From: Kelley Lynch <kelley.lynch.2013@gmail.com>
Date: Fri, Oct 24, 2014 at 9:23 PM
Subject: Evidence: Richard Westin - 2001 Sony Deal - ESOP Recommendation
To: "*irs. commissioner" <*IRS.Commissioner@irs.gov>, Washington Field <washington.field@ic.fbi.gov>, ASKDOJ <ASKDOJ@usdoj.gov>, "Doug.Davis" <Doug.Davis@ftb.ca.gov>, Dennis <Dennis@riordan-horgan.com>
IRS,
I am now creating, once again, files for my evidence. Paulette just bought them. I would like to go through pertinent evidence with you. I'll make all of my files available to you. This will give you a blueprint of what the files are called and what is in each file. After I make each file, I will do one comprehensive schedule. I think it is important to point out what is relevant from my perspective.
I'm going to call this file "Sony Deal: Richard Westin Correspondence." I will create the comprehensive schedule (including my notes) as I go through this.
The first document is a fax from Richard Westin dated October 10, 2000. It was sent to Leonard Cohen and Kelley Lynch. It is two pages. The transmission data appears at the top and it was transmitted October 10, 2000. My handwritten notes (which are common on documents I maintained) say: cc: Ken - you need to speak with Richard. Another cc: Sherab Posel 914.749-8300.
Re: Sony Deal
Westin explains that he just got off the phone with Greg McBowman concerning a fax Greg sent. He sets forth what Ken Cleveland should do and this should have gone from Richard to Ken as well. In this case, I faxed it to Ken. These deals created a tremendous amount of work for me.
Ken should be asked to do a simple study based on Leonard's last year tax return making some "high" and "low" assumptions concerning the sale of stock. One might assume: 100% stock; 50% stock and 50% ordinary income from the sale of the album; 20% album and 80% stock or a sale of all assets. He then goes onto note that there could be "endless variations." He wants to get a dollar-based sense of the stakes that tie to taking some stock versus no stock (in which case all the proceeds would be ordinary income). He says he can coach Ken on how to approach the calculations
Richard notes that there will have to be at some future point an effort to allocate expenses incurred in the Blue Mist and LC Investments sales as between capital gain and ordinary income. There were two deals being pursued.
Westin then makes some suggestions for softening the tax blow re. Blue Mist (for Cohen). One involves the sale of assets to a foreign life insurance company in exchange for a deferred annuity.
The other involves Westin's proposal to establish an Employee Stock Ownership Plan. I believe this is what Cohen is trying to pretend was my attempt to get a cap gain treatment. Unfortunately, he will not be able to explain the facts because that involved the Ekajati Corporation Westin formed for me which I didn't use. He's lying excessively so the evidence and facts should prove that not only did he participate in criminal tax fraud, he bankrupted me intentionally and has destroyed my life, entrapped me, worked with the District Attorney involved in Phil Spector's matter, etc.
The ESOP relates to Blue Mist so this is probably where Kory, Mesnick,et al. came up with the deranged theory that I only owned stock for cap gains purposes and it was all a mistake. Tee proposal notes that the sale of assets would be tax free. The later payout from the ESOP is tax-defered and there is a chance to build up the fund tax free because ELOPS do not pay taxes. Westin mentions that this is less aggressive. He said he can set up Blue Mist with an ESOP over a weekend. Then one has to apply to IRS for a ruling that the ESOP is properly established. He would need an expert to get a favorable ruling. And, he notes that there may be some estate tax savings by this plan. The good news - he confirms that "Kelley need not participate in either of these plans; Leonard alone can participate." I was compensated with stock in 1999. I have no idea what happened with this. I believe I have a copy of one draft of the ESOP. Cohen's other advisers dealt with this; I faxed it to Ken and told him to call Richard. I guess the plan was nixed but it must have given Cohen's representatives a new narrative.
Kelley
