Leonard Cohen's Endless Problems With Taxes, Theft, False Accusations, Breach of Contracts, Residence Issues, Etc. - See Steven Machat For Additional Details

From: Kelley Lynch <kelley.lynch.2010@gmail.com>
Date: Mon, May 20, 2013 at 8:21 AM
Subject: Re:
To: Steven Machat <smachat@gmail.com>, STEPHEN GIANELLI <stephengianelli@gmail.com>, "*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>, rbyucaipa <rbyucaipa@yahoo.com>, Robert MacMillan <robert.macmillan@gmail.com>, moseszzz <moseszzz@mztv.com>, a <anderson.cooper@cnn.com>, wennermedia <wennermedia@gmail.com>, "Hoffman, Rand" <rand.hoffman@umusic.com>, Mick Brown <mick.brown@telegraph.co.uk>, woodwardb <woodwardb@washpost.com>, "glenn.greenwald" <glenn.greenwald@guardiannews.com>, lrohter <lrohter@nytimes.com>

Steven,

For the record, while you're playing games with Gianelli (do leave me out of it), this is a transcript of our conversation.  My lunatic prosecutor concealed this evidence but raised Rice's email to me (lying about a material fact re. the restraining order that followed Cohen's threat to Ann Diamond over her article for Rolling Stone)

http://search.yahoo.com/search?ei=UTF-8&fr=ytff-yff17&p=kelley+lynch+steven+machat

I am suing Cohen for theft.  You advised me to do that.  I am, as you also advised, using excerpts from your book - see below.  Gianelli evidently can't read what you wrote about Cohen.  I can and so can others.

I happen to think it's disgusting that Cohen planned to blame your father after his death and also sold Phil Spector's master tapes to Sony.  Evidence of more theft on Cohen's part.  Not sure where Gianelli's headed with this latest round of insanity since you've been clear that Cohen stole from you and your father. 

Kelley

Gods, Gangsters & Honour by Steven Machat

Excerpts:

Leonard was desperate to get rid of this two managers, Judy Berger and Mary Martin, who he believed had stolen the rights to his songs and records early on in his career.  Even back then, Cohen was convinced that women were ripping him off.  He signed an agreement, and when he wanted to get rid of the contract, he accused everyone of ripping him off.  You could say it became repeat behaviour.  My father duly got rid of Berger and Martin, set up a new company called Stranger Music for Cohen and agreed to manage Leonard for 15% as well as 15% of Stranger.  The idea of the company was twofold:  one, to maintain ownership of the copyrights duly created; and two, to minimise Leonard’s exposure to American tax, just like any other rich individual trying to minimise their tax liabilities.  

I’ve no problem with people trying to avoid tax, but as the years have passed, I couldn’t help but smile at the apparent contradiction between Leonard’s public persona and his private business arrangements.  This was a supposedly devout Buddhist with no interest in material possessions, who was all the same happy to put his trust in business managers and companies he created with his knowledge and consent whose sole aim was to minimise tax liability.  

Leonard then sold Stranger Music for a small fortune and I’ve seen nothing from Cohen.

Cohen controlled his copyright, not my father.  The irony was that Cohen had total control over my father …  Do you know what happened to the $400,000 worth of bearer bonds in my father’s office?  Bearer bonds are just unregistered bonds or paper money that are used to conceal ownership and, with it, tax liabilities.  Cristini told me (who knows if this is true?) that he had found the bonds in my father’s office hours after he had died but the next day they disappeared.

Cohen denied any knowledge of these bonds.  I was unsure if they existed or were part of my father’s schemes cooked up to conceal Leonard’s money.  

Cohen said:  “Steven, you remember the 1988 tour?  Flemming extorted $100,000 from me.  He wanted 20% managerial commission, in addition to his promoter’s fees.  He thought he was doing extra work for me and wanted me to pay him.”

Far from being the poet of the spirits, Leonard was a hustler using Buddhism as a facade.  

The next time I would see Leonard … We’d just seen The Hand That Rocks The Cradle where Rebecca De Mornay plays the psychopathic nanny who stalks this family.  Who should walk along but Cohen, who was holding hands with DeMornay, his girlfriend at the time.  Cohen was extremely uncomfortable because he knew he had stolen from me and it was clear he couldn’t get away quick enough.  Neither could my son, because he took one look at DeMornay and ran.  He was terrified because he thought she was the nanny in the film!

It was clear that Leonard was also wary of me because, I guess, he thought I might be planning to sue him.

Leonard told me that when he had gone off on his Buddhist retreat Kelley was left managing his business interests.  He said:  “She started believing this money was hers and she started spending it.  All of it.  When I got back from my pilgrimage, I went to withdraw money left in the account to cover the draft.  I was speechless.  I didn’t know where to look, where to turn or what to think.”

Then Leonard told me that Kelley had bought a multi-million dollar house in Mandeville Canyon with his money … Leonard said:  We didn’t even get the house back.  Kelley stopped paying the mortgage so the house got repossessed and the mortgage company took everything in the house as well.

Lynch had been sending out long and bizarre emails to his friends, journalists, and the authorities denouncing Leonard for a million and one sins, which would have worried me if I was their target.

The whole scheme was so ridiculous [Leonard Cohen’s attempts to limit his liabilities on the deals] from the start.  All Leonard had to do to avoid U.S. taxes was tear up his green card, and stop living in and using the U.S. as his base.  

It’s no secret that Leonard has also made a killing on the art market by selling his paintings, plus his touring of the last two years … If that’s true, it doesn’t really tally with the clear implication from Cohen that he is a man who has been robbed of everything.

Leonard told me before I left that he had actually offered Kelley a settlement …

It’s clear that Cohen and his lawyers want to heap the blame on Kelley’s shoulders for more than just revenge.  Because Cohen’s pension assets were cashed in … ahead of schedule they are liable to tax so they need to establish that this situation is her fault.  The penalties could actually be greater than the tax itself.  

Leonard has cast himself into a hell of his own making. 

--

In order to convict under Section 7201 of the Code, the basic elements that must be proven are (1) the existence of a tax deficiency, (2) an affirmative act constituting an evasion or attempted evasion of the tax, and (3) willfulness.