accounting.  Dal,e Burgess confirmed this conversation in a letter Ms. Lynch attached to her Motion to Quash Cohen's fraudulently obtained restraining order in Boulder, Colorado.  The illegal K-1s completely undermine that ledger and cause tremendous confusion.  Cohen also stated in his lawsuit against Miss Lynch that she was not entitled to commissions on royalties he deposited into his personal account - and yet, he has listed at least one large commission (re. Dear Heather advance) that was deposited into his personal account on his fraudulent expense ledger.  This causes further confusion.  Miss Lynch has, therefore, asked for a complete and proper accounting that takes into consideration her ownership interest in these entities, the IP wherever it has now been moved, asset valuations, Cohen's expenses from these entities, and Cohen’s loans/transaction fees that total approximately $5 million with respect to Traditional Holdings, LLC and were to be repaid within 3 years at 6% interest.  For some reason, prosecutor Sandra Jo Streeter decided to lie to the jury when she advised them that Cohen’s assets were limited to $150,000 in the fall of 2004.  Cohen’s loans are assets of the corporation although he has done his best to prove that he is the alter ego of these entities who has engaged in self-dealing.  Leonard Cohen was not broke in the fall of 2004.  He had just received $1 million advance for the delivery of the studio album “Dear Heather.”  He went through with a multi-million lithograph deal Miss Lynch negotiated.  He had planned to tour and has made millions of dollars.  He brought a multi-million asset sale to a halt - although he had demanded that deal.  Leonard Cohen demands stock deals, has a grave disdain for ordinary taxation, and advised Lynch that he cannot live in Canada (after abandoning one green card in 1988 and applying for another around 1991) because Canada Revenue asks where you paid your taxes the prior year while the IRS does not.  After Marty Machat's death in 1988, Leonard Cohen and his lawyer (Herschel Weinberg), abandoned his green card, began unraveling the off-shore accounts (Loyens & Volkmaars in Holland), resolving issues related to his numerous social security numbers, advising Sony that his recording contract was inadvertently assigned to the wrong company, and reapplying for a new green card.  Lynch's brother-in-law (who she had contacted at Cohen's request) confirmed that Cohen had tax and residence issues in Canada.  This is why Canada's National Treasure must live in the United States.  He is the only Sony artist who is not assigned to his home country and he was brutal with the head of Sony Canada when she viewed him as a Canadian roster artist.  Cohen received a tax memo in 1977 which advised him that he did not have to pay taxes where he had residences - Canada, U.S., and Greece - but cautioning him not to have a green card.  He did and that may be why it was abandoned.  He appeared to be paying taxes, while a U.S. resident, as a non-resident.  He worldwide publishing income was being paid to the off-shore account.  Leonard Cohen's tax problems follow him around.  The anatomy of this particular tax fraud appears to have begun when Cohen hooked up with Neal Greenberg who then introduced him to tax lawyer Richard Westin.  The three of them were wrapped in attorney/client privilege, essentially leaving Kelley Lynch in the dark about their activities.

After settlement negotiations failed (due to the fact that Miss Lynch refused to mediate with Cohen, felt he was wrongfully accusing some of his advisers of defrauding him, turned down an offer of 50% community property, and became convinced that Cohen was attempting to engage in extortion and insurance fraud), Leonard Cohen filed a retaliatory and fraudulent lawsuit against her.  At the same time, he gave an interview to MacLean’s noting his major tax hit and advising the journalist that he was not accusing Ms. Lynch of theft.  In fact, at the bail hearing on March 23, 2012, Leonard Cohen acknowledged that Ms. Lynch has not stolen anything from him, except his peace of mind.  Biues Schiller, who reviewed a substantial amount of evidence, understood that Cohen owes Lynch millions and advised her that he and his lawyer, Robert Kory, were attempting to engage her in criminal activity.

The prosecution’s theory of this case is that Miss Lynch contacted Leonard Cohen, using the IRS, as a ruse.  Miss Lynch’s wages were ultimately garnished by the State of California FTB although she owes no taxes.  Tax Advocate Doug Davis/FTB removed the wage garnishment and asked Miss Lynch to file her returns for the years 2004 and 2005.  The IRS made the same request.  In order to do so, Miss Lynch is in need of a 1099 from Cohen for the year 2004.  The prosecutor advised the jurors that Ms. Lynch is in possession of the information necessary to prepare this 1099 which is outrageous.  Employees do not have the legal right to prepare their own 1099s on behalf of the employers but Streeter appeared willing to say anything to protect Leonard Cohen.  Miss Lynch owes no taxes, has huge losses related to the destruction of two businesses and theft, but the IRS and FTB estimate taxes (when preparing automatic returns) based on past income.  At that time, Lynch had substantial past income.  The IRS and FTB have reporting and filing requirements.  Miss Lynch also asked Leonard Cohen to rescind what she knows are illegal K-1s, transmitted to the State of Kentucky and IRS, and can be viewed as felonies from the perspective of the IRS.  The prosecutor seemed aware that the K-1s were illegal but obfuscated matters when she advised the court and jurors that I was requesting a K-1.  It is irrelevant if Cohen knows what a 1099 or K-1 are.  He has advisers and he has IRS filing and reporting requirements.  He also testified that he does not what they are although the prosecutor absurdly advised the jurors, in closing arguments, that no one knows what a 1099 or K-1 are.  Every studio musician in LA knows what a 1099 is.  She also appeared to advise the jurors that no one knows what the IRS and FTB are.

The prosecutor construed Kelley Lynch’s attempts to obtain tax, financial, and accounting information as harassment.  Since 2005, when Lynch no longer had assets to pay for lawyers, she has been representing herself.  Leonard Cohen’s lawyers have steadfastly refused to communicate with her although the State Bar, and other attorneys, have advised Ms. Lynch that they have an obligation to do so.  These attempts to communicate with Cohen’s lawyers, including with respect to the Complaint in the lawsuit that she was not served; default judgment entered in May 2006 that she was not served or notified of (although Streeter attempted to prove that the USPS delivers mail to the homeless - and Cohen was clear about monitoring her whereabouts)  and other serious matters, were presented to the court - by the prosecutor - as Lynch’s common plan and scheme.  District Attorney Steve Cooley and prosecutor Alan Jackson were continuously raised as issues.  They dragged Kelley Lynch into the Phil Spector trial in 2005 when Investigator Brian Bennett rolled by her house, advising her that an anonymous tip about her friendship with Phil Spector had been left with the DA’s office.  Miss Lynch believes Phil Spector is innocent, has been rendered unrecognizable, and feels the DA’s office set Phil Spector up.  She has been very vocal about these beliefs.  It seemed, to Lynch, that Cohen, the prosecutor Sandra Jo Streeter, and the DA (and others), were actually engaged in some form of legal conspiracy with respect to her.  Leonard Cohen’s statements about Phil Spector and one version of his good rock and roll gun story (that he himself wrote Streeter were embellished over the years) were evidently presented to Phil Spector’s grand jury and used in various prosecution motions.  Lynch has been clear with the DA - Leonard Cohen lies about Phil Spector.  She also filed a complaint with the DA’s Major Fraud Unit regarding Cohen’s tax fraud and theft from her in the millions, advising them of evidence and witnesses.  They chose not to prosecute him and Miss Lynch feels there is an attempt to protect Cohen while undermining her credibility.  During her trial, Kelley Lynch learned that the prosecutor offered her a plea deal of 180 days and 3 years summary probation.  That was not conveyed to her by her lawyers until she asked about it.  She feels this is the main reason for the preposterous theories and lies advanced during her trial.  Miss Lynch also believes Leonard Cohen has used fraud, perjury, lies, and concealment to obtain abusive restraining orders, judgments, and verdicts against Miss Lynch.

There are numerous matters the DA's office refuses to investigate and/or prosecute with respect to Kelley Lynch.  One such matter involves a horrendous accident at Whole Foods that led to her son's fingers being amputated in a meat grinder.  OSHA's attorneys felt there might be criminal negligence and advised Lynch to contact the DA's office.  Lynch has reviewed the depositions and there is indeed criminal negligence.  There were reports, for approximately two years, advising the safety unit that the machine was faulty.  Her son was not trained to operate the machine - clearly in breach of his contract with Whole Foods.  And, the machine was to be removed from the floor prior to this horrendous accident.  The customers were to be told that they could not buy ground meats.

It is clear to Lynch - the DA's office does not want the Phil Spector verdict overturned and view her as some type of threat on that front.  In fact, Captain Jack Horvath (DA investigator and security personnel) may have been the DA Investigator hanging out with Cohen, his lawyers and PI, during the trial.  He was even seen lunching with them.  Evidently, Cohen's PI has close ties to the DA's office and LAPD's Threat Management Unit who forwarded Lynch's case to the City Attorney, noting that her emails were generally requests for tax information - which would not violate a restraining order, fraudulent or otherwise.  Lynch has been convicted of unauthorized rambling with respect to extraneous information (for her sole purpose) in her emails.  She has been documenting the destruction of her life since reporting Cohen's tax fraud - to the IRS, FBI, DOJ, Treasury, and Phil Spector's attorney, Dennis Riordan.  She had other valid reasons for contacting various parties as well.  These are deadly serious issues, Lynch has been surrounded by liars, and feels everyone should be on the same page and given the opportunity to refute information or correct misinformation.  Captain Jack Horvath, whose salary is paid by the taxpayers, then proceeded to lie to the court about Miss Lynch during the sentencing face.  Streeter, an apparent creative writing expert, felt Lynch's letters to Bruce Cutler were overly familiar.  She appears to be a sycophant.  Judge Larry Fidler's Clerk, Wendy, and the Grand Jury Legal Advisor have instructed Lynch to contact the DA's office (copying in Judge Fidler) re. the various Leonard Cohen/Phil Spector gun stories before LA Superior Court and to contact Phil Spector's attorney, Dennis Riordan.  Lynch will address all of this in her Writ of Habeas Corpus which she will mail to Judge Larry Fidler and the District Attorney's office.

Lynch awaits a response to her letter to Alan Jackson which Investigator William Frayeh hand delivered to Steve Cooley, Alan Jackson, and Truc Do.  It raises serious issues re. Cohen's criminal tax fraud, theft from her, Phil Spector, Gianelli - who has criminally harassed Lynch and others since 2009 (when he aligned himself with Cohen), and Pat Dixon who is addressed in Bruce Cutler's letter to the court.  Kelley Lynch stands by those letters and thinks Bruce Cutler should have handed them over to Phil Spector and his legal team.

Kelley Lynch has been advised that George Mueller, former FBI agent, and one of the heads of the Investigation Unit/Major Fraud Unit of the DA's office is investigating something here.  She wonders what he thinks the FBI meant when they advised her to let the IRS take the lead and they will be brought in with respect to criminal witness and evidence tampering.  Perhaps Mueller is not clear as to why Kelley Lynch has copied in the IRS, FBI, DOJ, Treasury, and Dennis Riordan - as well as the news media - on her emails documenting everything she has gone through since reporting Cohen's criminal tax fraud to the IRS.  Leonard Cohen testified that a fraudulent refund he obtained in 2005 from the IRS (approximating nearly $700,000) closed the case re. the allegations of his tax fraud she discussed in her meeting with Agent Sopko and her partner in 2007.  After that meeting, Agent Sopko emailed Lynch that she should take these allegations to Agent Luis Tejeda/IRS and provide him with evidence.  She has provided the IRS with an abundance of evidence.  Kory noted, in one letter to Agent Tejeda, that Agent Sopko's email was a game changer and they were taking the situation seriously.  Kory also wrote that he understood that Tejeda had to remain open to the allegations but he and Cohen decided to lie on the stand.  Their lies and perjury are excessive.  They have no qualms, whatsoever, obtaining orders, judgments, and verdicts via fraud, perjury, lies, and concealment.

Leonard Cohen has also stolen from Steven Machat, Marty Machat, and Phil Spector.  The prosecutor lied when she said my statements were uncorroborated and must have read the transcript of my conversation with Steven Machat.  She was also present for the sidebar where Agent Tejeda's testimony was discussed. But, Streeter was gushing in her cell phone about celebrity Cohen, prancing around the courtroom, breaking the podium, lying to the judge and jurors, and generally seemed uninterested in anything that resembled an actual fact or the truth.  My lawyer advised me that while judges are annoyed by her (she evidently does not understand the law), they don't realize she is lying to them.  She baby talks them so perhaps that's part of the issue.