From: Kelley Lynch <kelley.lynch.2010@gmail.com>
Date: Sat, Mar 2, 2013 at 11:07 AM
Subject: City Attorney's Statement Of The Facts
To: "*irs. commissioner" <*IRS.Commissioner@irs.gov>, Washington Field <washington.field@ic.fbi.gov>, ASKDOJ <ASKDOJ@usdoj.gov>, "Kelly.Sopko" <Kelly.Sopko@tigta.treas.gov>, "Doug.Davis" <Doug.Davis@ftb.ca.gov>, Dennis <Dennis@riordan-horgan.com>
Hello,
I am now going through the Statement of the Facts. I want to address some of this in my declaration which will be filed Monday or Tuesday. Clearly, I will have to edit my responses heavily but I need to see the details in black and white first. So, below Schmitter's fictional narrative are the actual facts. I have made my way through approximately one paragraph. I was represented by lawyers from October through May 2005 so Cohen wasn't receiving numerous emails from me per day. It's just another fraudulent aspect of this entirely fictional narrative that has nothing whatsoever to do with the truth. The City Attorney's role here is deeply disturbing from my perspective.
All the best,
Kelley
CITY ATTORNEY STATEMENT OF THE FACTS
ON BEHALF OF CANADIAN CITIZEN LEONARD COHEN
A FICTIONAL NARRATIVE CREATED TO DISTORT THE TRUTH AND A BLATANT ATTEMPT TO BLAME COHEN’S WRONGDOING ONTO OTHERS
Leonard Cohen is a songwriter and singer. Appellant worked for Cohen as a personal and business manager for about 17 years. According to Cohen, but disputed by appellant they also had a brief intimate relationship. Cohen dismissed appellant from his employ in 2004. Immediately thereafter, appellant began to send Cohen numerous emails per day; this amount accelerated to approximately 20-30 emails a day alter Cohen filed suit against appellant and received default judgment in his favor. Around the same time, appellant began calling Cohen at home regularly, leaving voicemail messages involving “accusations and threats.” Specifically, appellant began to indicate Cohen was the author of her misfortune and everything happening to her was his fault, and she would repay him with the same kindness he had shown her -- all said with a “very menacing tone.” Many times she left messages saying Cohen should be shot and he would be sorry he ever met her. These messages alarmed and frightened Cohen. He was “concernid about my safety and the safety of my children and grandchildren.”
Date: Sat, Mar 2, 2013 at 11:07 AM
Subject: City Attorney's Statement Of The Facts
To: "*irs. commissioner" <*IRS.Commissioner@irs.gov>, Washington Field <washington.field@ic.fbi.gov>, ASKDOJ <ASKDOJ@usdoj.gov>, "Kelly.Sopko" <Kelly.Sopko@tigta.treas.gov>, "Doug.Davis" <Doug.Davis@ftb.ca.gov>, Dennis <Dennis@riordan-horgan.com>
Hello,
I am now going through the Statement of the Facts. I want to address some of this in my declaration which will be filed Monday or Tuesday. Clearly, I will have to edit my responses heavily but I need to see the details in black and white first. So, below Schmitter's fictional narrative are the actual facts. I have made my way through approximately one paragraph. I was represented by lawyers from October through May 2005 so Cohen wasn't receiving numerous emails from me per day. It's just another fraudulent aspect of this entirely fictional narrative that has nothing whatsoever to do with the truth. The City Attorney's role here is deeply disturbing from my perspective.
All the best,
Kelley
CITY ATTORNEY STATEMENT OF THE FACTS
ON BEHALF OF CANADIAN CITIZEN LEONARD COHEN
A FICTIONAL NARRATIVE CREATED TO DISTORT THE TRUTH AND A BLATANT ATTEMPT TO BLAME COHEN’S WRONGDOING ONTO OTHERS
Leonard Cohen is a songwriter and singer. Appellant worked for Cohen as a personal and business manager for about 17 years. According to Cohen, but disputed by appellant they also had a brief intimate relationship. Cohen dismissed appellant from his employ in 2004. Immediately thereafter, appellant began to send Cohen numerous emails per day; this amount accelerated to approximately 20-30 emails a day alter Cohen filed suit against appellant and received default judgment in his favor. Around the same time, appellant began calling Cohen at home regularly, leaving voicemail messages involving “accusations and threats.” Specifically, appellant began to indicate Cohen was the author of her misfortune and everything happening to her was his fault, and she would repay him with the same kindness he had shown her -- all said with a “very menacing tone.” Many times she left messages saying Cohen should be shot and he would be sorry he ever met her. These messages alarmed and frightened Cohen. He was “concernid about my safety and the safety of my children and grandchildren.”
THE ACTUAL FACTS - AS SUPPORTED BY CORPORATE BOOKS, RECORDS, ETC.
KELLEY LYNCH
IT SEEMS OBVIOUS THAT WHILE COHEN DOES CRAFT WORDS THAT RESONATE IN THE MINDS OF CERTAIN INDIVIDUALS, USED TO AVOID WHAT IS ACTUALLY GOING ON, HIS CONCERN HAS MORE TO DO WITH THE FACT THAT HIS PROBABLE CRIMINAL TAX FRAUD WAS REPORTED TO THE IRS. AND, AS HE HAS A LONG AND PUBLICLY DOCUMENTED HISTORY OF DRUG ABUSE, MAY HAVE BORDERLINE PERSONALITY DISORDER - AS A PSYCHIATRIC NURSE POINTED OUT RECENTLY, AND MOTIVE TO LIE, IT IS BEST TO TAKE HIS ALARMING STATEMENTS WITH A GRAIN OF SAND. THEY ARE NOTHING OTHER THAN WORDS AND WORDS MEAN NOTHING TO HIM.
I was Leonard Cohen’s personal manager, execute assistant, publishing administrator, publicist, and served in other roles as well, from approximately 1988 until mid-late October 2004. Throughout these 17 years, Cohen and I also had a friendship and our families were quite close. I helped raise his daughter and worked as his son’s personal manager for approximately 6 years. In addition to receiving a Standard 15% commission on the gross of all streams of royalty income, I was compensate with 15% ownership interest in all intellectual property, including book publishing. This was also to compensate me for the other areas of work I did that had nothing to do with my services as personal manager. There are corporate books, records, non-revocable assignments, minutes, and other documents evidencing my ownership interest in Blue Mist Touring Company, Inc. At a certain point in OR around 1999, Leonard Cohen asked me to assistant with an estate planning tool - Traditional Holdings, LLC - his tax and financial advisers thought World suit him well. I thought it was inexplicable complicated, had my doubts, and requested an indemnity agreement which I received. The corporate books, records, notarized documents, tax filings, legal memorandum, stock certificates, minutes, and other corporate records were concealed - by Leonard Cohen and his advisers - when he filed a wholly retaliatory lawsuit against me in the summer of 2005. What led to Cohen and my parting of ways was the fact that Leonard Cohen heard I was reporting what appeared to be egregious tax fraud to the IRS. In October 2004, he and his advisers began hysterically contacting me - their main goal was to have me meet with them, hand over the corporate books and records for three entities - and assist in the unravelling of their corporate, tax, and financial handiwork. I refused. I hired an accountant and lawyers who ultimately explained that Cohen had committed serious tax fraud with respect to these entities. I had nothing to do with creating them or maintaining them. Cohen hired professionals to handle those matters and his tax lawyer and accountants handled all IRS filings, etc. I provided my attorneys with the corporate books and records which were, in turn, handed over to Cohen’s legal counsel. For months, discussions were had about my ownership interest in corporate entities, how Cohen’s loans from Traditional Holdings World be handled, an accounting that needed to be prepared, my role in meditations with Cohen’s advisers, my management commissions that were [and are] still outstanding, and other legal and business matters were addressed. Cohen’s greatest concern had to do with tax matters related to a number of corporate entities create for his benefit. I was ultimately advised that there was tax fraud on all entities. Certain information I heard - including with respect to the Grubman/Indursky firm and Greg McBowman - disturbed me. They were falsely being accused of engaging in fraude in the inducement which couldn’t be farther from the truth. Discussions primarily envolved Richard Westin and Neal Greenberg, their role in creating these entities, meditations, and insurance companies being brought in. I distinctly felt that Cohen, Westin, and Greenberg - all wrapped in attorney client privilege - had create the corporate, tax, and financial landscape and believed they all placed a large role in the tax fraud, using me as an unwitting pawn, and attempting to blame their wrongdoing on others. At one point, Cohen offered me 50% community property - presumably to lie and testify that Greenberg and Westin defrauded him. That is not my perspective. They did the work he hired them to do. Each of them was also aware that Cohen’s loans from Traditional Holdings, LLC were dangerous to this structure (which I origináis was told were fine but had to be documented by promissory notes, something his tax lawyer World handle; and, later I heard Cohen’s loans from Traditional Holdings were problematic). I refused to entertain any furrier conversations with respect to meditations that former DA Ira Reiner was apparently assisting with. Discussions continued about the need to have the corporate assets valued and accounting's prepared. Kory advised me that he had a great deal of leverage to settle with me. While legáis represented from the fall of 2004 through the spring of 2005, I rarely contacted Cohen. My lawyers dealt with his lawyers.
I also had an accountant involved who assisted me with filing my tax return and paying my taxes for the year 2003. Phantom income of approximately $300,000 from Traditional Holdings appears on that return as cap gain income. I, therefore, paid the taxes that I was told were due. My accountant explained that without TH on my return, I World have a substantially carry-back. He also explained that Cohen had used two separate tax ID numbers when filing tax returns for Traditional Holdings. I learned that Cohen never reported the income from the Sony sale on the 2001 TH returns; extinguished my promissory note from the 2002 return - using the second tax ID number; and, had fully extinguished the annuity agreement itself from the 2003 tax return. Clearly, this was some form of step transaction that had been concealed from me. I then learned that Cohen’s actual plan, from the inception, had been to roll the en tití know as TH into another en tití that he was the sole owner of - LC Investments, LLC. There were issues with attempts to reassign the intellectual property that was origináis assigned to Blue Mist Touring to these other entities and those assignments failed OR had been fraudulent. To SUM things up, I was told that BMT owns all the intellectual property; LC Investments, LLC, Leonard Cohen, and other entities collect the royalties; and, Traditional Holdings, LLC sold assets to Sony that it did not own. Cohen’s goal in all of this was to avoid paying taxes on income from the 2001 Sony sale. These deals that Cohen insisted on, demanding stock deals, were extremely complicated. Many advisers worked on these deals. At a certain point, the IRS began auditing various issues - such as charrita le contributions of stock to Mt. Baldy Abbott’s fund and making inquiries into $1 million in income Leonard Cohen received in 1999 in advance of the Sony 2001 deal which he did not report on his tax return - instead taking the position that this was a loan. These audits were eventually resolved but they raí sed extremely alarming concerns in my mind.
I was convinced that Cohen, Greenberg, Westin, and possible others, were engaged in tax fraud. It was ultimately confirmed by my lawyers, that the tax fraud was criminal. The penalties and interest, on ONE en tití alone, as of 2004 were approximately $10 million. I was advised that similar penalties and interest existed on at least two other entities. There is another problematic en tití that has not be address yet - Old Ideas, LLC. In any event, Cohen’s accountant fleo to San Francisco to meet with mine. At that time, they were reviewing a ledger of unverified expenses and many items were moving from Cohen’s column into mine; my column into Cohen’s, etc. In fact, two houses Leonard Cohen bought for his girlfriend and son (using corporate assets( were inconceivably assigned to my column. Leonard Cohen’s accountant advised mine that he did not have the corporate records that World permit him to do a proper accounting with respect to corporate ownership interests, assets, liabilities, equity, etc.
On OR around April 15, 2005, my tax return and payment having been submitted to the IRS, I had a long conversation with Agent Bill Betzer/IRS about my bies on what had gone on with respect to Leonard Cohen and these entities. Agent Betzer attempted to assist me with filing extensions for Blue Mist Touring Company, Inc. And Traditional Holdings LLC. He understood that I was the rightful owner of 15% of BMT and 99.5% of TH. Agent Betzer also advised me to Brig. The tax fraud into the IRS with a lawyer. I no longer had the money to hire a lawyer and Agent Betzer then suggested I contact the IRS Fraud Unit which I did. I also filed a complaint online with the IRS, received a conformation back, and contacted the IRS in Washington due to the inconceivably outrageous and bizarre tactics being used against me.
I was Leonard Cohen’s personal manager, execute assistant, publishing administrator, publicist, and served in other roles as well, from approximately 1988 until mid-late October 2004. Throughout these 17 years, Cohen and I also had a friendship and our families were quite close. I helped raise his daughter and worked as his son’s personal manager for approximately 6 years. In addition to receiving a Standard 15% commission on the gross of all streams of royalty income, I was compensate with 15% ownership interest in all intellectual property, including book publishing. This was also to compensate me for the other areas of work I did that had nothing to do with my services as personal manager. There are corporate books, records, non-revocable assignments, minutes, and other documents evidencing my ownership interest in Blue Mist Touring Company, Inc. At a certain point in OR around 1999, Leonard Cohen asked me to assistant with an estate planning tool - Traditional Holdings, LLC - his tax and financial advisers thought World suit him well. I thought it was inexplicable complicated, had my doubts, and requested an indemnity agreement which I received. The corporate books, records, notarized documents, tax filings, legal memorandum, stock certificates, minutes, and other corporate records were concealed - by Leonard Cohen and his advisers - when he filed a wholly retaliatory lawsuit against me in the summer of 2005. What led to Cohen and my parting of ways was the fact that Leonard Cohen heard I was reporting what appeared to be egregious tax fraud to the IRS. In October 2004, he and his advisers began hysterically contacting me - their main goal was to have me meet with them, hand over the corporate books and records for three entities - and assist in the unravelling of their corporate, tax, and financial handiwork. I refused. I hired an accountant and lawyers who ultimately explained that Cohen had committed serious tax fraud with respect to these entities. I had nothing to do with creating them or maintaining them. Cohen hired professionals to handle those matters and his tax lawyer and accountants handled all IRS filings, etc. I provided my attorneys with the corporate books and records which were, in turn, handed over to Cohen’s legal counsel. For months, discussions were had about my ownership interest in corporate entities, how Cohen’s loans from Traditional Holdings World be handled, an accounting that needed to be prepared, my role in meditations with Cohen’s advisers, my management commissions that were [and are] still outstanding, and other legal and business matters were addressed. Cohen’s greatest concern had to do with tax matters related to a number of corporate entities create for his benefit. I was ultimately advised that there was tax fraud on all entities. Certain information I heard - including with respect to the Grubman/Indursky firm and Greg McBowman - disturbed me. They were falsely being accused of engaging in fraude in the inducement which couldn’t be farther from the truth. Discussions primarily envolved Richard Westin and Neal Greenberg, their role in creating these entities, meditations, and insurance companies being brought in. I distinctly felt that Cohen, Westin, and Greenberg - all wrapped in attorney client privilege - had create the corporate, tax, and financial landscape and believed they all placed a large role in the tax fraud, using me as an unwitting pawn, and attempting to blame their wrongdoing on others. At one point, Cohen offered me 50% community property - presumably to lie and testify that Greenberg and Westin defrauded him. That is not my perspective. They did the work he hired them to do. Each of them was also aware that Cohen’s loans from Traditional Holdings, LLC were dangerous to this structure (which I origináis was told were fine but had to be documented by promissory notes, something his tax lawyer World handle; and, later I heard Cohen’s loans from Traditional Holdings were problematic). I refused to entertain any furrier conversations with respect to meditations that former DA Ira Reiner was apparently assisting with. Discussions continued about the need to have the corporate assets valued and accounting's prepared. Kory advised me that he had a great deal of leverage to settle with me. While legáis represented from the fall of 2004 through the spring of 2005, I rarely contacted Cohen. My lawyers dealt with his lawyers.
I also had an accountant involved who assisted me with filing my tax return and paying my taxes for the year 2003. Phantom income of approximately $300,000 from Traditional Holdings appears on that return as cap gain income. I, therefore, paid the taxes that I was told were due. My accountant explained that without TH on my return, I World have a substantially carry-back. He also explained that Cohen had used two separate tax ID numbers when filing tax returns for Traditional Holdings. I learned that Cohen never reported the income from the Sony sale on the 2001 TH returns; extinguished my promissory note from the 2002 return - using the second tax ID number; and, had fully extinguished the annuity agreement itself from the 2003 tax return. Clearly, this was some form of step transaction that had been concealed from me. I then learned that Cohen’s actual plan, from the inception, had been to roll the en tití know as TH into another en tití that he was the sole owner of - LC Investments, LLC. There were issues with attempts to reassign the intellectual property that was origináis assigned to Blue Mist Touring to these other entities and those assignments failed OR had been fraudulent. To SUM things up, I was told that BMT owns all the intellectual property; LC Investments, LLC, Leonard Cohen, and other entities collect the royalties; and, Traditional Holdings, LLC sold assets to Sony that it did not own. Cohen’s goal in all of this was to avoid paying taxes on income from the 2001 Sony sale. These deals that Cohen insisted on, demanding stock deals, were extremely complicated. Many advisers worked on these deals. At a certain point, the IRS began auditing various issues - such as charrita le contributions of stock to Mt. Baldy Abbott’s fund and making inquiries into $1 million in income Leonard Cohen received in 1999 in advance of the Sony 2001 deal which he did not report on his tax return - instead taking the position that this was a loan. These audits were eventually resolved but they raí sed extremely alarming concerns in my mind.
I was convinced that Cohen, Greenberg, Westin, and possible others, were engaged in tax fraud. It was ultimately confirmed by my lawyers, that the tax fraud was criminal. The penalties and interest, on ONE en tití alone, as of 2004 were approximately $10 million. I was advised that similar penalties and interest existed on at least two other entities. There is another problematic en tití that has not be address yet - Old Ideas, LLC. In any event, Cohen’s accountant fleo to San Francisco to meet with mine. At that time, they were reviewing a ledger of unverified expenses and many items were moving from Cohen’s column into mine; my column into Cohen’s, etc. In fact, two houses Leonard Cohen bought for his girlfriend and son (using corporate assets( were inconceivably assigned to my column. Leonard Cohen’s accountant advised mine that he did not have the corporate records that World permit him to do a proper accounting with respect to corporate ownership interests, assets, liabilities, equity, etc.
On OR around April 15, 2005, my tax return and payment having been submitted to the IRS, I had a long conversation with Agent Bill Betzer/IRS about my bies on what had gone on with respect to Leonard Cohen and these entities. Agent Betzer attempted to assist me with filing extensions for Blue Mist Touring Company, Inc. And Traditional Holdings LLC. He understood that I was the rightful owner of 15% of BMT and 99.5% of TH. Agent Betzer also advised me to Brig. The tax fraud into the IRS with a lawyer. I no longer had the money to hire a lawyer and Agent Betzer then suggested I contact the IRS Fraud Unit which I did. I also filed a complaint online with the IRS, received a conformation back, and contacted the IRS in Washington due to the inconceivably outrageous and bizarre tactics being used against me.
--
The
Judge admonished the witness, “Do you understand that you have sworn to
tell the truth?” “I do.” “Do you understand what will happen if you are
not truthful?” “Sure,” said the witness. “My side will win.”