I think the tax matter is quite clear. Leonard Cohen is legally obligated to provide me with a 1099 but simply doesn’t want to. He doesn’t want to rescind the illegal K-1s. He doesn’t want to provide me with an accounting that takes into consideration corporate ownership interests, assets, liabilities, and equity. Etc. Leonard Cohen’s sense of entitlement and greed is unparalleled. His belief that he can simply continue to lie about Phil Spector is unconscionable. His attempts to blame his wrongdoing on me is inconceivable. But, this is pure Leonard Cohen who I view as positively evil. A man obsessed with his own reputation who has an absolute disregard for the truth and uses religion to dazzle awe inspired journalists and others. I’m not sure what religion embraces this type of conduct - theft, fraud, lying, destroying people’s lives, etc. Perhaps it’s something Satanic. Cohen liked to dabble in the occult and his favorite book was “Morning of the Magicians.”
The Morning of the Magicians, first published as Le Matin des magiciens, was written by Louis Pauwels and Jacques Bergier in 1960. It became a best seller, first in French, then translated into English in 1963 as The Dawn of Magic, and later released in the United States as The Morning of the Magicians. A German edition was published with the title Aufbruch ins dritte Jahrtausend (Departure into the third Millennium).
In a generalized and wide ranging overview of the occult, the book speculates on a variety of Forteana, mysticism and conspiracy theories such as secret societies, ancient prophecies, alchemical transmutation, a giant race that once ruled the Earth, and theNazca Lines.[1] It also includes speculations such as Nazi occultism and supernatural phenomena conspiracy theory that the Vril Society and the Thule Society were the philosophical precursors to the Nazi party.[2]
The book has been credited with playing a significant role in bringing these kinds of ideas into the popular culture, spurring a revival of interest in the occult during the 1960s and 70s, and being a forerunner to the popularization of New Age ideas.[3] In a 2004 article forSkeptic Magazine, Jason Colavito wrote that the book's tales of ancient astronautspredated Erich von Däniken's works on the topic, and that the ideas are so close to the works of H. P. Lovecraft such as "The Call of Cthulhu" or At the Mountains of Madness(published in 1928 and 1931 respectively) that Colavito claims it is probable that Lovecraft's fiction directly inspired the book.[4] Notably short on references or sources, the book has also come under criticism.[1]
http://en.wikipedia.org/wiki/The_Morning_of_the_Magicians
FEDERAL TAX MATTERS
Streeter: And do you also recall discussion about K-1, criminal K-1?
Cohen: Yes, that was a constant theme.
Streeter: Do you know what a K-1 is, Mr. Cohen?
Cohen: Well, I didn’t until I asked.
Streeter Who did you ask.
Cohen: I asked my attorney. RT 82
This is a bald-faced lie. Leonard Cohen’s accountant, business manager (Rich Feldstein), tax lawyer, etc. handled filing documents with the IRS. I may have mailed some to the IRS. The IRS should know this is a lie. The tax preparer has to fill in that information and sign as well. Cohen cannot stop lying. I was not Leonard Cohen’s business manager. That is usually a CPA. I was Leonard Cohen’s personal manager. Even the NY Times, LA Times, MacLean’s (who interviewed around the time he filed his retaliatory lawsuit against me) are aware of this fact. So is everyone I know in the music industry. In fact, it’s even in Leonard Cohen’s declaration in the failed CAK bond deal that was replaced by the 2001 Sony sale. Leonard Cohen personally met with the transaction lawyer on the Sony 2001 sale. . His name is Arthur Indursky who Cohen attempted to blame for fraud in the inducement. They wrote me that Robert Kory was lying about what they had said about me and what they have in their files. Steven Machat calls Robert Kory “Satan.” He wrote me that Cohen is ëvil.” That’s precisely how I feel.
Streeter: Who took care of filing documents with the IRS?
Cohen: That was Ms. Lynch. RT 82
Streeter: When Ms. Lynch was in your employ as business manager, what role you had in taking care of the financial documents?
Cohen: … Ms. Lynch was handling all financial affairs. She would choose the accountants, the lawyers … RT 83
Streeter: Now, there is a mention of the K-1... Do you know what a W2 is?
Cohen: W2? No, I don’t.
Streeter: How about a 1099?
Cohen: A 1099, yes, is issued by an employer to an employee.
Streeter: Did you ever issue one of those when Ms. Lynch was in your employee?
Cohen: No, I never even saw the documents. RT 83
Streeter: Do you recall any mention of a business relationship that you and she may have had?
Cohen: Yes, she spoke about her -- her taxation. RT 156
Streeter: The people recall you testifying previously that Ms. Lynch has on some occasions asked about getting tax returns; is that correct?
Cohen: Yes, many times.
Streeter: Amended tax returns; is that correct?
Cohen: Yes, Ma’am. RT157
Streeter: Do you recall of those emails how many had a request for tax information?
Cohen: Yes, I do. RT 167
Streeter: That’s the only email that made mention of a request for tax information?
Cohen: That’s correct. RT 170
Leonard Cohen Cross:
Public Defender; You said that you were unfamiliar with what a K-1 was, correct?:
Cohen: Yes, sir.
PD: Okay. Now, do you know what a K-1 is now?
Cohen: I have a perfect -- a sense of what it is, but I wouldn’t be able to teach it.
PD: And is it fair to say that you’ve gotten emails through the years referencing a K-1?
Cohen: That’s correct. RT 280
PD: Now, since you’ve been receiving emails requesting tax information, have you called these peo9ple to say can you get me this tax information? RT 280
PD: And so it would be fair to say that there was tax information that was requested by Ms. Lynch, correct?
Cohen: Hidden in the volume of the emails there was a request for tax information which Ms. Lynch already had. RT 281
PD: There were requests in those emails for tax information, correct?
Cohen: Yes, sir. RT 281
Did you ever bring that attention to whoever handled your taxes?
Cohen: Yes, sir. And it was determined by two courts of this country and the IRS that -- RT 281
Cohen: It was determined, sir, that I had no tax responsibility in regard to Ms. Lynch. The two courts had decided that money had been taken from me … Two courts had given me a default -- or one court had given me a default judgment; the other court affirmed that default judgment. But, more significantly, the IRS accepted the results of that default judgment and awarded me a tax refund, so Ms. Lynch has no cause to ask me for any taxation information. The forensic report on which the default judgments were made were very specific and Ms. Lynch has read them. That is the forensic report that Ms. Lynch has been asking for. The only problem is she doesn’t like the results.
PD: Do you remember what my question was? RT 282
One of the main issues with respect to Traditional Holdings, LLC was Leonard Cohen’s level of borrowing was dangerous to the structure and could lead the IRS to believe that this was nothing other than self-dealing on Cohen’s part and an attempt to evade paying taxes. In 2004, Leonard Cohen’s advisers - Greenberg and Westin - became increasingly upset by his level of borrowing. Greenberg pretended it was due to the fact that Cohen might run out of money but we were pursuing a multi-million deal; I was negotiating a multi-million lithograph deal; Cohen just received $1 million from Sony re. Dear Heather (but advised me not to let Greenberg know this); and planned to tour behind Dear Heather. Leonard Cohen’s loans from this entity are assets although Streeter attempted to mislead the jury by stating that there was only $100-150K left in some bank account that I am not clear about. There are millions of dollars in assets and Cohen understood that his loans had to be repaid at 6% interest. I was under the impression that they had to be repaid within 3 years. Robert Kory wrote, and I gave this document to the iRS, and asked if Leonard Cohen’s loans would be forgiven. In jury debriefing, a juror advised my lawyers that he relied on Streeter’s LIE that Cohen only had $150,000 or $100,000 left. Streeter actually thinks that Leonard Cohen can defraud a corporation; take loans like this entity was his personal piggy bank; disregard corporate governance; and then blame me for his conduct? That’s her rotten logic. Streeter, knowing that Cohen admitted buying homes for his girlfriend and son, with these assets, continued with her insanity about the $100-150K. Her obsession with the IRS and federal tax matters is fascinating and I continue to believe that the IRS should investigate this and prosecute her for an attempt to obstruct justice. As my trial lawyer noted - she attempted to sabotage the IRS.
Public Defender: And in fact you had actually taken money from that account to buy homes, correct?
Cohen: Yes, I had.
PD: You took money from that account to buy a house for your son, correct? RT 287
Cohen: That’s correct.
PD: To buy a house for your girlfriend, correct?
Cohen: Yes.
PD: Okay. So you -- it’s fair to say that you did take money from that account?
Cohen: That’s correct, yes.
PD: You were aware enough about that account to know that you could take money from that account?
Cohen: That’s correct. RT 288
Streeter - sidebar: And then that will lead to further -- the people asking more questions of the person in particular that was responsible for getting the default judgment in the holding of the IRS, which was Mr. Kory. RT 289/290
After Marty Machat’s death in 1988, Leonard Cohen and his lawyer (recommended by his brother-in-law), Herschel Weinberg, began unraveling certain matters related to Leonard Cohen. That would include abandoning his green card (which he later re-obtained); unwinding off-shore accounts (and later his Swiss bank account that he personally opened); sorting out his numerous social security numbers (his accountant who he had while with Marty Machat, Burt Goldstein handled this after Cohen explained to us that he had more than one social security number); advising Sony that his recording contract had inadvertently been assigned to a corporation (which I believe was an LC Productions in Nevada); etc. All of this activity pre-dates me. but I do believe Leonard Cohen was aware that you could have more than one social security number since he did from what he told me and Burt Goldstein. In fact, when I spoke to Burt Goldstein about Cohen’s tax fraud and the IRS Commissioner’s Staff about this situation and the social security numbers, etc. he asked me if I would be a witness for him. My answer - absolutely. From what I could tell, Burt Goldstein’s work was impeccable. Steve Lindsey recommended Ken Cleveland to Lindsey when the IRS audited the charitable gift of stock to Mt. Baldy Zen Center that relates to the 1997 intellectual property sale to Sony. It is my opinion that the IRS should audit this again, particularly as Kory was quite concerned about this and advised me that the holding periods were illegal. Cohen, Greenberg, and Westin were actively involved in the 1997 deal and ulltimately were wrapped in attorney/client privilege together, leaving me in the dark as to what they were actually up to although I had my suspicions which began to grow when I heard details related to collapsible corporations, aggressive tax planning, etc. In fact, Grubman/Indursky also became concerned and were clear - Greenberg and Westin, on Cohen’s behalf, handled the tax and corporate structures. I had nothing to do with them but Leonard Cohen likes to lie and even attempted to blame (and I have this in writing) his lawyers (Grubman, Indursky) and royalty consultant (Greg McBowman) for engaging in fraud in the inducement with respect to them. That is absurd and laughable. Leonard Cohen, from what i could tell, was going to blame them for his wrongdoing as well. In fact, Stuart Fried/Grubman firm emailed me that Robert Kory was lying about them with respect to me. Robert Kory is a liar who the IRS should also prosecute from my perspective.
Social Security Number
PD: You never changed your social security number, correct?
Cohen: No, I didn’t change my social security number. RT 303
Streeter: How come you haven’t changed your social security number.
Cohen: I don’t think that’s -- I don’t think you can change your social security number. RT 319
Michelle Rice wrote and lied to me on February 14, 2011. She advised me that the civil harassment order (that she ultimately wrongfully registered as a domestic violence order for reasons I cannot imagine since Cohen and I were NOT in a dating relationship and she knows that the original order can only be modified by the Colorado court) was registered in California. I think they intentionally decided not to serve me and, rather, entrap me. I was not served or notified of the California order but Streeter attempted to mislead the jurors by lying about the fact that I said I wasn’t served the Colorado order. Of course I attended the Colorado hearing but, after hearing from the judge that Cohen personally appeared in Colorado, I read the file and was shocked by the extensive perjury in his declaration - I then addressed this in my Motion to Quash and attached evidence as well … I view that as exculpatory evidence but Streeter thought it was cute to question me about why I didn’t have a family member obtain this from my storage space in Berkeley - Cohen’s lawyers were served). Rice is clear - I was asking for tax information. Leonard Cohen has the information necessary to provide me with the IRS required 2004 1099 and to rescind the illegal K-1s issued for 2003, 2004, and 2005. In fact, I recently spoke with the IRS and they instructed me to contact Cohen to advise him that these K-1s should be rescinded as I am not a partner on LC Investments, LLC. They also raised identity theft as an issue. Robert Kory is Cohen’s business manager. I was not. Cohen just continues to lie about this fact. The man cannot stop lying and his lawyers are more than happy to perjure themselves. I suppose they are making substantial money and this is a motivating factor even though Streeter’s comments about this situation during her so-called closing arguments were psychotic.
Michelle Rice Direct:
Streeter: Do you remember what was said in that first email that you got a half hour later? … It was a fraudulent restraining order. What else did she say?
Rice: That she had valid reason for contacting me and it was in, you know, she wanted tax information. Something to that effect. RT 333
Providing me with tax information would not be a violation of a restraining order. LA Superior Court and Boulder Municipal Court cannot override IRS reporting and filing requirements although Kory wrote and lied to Agent Tejeda/IRS about that fact. See IRS binder that Streeter concealed. According to my attorneys notes, Streeter had this binder for approximately two weeks and only handed it over to them on April 9th, during the trial, at which point we issued a subpoena for Agent Tejeda/IRS. The judge then evidently decided to conceal Agent Tejeda/IRS from the jurors. In debriefing, the jurors advised my public defenders that they wanted to hear more about the IRS situation. Cohen, Kory, and Streeter attempted to mislead the jurors by advising them that the IRS and FTB were pursuing me. That is a bald-faced lie.
Rice: I’m Mr. Cohen’s attorney. And to the extent that she’s asking for tax information, we don’t have that information. RT 361
Public Defender: To your knowledge, has Mr. Cohen ever directly sent Ms. Lynch any documentation?
Rice: It would be a violation of the restraining order. RT 362
Public Defender: But you believe that she wasn’t represented by counsel?
Rice: That’s correct. RT 368
PD: Even though you felt you were a protected person, you directly contacted Ms. Lynch and you gave her misinformation … RT 370
Sidebar: IRS Binder and Agent Luis Tejeda/IRS
Public Defender: We received a binder from Ms. Streeter that was provided to her by one of the witnesses that includes, you know, we believe a highly relevant witness that goes to Mr. Kory’s anticipated testimony based on what she provided us. He’s an agent of the IRS and we have subpoenaed him. We received that information on Monday. We subpoenaed him, he’s received that subpoena, but pursuant to federal regulations he has to clear that before he can testify with the appropriate authorities. I spoke with the agent this morning. That request is being considered and evaluated by their attorneys. And as I said, they’ll give me an answer by this afternoon regarding whether or not he will be able to testify and as to what he will testify to. Based on the fact that we received the binder on Monday …
Court: What does his testimony go to?
PD: We also think that … they go to the … motivation of the people’s witnesses. RT 385
Public Defender: Our plans are we want to find out about Agent Tejeda.
Francisco, the judge is lying here. Whether or not I knew of Agent Tejeda’s existence is irrelevant. I was unaware of the fraudulent refund Cohen obtained (confirmed by the IRS according to documents in the IRS binder) in or around December 2005 - based on fraudulent information conveyed to the IRS about me. I have now challenged this refund (discovered at trial) with the IRS and have filed fraud form 3949a, at the suggestion of the IRs regarding the refunding and the illegal K-1s. I would like to note here that Stephen Gianelli filed a fraudulent form 3949a with the IRS about me. This man does not know me; has no idea about my tax returns or payments; and simply lied to them (retaliatory, no doubt) when he filed this form in October 2012. As someone just noted - what would cause someone who doesn’t know me to go to these lengths and that does bring up the question of motive. As you know, he contacted you repeatedly. This is a lawyer who knows I am represented but he attempts ,from what I can tell, to infiltrate matters. This Stalinesque Show Trial has exposed me to dangerously unstable lunatics and that includes Leonard cohen’s fan, Susanne Walsh, who also attempted to lure my minor son into privately communicating with her. She appears to gather information for Robert Kory and Michelle Rice. This is how Leonard Cohen operates. I don’t kno9w if you’ve ever dealt with Vanderet but he seems to have deprived me of a defense and my compulsory witnesses. Who knows what his motive is. As far as I‘m concerned, it’s just more insanity with LA Confidential. I knew there was something wrong with the man the moment he began allowing Leonard Cohen to interpret my emails. Leonard Cohen has bias and motive. He is also a pathological liar. His testimony should make that clear. In any event, Vanderet also didn’t want to delay the trial. As a number of lawyers have noted - what was his hurry? He couldn’t wait two hours, for us to hear back from Agent Tejeda/IRS - before sending this to the jury. He also lied about me during sentencing. I found that pathetic and this man had the audacity to comment on my views of the justice system. Well, he should see what LA Confidential looks like from the other side of the bench.
Court: I will tell you my strong view is I’m not going to delay the trial for Agent Tejeda. You guys, whether you knew his name or not, you were well aware of the relationship, if any, and I think it was quite tangential of the merits of the IRS thing long before the trial, and I’m not going to delay at this point the trial.
PD: … He said he was going to call … Your ruling is not that he’s not precluded from testifying; it’s that you won’t delay the trial.
Court: I won’t delay the trial. RT 432
Public Defender: Of a potential witness that we had mentioned. I believe we’ll wrap this up.
Court: IRS. What is the status.
Public Defender: We weren’t able to hear back from him.
Court: Who is this person?
Public Defender: Mr. Luis Tejeda was mentioned.
Court: Your client has had knowledge of him for quite some time. It’s not a surprise; that should have been taken care of. I’m not going to delay the case for now. RT 528
Robert Kory Cross:
Francisco, the IRS binder contains letters from Kory to Agent Tejeda/IRS and the IRS. Kory was clear with Agent Tejeda/IRS - he and Cohen understood I had received an email from Agent Sopko/Treasury and that was a game changer. Prior to that email, they evidently thought my emails to the IRS Commissioner’s Staff were simply a nuisance. Of course, Kory told my lawyers in 2005 that he was concerned about even requesting copies of the TH tax returns from the IRS because they didn’t want to alert the service … They have become emboldened. After Kory understood I met with Agent Sopko and received an email from her advising me to report Cohen’s tax fraud to Agent Tejeda/IRS, Kory began writing to him and lying to him. He transmitted the fraud retaliatory legal documents to Agent Tejeda and there were certain documents from Cohen’s retaliatory lawsuit in that binder that I had never seen before. I never saw an ad, as Kory testified. I was advised by Agent Bill Betzer/IRS to report the tax fraud to the IRS Fraud Unit. I didn’t contact Agent Sopko/IRS. She contacted me in 2007 (over a year after the refund was obtained) and advised me that she would like to fly in from Washington to meet with me. How would I find Agent Sopko? In any event, Gianelli has referred to her publicly as my federal pet so when he trashes you - know you’re in good company. After contacting her, using the ruse that I was spamming her (which is psychotic), he then contacted the FBI. I think he wanted to the FBI to investigate whether or not I was actually spamming Agent Sopko/Treasury. I think this man will go to any length to sabotage and infiltrate matters that relate to Cohen[‘s tax fraud and Phil Spector. Why would he call Investigator Frayeh to find out if he thought Judge Pat Dixon (former powerful DDA) was good looking? That’s when I wondered if Gianelli was gay. He doesn’t like that. Who knows - maybe he’s just criminally insane. Hard to say. I don’t know this dangerously unstable lunatic who has relentlessly targeted me, my family, and others. He has lied about a conversation with my ex-husband who he called. My ex-husband has no idea what this lunatic is talking about. He emailed me that my ex-husband wouldn’t let me on his boat when I was in Ft. Lauderdale a while back and questioned whether or not I wanted to rekindle our romance. The man is obsessed with me. People in my life have consulted lawyers over this man’s conduct. He does not care. He is unstoppable and has now transmitted fraud about me to the IRS.
Kory: We submitted the documents at length to Luis Tejeda, who is the head of fraud for the Internal Revenue Service in the Western United States. After Ms. Lynch … in 2007, Ms. Lynch contacted in response to, I think, a general ad encouraging employees to turn in their employers if the employees knew about their employer’s tax fraud. Ms. Lynch contacted a woman named -- an agent named Kelly Sopko. Kelly Sopko referred the matter, all her allegations related to Mr. Cohen -- RT 422
I have never written that the IRS and FTB are pursuing me relentlessly but Kory evidently thinks he’s in Les Miserables. The man’s T.M. practice must have gone to his head and he thinks he is now above the laws of reality and, most certainly, perjury. Robert Kory practices T.M. - or did - and was involved in some failed amusement park deal called Oz prior to becoming Cohen’s personal and business manager. He now has a sense of self-importance. People view him as a maniac. I agree.
Kory: All I know is the -- she writes in her emails and she complains that the IRS and the Franchise Tax Board are pursuing her relentlessly. So I don’t know the -- I suspect, but don’t know the substance of why they‘re pursuing her. RT 423
Robert Kory is clear. I have asked that they withdraw the illegal K-1s that are evidence of criminal conduct. He thinks that request is sophisticated. Evidently their position is that everyone has to be a moron with motive. Leonard Cohen fraudulently reported a theft loss to the IRS and received a refund of approximately $700,000. Kory thinks this is a zero sum game but I have just filed a fraud form 3949a, after a conversation with the IRS, and do not view this as a game. He does. That’s clear. Leonard Cohen paid taxes on money he didn’t receive? I find that impossible to believe. I, on the other hand, paid taxes on behalf of a corporation that Cohen has decided he is the alter ego of. I can assure you, Francisco, that I didn’t make a charitable donation to the IRS on behalf of Leonard Cohen. Mr. Cohen’s refund has been challenged.
Kory: What I saw is a request that we change the forensic accounting. That we withdraw a K-1. RT 426 Because she saw that we were reporting, that we had reported to the Internal Revenue Service that money that Mr. Cohen had paid taxes on he did not receive. And therefore, Mr. -- when we reported that to the IRS we declared a theft loss. Mr. Cohen got a tax refund. RT 426
I’ve addressed the fraudulent expense ledger which I do not trust for one moment. These lunatics were moving things around from column to column. Cohen’s girlfriend’s house was actually in my column and his son’s house now appears to be in an undetermined column. That’s one example of the fraud on this ledger. The illegal K-1s totally undermine the ledger. Cohen has transmitted the K-1s to the IRS advising them that I had $0 income from LCI in 2004 and yet he has listed income, I believe, in the fraudulent ledger. How do they reconcile this insanity. I have asked for IRS required Form 1099. Cohen simply doesn’t want to hand it over. Do you see Kory’s logic - if someone gets a refund, somebody else pays the taxes. Not so quick. The fund has been challenged. Cohen stole from me. The IRS is in possession of the corporate books and records, etc.
Kory: As I read them, as I read them, I was reading a formidable, intelligent person with sophisticated tax knowledge who had the forensic accounting and the K-1s and all the tax information in her possession, and she was requesting that we somehow modify what we had reported. RT 426 It’s a zero sum game. If somebody gets a tax refund somebody else has to pay the taxes. RT 427
Did Robert Kory give my advisers the 2004 1099? I just called my former lawyers to discussed his testimony and to advise them that I am waiving attorney/client privilege for the IRAs, FBI, DOJ, Treasury, FTB, and Phil Spector’s attorneys with respect to them. They simply wanted that put in writing. I didn’t fire my accountant. He completed my return for 2003, advised me what to pay, and that was the work he was hired to do. I have no idea why Kory perjured himself over this situation. I did fire DiMascio & Berardo but I didn’t fire the lawyers I hired thereafter. That would include Mike Taitelman, Bert Deixler, and Zia Modabber who ultimately advised me that he had a conflict of interest. Robert Kory and Sandra Streeter’s use of the word RUSE is preposterous.
PD: … She requested tax information... did she request that information, Mr. Kory?
Kory: I -- I suppose … RT 427 But I always recall that those requests to him, as what I thought were part of a ruse. RT 427 I directly gave documents -- I gave all the documents required for her tax information when she was fully represented in January -- January, February, March, April 2004. By then we had completed our forensic accounting, all the information was given to her. Very sophisticated tax lawyer and to her tax accountants, and she fired them. RT 428
Kelley Lynch Direct:
Public Defender: You said that your business relationship ended on October 21, 2004?
Lynch: Essentially, yes.
PD: Why did it end?
Lynch: well, it’s a complicated answer, but I would say because Leonard Cohen heard I was going to the Internal Revenue Service about what I was told is criminal tax fraud. RT 458 I was told by Mr. Kory that there’s fraud, tax fraud on every entity: Blue Mist Touring, Traditional Holdings, LC Investments. There were problems with the Stranger Music deal that had tax issues. The IRS would demand information going back years, and the holding periods with respect to copyrights that were sold are illegal … He asked me if I would mediate with Mr. Cohen in a private mediation on Mr. Cohen’s side against his advisors. Particularly they wanted to go after Neal Greenberg and Richard Westin and their insurance companies. Mr. Kory told me that … Arthur Indursky, Don Friedman and Stuart Fried of Grubman, Indursky firm committed fraud in the inducement, as did Greg McBowman. RT 459
Public Defender: Were you asked to give false information that would hurt Mr. Greenberg and help Mr. Cohen?
Lynch: I don’t know if I was asked to give false information. I would not characterize the conversation that way. I was asked to testify that Neal Greenberg defrauded Leonard Cohen, and I most certainly do not feel that Neal Greenberg defrauded him. I feel that Leonard Cohen, Neal Greenberg and Richard Westin were wrapped in attorney/client privilege and they all defrauded the U.S. government.
PD: Did you ever agree to any of that?
Lynch: No. I felt I was being asked to participate in criminal conduct. RT 460
Public Defender: Now, you mentioned earlier about IRS and tax situation. Were you ever contacted by any tax authorities regarding Mr. Cohen’s taxes?
Lynch: I don’t know if I was contacted regarding Mr. Cohen’s taxes. As I reported the tax fraud to Agent Bill Betzer, I was working on paying my own taxes, and he suggested that I contact the Fraud Unit with anything I had to report. And so I contacted the Fraud Unit by phone and then I filed a complaint online with the IRS. And I also called the IRS in Washington.
PD: When were you told to contact the Fraud Unit?
Lynch: I spoke to Agent Bill Betzer on April 15, 2005 after I paid my taxes in full. RT 463
PD: You heard voice mails regarding IRS; is that correct?
Lynch: Right.
PD: Can you tell us what you meant?
Lynch: What I meant by the IRS?
PD: Yes.
Lynch: Well, I did receive an email -- I mean I did receive a phone call from Agent Kelly Sopko of the Treasury regarding this matter. And I did meet with her and her partner, whose name is Brandon.
PD: What year was that?
Lynch: That was 2007. RT 464
PD: Did you write about this in any of your emails?
Lynch: Yeah, I did write about that.
PD: What did you write about in those emails?
Lynch: Well, I think I attached Agent Sopko’s email to me, saying that she found an appropriate individual for me, which is Agent -- to report this to, which is Agent Luis Tejeda of the IRS Unit in Los Angeles. And to go to Agent Tejeda with whatever information and evidence I had regarding this tax fraud.
PD: Did you ever notify Mr. Cohen or any of his representatives about this tax issue?
Lynch: Well, they have a copy of the email to me from Kelly Sopko. So yes, I did. RT 465
PD: Who is Doug Davis?
Lynch: Doug Davis is a tax advocate that was assigned to me to remove the lien while I attempted once again to get the tax information I needed to file my returns. RT 470
Public Defender: You mentioned earlier also about t tax information that you had learned about regarding -- or after your conversation with Doug Davis. What exactly did you -- what kind of tax information were you looking for?
Lynch: Well, Doug Davis was a very kind man and agreed to remove the tax lien. Because I would have ended up homeless again. But he told me he would give me 60 days to obtain -- first of all, we went over the fact that I was confused about what to call what I thought were my commissions on “Dear Heather,” because Leonard Cohen had said if he deposited it into his personal account, I wasn’t entitled to it. I have evidence proving otherwise … So he told me they don’t believe I did charitable or pro bono work. So Doug Davis told me to report that as income, and I told Mr. Davis this has been since 2004, I would call City National Bank to see if I could get copies of my bank statements, even though I don’t have the money. He said they probably won’t have them any longer. So, they didn’t call me back, they refused to call me back. I called their legal department. RT 477
Public Defender: What tax information were you requesting?
Lynch: I am trying to determine the total amount that i was given as a commission in the year 2004. Not just for “Dear Heather,” there are other royalties.
PD: Did you try to get this information from other sources?
Lynch: Well, I tried to get it from City National Bank, which would be the only other source.
PD: Did you actually have those actual physical records in your possession?
Lynch: No. I’ve lost everything.
PD: When did you lose everything?
Lynch: Well, I lost my house in 2005 and my storage in 2006. RT 478
PD: From 2006 to 2012, did you ever receive the documentation that you were requesting from Mr. Cohen?
Lynch: No, I have not. RT 479
Kelley Lynch Cross:
Streeter: You mentioned that you were trying to contact Mr. Cohen in reference to tax information you needed, right? That your 1099 or K-1?
Lynch: Many different tax and accounting and financial information I required to deal with my federal and state tax returns. I think we’re really clear, right? You’ve read the emails? RT 495
Leonard Cohen did not fire me. He heard I was reporting his tax fraud to the IRS; became hysterical; asked me to meet with him and his tax lawyer, hand over the corporate books and records, and help them unravel their handiwork. I refused. The IRS has never advised me that they believe money was missing out of Cohen’s account. But, once again, there is evidence that Cohen - and now the prosecutor - has taken the position that he is the alter ego of these entities. What evidence does Streeter have that this is the IRS’ position. She’s aware that Agent Tejeda/IRS received a subpoena so this is really quite psychotic. What is or is not income to me is none of Streeter’s business. She doesn’t work for the IRS and this is not Tax Court. I think all questions and testimony regarding federal tax matters should be viewed as prosecutorial misconduct and an attempt to obstruct justice.
Streeter: Now, once you were released from or quit Mr. Cohen’s employ, at some point later the IRS was of the opinion that the money that was missing out of his account, that was income to you, correct?
Lynch: I’ve never heard that. I’ve met with the agents for the Treasury and I’ve never been told that.
Streeter: Well, you mentioned --
Lynch: I talked to Agent Tejeda, I’ve never heard that.
Streeter: Well, you mentioned that the IRS came after you --
Streeter lies and misstates facts. I have never said that the IRS came after me. She is misleading the jurors.
Lynch: They didn’t come after me. RT 495
Streeter: Okay -- did the IRS ever contact you”?
Streeter is in possession of the IRS binder. It contains Agent Sopko’s email advising me to report Cohen’s tax fraud to Agent Tejeda/IRS and notes that he is the head of fraud at the IRS in Los Angeles. Kory name drops him - he’s evidently the head of fraud for the Western Division of the IRS. I hope he’s clear about the ruse and the attempt to sabotage the IRS.
Email from Agent Kelly Sopko to Kelley Lynch
March 6, 2007
IRS Binder Streeter handed my lawyers on April 9, 2012
Good afternoon Ms. Lynch,
Per our meeting last week, I have found a solid IRS contact that will be better able to assist you. His name is Luis Tejeda and he is the head of a fraud group at IRS. I spoke with him today and advised him that I would be passing on his contact information to you:
office phone number: REDACTED
office address: 300 N Los Angeles Street
MS 4040
Los Angeles, CA 90012
He emphasized that you will need to put something in writing - a summary of all important details, with as much specificity as you have. (For example, if you have copies of any paperwork involved, or social security numbers of people involved …) Once you pass the information onto him , he will review it and proceed accordingly. As standard practice, you will not get confirmation that your information was received. However, you may contact Tejeda to follow up.
I hope that this information is hepful to you. If there is anything else I can assist you with, please be sure to let me know.
Kelly A. Sopko
Special Agent
Treasury IG for Tax Administration (TIGTA)
Special Inquiries & Intelligence Division
Excerpt from Robert Kory Letter to Agent Tejeda/IRS dated March 9, 2007
IRS Binder
In many of those communications, she has alleged that she is reporting Mr. Cohen to the Internal Revenue Service for fraud … Now the situation has changed. Ms. Lynch managed to obtain a return email from Special Agent Kelly A. Sopko, the contents of which I read to you … Please note that Ms. Lynch is using communications from the Internal Revenue Service to defame Mr. Cohen and to use the threat of an IRS investigation to attempt to extort resolution of civil claims.
Agent Sopko called me and advised me that she was flying in from Washington to meet with me. I met with her and her partner, Brandon. I didn’t “manage”{ to obtain a return email from Special Agent Kelly A. Sopko but Kory is clear - the email from Agent Sopko was a game changer. I have not attempted to extort a civil claim from Leonard Cohen. That is a bald faced lie. See Leonard Cohen’s offer of 50% community property that Dale Burgess (who was not fired) advised me to call the Treasury agents about and inform them that he would testify about the offer. He was also convinced that Criminal Intelligence/IRS should be involved in this situation and was concerned about my safety and welfare.
IRS Notification to Leonard Cohen dated February 3, 2006
Tax Periods: 2001, 2002, 2003
Carryback from Tax Period Ended: December 31, 2004
IRS Binder
Dear Taxpayer:
In processing your request for adjustment, dated December 13, 2005, we changed your proposed decrease in tax … You will be receiving the following refunds, $557,196.00, $56,725.00 and $50,919.00, within 4 to 6 weeks…
This refund is fraudulent and has now been challenged with the IRS. I have filed the appropriate form 3949a with the IRS (after speaking with them) re. the refunds and the illegal K-1s. I have provided the IRS with an abundance of evidence regarding Cohen’s tax fraud, the concealed corporate books and records, his theft from me re. the intellectual property, etc. This refund confirmation is dated February 3, 2006. It did not close the case on Cohen’s tax matter and does not represent an IRS holding re. the default judgment entered against me in May 2006. I met with Agent Sopko in March 2007 and was, at that time, advised to report Cohen’s tax fraud to Agent Tejeda/IRS. This clearly proves that Streeter, Cohen, and Kory lied about the IRS with respect to this refund and an IRS holding re the default judgment. See Streeter’s sidebar comments to Judge Vanderet. She is lying.
Lynch: No.
Streeter: After you quit Mr. Cohen’s employ, did the IRS ever contact you about paying back taxes?
What is this line of questioning about my back taxes? It is outrageous.
Lynch: No. I was arranging to pay taxes that were current that had nothing to do with this and they didn’t -- they sent me a tax notice in 2004. It has nothing to do with this situation, and I paid that. Since that, no I’ve never heard from the IRS that I owed the money. RT 496
Streeter: And the IRS never contacted you about any back taxes that you owe?
Streeter clearly attempted to sabotage me and the IRS. She seems intent on keeping Cohen credible; discrediting me; and it involves Phil Spector, Steve Cooley, and Alan Jackson.
Lynch: The state told me that because I don’t have the tax infor4mation, I need to file my returns, including any deductions, business expenses, follow my prior year tax returns and guess. So I contacted the IRS for that, for those returns, and I was told the IRS would like me to file my 2004 and 2005 returns. I don’t owe any money. I lost my greeting card company. I have huge losses.
Streeter: So it’s your testimony that no one associated with Mr. Cohen, Mr. Kory, Ms. Rice, or any of his business people ever gave you information, the tax documents that you are requesting?
Does Streeter have a copy of the IRS required form 1099 for the year 2004? The IRS does not. I just spoke to them. They have copies of the illegal K-1s.
Lynch: For the years 2004 and 2005, that’s correct. RT 497
Streeter constantly misstates the evidence and will simply lie about my testimony. She shocks the conscience and that’s before one witnesses her gushing in a cell phone about celebrity Leonard Cohen. As I’ve said, it was obscene. Literally.
Streeter: Now, you mentioned that the reason that you continued to contact Mr. Cohen was solely for business purposes, that it was to get the information for the tax documents?
Lynch: Did I say solely for business purposes.
Public Defender: Misstates the evidence. RT 497
Lynch: One of the main reasons I contacted Leonard Cohen is for -- I have K-1s that were transmitted to the IRS that do not belong to me. I was not a partner on LC Investments. That causes tremendous confusion with my taxes. I have a default judgment where two companies have been -- Leonard Cohen said he’s the beneficial owner. That is not factual. I have the evidence. This caused my federal tax returns that were filed to be altered. This causes confusion for me … I have tried to get all of this clarified. I’ve asked for -- there is not a forensic accounting. there is a ledger. RT 497
Streeter: You didn’t feel that those were harassing, right, Ms. Lynch?
Lynch: Asking for information for my federal tax returns and state -- including when I’ve been garnished is harassment? RT 498 I feel like I’m being harassed by not being given the information. RT 498
Lynch: But Stranger Music is a tax problem, and I’ve gone to the IRS on that as well. So that is a tax matter, yes. RT 500
Francisco, what law says my requests have to be on the first page? What does extraneous material - meant for my own purposes (sent to the IRS, FBI, etc.) have to do with this matter? Streeter doesn’t care about criminal conduct. She’s got a celebrity on the stand and the DA’s investigator hanging out in the courtroom and lunching with Cohen. Hailey from the LA Times is also present. It’s positively LA Confidential.
Streeter: Where on the first page is there any mention about taxes?
Lynch: It’s on the second page.
Streeter: But on the first page. RT 507
Lynch: THe SWAT incident on the first page.
Streeter: That has nothing to do with your tax issues?
Lynch: But it has to do with criminal activity I believe. RT 507
Streeter Closing:
Why does Streeter find this interesting? “Every musician in LA knows what a 1099 is. What is her point here? People don’t know the difference between the IRS and FTB? Is she saying that ta
This is the other thing the people found a little interesting. She knows what a 1099 is a K-1 -- a K-1. Whoever heard of a K-1 before this case? The FTB and the IRS. Did anyone know there was a difference between the FTB and the IRS? Or what the FTB is? … This is a woman who knows what a K-1 is … RT 566
I have legitimately requested information I need to file my tax returns. This woman is a bald faced liar and the only con being unraveled here involves Cohen’s tax fraud, this lying prosecutor, and the Phil Spector Spector matter.
So this isn’t about Ms. Lynch being angry that she didn’t get her tax documents. RT 577 So what you have here, what this is proof of is not a woman who legitimately wants her IRS records or documents. It’s the unraveling of a con. RT 578
Defense Closing:
She was a whistle blower, reporting what she thought was criminal and fraudulent conduct. She’s asking for help from Steve Cooley, the DA, the IRS, the FBI, Department of Justice, lawyers she thought might help her. RT 581
Cohen was testifying he doesn’t know what a W-2 form is, he only learned recently that a K-1 form has to do with taxes, and that he only asked two real questions when things come up in his financial and legal affairs: Is it legal? Is it safe? And he doesn’t want to get involved too much in the intricacies of these legal issues because it inteferes with his creative process … But when my co-counsel was cross-examining him on issues such as a default judgment entered against Ms. Lynch, all of a sudden Mr. Cohen had details about how a forensic accounting was entered and the judge relied up0on that. He’s won two judgments against her. He knew details, where just on direct examination he doesn’t get involved in these type of things. It seems like he has a lot more to say than he was letting on to. RT 585