Leonard Cohen, the gravelly-voiced icon of melancholy ballads, left behind not just a trove of timeless music but a financial mess mired in allegations of forgery, tax evasion, and defamation. Recent revelations surrounding Cohen’s estate have laid bare a troubling pattern of mismanagement and deceit. From deliberate tax omissions to weaponizing false narratives against former collaborators Kelley Lynch, Steven Machat, and even his former girlfriend and Canadian journalist Ann Diamond, the estate’s conduct raises critical questions about ethical governance and accountability. Artwork - Kelley Lynch's complex and challenging experience with Leonard Cohen's estate, a grave imbalance of power.
Artwork - Leonard Cohen surrounded by shadowy figures representing an "army" of lawyers and operatives, metaphorically illustrating the estate's alleged tactics to silence critics and suppress dissent such as with Steven Machat.
Artwork: Leonard Cohen and a young Ann Diamond in a nostalgic Montreal setting.
Willful Tax Evasion and the $50 Million Discrepancy
At the core of the scandal lies the estate’s decision not to report approximately $50 million in intellectual property valuations, including Leonard Cohen’s meticulously curated archive, on its estate tax return. This omission was not an oversight but a calculated gamble. Michael Mesnick, an accountant for Cohen’s estate, admitted in his declaration:
“Initially, the archive was viewed as a mere collection of memorabilia, with little value assigned to it. Later, it became clear the archive held substantial value beyond initial estimates.”
“The archive was not reported as an estate asset on the tax return due to its underestimated worth.”
Despite realizing its significant value, the estate’s financial advisors collectively decided to leave the archive off the return, citing the six-year statute of limitations for tax assessments. Mesnick’s statements reveal a conscious, willful decision to understate the estate’s assets, exposing it to potential penalties under IRS regulations.
The Hipgnosis Songs Deal: A $58 Million Tax Quagmire
In 2022, Robert Kory, the estate’s trustee, brokered a $58 million deal with Hipgnosis Songs, selling Cohen’s Stranger Music catalog (127 songs, including Hallelujah) and his Old Ideas catalog (67 songs). While the transaction enriched the estate, it raised significant tax and legal questions.
Key Issues:
• Stakeholder Exclusion: Kelley Lynch (15% owner of BMT and OI) and Steven Machat (15% owner of Stranger Music, Inc.) were excluded from negotiations, denying them rightful compensation.
• Undisclosed Assets: The transaction relied on intellectual property transferred from Blue Mist Touring (BMT) to the Leonard Cohen Family Trust (LCFT) using allegedly forged documents, undermining its legitimacy.
• Tax Reporting Failures: The estate failed to file tax returns for BMT and Traditional Holdings (TH) since 2003, creating further complications for stakeholders like Lynch and Machat, who require accurate tax information to comply with IRS obligations.
BMT, TH, and the Three-Card Monte: Cohen’s manipulation of BMT and TH highlights a troubling pattern of financial impropriety. Cohen borrowed $6.7 million—plus interest—from TH, treating the entity as a personal piggy bank. This debt, disguised as an annuity, now burdens his heirs, who are obligated to repay it.
Both BMT and TH have remained suspended since 2003 due to the estate’s failure to file tax returns, leaving Lynch and Machat in financial limbo. Lynch, who holds ownership interests in BMT, OI, and TH, has been denied essential tax documentation, even as the estate transmitted false forms to the IRS indicating her ownership in LC Investments, LLC—a sole proprietorship she does not control. Despite repeated requests, the estate refuses to retract the misinformation, compounding Lynch’s financial and legal distress.
Weaponizing Defamation: Faggen, Posner, and the Attack Machine
Cohen and the estate’s defamation of Kelley Lynch, Steven Machat, and Ann Diamond represents a concerted effort to divert attention from the mismanagement of finances and tax matters. Robert Faggen, hired by Cohen to organize his archive, also played a role in shaping Cohen’s public narrative. His declaration underscores Cohen’s commitment to preserving his intellectual property. Artwork: Leonard Cohen and Robert Faggen, a grifter.
“From 2010 to 2016, I worked with Leonard to prepare the archive. Leonard provided me with an office in Larchmont, California, as well as the basic machinery to do the digitizing. Leonard also allowed me to pay for staff to assist with the archiving process.” Robert Faggen Declaration.
While Faggen’s archival work was essential, his involvement in Cohen’s posthumous biography by Michael Posner paints a darker picture. The biography, riddled with defamatory claims, vilifies Lynch, Machat, and journalist Ann Diamond, who was also Cohen’s former girlfriend and an early critic. Posner’s book dismisses Diamond’s insights and criticisms, opting instead to label her as part of a group of disgruntled individuals. Diamond, who knew Cohen personally, was an astute observer of his life and career, yet Posner’s biography reduces her to a caricature while perpetuating false claims about Lynch and Machat. Artwork - Robert Faggen and Michael Posner, Cohen's unprofessional and deceitful biographer, at a Montreal smoked meat joint.
Even Cohen’s daughter, Lorca Cohen, was not spared. Posner’s biography refers to her as a “disgruntled woman,” a shocking dismissal of her role as Cohen’s daughter and rightful heir.
Forgery and Fraud: Rewriting the Trust
The estate’s governance rests on a foundation of forgery. Reeve Chudd, Cohen’s estate attorney, admitted to altering trust documents after Cohen’s death to make Kory the sole trustee, replacing Lorca, Adam Cohen, and Anjani Thomas as co-trustees. Artwork - The satirical examination of Anjani Thomas's position in the estate, given allegations of forgery and fraud involving her ex-husband, Robert Kory.
In his deposition, Chudd confessed:
“I substituted pages in the original document.”
“Leonard Cohen did not sign this version of the restatement of the Leonard Cohen Family Trust.”
“This document was created after Leonard Cohen’s death.”
These alterations enabled Kory to consolidate control over the estate, including the Hipgnosis deal, while sidelining rightful stakeholders.
Leonard Cohen’s Tax Legacy: Offshore Accounts and Ongoing Evasion:
Cohen’s history of tax irregularities extends far beyond the estate. In the 1970s, Cohen maintained offshore accounts, allegedly using them to shield income from U.S. taxation. Despite holding a U.S. green card, Cohen routinely failed to report global income on his U.S. tax returns. These practices, combined with the estate’s aggressive tax positions, create a damning picture of systemic evasion.
Conclusion: According to an Anonyous Source, IRS Must Act
The Leonard Cohen estate’s willful tax omissions and refusal to provide accurate tax information to stakeholders like Lynch and Machat warrant immediate IRS intervention. Under IRC §6501, the IRS has an extended window to audit estates with substantial understatements of value. Given the deliberate exclusion of $50 million in asset valuations, this case exemplifies egregious non-compliance. In the case of a false or fraudulent return with the intent to evade tax, the tax may be assessed, or a proceeding in court for collection of such tax may be begun without assessment, at any time. In case of a willful attempt in any manner to defeat or evade tax imposed by this title, the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time. In the case of failure to file a return, the tax may be assessed, or a proceeding in court for the collection of such tax may be begun without assessment, at any time.
The IRS should:
• Audit the estate comprehensively, scrutinizing its undervaluation of assets and omissions in reporting global income.
• Investigate the Hipgnosis deal, particularly the transfer of intellectual property through allegedly forged documents.
• Enforce penalties under IRC §3713(b) against fiduciaries like Kory who have willfully disregarded tax obligations.
Leonard Cohen’s estate has weaponized false narratives, financial shell games, and tax evasion to enrich its insiders while defrauding collaborators and the IRS. The time for accountability is now.
"Our society is run by insane people for insane objectives. I think we’re being run by maniacs for maniacal ends and I think I’m liable to be put away as insane for expressing that. That’s what’s insane about it." John Lennon - Artwork - Phil Spector and one of the Fab Four in a recording studio.
