The Scandalous Truth About Kelley Lynch’s Allegations Against Leonard Cohen

Kelley Lynch, Leonard Cohen's former personal manager, has been at the center of a high-profile legal battle that spans nearly two decades.

While Cohen’s legal team and PR apparatus have painted Lynch as an unhinged antagonist, the reality is far more nuanced—and far more scandalous. Behind the carefully cultivated image of Cohen as a "troubled troubadour" lies a concerted effort to obscure allegations of financial misconduct, tax fraud, and the weaponization of the legal system to silence dissent.

This article dives into the shocking tactics Cohen and his representatives employed to protect his reputation, including lying to the IRS, manipulating the media, and leveraging his star power in legal proceedings to deflect attention from his own questionable conduct.

Cohen’s Tax Troubles: A Fortress of Deception Unbeknownst to the public, the IRS Criminal Division opened an investigation into Leonard Cohen’s tax strategies, spurred by allegations of fraud involving entities like Traditional Holdings, LLC, and Blue Mist Touring Company, LLC, and, Old Ideas, LLC. These entities, set up under Cohen’s direction, were ostensibly designed to shield assets and minimize tax liability.

However, their structure raised red flags, including mismanagement and unfiled tax returns, which Lynch alleges were intentionally obscured by Cohen, his legal team, and other representatives. Artwork - Leonard Cohen and his army of lawyers.

Cohen and his representatives, including Michelle Rice and Robert Kory, not only failed to disclose this investigation to the media but also actively lied to the IRS, framing Lynch as the sole party responsible for financial mismanagement.

According to Kelley Lynch and evidence contained in Cohen's "IRS Binder" given to Lynch's defense counsel, Cohen’s team provided false narratives to federal authorities, attempting to undermine her credibility and shift scrutiny away from Cohen’s questionable tax strategies.

This calculated deflection extended to Cohen’s broader legal battles, where Lynch asserts that the same tactics used against her were weaponized to sanitize Cohen’s public image and protect him from legal consequences.

From Tax Fraud to Character Assassination To insulate himself from the fallout of the IRS investigation, Cohen and his team deployed a full-scale PR campaign. Through interviews, media appearances, and even orchestrated narratives about both Lynch and Phil Spector, Cohen cultivated an image of himself as a victim—a "troubled troubadour" caught in the crossfire of those seeking to exploit him.

Cohen’s portrayal of Lynch as a vengeful and irrational figure was amplified by websites like KelleyLynchFactCheck.com, which purported to offer an objective account of the legal disputes but in reality functioned as a smear campaign.

Lynch has presented evidence that this site, along with other efforts to discredit her, was orchestrated by Kory, Rice, and Stephen Gianelli—a lawyer accused of running a stalking and harassment campaign against her. The narrative was clear: Lynch was irrational, Cohen was the victim, and any questions about Cohen’s finances were conveniently swept under the rug.

Meanwhile, Lynch contends that her communications with Cohen and his team were driven by a legitimate need to obtain tax documentation—a point she claims is supported by her meticulous records submitted to federal authorities, including the IRS, FBI, and DOJ. But Cohen’s legal team reframed these communications as harassment, securing restraining orders in Colorado and California to silence her.

Cohen’s Command Performance: Targeting Phil Spector The campaign to sanitize Cohen’s image reached its theatrical peak when he testified against Phil Spector’s during a 2012 trial. Cohen’s dramatic courtroom appearance, where he alleged that Spector once held a gun on him, added a sensational twist to an already high-profile case. Cohen’s testimony not only bolstered the prosecution but conveniently aligned him with law enforcement at a time when his own financial dealings were under scrutiny.

Cohen’s carefully crafted persona—a mix of cowboy mystique and brooding artist—was on full display. Tales of his past, including alleged involvement in CIA reconnaissance during the Bay of Pigs, brushes with Castro’s forces, and a harrowing standoff with a 14-year-old Cuban officer, added layers of intrigue. These narratives, however, served a dual purpose: They distracted from the more immediate allegations of financial misconduct and reinforced Cohen’s public image as a survivor of extraordinary circumstances.

Media Manipulation and PR Blitz Cohen’s representatives worked tirelessly to control the media narrative, employing PR firms to shape stories that cast him as a sympathetic figure. Interviews with Cohen often touched on his supposed victimization at the hands of both Lynch and Spector, steering public attention away from his own legal troubles. Articles and documentaries focused on Cohen’s struggles with mental health, his artistic renaissance, and his complex relationships, creating a narrative that overshadowed the darker allegations lurking beneath the surface.

This media blitz was bolstered by Cohen’s own actions. By testifying against Spector and maintaining a cooperative stance with law enforcement, Cohen effectively deflected attention from his financial dealings while reinforcing his credibility in the public eye. Notably, the Los Angeles District Attorney instructed Kelley to pass along a message to the FBI: "Merry Christmas." Her colleagues remarked that it sounded like something out of The Sopranos, akin to a veiled threat before a violent act, or a blatant "F*$k you" to the FBI.

The Allegations Against Lynch: Scapegoating and Smokescreens. Artwork Description: The Los Angeles District Attorney maliciously instructs Kelley Lynch to pass along a message to the FBI: "Merry Christmas." She complies, noting that "Marko," the LA District Attorney's personal investigator, is a notorious thug who has routinely threatened her.

Marko, the LA District Attorney's personal investigator, later posted online that the only way Phil Spector would come home was in a body bag. The ringleader of the stalking and harassment campaign targeting Kelley Lynch, her family, friends, and everyone in her life, subsequently sent her a message saying, "Merry Christmas from Marko."

Lynch was shocked and appalled by the unprofessionalism and thuggish behavior she witnessed within the Los Angeles District Attorney's Office. Artwork: Kelley holds up Spector's album, "A Christmas Gift for You from Phil Spector."

At the heart of this saga is the allegation that Lynch misappropriated millions through inncoherent references to “shareholder loans” from Cohen’s entities. Lynch has consistently denied these claims, asserting that Leonard Cohen's loans (disguised income) were in fact approved by Cohen and that she was scapegoated to protect him from scrutiny. She further alleges that Cohen’s estate planning, including the creation of Traditional Holdings, was fraught with mismanagement that Cohen himself later acknowledged.

More recently, Lynch has pointed to ongoing litigation involving Cohen’s estate and family trust, where Cohen’s children have alleged that Robert Kory assumed the role of Trustee using a forged document created after Cohen’s death. This revelation raises serious questions about the integrity of Cohen’s legal team and their efforts to protect his legacy at all costs.

The Estate and Probate Cases: Alarming Federal Tax Issues

The ongoing estate and probate cases before Los Angeles Superior Court have introduced even more troubling revelations about Cohen’s financial dealings. Previously, it appeared that Cohen failed to report $8 million on Traditional Holdings tax returns and orchestrated dubious transactions that resembled a three-card monte scheme—misappropriating millions through loans, disguised income, offshore accounts, and unreported global revenue. However, the estate documents now reveal a far more alarming issue: the estate itself failed to report $58 million in asset valuations to the IRS on its estate tax returns.

These documents also highlight aggressive tax strategies employed on the estate returns, raising concerns about compliance. Further, issues have emerged regarding a $48 million musical property sale. Blue Mist Touring, which owned half the musical properties and intellectual property rights, was not compensated, and questions remain about fair market value, derivative rights, and transparency.

Despite these glaring issues, Cohen’s estate has continued Cohen’s practice of refusing to provide Lynch with the tax documents she is legally entitled to as a stakeholder. Additionally, entity returns for numerous companies have gone unfiled for years, despite Lynch’s ownership interest in these entities.

The Broader Implications: Power, Paranoia, and Legal Abuse The Leonard Cohen saga is not just a story of personal betrayal; it is a case study in the imbalance of power in legal disputes involving high-profile individuals. Cohen’s ability to marshal an army of lawyers, PR firms, and complicit media outlets created an environment where dissenting voices—like Lynch’s—could be easily silenced and discredited.

Cohen’s tactics also reveal a paranoid undercurrent. From lying to the IRS to targeting Lynch and Spector, Cohen’s actions suggest a deep fear of exposure.

His tales of CIA operations, Havana intrigue, and cowboy gunslinging may have been compelling distractions, but they also underscore a pattern of obfuscation designed to shield him from accountability.

Conclusion: Unraveling the Myth

The story of Leonard Cohen and Kelley Lynch is far from the simple narrative of victim and villain that Cohen’s team has worked so hard to present. Behind the scenes lies a darker reality—one of tax fraud, legal manipulation, and a calculated effort to destroy Lynch’s credibility. As Lynch continues her fight for vindication, the cracks in Cohen’s carefully constructed facade become increasingly apparent.

Ultimately, the legacy Cohen sought to protect may not withstand the scrutiny of time. With revelations of unreported millions, questionable transactions, and the estate’s refusal to meet its legal obligations, the questions surrounding Cohen’s finances have only grown more damning.

As Lynch pushes forward, demanding accountability and transparency, the full extent of Cohen’s schemes may finally come to light—exposing not just a troubled troubadour but a legacy built on lies and legal abuses.

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.

Copyright © 2024 Kelley Lynch. Unauthorized reproduction, distribution, modification, or use of artwork on this site in any form is strictly prohibited without written consent. All rights reserved.

Stephen Gianelli Has A History Of Vehemently Disparaging People

In defense of attorney Chuck Morse

Posted: Wednesday, October 26, 2011 12:00 am

I am writing in support of a pillar in our community, attorney Chuck Morse. Stephen Gianelli, who lives in San Francisco, continues to vehemently disparage Mr. Morse’s reputation in letters to the editor as well as comments on his own letters to the editor (“Judge Wick made proper decision,” Oct. 18).

I have known Mr. Morse and worked with his staff for the past 15 years. He has a flawless reputation and the utmost integrity — fair, honest and above reproach in all matters. He has served honorably and ethically on the boards of directors of the following organizations: Big Brothers of Napa, Aldea Children and Family Services (19 years; president twice for a total of five years), Garden Haven Adult Day Center, Napa Valley Hospice (president), Napa Adult Day Health Care, New Technology High School Foundation, Napa County D.A.R.E. Foundation, Solano-Napa Area Agency on Aging, Matrix Parent Network, Napa ParentsCAN (founding president) and Community Resources for Children.

In addition, Mr. Morse has served on the Land Trust of Napa County Investment and Finance Committee and the Napa County Commission on Aging. He has awards and commendations for pro bono legal services from the State Bar of California, Napa County Superior Court Judges, Napa County Bar Association and Legal Aid of the North Bay.

I would wager that Mr. Morse did exactly what his client, Mr. Fogerty, wanted him to do. We need more attorneys like him.

Methinks this Mr. Gianelli doth protest too much.

Paula Belden / Napa

Copyright 2012 Napa Valley Register.

Read more: http://napavalleyregister.com/news/opinion/mailbag/in-defense-of-attorney-chuck-morse/article_e478ae44-ff8c-11e0-b720-001cc4c03286.html#ixzz1lv6WsUqT

Perhaps Judge Fidler Wanted To Ensure That LA District Attorney Was Not Embarrassed Yet Again

The Los Angeles police department and district attorney’s office, embarrassed far too often in recent years, face some of the country’s highest-priced legal talent in the upcoming O.J. Simpson case. The defense team will use the most sophisticated methodology available to learn how to obtain the best jury possible and to present their most persuasive case. If the prosecution does not level the playing field, it may well find itself embarrassed again.

http://www.varinsky.com/publications6.htm

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Rachelle Spector, with the release of OUT OF MY CHELLE, now steps out as the latest in a long line of luminous Phil Spector-produced recording artists.

The Los Angeles District Attorney's Lame Response To My Freedom Of Information Request

Excerpt:

"4. Finally, I would like all documentation, electronic and otherwise, that relates to my major fraud complaint against Leonard Cohen for his participation in theft with respect to me, tax fraud, etc."

Response:

"Finally as to your request number 4, we were unable to locate any materials responsive to your request."

Excerpt:

"2. Specifically, I would like to obtain copies of all electronic and paper documents between Alan Jackson, Stephen Gianelli, Michelle Blaine, Kelly Green, Leonard Cohen, Robert Kory, Michelle Rice, Steven Clark Lindsey, and Betsy Ross."

Response:

"The Los Angeles District Attorney's Office, with over 50 offices, does not maintain a correspondence log of all incoming or outgoing mail. In addition, to locate any email that might be responsive would require a search of approximately 2,200 separate email addresses."

BALD FACED LIE: Alan Jackson is one Deputy DA and his office is downtown Los Angeles - as Deputy District Attorney Valerie Scott Cole (who wrote this shameless response) obviously knows.

Justice! LA Confidential Style - Concealment, Witness Tampering, Judicial Misconduct, Prosecutorial Misconduct, Probable Juror Misconduct

Anonymous said...

Regarding Psychological Mechanisms and an Illusive Critter - The Truth.

If you were in Punkin Pie's shoes and if the Lana Clarkson family lawyer and others tampered with you in a criminal investigation by telling you to withhold information about Lana Clarkson’s suicidal thoughts heard a few days before she died. What would you do in that situation that is if you were able to throw off this oppression later?


If it is true that Punkin Pie had initially been oppressed by others into keeping Lana Clarkson's suicidal thoughts to herself then Pie may have initially gone along with the story of Spector's alleged guilt for a year or more.

But once Pie set herself free of her oppression in having to keep silent and cover up what her best friend Lana Clarkson had said to Pie days before Lana Clarkson died - then it is possible that at the trial Pie was too embarrased to admit that she initiallly had made disparaging remarks against Spector in front of him.

August 03, 2007 8:15 PM

http://www.crimefilenews.com/2007/07/prosecutor-alan-jackson-is-jackass.html

Sprocket, Stephen Gianelli, Blogonaut Law Blog, The Darwin Exception, Michelle Blaine, Wall of Guilt ... Nut Cases With No Lives

‘NUTCASES WITH NO LIVES’

Varinsky also assisted the government with the Spector trial. He would not say whether Trials & Tribulations would be considered when putting to­gether the retrial, but he acknowledges that most of the blogs are pro-prosecution. Still, he describes true crime bloggers, with no relation to the cases they write about, as “nutcases with no lives.”

Regardless, Varinsky believes that prosecutors gen­erally don’t read blogs about the cases they’re prose­cuting and doubts a prosecutor would ever blog about an ongoing case.

http://www.abajournal.com/magazine/article/full_court_coverage/

NOTE: Paul Huebl, Crime File News, informed me that the LA District Attorney's Office was all over his blog during the Phil Spector trials. Read "Alan Jackson Is A Jackass" -

Excerpt:

Caroline said...

Jackson a jackass? You bet he is!
He needs to convict Spector and add another notch to his belt and blossoming DA career. It seems there is no level too low for Alan Jackson to stoop.

This past Wed., 7/18/07, Mr. Jackson misled the witness with false statements trying to discredit evidence that Ms. Clarkson shot herself.

Judge Fidler should have already called a mistrial or been removed for his BIAS!

The Spector trial is a travesty of justice and I fear Phil Spector, an innocent man, will go down as compensation for the unpunished crimes of OJ and Robert Blake.

July 20, 2007 11:23 PM

Anonymous said...

Alan Jackson Vs Mike Nifong

"prosecutorial misconduct" and violated the civil rights, THE CALIFORNIA_ STATE BAR INVESTIGATION AGAINST ALAN JACKSON


http://www.officialrauljulia.com/news/

August 02, 2007 9:46 PM

http://www.crimefilenews.com/2007/07/prosecutor-alan-jackson-is-jackass.html

Conversation With Detective Mark Lillenfeld - LA County Sheriff's Department

I advise ML that I know Phil Spector and intend to write a book, that will include information about an ex-partner of mine in LA (music industry); and that I intend to present the facts rather than argue my personal belief that Phillip is innocent. I inform him that I want to present a fair and well balanced overview and not the limited view permitted by the trial court.

Mark Lillenfeld:

I'm not the primary guy. There were 10 detectives helping the lead detective. The lead detective is Rich Tomlin. He was the top dog. I was in charge of the scene investigation and played a minor role. Rich Tomlin's number is 323-890-5630. He's a good guy.

KL: Why did the Sheriff's Department handle this investigation? [We discuss the fact that this can give the appearance of a conflict of interest …]

ML: Good question. The Sheriff's Department is the chief law enforcement agency in California under the Constitution. We are mandated to provide other smaller municipalities (with less financial resources) with assistance - such as investigations; bomb squads; SWAT. For almost 100 years, the Sheriff has provided homicide investigations for smaller police departments. We have a lot of expertise as well. We provide that service for many other municipalities - Alhambra, Menlo Park, Sierra Madre, etc.

KL: Are guns normally left at the scene of suicides for the investigators - and not left at the scene of homicides? This makes no sense to me. I explain that I've seen references to this repeatedly on the internet; possibly testimony at the trial; etc.

ML: In any type of death investigation - whether criminal (murder) or non-criminal death, the physical evidence would be reviewed; memorialized by photographs; etc.

KL: Was your mind made up, initially, as to whether this was a homicide vs. suicide?

ML: No. Not at all. When we roll up to a death scene - more often than not ... the information we got from the uniform cops at Alhambra ... is like the game of Telephone. Did you play that when you were young? [Gives me an example - Richard Nixon was a communist ... by the end of whisper down the lane it becomes ... Jane Fonda is a ballerina]. No pre-conceived idea that it was a murder.

We discuss the fact that I know Phillip; have a very good understanding of who he is; and was present for one incident presented at trial – the Carlyle - and know it was fabricated.

KL: I ask ML if the Sheriff's Department basically believes that all of PS's experts testified inaccurately, lied, etc.

ML: The rule of court governing expert witnesses - In California, everything is codified ... and then delineate what is or is not admissible. The Spector case became a battle of the experts. Clearly Mr. Spector's experts were cross-examined well and made [to appear] disingenuous. Since that time, it has been proven the case - [mentions Baden and Lee ... I suggest that we disregard these experts since there are myriad problems here from many many perspectives ... ML asks who I have in mind and I say Dr. Spitz] ... Dr. Spitz is a brilliant guy. He is well respected in his field. There is a minor criminal charge against him in the mid-West. He's well respected. [I note that accusing expert witnesses has become a problem and mention that Jules Zalon, a lawyer I know, raised this as a particularly discerning problem these days. I also note that this could happen to ML]. As far as his testimony in the Spector matter - it seemed kind of disingenuous. Our pathologist, Dr. Pena ...

At this point, I note that there is an Internal Memo at the DA's office (generated with respect to Killer King) essentially stating that Pena is willing to lie for his job/boss; possibly alter documents; and his credibility was seriously called into question. ML is "not familiar" with this memo.

ML: On a professional level, Dr. Pena ... he has been very ethical and bright. I have never had a problem with the guy.

KL: Dr. Pena stated, on the stand, that he could not conclude whether this was a suicide or homicide ... I ask ML for his personal opinion.

ML: I would say that this is a criminal homicide. In my own professional opinion, it is a criminal death. (mentions that this is his area of expertise - homicide).

KL: A lot of people believe Phillip was set up.

ML: [He is aware of this and states that] ... I'm from the mid-West. I'm open minded. I believe in the Constitution. [Notes that weird things happen in LA].

KL: Are Alan Jackson and Pat Dixon professional?

ML: [He believes they are professional ..., "I do"] ... They are human. AJ - I like him personally and professionally. If I was murdered I would want him handling the prosecution. I wouldn't want him dating my sister. [Believes he's ethical, bright, articulate.]

KL: Is Pat Dixon professional?

ML: He is a very bright guy. Seasoned. 35 years. He is professional. He has some quirks that not everyone loves. He's good at what he does ... [I believe ML said he was "beholden" to him but not sure I understand that].

ML and I discuss the Goodwin case for a moment. I note that after reading a bit about it, it is too complicated at first glance and will confuse issues I want to address in my book. I note that, somehow, the case seems dangerous - hit men and all. We discuss the fact that I worked in the music industry and understand artists, the amount of drugs, etc., in LA; my friend who died of drugs/alcohol; Eric's niece who shot herself in the head; etc. ML mentions the tv show "Entourage" and we do discuss excess in LA.

That's basically the end of the conversation. Mark Lillenfeld was professional; forthcoming; seemed entirely genuine; and believes Philip is guilty.

I left a message for Detective Tomlin (323-890-5630) and let him know that I would like to go back and review his testimony before speaking.

NOTE: At some point, ML asks if I was a witness in the PS matter. I explain that, while I was told I was probably a witness, I fought this because I have absolutely nothing to add to the mix … Phillip told me what happened (this is what the experts concluded) and there was no point in my taking the stand to say I liked Phillip. That’s my personal opinion and I cannot address personally what happened at Phillip’s house that night – apart from repeating what Phillip personally told me occurred. ML agreed – there was no point in my taking the stand. I advised him that I have spoken with Brian Bennett and Bill Frayeh – who I ultimately found to be entirely professional although for quite a while we were in adversarial positions.

Some Background On Lana Clarkson's Life

The Dead, Carlos Santana, the wild flamenco dancers from another commune down the road, and scores of day-trippers would stop by and ignite spontaneous parties. The area was then the world capital of LSD, and there was a lot of acid tripping going on. Hidden at the back of a kitchen shelf was a black jar holding a hockey-puck-size mass of the now-mythical concoction of LSD known as “Orange Sunshine”—all of which was eventually consumed.

Lana was raised by Donna Clarkson, a single mother and registered nurse. Together with Lana’s younger sister, Fawn, they lived in a rented house and took part in the commune’s social life. Donna had dark hair and eyes and the long legs Lana had inherited. “She was kind of a flaky hippie, like the rest of us,” says one of the commune’s mainstays, Julie Beardsley. “But she took being a mother very seriously. She came to a lot of our parties but didn’t get wild and pick up men—especially in front of Lana.”

Family and friends describe Lana as a happy child who was reciting nursery rhymes when she was just a year old and loved telling stories and dressing up. On Lana’s tenth birthday Donna gave her a roan mare, and over the next four years she learned to ride both western and English style. W hen she turned 14, they mated her horse, Breeze, with one of the commune’s horses—a large, papered white Arabian stallion named Kief. Lana and the other local girls hung around the corral, looking on with fascination as the horses coupled. Not long after its birth the foal stepped into a posthole, snapped its leg, and had to be put down. Some of the commune members decided to freeze the meat and serve it at a party at a nearby ranch, where Lana accidentally ate her own horse.

“Lana,” says Beardsley, “was a sweet girl

http://www.domanickjusticetalk.com/files/Spector_la_mag_.pdf