27 July 2016
Sent by USPS and email
Re: Outstanding Tax Matters
For the past ten years or so, I have requested certain IRS required tax and corporate information from you and certain entities you control. Those entities include, but are not necessarily limited to, Blue Mist Touring Company, Inc. (formerly LC Productions, Inc.), Traditional Holdings, LLC, and Old Ideas, LLC. As you are well aware, I have a 15% ownership interest in Blue Mist Touring Company, Inc., 99.5% ownership interest in Traditional Holdings, LLC, and 15% ownership interest in Blue Mist Touring Company, Inc. Evidence of my ownership interest is in your possession and was submitted to LA Superior Court, IRS, and others. Regardless of the fact that, as of May 15, 2006, you obtained a fraudulent default judgment against me (based on a fabricated expense ledger supported by perjured declarations), the information I am once again requesting should have been transmitted to me, for the years 2004, 2005, and the portion of 2006 prior to entry of the default, years ago. Egregious lies were presented to jurors about the IRS required tax and corporate information and transmitted to the Court in your preposterous statement.
As of this date, I am asking you to provide me with a 1099 for the year 2004. For each and every year I worked as your personal manager, I received a year end tax document. I have no idea why you would take the position, in your fraudulent and retaliatory lawsuit, that I was not entitled to commissions on income you elected to deposit into your personal account but that is blatantly false. Our agreement with respect to my services rendered as your personal manager involved a commission of 15% on all gross income. There were no caveats. For further evidence of commissions paid to me for royalties you elected to deposit into your personal bank account, please refer to your September 16, 2004 email to me confirming at least one payment to me in 2004. My ownership interest in these entities is unrelated to my commissions related to services rendered as your personal manager. At no time was I your business manager. And, as I stated in my February 11, 2002 email to you and Richard Westin, I did not provide tax, accounting, financial, legal or corporate advice. I most certainly did not provide advice related to taxes, tax preparation, and so forth. I also did not prepare, nor was it my responsibility to do so, corporate financial statements, loan schedules, promissory notes, or corporate accountings.
I am not in possession of any information with respect to the September 2004 commission and additional commissions allegedly paid to me by you for the year 2004 and require this information in order to file my 2004 and 2005 federal and state tax returns. The fact that you have now fraudulently taken the position that I misappropriated my commissions creates further confusion that I would like to clarify for IRS and FTB. I will remind you that your refusal to provide me with this information is obstructing my ability to file these returns. I would also like to refer you to your testimony on March 23, 2012 where you testified that I never stole from you - just your peace of mind. That is factual and corporate entities are not your personal property. The same is true for corporate assets – including with respect to the corporations that are suspended.
Additionally, I require K-1 partnership documents for Traditional Holdings, LLC and Old Ideas, LLC for the years 2004, 2005, and 2006 through entry of the fraudulent default judgment as of May 2006. I also require corporate accountings such as income/expense schedules, profit & loss statements, and so forth. As you and/or your daughter, Lorca Cohen, wrongfully removed all of my business files from my personal management offices on or about October 22, 2004, and you are the individual in possession and control of all relevant documents and information, you are required to provide this information to me so that I may file my 2004 and 2005 federal and state tax returns.
With respect to Blue Mist Touring Company, Inc., I am presently unclear if this entity is an S or C corporation. You and your representatives handled all corporate, financial, tax, accounting, IRS, and legal matters related to these corporate entities. Therefore, based upon the type of entity this is, I would appreciate receiving a K-1, dividend information, income/expense schedule, profit & loss statement, asset valuations, and so forth.
I would like to request asset and corporate valuations with respect to Blue Mist Touring Company, Inc., Traditional Holdings, LLC, and Old Ideas, LLC as of the date the fraudulent default judgment was entered on May 15, 2006. I also require this information for federal and state tax purposes. This information was not submitted to Los Angeles Superior Court with the fraudulent default judgment or addressed vis a vis the fabricated damages and fraudulent financial interest.
With respect to Traditional Holdings, LLC, as the Tax Matters Partner, I would like schedules of your loans from this entity. According to your legal pleadings, as well as Neal Greenberg’s, your loans were generally set forth as follows:
$1 million non-refundable prepayment paid in 1999
$3.3 million expenses (your so-called “transaction fees” that you authorized, in a fax signed by you, Greenberg to disburse)
$2.7 million in funds deposited directly into your personal CNB account (the statements for that account were sent to your home)
$500,000 approximate amount used to reduce your personal Sony account with respect to recoupments
$375,000 unaccounted for delivery fee for the second live album requirement
These sums total $7,875,000. According to the terms of the Annuity Agreement you executed in December 2000, your loans had to be repaid within three years with interest. Please refer to Robert Kory’s letter to my former lawyers, DiMascio & Berardo, confirming that your loans were problematic. Westin and Greenberg referred to your loans as dangerous to the TH structure itself. It was your obligation to have these loans documented with promissory notes. It remains your obligation to repay these corporate loans in their entirety with interest. That is irrespective of the fact that, as of 2003, your representative extinguished the private annuity obligation from the federal tax returns and moved the amount of approximately $4.7 million to the partners’ capital account. This was brought to my attention, as I have repeatedly stated, by my lawyers and accountants in the fall of 2004.
For reasons I cannot understand, LC Investments, LLC, an entity wholly owned by you, transmitted K-1 partnership documents to the State of Kentucky for 2003 and IRS for the years 2004 and 2005 indicating that I am a partner in this entity, have a 99.5% ownership interest, and received $0 income for 2004 and 2005. The income amounts transmitted to IRS are contradicted by the fraudulent expense ledger. Furthermore, I do not and did not have an ownership interest in this entity. I have spoken with IRS and other tax authorities about this matter and was instructed to contact you to request that you rescind these K-1s. Copies of these documents were submitted as evidence to LA Superior Court.
As you know, you irrevocably assigned intellectual property to Blue Mist Touring Company, Inc. in 1998 and 1999. Nevertheless, you and your wholly owned LLC, LC Investments, LLC, collected royalty income related to the BMT intellectual property assets. Therefore, I will need an accounting (and back-up documentation) of all royalty income you collected with respect to these assets from 1998 through May 2006 when the fraudulent default judgment was entered.
Finally, as your personal manager and pursuant to our agreements, I am owed commissions for services rendered and product/materials delivered during the period I served in this capacity. I worked as your personal manager from April 1988 through October 2004 and, with respect to product/materials delivered, I am entitled to commissions on those items in perpetuity. I would therefore appreciate your providing me with the appropriate accountings, back up documentation, and payments.
As I am meeting with a representative from IRS in the near future, I would appreciate your promptly complying with these requests. I am also preparing a declaration for FTB’s fraud unit and would like to advise them of the status of this ongoing request for IRS required tax and corporate information.
Very truly yours,
Cc: IRS, FBI, DOJ, Treasury, Senator Chuck Grassley (Senate Finance Committee), Agent Luis Tejeda (IRS Fraud Unit), Paulmikell Fabian (IRS Chief Trial Counsel’s Office), Jeff Dunn (LAPD’s TMU), Mike Feuer (City Attorney of Los Angeles), Mayor Eric Garcetti, Robert Kory, Michelle Rice, Wendy Lascher