Kelley Lynch's Email To Leonard Cohen's Lawyer Re. Outstanding IRS, Tax, Accounting & Corporate Matters

From: Kelley Lynch <kelley.lynch.2010@gmail.com>
Date: Fri, Oct 10, 2014 at 9:10 AM
Subject: Re:
To: Jeffrey Korn <jeffkornlaw@live.com>, "irs.commissioner" <irs.commissioner@irs.gov>, Washington Field <washington.field@ic.fbi.gov>, ASKDOJ <ASKDOJ@usdoj.gov>, MollyHale <MollyHale@ucia.gov>, nsapao <nsapao@nsa.gov>, fsb <fsb@fsb.ru>, "Doug.Davis" <Doug.Davis@ftb.ca.gov>, Dennis <Dennis@riordan-horgan.com>, rbyucaipa <rbyucaipa@yahoo.com>, khuvane <khuvane@caa.com>, blourd <blourd@caa.com>, Robert MacMillan <robert.macmillan@gmail.com>, moseszzz <moseszzz@mztv.com>, a <anderson.cooper@cnn.com>, wennermedia <wennermedia@gmail.com>, Mick Brown <mick.brown@telegraph.co.uk>, woodwardb <woodwardb@washpost.com>, "glenn.greenwald" <glenn.greenwald@firstlook.org>, lrohter <lrohter@nytimes.com>, Harriet Ryan <harriet.ryan@latimes.com>, "hailey.branson" <hailey.branson@latimes.com>, "stan.garnett" <stan.garnett@gmail.com>, sedelman <sedelman@gibsondunn.com>, JFeuer <JFeuer@gibsondunn.com>, "kevin.prins" <kevin.prins@ryan.com>

Jeffrey,

I would also like to point out that IRS has not received amended tax returns re. Traditional Holdings, LLC and other entities.  I didn't handle tax matters although your client testified that I did.  His Complaint and legal documents confirm that fact.  What mistake re. TH was rectified and how was it rectified?  The tax returns prove I have an ownership interest as do the corporate records, stock units, agreements, etc.  There was and is no trust and there was no agreement to put my shares of these entities into a trust.  Westin, who represented Cohen, wrote an email a month after Cohen and I parted ways explaining what the plan was - to put something into a trust the following year.  He doesn't explain what and was representing your client.  I never agreed that the assets owned by Blue Mist were invalid.  I also wasn't compensated with shares of that entity so I could receive cap gain treatment on my fees as personal manager.  The entire narrative is completely fabricated and these issues are still outstanding.  I have been harassed over these issues for years now.  

I hope you're clear about the issues that Cohen and Kory falsely represented, re. legitimate tax matters, to my jurors.  Of course, the jurors wanted to hear from IRS so that is a very serious matter particularly as I subpoenaed Agent Tejeda/IRS and he was speaking with IRS/DOJ lawyers re. his testimony (as required by federal regulations).  I would assume that Agent Tejeda understands that the LCI K-1s prove the expense ledger is fraudulent.  Is there a reason I paid taxes as a partner given your client's position?  Perhaps Agent Tejeda can answer that question in federal court.  

PD:  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?

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

She mentions every so often the tax statements is merely a ruse … Let’s talk a little bit about Ms. Lynch’s need for the tax form or tax return – The evidence will show that Ms. Lynch was Mr. Cohen’s business manager.  The evidence will show that Mr. Lynch – Mr. Cohen has no clue as to what a W-2 form is, a 1099 is, a K-1 form.  The evidence will show that Ms. Lynch is the one that had all of that information, knew all that information.  Mr. Cohen did not have it, does not have it and does not understand what it means.  Okay.  RT 43

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

Streeter:  There is mention of the K-1.  The People ask you about some other documents.  Do you know what a W-2 is? 

Cohen:  W-2?  No, I don’t.

Streeter:  How about a 1099?

Cohen:  A 1099, yes, is issued by an employer to an employee.  RT 83

Streeter:  If there was any mention in that specific email about K-1 forms?

Cohen:  Yes, there are.  RT 88

PD:  Who handled your corporate books …

Cohen:  Who was handling it?

PD:  Who handled your corporate accounting, your corporate books?

Cohen:  A number of people handled it under the direction of my – of my lawyer.  RT 279

PD:  Do you know what a K-1 is?

Cohen:  I have a perfect – a sense of what it is, but I wouldn’t be able to teach it.  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

PD:  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 – It was determined, Sir, that I had no tax responsibility in record to Ms. Lynch.  RT 281-282

Cohen:  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 had 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.  RT 282

PD:  You had a company called Traditional Holdings, correct?

Cohen:  Correct.

PD:  Now, this company, you created this company before you sold copyrights to Sony, correct?

Cohen:  I don’t know.

PD:  Do you know why you created this company?

Cohen:  No, not really.

PD:  So you had no involvement with the creation of the company?

Cohen:  I wasn’t – it was – it was created in some – some tax purposes.  RT 286

Streeter:  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 290

PD:  And in those emails, there’s multiple times Ms. Lynch requested forensic accounting; isn’t that correct?

Kory:  Most of the time I saw, when I read them, you have to read those emails carefully, I didn’t see a request for forensic accounting.  What I saw is a request that we change the forensic accounting.  That we withdraw a K-1.  These are fairly sophisticated concepts.  RT 425-426

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