Tuesday, November 11, 2014

Kelley Lynch Email To Leonard Cohen's Lawyer Re: Federal Tax & Corporate Matters

From: Kelley Lynch <kelley.lynch.2010@gmail.com>
Date: Tue, Nov 11, 2014 at 5:35 PM
Subject: Case No. BC338322
To: Jeffrey Korn cc:  Multiple Parties


I am dealing privately with IRS on issues related to the Traditional Holdings, LLC tax returns and K-1s transmitted to IRS (indicating my 99.5% ownership and interest) for 2001, 2002, and 2003; LC Investments, LLC tax returns and K-1s transmitted to IRS and State of Kentucky (indicating my 99.5% ownership and $0 income for 2003, 2004, and 2005).  Traditional Holdings is a Kentucky entity with no ties to California.  LC Investments, LLC is a Delaware entity whose registered agent in California was me (until August 9, 2013 but is now Kory).

The expense ledger fails entirely to address Blue Mist Touring Company, Inc., a Delaware entity whose right to do business in California was suspended by FTB or  Old Ideas, LLC is a Delaware entity, formed in June 2004 by Westin, and seems to have registered to do business in California in 2011.  I am not clear on how either of these entities was inserted into the expense ledger.  Can you provide me with some information?  

I have advised you that I would like to inspect all corporate books and records for these entities as well as LC Productions, Inc. and Stranger Music, Inc.  If you need another set of the non-revocable assignments (originally sent to Greenberg, Glusker with the corporate books) please let me know.

I would also like to point out that Westin prepared the Annuity Agreement which Cohen and he induced me to sign before forming TH in Kentucky.  The agreement says TH resided at my offices.  It did not so I view this contract as a contract with a Kentucky entity.  Would you take a look and let me know if you disagree.

Also, my Indemnity Agreement that Westin prepared.  How does your client propose dealing with that?  He directed Westin to prepare it.  I only gave Westin limited POA to form the entity.  Nothing else.  The Indemnity Agreement was not raised in this case and this issue was not litigated.

Leonard Cohen refuses to provide me with IRS required form 1099 for the year 2004.  I will remind you that I am in receipt of at least one email from him confirming that one payment of $165,000 related to a commission paid me with respect to royalties deposited into his personal account.  However, the Complaint clearly states, and Prins Declaration/Ledger, reiterates that I was not entitled to commissions on income deposited into Cohen's account.  Why would that be?  Did I work on these matters for free?  Could you explain Leonard Cohen's logic?

The expense ledger is contradicted by LCI and TH federal and state tax returns, and K-1s, etc.  The corporate records completely undermine the expense ledger.  There are clearly outstanding federal and tax matters.  I know this for a fact because I am sitting here with a letter from the IRS (received today) addressing some of the issues I have raised herein.  The Stalkers criminal harassment will not change that fact. 

I would appreciate a response.  I also attach hereto the revised TH Tax Matters Partner Demand Letter.  I made some changes but will attach the final version to the Motion that will be filed with Judge Hess.  Leonard Cohen's "loans" were not addressed in the Complaint, or ledger, and that issue was not litigated.  It relates to the Annuity Agreement.  Please let me know if your client plans to deposit those sums into a TH Escrow Account.

One other issue.  Cohen did not insert the Intellectual Property Assignments (non-revocable) into the default judgment.  There are, of course, very serious problems related to the intellectual property, assignments, and whether or not they have been removed from Blue Mist Touring Company, Inc.  

Kelley Lynch