Smoke and Mirrors: Kelley Lynch's Saga with Leonard Cohen, the Cohen Estate/Trust, and an Army of Lawyers

Bruce Cutler-Style Breakdown of Rice’s Arguments Let’s set the record straight here. Michelle Rice’s arguments in this courtroom debacle? They don’t hold water, and if I may be blunt, they’re falling apart faster than a cheap suit. Here’s why:

The Constructive Trust Fiasco Rice claims that Cohen somehow magically gained rights to corporate entities and assets through a “constructive trust” in a default judgment. Now, anyone with basic knowledge of California law knows that suspended corporations can’t legally transfer assets, engage in business, or do much of anything until they’re reinstated. Let’s be clear: Cohen’s estate can’t cherry-pick the law, sidestepping corporate governance rules one minute and then invoking them the next. Rice’s position here is flimsy, if not downright reckless, when she tries to ignore the law and claim rights to entities that Cohen had no business controlling.

Blatant Ignorance of Corporate Law Rice has argued that the bad standing of these entities “doesn’t matter.” Well, under California’s Corporations Code, a suspended corporation is legally incapacitated. It’s dead in the water. If Rice wants to act as if that corporation is alive and kicking for Cohen’s purposes, she’s got another thing coming. California law doesn’t allow suspended corporations to participate in legal actions or transfer assets. Rice’s argument here is like trying to drive a car with no engine—good luck, but it’s not getting you anywhere. And let’s not forget that Cohen’s former manager has a lawful ownership interest in these entities. By pushing Cohen’s claim, Rice is essentially arguing that Cohen can strip rights away from a co-owner just because it’s convenient for him. Sorry, but in California, it doesn’t work like that.

IRS Alert: The Tax Dodging Scheme Now here’s where things get even murkier. Cohen’s team allegedly used these corporate entities to claim tax deductions for “theft losses” on Cohen’s personal returns. Now, if those entities are suspended and haven’t filed taxes in years, what exactly is Rice trying to pull here? The IRS is bound to take interest in this web of tax manipulation. Claiming tax benefits from suspended entities without keeping them in good standing? That’s a quick way to get the IRS breathing down your neck. Rice’s position essentially admits tax evasion risk, plain and simple.

Fiduciary Breach and Recklessness Rice’s argument that Cohen wasn’t responsible for maintaining these entities is like trying to blame the dog for eating your homework. Cohen was in a position of financial control, meaning he had a fiduciary duty to maintain these corporations in good standing. Ignoring that obligation is a breach of duty, no matter how you slice it. By allowing these corporations to languish in bad standing, Cohen’s actions—or rather, inaction—open the door to claims of mismanagement and outright negligence.

Smoke and Mirrors with the Writ of Possession Let’s call this what it is: a red herring. Rice is trying to argue that Cohen’s writ of possession somehow applies to the corporate records seized from Cohen’s former manager. That writ? It’s about Cohen’s personal documents, not corporate records. The fact that Rice wants to twist a writ meant for Cohen’s personal property to apply to corporate records—records Cohen’s former manager has a lawful interest in—is a sleight of hand at best, and legal malpractice at worst. Image: Kelley at IRS, in tiara and Queen of England's jewels, explaining why she has a fee waiver (Cohen bankrupted her), can't afford an attorney, and her corporate records were seized while she cannot obtain tax information from Cohen or his estate.

The appellate court confirmed that the judgment against Cohen’s former manager doesn’t touch these corporate entities. Rice’s entire argument here collapses under scrutiny, as she’s trying to claim rights that Cohen doesn’t have and can’t legally hold. Obstruction and Evidence Suppression And then there’s the attempted suppression of critical evidence. Neal Greenberg, another associate who sued Cohen, tried to intervene to preserve evidence, highlighting Cohen’s desperate effort to bury corporate records. Rice wants to block these documents from the record because they expose Cohen’s house of cards. But the court’s refusal to preserve this evidence reeks of impropriety, and Rice’s desperate attempts to keep these records sealed are an affront to transparency and justice.

Bottom Line: A House of Cards Let’s not mince words. Rice’s arguments are a collection of legal half-truths, misdirections, and outright evasions. Her strategy may be to throw enough confusion into the case to sidestep liability, but the law isn’t that malleable. When it comes down to it, Rice’s entire case for Cohen’s estate rests on ignoring the rules of corporate governance, disregarding tax obligations, and hoping no one notices the house of cards they’ve built. In a courtroom run by the letter of the law, these arguments wouldn’t last a day. And if there’s any justice in this system, they won’t stand much longer.

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. The artistic representation, while not intended as a literal portrayal, emphasizes the intensity and multifaceted nature of her legal claims, offering a metaphorical view into the high-stakes drama of her experience. This stylized depiction serves to underscore the layers of conflict, public perception, and personal resilience inherent in her story.

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