From: Kelley Lynch <kelley.lynch.2010@gmail.com>
Date: Wed, Oct 22, 2014 at 9:41 AM
Subject:
To: rwest0@gmx.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>, 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>
Richard,
Leonard has cast himself into a hell of his own making.
I am attempting to resolve certain federal tax matters related to Traditional Holdings, LLC, Blue Mist Touring Company, Inc., LC Investments, LLC, and Old Ideas, LLC.
I gave you limited POA with respect to Traditional Holdings, LLC. While you, Cohen, and Greenberg were wrapped in attorney/client privilege, you should be permitted to speak to me about TH. You wrote me that you only represented Leonard Cohen and I could not agree with you more. I was also very clear with Cohen, in emails copied to you and others, that I did not handle IRS, tax, accounting, or corporate matters.
You prepared the TH federal tax returns. The IRS and State of Kentucky are in possession of K-1 partnership documents showing income for me in the years 2001, 2002, and 2003 and yet Kevin Prins failed to address this on the fraudulent expense ledger. I will point out that Kory wrote my lawyers (with Prins and Ira Reiner copied in) addressing issues such as phantom income that was shifted to me but not distributed. The ownership interests in these entities was also addressed.
The IRS advised me that Cohen transmitted K-1s from LCI to them for the years 2004 and 2005 showing zero income. You transmitted an LCI K-1 to the State of Kentucky in 2003 showing I received zero income from LCI. However, Kevin Prins must have willfully disregarded the LCI K-1s because he indicates that I received income in the form of over-payments for my personal management commissions. My personal management commissions have nothing whatsoever to do with my ownership interest in numerous corporate entities or IP. Machat & Machat, who represented Cohen for 20 years, had the same compensation agreement. As Steven Machat wrote: Cohen blames his representatives for ripping him off in order to breach contracts. Cohen, according to Machat, stole his share of intellectual property and refused to pay Machat & Machat commissions and other monies due them when Marty Machat died. Please see the transcript of Steven and my conversation on these matters. Machat wrote and confirmed all information contained therein.
Cohen has testified that my ownership interest in an entity (possibly TH) was a mistake that you rectified. IRS has no evidence supporting that testimony. What was the mistake? Your email of November 18, 2004 was sent nearly one month after Cohen and I parted ways. There was no trust and no agreement with respect to a trust. Furthermore, Cohen borrowed or caused to be expended approximately $6.7 million in assets belonging to TH and now owes interest of approximately $4 million. You prepared the Annuity Agreement that Cohen and I signed. The agreement was notarized. The agreement is clear: it bypasses Cohen's estate. Cohen and I wrote you and asked questions about your original proposals (if they were in fact real) and he was clear: he did not want his children involved in these entities and he did not want them beneficiaries. You addressed potential issues related to self-dealing with Cohen.
I am in possession of your emails re. Old Ideas, LLC confirming Cohen and my understanding that I would own 15% of Old Ideas, LLC which is where we planned to assign the intellectual property and contracts related to the Dear Heather studio album. You wrote and advised me that this was your understanding when you formed Old Ideas and confirmed that it was a partnership. What is the status of that entity?
There are many outstanding federal tax and corporate matters. LA Superior Court does not have jurisdiction over BMT, TH, or Old Ideas. These corporate entities were simply inserted into the default without being named as parties to the lawsuit. I wasn't served Cohen's lawsuit and the lies before LA Superior Court are mounting.
I would appreciate a response. Cohen confirmed in the complaint that BMT was not unwound. The assignments, as Cohen understood, were non-revocable. We agreed to permit LCI to collect the royalties because of the SOCAN internal issues. At that time, the deal was being done with CAK and they wanted a bankruptcy proof entity. Cohen's declaration in that matter proves he knew about these deals, understood the royalty income, and he instructed his representatives that he wanted to pursue the Sony deal and cancel the CAK deal. His lawyers have now called the declaration Cohen provided to the Court in the CAK deal "hearsay." They are sadly mistaken.
Kelley Lynch
P.S. These are excerpts from Machat's book that I agree with or will address. I didn't buy my house with Cohen's cash. I worked for Adam Cohen as his personal manager and negotiated a record and publishing deal. I also had a retirement account that I closed. I paid my taxes. Cohen simply lies about these matters.
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.
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.