Kelley Lynch
REDACTED
27 July 2016
Leonard
Cohen
REDACTED
Sent by
USPS and email
REDACTED
Re: Outstanding
Tax Matters
Leonard
Cohen,
For the
past ten years or so, I have requested certain IRS required tax and corporate
information from you and certain entities you control. Those entities include, but are not
necessarily limited to, Blue Mist Touring Company, Inc. (formerly LC
Productions, Inc.), Traditional Holdings, LLC, and Old Ideas, LLC. As you are well aware, I have a 15% ownership
interest in Blue Mist Touring Company, Inc., 99.5% ownership interest in
Traditional Holdings, LLC, and 15% ownership interest in Blue Mist Touring
Company, Inc. Evidence of my ownership
interest is in your possession and was submitted to LA Superior Court, IRS, and
others. Regardless of the fact that, as
of May 15, 2006, you obtained a fraudulent default judgment against me (based
on a fabricated expense ledger supported by perjured declarations), the
information I am once again requesting should have been transmitted to me, for
the years 2004, 2005, and the portion of 2006 prior to entry of the default,
years ago. Egregious lies were presented
to jurors about the IRS required tax and corporate information and transmitted
to the Court in your preposterous statement.
As of
this date, I am asking you to provide me with a 1099 for the year 2004. For each and every year I worked as your personal
manager, I received a year end tax document.
I have no idea why you would take the position, in your fraudulent and
retaliatory lawsuit, that I was not entitled to commissions on income you
elected to deposit into your personal account but that is blatantly false. Our agreement with respect to my services
rendered as your personal manager involved a commission of 15% on all gross
income. There were no caveats. For further evidence of commissions paid to
me for royalties you elected to deposit into your personal bank account, please
refer to your September 16, 2004 email to me confirming at least one payment to
me in 2004. My ownership interest in
these entities is unrelated to my commissions related to services rendered as
your personal manager. At no time was I
your business manager. And, as I stated
in my February 11, 2002 email to you and Richard Westin, I did not provide tax,
accounting, financial, legal or corporate advice. I most certainly did not provide advice
related to taxes, tax preparation, and so forth. I also did not prepare, nor was it my
responsibility to do so, corporate financial statements, loan schedules, promissory
notes, or corporate accountings.
I am not
in possession of any information with respect to the September 2004 commission
and additional commissions allegedly paid to me by you for the year 2004 and
require this information in order to file my 2004 and 2005 federal and state
tax returns. The fact that you have now
fraudulently taken the position that I misappropriated my commissions creates
further confusion that I would like to clarify for IRS and FTB. I will remind you that your refusal to
provide me with this information is obstructing my ability to file these
returns. I would also like to refer you
to your testimony on March 23, 2012 where you testified that I never stole from
you - just your peace of mind. That is factual and corporate entities are
not your personal property. The same is
true for corporate assets – including with respect to the corporations that are
suspended.
Additionally,
I require K-1 partnership documents for Traditional Holdings, LLC and Old
Ideas, LLC for the years 2004, 2005, and 2006 through entry of the fraudulent
default judgment as of May 2006. I also
require corporate accountings such as income/expense schedules, profit &
loss statements, and so forth. As you
and/or your daughter, Lorca Cohen, wrongfully removed all of my business files
from my personal management offices on or about October 22, 2004, and you are
the individual in possession and control of all relevant documents and
information, you are required to provide this information to me so that I may
file my 2004 and 2005 federal and state tax returns.
With
respect to Blue Mist Touring Company, Inc., I am presently unclear if this
entity is an S or C corporation. You and
your representatives handled all corporate, financial, tax, accounting, IRS, and
legal matters related to these corporate entities. Therefore, based upon the type of entity this
is, I would appreciate receiving a K-1, dividend information, income/expense
schedule, profit & loss statement, asset valuations, and so forth.
I would
like to request asset and corporate valuations with respect to Blue Mist
Touring Company, Inc., Traditional Holdings, LLC, and Old Ideas, LLC as of the
date the fraudulent default judgment was entered on May 15, 2006. I also require this information for federal
and state tax purposes. This information
was not submitted to Los Angeles Superior Court with the fraudulent default
judgment or addressed vis a vis the fabricated damages and fraudulent financial
interest.
With
respect to Traditional Holdings, LLC, as the Tax Matters Partner, I would like
schedules of your loans from this entity.
According to your legal pleadings, as well as Neal Greenberg’s, your
loans were generally set forth as follows:
$1
million non-refundable prepayment paid in 1999
$3.3
million expenses (your so-called “transaction fees” that you authorized, in a
fax signed by you, Greenberg to disburse)
$2.7
million in funds deposited directly into your personal CNB account (the
statements for that account were sent to your home)
$500,000
approximate amount used to reduce your personal Sony account with respect to recoupments
$375,000
unaccounted for delivery fee for the second live album requirement
These
sums total $7,875,000. According to the
terms of the Annuity Agreement you executed in December 2000, your loans had to
be repaid within three years with interest.
Please refer to Robert Kory’s letter to my former lawyers, DiMascio
& Berardo, confirming that your loans were problematic. Westin and Greenberg referred to your loans
as dangerous to the TH structure itself.
It was your obligation to have these loans documented with promissory
notes. It remains your obligation to
repay these corporate loans in their entirety with interest. That is irrespective of the fact that, as of
2003, your representative extinguished the private annuity obligation from the
federal tax returns and moved the amount of approximately $4.7 million to the
partners’ capital account. This was
brought to my attention, as I have repeatedly stated, by my lawyers and
accountants in the fall of 2004.
For
reasons I cannot understand, LC Investments, LLC, an entity wholly owned by
you, transmitted K-1 partnership documents to the State of Kentucky for 2003
and IRS for the years 2004 and 2005 indicating that I am a partner in this
entity, have a 99.5% ownership interest, and received $0 income for 2004 and
2005. The income amounts transmitted to
IRS are contradicted by the fraudulent expense ledger. Furthermore, I do not and did not have an
ownership interest in this entity. I
have spoken with IRS and other tax authorities about this matter and was
instructed to contact you to request that you rescind these K-1s. Copies of these documents were submitted as
evidence to LA Superior Court.
As you
know, you irrevocably assigned intellectual property to Blue Mist Touring
Company, Inc. in 1998 and 1999.
Nevertheless, you and your wholly owned LLC, LC Investments, LLC,
collected royalty income related to the BMT intellectual property assets. Therefore, I will need an accounting (and
back-up documentation) of all royalty income you collected with respect to
these assets from 1998 through May 2006 when the fraudulent default judgment
was entered.
Finally,
as your personal manager and pursuant to our agreements, I am owed commissions
for services rendered and product/materials delivered during the period I
served in this capacity. I worked as
your personal manager from April 1988 through October 2004 and, with respect to
product/materials delivered, I am entitled to commissions on those items in
perpetuity. I would therefore appreciate
your providing me with the appropriate accountings, back up documentation, and
payments.
As I am
meeting with a representative from IRS in the near future, I would appreciate
your promptly complying with these requests.
I am also preparing a declaration for FTB’s fraud unit and would like to
advise them of the status of this ongoing request for IRS required tax and
corporate information.
Very
truly yours,
Kelley
Lynch
Cc: IRS, FBI, DOJ, Treasury, Senator Chuck
Grassley (Senate Finance Committee), Agent Luis Tejeda (IRS Fraud Unit), Paulmikell Fabian
(IRS Chief Trial Counsel’s Office), Jeff Dunn (LAPD’s TMU), Mike Feuer (City
Attorney of Los Angeles), Mayor Eric Garcetti, Robert Kory, Michelle Rice,
Wendy Lascher
