Public Interest, Public Figures, First Amendment, and some celebrity gossip - because, why not?
Sunday, November 17, 2024
Kelley Lynch vs. Leonard Cohen’s Estate: A Battle of Betrayal, Defamation, and the Fight for Justice
For nearly two decades, Kelley Lynch, Leonard Cohen’s former personal manager, has been the target of relentless defamation, legal attacks, and systemic ruin. Her family and friends have not been spared, and a complicit mainstream media has played its role in amplifying the narrative against her. Lynch’s reputation was dismantled, her voice silenced, and her efforts to expose the truth dismissed. Yet, she refuses to back down.
Leonard Cohen’s orchestrated campaign against Kelley Lynch reflects a disturbing pattern of legal manipulation, public defamation, and systemic abuse. Initially, Cohen weaponized a network of lawyers, public relations firms, and the mainstream media to target Lynch, subsequently extending this strategy to Phil Spector, whom Cohen testified against in a highly publicized trial.
His testimony, riddled with contradictions, painted a sensationalized “good rock ’n’ roll gun story” that both supported the prosecution’s narrative against Spector and aligned with Cohen’s long-standing penchant for embellishment. Cohen’s performance in court served as a command performance for Los Angeles authorities, cementing his position as a compliant witness while obscuring the deeper issues surrounding his own estate and tax matters.
The estate has now continued this legacy of obfuscation, employing sham prosecution narratives initiated by the Los Angeles City Attorney and LAPD to target Lynch. These prosecutions, allegedly rooted in Lynch’s lawful communications with the IRS, FBI, and DOJ, intentionally distorted facts and misrepresented her intent. The estate’s representatives falsely claimed that Lynch possessed the very tax information she has been seeking for years, dismissing the serious allegations of tax fraud as a mere “ruse.” This narrative is as preposterous as it is damaging, serving to shield those responsible for the estate’s misconduct.
Further complicating matters, LAPD and the City Attorney dragged Phil Spector into this campaign while leveraging fabricated narratives involving Lynch and filmmaker Oliver Stone. Cohen falsely alleged that Lynch and Stone were romantically involved, a claim both Lynch and Stone have categorically denied.
Cohen’s lies extended to involving LAPD’s SWAT team in custody matters, questioning Lynch’s friendships and personal relationships under the guise of law enforcement interest. Lynch views these actions as a manifestation of Cohen’s misogyny, weaponized against her in a calculated effort to tarnish her reputation and divert attention from his own malfeasance.
The mainstream media, complicit in amplifying Cohen’s fabrications, has consistently defamed Lynch, portraying her as a scapegoat to protect the legacy of a celebrity figure while ignoring the substantive issues of greed, fraud, and abuse within Cohen’s estate.
Behind the scenes, Lynch’s story unveils a saga of greed, deception, and abuse of power that has poisoned Cohen’s legacy. Her perspective reveals a tangled web of alleged forgery, financial mismanagement, and tax irregularities—all masked under a façade of respectability. Now, Lynch is speaking out, demanding accountability from those who have sought to destroy her.
Cohen’s Death and the Unraveling of His Estate
Leonard Cohen passed away in 2016. Following his death, Cohen’s estate and trust—managed by his adult children—pursued a sale of musical properties, in which Kelley Lynch and Blue Mist Touring Company, Inc. maintain an ownership interest. This sale became a flashpoint for legal disputes, as Cohen’s adult children subsequently filed lawsuits against the estate, the trust, Robert Kory, Michelle Rice, and related entities. These legal filings are replete with disturbing allegations of federal tax violations, including fraud and the mishandling of probable estate tax returns.
Initially, Lynch was informed she had no choice but to report Cohen’s failure to disclose $8 million on one entity’s tax return. Her lawyers advised that she could not amend the returns herself because Cohen—and now his estate—maintain control over the entities and their financial documents. Lynch alleges that Cohen misappropriated millions from the entities in question by disguising the funds as income, loans, or by depositing entity income and receipts directly into his personal accounts or entities he deemed more suitable.
Estate of Leonard Cohen: Forgery and Fraud at the Core
One of the most damning revelations involves Leonard Cohen’s former estate planning attorney, Reeve Chudd, who admitted under oath to physically altering the Leonard Cohen Family Trust after Cohen’s death. By substituting pages, Chudd placed Robert Kory as the primary trustee, a move Cohen’s children, Adam and Lorca, allege was based on “forgery and fraud.”
Lynch agrees, based on deposition testimony and evidence, that the trust document was forged—a fact that has now become central to the bitter inheritance battle. This forgery allowed Kory to step into the role of Leonard Cohen in legal appeals involving Lynch. Kory then used the forged trust document to assign the fraudulent default judgment against Lynch to himself, further tightening his grip on Cohen’s $48 million fortune.
Kory’s actions have sparked accusations from Cohen’s heirs, who claim he acted without authorization, misappropriated assets, and enriched himself at their expense. While Kory denies knowledge of the forgery, his lack of due diligence has done little to absolve him of allegations of gross misconduct. Notably, Lynch has an ownership interest in assets that were omitted from the estate tax return, raising further questions about compliance and transparency.
Tax Irregularities and Mismanagement
The estate and probate filings expose egregious federal tax issues that only deepen the controversy, including:
• Failure to Report $48 Million in Asset Valuations: Cohen’s estate has come under scrutiny for failing to report substantial asset valuations on its tax returns. This aggressive approach raises serious questions about compliance and legality.
• Sale of Musical Properties to Hipgnosis for $58 Million: The estate’s legal filings raise critical concerns about the sale of Cohen’s musical properties to Hipgnosis. Lynch, who holds an ownership interest in Old Ideas, LLC (inexplicably renamed Old Ideas Legacy, LLC), was excluded from this transaction.
Furthermore:
o Lynch has not received tax information related to the sale.
o Half the assets sold belong to Blue Mist Touring Company, Inc., which was also not compensated.
o No tax returns have been filed for Blue Mist Touring Company, Inc. since 2003.
o There are unresolved issues concerning the fair market value (FMV) of the transaction and exploitation rights related to derivatives.
• Withholding of Tax Information: Lynch claims the estate, including Robert Kory, has withheld tax documents not only from her but also from Cohen’s heirs, impeding her ability to address claims and ensure transparency.
• Unfiled Entity Returns: Lynch alleges that multiple entities tied to Cohen failed to file tax returns for years, even before Cohen’s death. This pattern reflects systemic neglect in managing Cohen’s financial affairs.
Lynch’s Perspective: Ongoing Advocacy Amid Obstruction
Lynch has been tireless in documenting these issues, repeatedly bringing them to the attention of the IRS, FBI, and DOJ. Her meticulous records highlight tax irregularities, fiduciary breaches, and failures to comply with legal obligations. Despite her ownership stakes, Lynch has not been compensated for commissions due her. The following entities have not filed tax returns: Blue Mist Touring Company, Inc. and Traditional Holdings, LLC—since 2003. Neither entity has provided her with tax information since 2004, the year she parted ways with Cohen. Lynch also has no insight into what Old Ideas, LLC filed with the IRS, despite her ownership interest in the entity. Meanwhile, Cohen’s sole proprietorship, LC Investments, LLC, transmitted K-1 tax documents to the IRS showing Lynch as an owner.
Compounding the obstruction, the LAPD and Los Angeles City Attorney have protected Cohen’s reputation while using him as a witness against Phil Spector, leveraging his tall tales of “rock ’n’ roll gun stories” and other fantastical narratives. Incredibly, these agencies have threatened Lynch with arrest should she contact Robert Kory or Michelle Rice (estate representatives) for tax documents or send cease-and-desist demands. These actions have effectively silenced her while shielding those responsible for alleged misconduct.
The Role of Robert Kory
Robert Kory, Cohen’s former manager and now trustee, has emerged as the central figure in the estate’s scandals. The allegations against Kory include:
• Self-Enrichment: He is accused of entering into unauthorized business ventures, misappropriating assets, and refusing to distribute trust funds to beneficiaries.
• Questionable Agreements: A 2016 agreement, signed by Cohen while allegedly “dying and heavily medicated,” granted Kory a 15% commission on transactions, including the $58 million Hipgnosis deal.
• Backdated Documents: Kory allegedly created backdated documents to stage exhibitions and claim ownership of Cohen’s materials that rightfully belong to the heirs.
Leonard Cohen’s Legacy: Tall Tales and Greedy Cover Stories
Leonard Cohen’s legacy is a tapestry of wild stories and myth-making: good rock ’n’ roll tales about Phil Spector, Kelley Lynch, Cuban adventures, CIA reconnaissance during the Bay of Pigs, participation in the CIA’s MK Ultra program, Spector wielding a gun and a crossbow, Cohen’s Nashville gunslinger days, sexual conquests, a 14-year-old Cuban military officer holding him at gunpoint, narrowly escaping missiles during an air raid, revolutions, and his desire to die by firing squad like his hero García Lorca. Cohen even wrote to his publisher that these stories would make for good press, boosting sales of his books and albums. These tales—like the attacks on Kelley Lynch—are defamatory, creating a smokescreen for Cohen’s and the estate’s alleged greed and misconduct.
A Path Forward: The Fight for Accountability
As the trial approaches, the stakes are monumental for all parties involved. For Lynch, this is more than a personal battle; it is a fight for truth and justice against a system that has weaponized power against her. Her exhaustive documentation and willingness to challenge those in control reveal her unwavering commitment to exposing corruption.
Lynch intends to file a lawsuit in federal court—first seeking an injunction against the LAPD and Los Angeles City Attorney, and subsequently suing the estate/trust. Her claims will include demands for an accounting, compensation for withheld tax documents, and accountability for the failure to file entity returns for Blue Mist Touring Company, Inc. and Traditional Holdings, LLC, among other federal tax issues. She continues to keep the IRS, FBI, and DOJ informed of these developments.
Whether through the courts or regulatory oversight, Lynch’s unrelenting efforts may finally uncover the truth behind Leonard Cohen’s estate—a truth that those in power have sought to keep hidden.
Federal Tax Issues in Kelley Lynch vs. Leonard Cohen’s Estate: Key Concerns
The case between Kelley Lynch and Leonard Cohen’s estate highlights several serious federal tax issues that demand scrutiny and action. These include allegations of systemic tax mismanagement, fraud, and the intentional withholding of critical tax information and accountings, which not only violate federal tax obligations but obstruct Lynch's ability to meet her own compliance requirements.
Entities such as Blue Mist Touring Company, Inc., Traditional Holdings, LLC, and potentially Old Ideas, LLC, under Cohen’s control, allegedly failed to file federal tax returns for years, with some not filing since 2003. This non-compliance with federal tax laws raises concerns about potential underreporting of income and failure to account for liabilities, creating significant barriers for Lynch to reconcile her ownership interests or address her personal tax liabilities tied to these entities.
Lynch has repeatedly requested tax documents and entity returns for Blue Mist Touring Company, Inc., Traditional Holdings, LLC, and other entities in which she holds an ownership interest. Despite her entitlements, these requests have been denied or ignored. Without access to K-1 tax forms or other entity filings, Lynch cannot address potential tax liabilities or confirm proper accounting of income and expenses. The refusal to provide accountings violates fiduciary duties and federal disclosure requirements, leaving Lynch vulnerable to IRS enforcement actions or penalties. This obstruction may also reflect an intentional effort to conceal financial mismanagement and tax irregularities.
Cohen is accused of funneling entity income into personal accounts and disguising transactions as loans or other misclassified income streams. Misclassification of income can lead to severe tax evasion penalties, and misappropriation could defraud stakeholders, including Lynch, by diminishing the value of her ownership interests. Additionally, the estate failed to report approximately $48 million in asset valuations, leading to significant potential underpayment of estate taxes. Estate tax fraud carries severe penalties and interest, with deliberate undervaluation or omission of assets potentially exposing those responsible to criminal liability.
The sale of Leonard Cohen’s musical properties to Hipgnosis for $58 million raises questions about proper valuation of assets sold and Lynch’s exclusion from the transaction despite her ownership interests in Blue Mist Touring Company, Inc., and Old Ideas, LLC. Tax returns tied to the transaction have not been disclosed to Lynch, and no tax filings for Blue Mist Touring Company, Inc. have been made since 2003, despite its involvement in the sale. These irregularities further question whether derivatives, exploitation rights, and other intellectual property assets were accurately valued and taxed.
Trust documents were allegedly forged to alter the control structure, enabling unauthorized asset reallocations. Forged or backdated documents may have been used to justify transactions or valuations presented to the IRS, further obscuring the true financial state of the entities and raising red flags for tax authorities. Moreover, Robert Kory, as trustee, received a 15% commission on estate transactions, including the Hipgnosis deal, under questionable circumstances. If these commissions were not disclosed or properly reported for tax purposes, they could trigger tax fraud investigations.
Despite Lynch’s repeated demands, no comprehensive accountings have been provided for her ownership interests in Blue Mist Touring Company, Inc., Traditional Holdings, LLC, and other entities. This failure represents fiduciary breaches and potential tax fraud by concealing critical financial information, leaving Lynch unable to protect her financial interests or comply with her own tax obligations. Despite K-1s being transmitted to the IRS indicating Lynch’s ownership, she has not been provided with copies of these forms since 2004. This omission exposes Lynch to potential IRS actions for unreported income, creating a situation where she may be penalized for the estate’s failure to comply with federal tax laws.
The patterns of misconduct—including allegations of forged documents, withheld tax information, unfiled returns, and misappropriation of income—suggest systemic non-compliance that could rise to the level of intentional tax evasion, obstruction of justice, and fraud.
The refusal to provide Kelley Lynch with tax information, entity returns, and accountings not only violates her rights as an ownership stakeholder but also exposes the Leonard Cohen estate to significant tax liabilities and legal consequences. These actions demonstrate a troubling pattern of obstruction and non-compliance, underscoring the need for rigorous federal oversight and enforcement.
Disclaimer: The article and accompanying illustrations present Kelley Lynch as a "haute couture Buddhist" hipster character in an imaginative and stylized portrayal. This depiction reflects an artistic and surreal interpretation inspired by the complex legal disputes and public narratives that followed her split from Leonard Cohen. The choice to portray Lynch adorned in jewels and sophisticated attire references Cohen's statements after their parting, where he attributed her alleged “downfall” to extravagant spending on items like jewelry, shoes, and haute couture—a narrative Lynch firmly disputes.
Artwork - Kelley and Phil Spector play Texas Hold 'em
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