Kelley Lynch
REDACTED
24 August 2016
Leonard
Cohen
REDACTED
Sent by
USPS and email
REDACTED EMAIL ADDRESS
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 corporate 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 had 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. This was the status of
these entities for the years ending 2004, 2005, and the portion of 2006 prior
to entry of the fraudulent default judgment (Los Angeles Superior Court Case
No. BC338322). The information I have
requested, for the years 2004 and 2005, was due me by the first quarter of 2005
and 2006, respectively. The information
I have requested, for the year 2006, was due me by the first quarter of
2007. That would include the 1099 and K-1s
addressed more fully herein. I am not
obligated to repeatedly contact you for this information. You, on the other hand, are obligated to
provide me with this information. At no
time did I have an ownership interest in LC Investments, LLC.
Evidence
of my ownership interests is in your possession, and has been submitted to LA
Superior Court, Second Appellate Division, IRS, FTB, other authorities, and is
summarized herein. Regardless of the
fact that, after willfully and knowingly failing to serve me the summons and
complaint in Case No. BC338322, you obtained a fraudulent default judgment
(based upon fraudulent allegations, fabricated evidence, and supported by
perjured declarations), I remain entitled to this information. This ongoing request for IRS required tax and
corporate information is not belated. You
and your lawyers are the individuals that oversaw the corporate entities, legal
matters, tax preparation, accounting, and so forth for these corporations. You are the individual who is in possession
of the information I am requesting.
1099 from Leonard Cohen (Earned Income)
I am once
again 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. At no time did I ever work as your business
manager. 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 equivalent to 15% of all gross income. There were no caveats. You yourself, in an email dated September 16,
2004, confirmed at least one commission paid to me in the year 2004 related to
income you deposited into your personal CNB account. As you will recall, Sony Music paid you a $1
million advance against the “Dear Heather” studio album at that time and I was
most certainly entitled to that advance which you personally inquired about and
confirmed. I believe there were other
payments to me for the year 2004 related to income you deposited into your
personal CNB account. That would
include, but is not limited to, artist record royalty income, book publishing
income, and so forth.
My
ownership interest in these entities is unrelated to my commissions related to
services rendered as your personal manager.
As I clearly stated in my February 11, 2002 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. You
personally hired an entire team of professionals to handle these matters.
I would
also ask you, at this time, to provide me with statements related to all gross
income received, related to the IP assets I have an ownership interest in, as
well as all product (including books, albums, artwork, and so forth) delivered
during the period of my engagement as your personal manager (April 1988 through
October 21, 2004). That would include,
but is not limited to, all royalty income, any income related to the lithograph
deal you pursued (which I was negotiating with the Richard Goodall Gallery),
book publishing income, and so forth. I
would also like to request payment in full for all outstanding corporate
distributions, commissions, and royalty due me at this time. The fraudulent expense ledger and the
Complaint itself does not address outstanding commissions due me. The ledger also does not address
income/expenses, etc. related to Blue Mist Touring Company, Inc. or Old Ideas,
LLC. I most certainly will not rely on a
fraudulent expense ledger to prepare and submit my federal and state tax
returns. And, I most certainly will not
rely on any statements prepared by Greenberg or his related companies as the
SEC has challenged their authenticity in other matters.
Corporations
I will
now address the information I require from the corporations you control and
information in your possession. I will
remind you that DiMascio & Berardo formally transmitted the corporate books
and records for these entities to Greenberg, Glusker in late October/early
November 2004. In or around October 22,
2004, you and your daughter entered my personal management offices, removed all
of your property, and unlawfully removed my personal and business files. I have unsuccessfully attempted to address this with
you and your representatives. In or
around October 2005, based on a fraudulent writ of possession (Case No.
BC341120), Los Angeles Sheriff’s Department wrongfully seized corporate records
– including tax returns – related to these entities at my former home. LASD also seized property that belonged to me
personal, my businesses, Machat & Machat, Phil Spector, and others. I have also attempted unsuccessfully to address
these unlawful seizures with you and your representatives. The corporations were not named in the writ
of possession. Corporate records,
assets, and so forth are not your personal property. You and your attorneys understood, at that
time, that I planned to submit this evidence to Internal Revenue Service in
Washington, DC. Scott Edelman was
personally copied on my emails to IRS about this issue and the unlawful
seizures.
My ownership interest in these entities
has nothing whatsoever to do with services I rendered as your personal
manager.
Blue Mist Touring Company, Inc.
Blue Mist, formerly known as Leonard
Cohen Productions, Inc., came into existence on June 23, 1988. The entity was a validly formed legal entity. You personally worked with Herschel Weinberg,
your family friend and lawyer, with respect to the formation of this
entity. On March 11, 1993, the corporate
name was changed to Blue Mist Touring Company, Inc. On March 18, 1993, Blue Mist was qualified to
conduct business in California.
The corporate records show that on or
about May 14, 1998, you advised Richard Westin to prepare the paperwork in
order to transfer into Blue Mist (1) the writer’s share of publishing and
performance rights, (2) artist record royalties, and (3) copyrights in books
and poems. At that time, I had no
ownership whatsoever in that entity. In
1999, additional intellectual property was irrevocably assigned to Blue Mist
Touring Company, Inc.
On March 17, 1999, Blue Mist was
recapitalized and I received a 15% stock ownership interest. You personally dictated a portion of the
language in the minutes specifically related to my compensation.
On December 28, 1999, Blue Mist
received, via Assignment, all of the intellectual property assets addressed in
the irrevocable assignments. The meeting
held to receive these assets was valid.
Traditional Holdings, LLC
Based upon the TH corporate documents,
I own 99.5% of TH. It is irrelevant if I
owned 1% or 99% because the annuity obligation remained the same. Nevertheless, you had an obligation to
document your loans/expenditures and repay them within three (3) years with
interest. You were personally capable of
signing corporate records and a one-page stock certificate evidencing your .5%
ownership interest. It’s safe to say
that you are a highly literate individual with a business and legal
background. You also have experience
with complex stock transactions.
As a 99.5% owner, in accordance with
the corporate records, I had a right to receive certain distributions from this
entity as well as 99.5% f all profits and losses, subject to any obligation to
pay out on the annuity. You have personally
received the benefit of more than $3 million in excess of the so-called annuity
obligation. That would include, but is
not limited to, your personal and business expenses (the “transaction fees”)
that were and are not corporate obligations.
LC Investments, LLC
LC Investments, LLC is an entity wholly
owned by you. You have submitted at
least one declaration to LA Superior Court that confirmed that fact. For the years 2003, 2004, and 2005, you
and/or your representatives prepared and transmitted K-1 partnership documents
to State of Kentucky and Internal Revenue Service indicating that I am a
partner, have a 99.5% ownership interest in this entity, and received $0 income
for these years. I would appreciate your
rescinding these partnership K-1s and providing me with the appropriate 1099s
for 2003, 2004, and 2005.
Old Ideas, LLC
On June 30, 2004, Richard Westin
confirmed that he created Old Ideas, LLC, formed it as a partnership for tax
purposes, and understood that I had a 15% ownership interest in the
intellectual property being assigned to that entity. That was based on our agreement that I would
have a 15% ownership interest in all intellectual property. At that time, all intellectual property
related to “Dear Heather” was to be assigned to Old Ideas, LLC as evidenced by
the liner notes and other evidence.
Tax
& Corporate Information Being Requested for Blue Mist Touring Company,
Inc., Traditional Holdings, LLC, and Old Ideas, LLC
(for
2004, 2005, and the pro-rated share of 2006 prior to entry of the fraudulent
default judgment on May 15, 2006)
K-1s
Balance sheets (the balance sheets
should contain the information related to Leonard Cohen’s loans/expenditures
and interest due)
Profit & Los Statements
Cash Flow Statements
All tax returns filed for these
entities (pertaining to periods related to my ownership interest) – through
2006.
As I am unclear if BMT is an “S” or “C”
corporation, I would like that confirmed.
I will require a copy of the last 1065 filed (showing all income) and
K-1s if it is an “S” corporation.
Asset and corporate valuations – as of
the date I was compensated with an ownership interest in the entities and as of
the date the default judgment (May 15, 2006) was entered.
Statement of Greenberg and company
commissions, management fees, and any and all expenses re. his investment and
financial services to TH for the years 2000, 2001, 2002, 2003, 2004, 2005, 2006
(through entry of default judgment).
All bank statements related to my personal and business bank
accounts with City National Bank which were unlawfully seized by you. I have previously advised you and your
representatives not to destroy this evidence.
I would also like to request income/expense
statements for Leonard Cohen personal accounts and LCI re. royalty income
related to assets owned by BMT as well as all loan documents between BMT and Leonard
Cohen and LC Investments, LLC with respect to the royalty income you and your
wholly owned LLC collected.
As both IRS and FTB have requested my 2004 and 2005 tax returns,
and this information is necessary for the preparation of same, I would like to
ask you to provide me with all of the above information/documentation within
thirty (30) days of the date of this letter.
Very
truly yours,
Kelley
Lynch
Cc: IRS Commissioner’s Staff (by email), FBI (by
email), DOJ (by email), Treasury (by email), Senator Chuck Grassley (Senate
Finance Committee), Agent Luis Tejeda (IRS), 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 (by email), Michelle Rice (by email),
Wendy Lascher (by email).
