From: Kelley Lynch <kelley.lynch.2013@gmail.com>
Date: Sun, Jun 14, 2015 at 11:33 AM
Subject: Re:
To: Dan Bergman <dbergman@bergman-law.com>, Michelle Rice <mrice@koryrice.com>, "*IRS.Commisioner" <*IRS.Commisioner@irs.gov>, Washington Field <washington.field@ic.fbi.gov>, ASKDOJ <ASKDOJ@usdoj.gov>, "Division, Criminal" <Criminal.Division@usdoj.gov>, "Doug.Davis" <Doug.Davis@ftb.ca.gov>, Dennis <Dennis@riordan-horgan.com>, MollyHale <MollyHale@ucia.gov>, nsapao <nsapao@nsa.gov>, fsb <fsb@fsb.ru>, 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>, "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>, "USLawEnforcement@google.com" <USLawEnforcement@google.com>, Feedback <feedback@calbar.ca.gov>, mike.feuer@lacity.org, "mayor.garcetti" <mayor.garcetti@lacity.org>, OPLA-PD-LOS-OCC@ice.dhs.gov, "Kelly.Sopko" <Kelly.Sopko@tigta.treas.gov>, whistleblower@judiciary-rep.senate.gov, AttacheOttawa@ci.irs.gov, dfriedman@gispc.com, Stuart Fried <sfried@gispc.com>
IRS, FBI, and DOJ,
This memorandum demands an investigation. How did Cohen determine the answer to these questions? Where is his information? These entities were not Cohen's. He simply continues to argue that he is the alter ego. I suppose Cohen and his legal team simply came up with self-serving answers and now want the evidence sealed. What is Cohen's interest in my personal tax returns? Ken Cleveland advised me that Kory repeatedly asked him for my personal tax returns. We were not married and I can assure you that we were not lovers.
Kelley
On Sun, Jun 14, 2015 at 11:29 AM, Kelley Lynch wrote:
Dan Bergman and Michelle Rice,I am wondering about this Memorandum. I can assure you that I had no agreement with Robert Kory to maintain confidentiality with respect to anything and refused to discuss a settlement or participate in mediations. I believe Neal Greenberg's lawsuit addresses many of the issues raised at the time. I was in constant touch with Boies Schiller at the time and provided them with three huge boxes of my evidence to review. I also submitted evidence, at that time, to IRS and other tax authorities.I do wonder where Cohen's documents are with respect to this analysis. I would, of course, require the same documentation from him. There are many false issues raised in this memorandum but that does not explain the leap from these questions to the conclusions raised in Cohen's entirely fabricated Complaint that I was not served. How did Cohen arrive at the self-serving conclusions he ultimately did? Please see the evidence I have now provided to LA Superior Court (which was previously submitted, with my declaration, to IRS).For the record, Greg McBowman and Grubman, Indursky did not commit fraud in the inducement. And, the Grubman firm confirmed that they have no note in the file as noted in this memorandum. Is Leonard Cohen interested in my personal tax returns? Why? We were not married. I also do not have his and am not IRS so they would be immaterial to me. That's simply another lie presented to LA Superior Court.This document acknowledges that TH failed to report the income from the Sony sale. I will remind you that Richard Westin, who confirmed this in writing, did not represent me. He represented Leonard Cohen. He personally prepared the tax returns and tax documents related to numerous corporate entities - including the TH K-1s that were transmitted to IRS. I believe the evidence before LA Superior Court, and in possession of IRS, answers many of these questions and not in the manner LA Superior Court concluded with respect to the fraud default judgment.I would like to know how Cohen drew the conclusions he did with respect to his Complaint vis a vis this memorandum. Please note that former DA Ira Reiner was copied on this email. So was Kevin Prins who also willfully disregarded all corporate records and the tax returns - both of which he discussed with my accountant who put this in writing.Kelley LynchMEMORANDUMTo: Dianne DiMascio, Esq., David Berardo, Esq., and Dale Burgess, CPAFrom: Robert KoryCC: Ira Reiner, Esq., Kevin Prins, CPARe: Cohen v. Lynch, et al.Open Accounting, Tax Issues, and Legal IssuesDate: January 14, 2005Following is a summary of issues in anticipation of our conference call at 3PM today to discuss steps toward mediation of the above matter. Needless to say, the information in this memo is preliminary and provided in the context of settlement negotiations. It should not be construed as an admission as to any matter referenced herein. It shall also not be admissible at trial should a settlement not be forthcoming.I.Accounting A. Cash Flow Analysis - Cohen· Need documentation re. 5 unidentified transactions re. Traditional Holdings totaling $464,000 from Greenberg.· Need documentation re. 6 unidentified transactions re. The Cohen Family Trust totaling $245,000 from Greenberg.· Royalty summary since 1997· Publishing (sold through 1997)· Writer’s· Artist record (sold through 2001)· Has Cohen (and his entities) been paid all royalties due to him?· 1996 and 1997 analysis of Cohen Family trust assets moved from Dean Witter to Greenberg.B. Cash Flow Analysis – Lynch· Information re. Lynch’s bank accounts, brokerage accounts, investments, real property, etc. in order to determine what Lynch received from Cohen entities and how funds used.· Bank statements· Checks and wires· Deposit records· Telephone transfers· Real property ownership· What are management fees due from Traditional Holdings and how do those fees relate to the commission arrangement?· Does Kelley Lynch have an “equity interest” in Leonard Cohen i.e., anything he has created? Is that “equity claim” continuing as to assets or rights sold after termination?· Did Kelley Lynch have any rights to take funds from personal accounts? Cohen Family Trust investment accounts· How do the parties reconcile their intentions as to Kelley Lynch compensation in light of the conflicting and incomplete documentation related to Traditional Holdings, LLC, Blue Mist Touring [Company], Inc. and LC Investments, LLC and aborted CAK bond financing transaction?· Which company owns what assets?· Were any asset transfers valid and enforceable under applicable corporate law? If so, which one(s)?· How were assets sold by Traditional Holdings to Sony? Is Lynch asserting transaction invalid and should be rescinded?· How to explain Cohen and Lynch participation in multiple conflicting asset transfers?· What are Kelley Lynch compensation rights, if any, under LC Investments and ongoing writer’s royalties? ETC.· How to reconcile aborted bond financing involving CAK in 1999 and various entities?C. Lynch compensation – rights under Traditional Holdings (Kory Doc labels this as “B” – Lynch has corrected lettering throughout document)· How does Lynch right in 15% commission paid at closing reconcile with other rights to ongoing compensation?· Sales price represents discounted value of royalty stream?· Does payment of commission on closing satisfy 15% commission rights as to all revenues from those assets?· What is Kelley Lynch due under the Management Agreement?· Is the Management Agreement valid and enforceable.?· Was Kelley Lynch authorized to make loans?· To herself?· To Leonard Cohen?D. Lynch duties and obligations under Traditional Holdings. (Kory Doc labels this as “C” – Lynch has corrected.)· What were and are Kelley Lynch’s fiduciary duties to Leonard Cohen?PD: Now, you were aware that 99.5% of that Company was owned by Ms. Lynch, correct?Cohen: That was a mistake and it was rectified by the lawyer who drew up the papers. And in arbitration a substantial sum of money was awarded me for his mistake.PD: And that lawyer’s name?Cohen: Richard Westin.PD: And you had arbitration with him?Cohen: That’s correct. RT 287PD: 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· Did she have a duty to convey Greenberg’s letters warning about the dangers of overspending?· Does she have a duty to document loans?· Personal property that may have been purchased with Cohen’s funds i.e. jewelry.PD: Now, at any time after your business relationship with Mr. Cohen ended, did the police, either federal or state, ever question you for fraud?KL: No. I had an unusual encounter where LAPD showed up at my house, lied to me, sand said there was a jewel thief in my neighborhood and that they were investigating this jewel thief and they would like to see receipts for jewelry I may have pawned to make sure a jewel thief didn’t sell them.PD: Okay. Ms. Lynch, if you could just focus on the questions I ask.KL: Well, that was law enforcement, right? RT 460-461· Any loan agreements on behalf of Cohen at CNB or any other institution signed by Lynch and subsequent use of proceeds.· Analysis of credit card charges made by Lynch to Cohen credit cards and paid by Cohen: Citibank 1, Citibank 2, and Amex.· Assets owned or controlled by Lynch or Lynch’s parent’s which could form the basis of restitution fund.E. Reconciliation of Cohen Accounts - Lynch Accounts (Kory Doc labels this as “C”) NOTHING FOLLOWSF. Tax (Kory Doc labels this as “D”)· Actual income received by entity compared with reported income reported on income tax returns, including analysis of sources of all income reported on returns: Cohen, Lynch, LCI, Traditional Holdings.· Actual monies paid to Lynch compared with reported monies paid and taken as business expenses on tax returns· Actual tax payments v. required payments (all entities).· Impact to the Cohen entities and to Lynch if Cohen agrees to “forgive” the debt, if any, owed by Lynch to Cohen or Cohen entities.· Impact of phantom income to Lynch from profit allocations without distributions from Traditional Holdings· Impact, if any, the distributions and “loans” from the trusts have on tax free/tax deferred status of the trusts.· Potential tax liability to Lynch for failing to report all of the monies received from Cohen entities (assuming she failed to report all the income).· Impact on all parties of Traditional Holdings failure to report sale to Sony, or manner in which sale treated (delta of $5 million basis and $8 million sale price may be consumed in fees paid to third parties).G. Legal [Kory Doc II]· Lynch compensation – Intention of parties.· What is the compensation arrangement between Cohen and Lynch for Kelley Lynch’s services?· What is the commission arrangement?· Did she have a duty to discuss ambiguities in Management Contract with Leonard or his representatives?· What is Kelley Lynch’s obligation as to annuity? Did she have a duty to preserve assets in order to pay annuity? Does dissipation of assets constitute anticipatory breach?H. Greenberg duties and potential liability [Kory Doc D, page 4)· Duty of Greenberg to safeguard funds. Did he know or should he have known about improper dissipation of Cohen’s assets? In Cohen Family Trust? Traditional Holdings?· Impact of Greenberg not maintain records expected to be maintained in the ordinary course of business (i.e. loan documentation including notes and loan agreements, wire instructions).· Impacting of Greenberg not accurately reporting “true” condition of the trusts.· Loans were apparently treated as unimpaired assets.· Ongoing and even recent Greenberg emails to Cohen showing $5 million value in TH.· Failure by Greenberg to make sure that Cohen was aware of two cautionary letters about spending, particularly in view of monthly positive emails directly to Cohen and failure to mention in phone calls.I. Westin duties and potential liability [Kory Doc E, page 4)· Duty of Westin to set up Traditional Holdings in manner that includes elementary mechanisms to safeguard funds? Did he know or should he have known about improper dissipation of Cohen’s assets?· Impact of Grubman firm’s notes about dangers of Kelley Lynch theft. Grubman firm confirmed that they wrote no such letter/notes.· Significance of role as ongoing tax preparer (i.e. knowledge, duty to assure loan documentation in place, entity not impaired, etc.)· Did he know about loans, and failure as to preparation of loan documentation by Greenberg?· Liability for Management Agreement that is manifestly filled with errors.· Liability for attack on Cleveland when Cleveland attempted to raise issues as to inadequacy of recordsJ. Other Issues· Claim by Cohen of fraud in the inducement against Greenberg, Westin, Grubman, McBowman, and Lynch for failure to advise Cohen that discounting royalties for sale was ill advised and would serve only to create transaction fees.· Impact of Cohen selling his royalty rights (because he thought he was out of money) as compared to had he maintained those streams of income.· Damage for lost profits, transaction fees, theft losses, negative tax consequences.· Liability for advisors who failed to show Cohen his income stream of $600,000 annually.· Lynch’s unwillingness to live on $90,000 (15% of $600,000).· Advisors cooperation with Lynch and apparent lack of consultation with Cohen.K. Procedural (III on Kory doc, page 5)· Agreement to mediate – Cohen and Lynch· What form of agreement?· How to address issues raised in this memo and other issues to be identified?· How to exchange information? Lynch gave everything to IRS. Anyone interested in the evidence should contact IRS Commissioner’s Staff in Washington, DC.· How to reach consensus as to facts?· Selection of mediator.· Other issues.Articles of Organization – State of Kentucky Website.http://apps.sos.ky.gov/ImageWebViewer/(S( mlksut2epdqcii45fdk0ko45))/ OBDBDisplayImage.aspx?id= 1208329 L. Agreement to mediate – Greenberg Westin, Others (Kory doc, III B, C, & D)· When and how to provide notice of claims?· What form of agreement?· Schedule:· Meditation agreement by January 21· Meeting at D&B – January 21 with Cohen and Lynch present to endorse final agreement and secure full cooperation.· Preliminary and verbal notice to Greenberg and Westin by January 19.· Formal written notice to Greenberg and Westin by January 24.· Mediation target date – 90 days or less from date of mediation agreement.
Kellygreen said