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MOTION EXHIBIT 4

DECLARATION OF KELLEY LYNCH

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Kelley Lynch declares:


1. I am a resident of Los Angeles, California and the age of 18, and have
personal knowledge of

the facts set forth hereinbelow and can competently testify thereto if called as a
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witness.

2.
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In approximately 1984, I began working for legendary

entertainment industry attorney, Marty Machat. From approximately 1994

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until the time of his death, in April 1988, I worked as Mr. Machats personal

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and legal assistant. Mr. Machat and his son, Steven Machat, had an

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entertainment industry clientele. It was during this period of time that I was

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introduced to Phil Spector and Leonard Cohen who were two of Machat &
Machats legendary clients. After Mr. Machats death in April 1988, Leonard

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Cohen hired me to work as his personal manager. I worked as Leonard Cohens


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personal manager from approximately April 1988 through October 21, 2004.

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Following Marty Machats death, Phil Spector hired me as his personal

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assistant/intern. I worked for Mr. Spector from sometime in 1988 through,

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although not nearly as regularly, some point in 1991. Thereafter, my friend and
now roommate, Paulette Brandt, returned to Mr. Spectors employ and I
devoted my time and energy specifically to Leonard Cohen, my family, and

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other projects. Beginning in approximately 1996, I began working as Adam


Cohens personal manager. Adam Cohen is Leonard Cohens son. See also
Kelley Lynch Case History.

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3.

When Phil Spector and Leonard Cohen first hired me, I worked

from New York City where I resided with my husband, Douglas Penick, and our
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son, Rutger Penick. This was a particularly busy moment in time as Leonard
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Cohen had recently released his studio album, Im Your Man, and embarked

on a very successful world tour. Additionally, Cohen was unraveling certain

matters with his family friend and personal lawyer, Herschel Weinberg, which

required a tremendous amount of work on the part of his representatives and

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myself as contracts had to be renegotiated and, in many instances, Cohen did


not have agreements in territories and his books had not been published in

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most territories.

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In late 1989, at the specific request of Leonard Cohen, my family

and I moved to Los Angeles where I resided until approximately the fall of
2006. From 2006 through June 2013, I was not a resident of Los Angeles, apart

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from a relatively brief period of time when I visited my son in 2010 and took a

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temporary position. From 2006 through the Spring of 2007, I lived in Santa

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Ana, California. From the Spring/early summer of 2007, I was invited to Erie,
Colorado by Yongzin Rinpoche and his wife. Shortly thereafter, I took a long-

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term temporary position with Deneuve Construction in Boulder, Colorado. I left


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Boulder, Colorado at sometime in late 2008 and went to stay with family friends

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in Northern New Jersey. I stayed there for a number of months, assisted them
with business matters, and decided to return to California to meet up with His
Holiness Kusum Lingpa who planned to travel from Tibet. I stopped in

Colorado and learned that His Holiness became ill in Bejing, China, returned to
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Golok, Tibet, and died on February 26, 2009. At some point, I met a young

woman who asked me to travel with her to Texas. I stayed in Texas until I

decided to visit my son in Los Angeles, California at some point in the winter of

2009. I then stayed with Rutger until approximately the late spring of 2010. I

visited with him for approximately 6 months. At some point midway through
this visit I discovered Leonard Cohens Complaint in this matter online. I

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contacted Judge Freemans courtroom and his court reporter returned my call.
I was attempting to determine what evidence was provided to the court and any

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details I could with respect to the secret mediations and Cohens agreement

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with Richard Westin. I briefly discussed this matter with a lawyer who advised

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me to file a motion to vacate. He also instructed me to address Cohens perjury


in my declaration. I began researching default judgments and other legal

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issues related to vacating a judgment. A friend of mine in Ft. Lauderdale,


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Florida invited me to stay with him. I left Los Angeles, flew to Ft. Lauderdale,

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and stayed with this individual until approximately December 2011 at which

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point I relocated to Berkeley, California. One of the reasons I chose to relocate

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to Berkeley, California is due to the fact that many Tibetan lamas are there,

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including my friend Anam Thubten Rinpoche. At some point after moving to


Berkeley, California, I was hired by GCI, a company who handles ACLU and

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Southern Poverty Law campaigns. At some point in January 2012, my son


drove to Berkeley, California and brought me evidence he had stored since we
were evicted from our home in December 2005. He has been threatened

publicly over that evidence. I worked for GCI until just before I was arrested
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on March 1, 2012 and extradited to Los Angeles, California without the benefit

of an extradition hearing which Berkeley PD assured me I was entitled to.

Neither Berkeley PD nor I could figure out how a court had jurisdiction over

me. Therefore, someone at Berkeley PD phoned LAPD and was advised that the

order I violated was somehow related to the 2008 Boulder, Colorado order that
the Boulder Combined Court repeatedly advised me expired on February 15,

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2009. Somehow this fact was not raised during my 2012 trial; the evidence was
not obtained; and the prosecutor and my lawyers either lied about everything,

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did not understand the facts; and the jurors ultimately advised my lawyers in

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debriefing of the follow: they wanted to hear from IRS; one juror relied on the

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prosecutors statements about Traditional Holding, LLCs assets although the


judge instructed the jury not to rely on attorney statements (one juror felt sorry

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for Cohen); and, evidently some jurors felt I was rough on the prosecutor. For
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reasons I cannot imagine, people seem to think that lying is acceptable,

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targeting people is acceptable, destroying a family is appropriate, stealing is

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acceptable, and the correct response is to send thank you notes and flowers. I

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remain unconvinced and view this as evidence of highly confused and neurotic

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thought processes. I was convicted and sentenced under domestic violence


statutes although there was and remains no domestic violence. The Boulder

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Combined Court was quite clear about that fact. I was incarcerated from
March 1, 2012 until September 2012. I returned to the Bay Area. I spent
countless hours attempting to coerce my file out the public defenders office,

work with my appellate attorney on my appeal (without the benefit of my file or


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critical information), and wrote a writ of habeas corpus without the benefit of

my file or critical information. In June 2013, I relocated to Los Angeles,

California. At that time, I continued researching issues related to the Motion to

Vacate. This is quite difficult given the fact that I still do not have many

documents in this or the related case. On August 9, 2013, my appellate


attorney, as a courtesy, filed the Motion to Vacate. He did not participate in the

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research or writing of that document. While I had provided him with an


Answer to my Complaint he inadvertently failed to attach that document. Mr.

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Suarez, who was kind enough to file this document for me, also turned my

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declaration and the case history into one document and signed it. I authorized

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him to sign on my behalf. He then crossed off Exhibit C on Rutgers


declaration and wrote B. Due to the fact that I have worked at law firms in

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various parts of this country, I used a perjury statement that California does not
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use although I think that one does take this oath to the best of their knowledge

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and belief. That generally addresses the fact that I have not resided in Los

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Angeles, California, except for a brief visit in 2010, from 2006 through June

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2013. I also did not have the financial ability to file a motion and fly in for a

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hearing. Therefore, I diligently pursued what I was capable of and in a timely

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manner filed the Motion to Vacate within two months of returning to Los
Angeles County.
5.

When I originally moved to Los Angeles at some point around early

1990, Leonard Cohen was focused on his 1993 studio album The Future. My
relationship with Douglas Penick quickly fell apart (primarily due to the fact

that he despised Los Angeles, and we separated and later divorced). At some
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point, Leonard Cohen introduced me to his record producer, Steve Lindsey, and

we ultimately ended up together and have a son, Ray Charles Lindsey. For

approximately two years, my family and I lived one block from Leonard Cohens

mid-Wilshire home and we became quite close in terms of our business

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relationship and socially. At this time, Cohen was engaged to actress Rebecca
DeMornay. In the winter of 1992, due to Lindseys concerns about the Los

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Angeles riots, our family moved from the mid-Wilshire area and leased a house
on Mandeville Canyon Road in Brentwood, California. I then maintained the

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lease on our former premises and moved my management company offices

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there. It was around this time that Leonard Cohen and I entered into a new

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agreement with respect to my services as his personal manager. That


agreement included, but was not limited to, paying me the proper commission

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for my services as his personal manager (15%) and compensating me with 15%
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of all intellectual property. Everything was relatively congenial during this

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period of time. Leonard Cohens daughter, Lorca Cohen, was frequently at my

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home for dinner and I frequently helped her with homework; drove her, my step

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daughter, and son to and from their respective schools; and the situation was
all rather familial.
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The next several years were quite busy. In 1993, Leonard Cohen

delivered The Future album and undertook a world tour. In 1994, Cohen
released his book of selected poems and songs, Stranger Music: Selected

Poems and Songs. Following that release, Cohen participated in a selective


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book tour. At some point in 1994, Cohen felt he had been drinking too much

and needed a place he could spend time focused on his music, art, and literary

works, in an environment that provided solitude, discipline, and allowed him to

live a relatively independent life. Cohen was provided with a two-cabin suite at

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the Mt. Baldy Zen Center. From approximately 1994 through 1998, Leonard
Cohen spent time on Mt. Baldy which is located approximately 45 minutes from

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Los Angeles. He was also frequently in Los Angeles where he maintained a


home. In 1996, Leonard Cohen was ordained as a Buddhist monk but that

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seemed to be more of a formality than any type of actual religious vow.

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Leonard Cohen was not, contrary to the allegations in his Complaint, in a

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rigorous retreat during his Mt. Baldy phase. He worked on his musical,
literary, and artwork projects; gave quite a number of interviews; participated

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in the filming of a documentary; recorded at least two new songs; oversaw the
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compilation and production of at least one live album; began regularly

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communicating with a fan site, the Leonard Cohen Files, which he viewed as a

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critical marketing tool; and was frequently in Los Angeles staying in his home

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which was located one block from my office. Cohen and his daughter, Lorca
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Cohen, both had keys to my office and Cohen personally spent time alone there
during evenings and weekends because that is where the color copier was kept
and it gave him the quiet opportunity to review his business, personal, and fan

correspondence and materials.


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7.

At some point in 1994, His Holiness Kusum Lingpa, a Tibetan lama,

visited Los Angeles. It was through this visit that I met Oliver Stone.
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Eventually Oliver Stone and I sponsored a Los Angeles Buddhist center for His

Holiness which was located downstairs from my personal management office. I

became quite friendly with Mr. Stone, we got to know one anothers families,

and spent a considerable amount of time together. Oliver Stone released

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Natural Born Killers in 1994. Three of Leonard Cohens songs were included
in the soundtrack bringing quite a bit of attention to Cohen in the United States

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where he previously had a relatively limited audience. At some point in or


around late 2004, or early 2005, Leonard Cohen and his lawyer would falsely

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accuse me of having sex with Oliver Stone in a blatant attempt to stir up a

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custody matter with my younger sons father.

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8.

In or around 1994, Leonard Cohen understood that many major

music publishing deals were being entered into throughout the industry. In
1995, David Bowie had entered into a highly publicized $50 million bond
securitization deal with David Pullman of the Pullman Group. This deal became

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known as the Bowie Bond and Cohen, together with his representatives,
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fervently pursued a similar type of deal. Cohen would now like to change

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history by alleging that he was misled into pursuing these deals; was led to
believe he had less royalty income than he actually did; and has replaced the
facts of what actually unfolded with an entirely fabricated, self-serving

narrative. Cohen has taken the position that he was not actively involved in
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either the first (1996) intellectual property deal with Sony/ATV or the second

(2001) intellectual property deal with Sony. The actual facts and evidence

prove that he was intimately involved with these deals and was the driving

force behind them and the reason for the unnecessarily complex structures,

stock sales, and problematic tax issues. It seems highly improbable that
anyone would go to such lengths to create this mess when it would have been

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so much easier to simply sell the assets. This would have attracted more
potential buyers, brought in a considerably high sales price, and the fees

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generated by the deals would have been far greater. The complex structures

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and tax planning were conjured up for the sole benefit of Leonard Cohen. The

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purpose of these structures was to find a way for Leonard Cohen to avoid
paying ordinary income taxes. This has apparently been an issue for Cohen

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since at least 1977 when a tax memo was prepared for him that took the
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position that, although Cohen had residences in the U.S. and Canada, he was

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not obligated to pay taxes in either country and encouraged him to funnel

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income into off-shore accounts.

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9.

In 1995, the tribute album Tower of Songs: The Songs of Leonard

Cohen was released by A&M Records. Cohen was actively involved in this
project and provided numerous interviews to the news media. He also had me
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phone Chris Doritos, KCRW, in 1997 to arrange an interview related to the


various tribute albums that had been released. I had received a number of
tribute albums in the mail and Cohen thought it would be interesting to give an

interview about them. In this interview Cohen confirms that his son, Adam
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Cohen just signed a record deal. That is part of the income I used (with a

pension fund I had) to purchase my home in Brentwood, California. Cohen has

advised a number of people, including Steven Machat, that I bought my home

with his money. That is blatantly false. I, together with an attorney, also

negotiated a substantial publishing deal for Adam Cohen in 1997. I also


conceived of and worked as co-executive producer on the tribute album. This

interview is quite revealing on a number of fronts.

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Excerpt Interview with Leonard Cohen, KCRW, February 18, 1997:


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Chris Doritos: Leonard Cohen released his first album by Christmas that year,
1967, Songs of Leonard Cohen. Since then he has released 11 albums of songs
and they have been covered over the years by Jennifer Warrens, REM, Peter
Gabriel, U2's Bono, Nick Cave, Diana Ross [goes on], this is just to name a few.
And we recently just heard from Leonard and we heard about a couple of new
tribute albums one from The Czech Republic and one from Spain a Flamenco
tribute album, and that now makes what six tribute albums in all the other ones
being Jennifer Warrens, I'm Your Fan, A Norwegian Tribute album, and Tower
of Song a collection of performances by [the names of some of the artists].
1990's Trouser Press, which is sort of like the bible of mainstream rock
lamented that: " Leonard is better known from usually inferior versions of his
songs." Well, we'll get Leonard's take as he joins us this hour on KCRW's
Morning Becomes Eclectic, right now it's Bono's version of Hallelujah.
[song: Hallelujah by Bono from "Tower of Song tribute album"]
Chris: - That's Hallelujah originally found on the Leonard's album Various
Positions release 1984 Columbia records. That's a version from Bono of U2
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taken from Tower of Song, a Tribute album, of course a tribute to the writings
of Leonard. I'm Chris Doritos on Morning Becomes Eclectic KCRW happy to
have in the studio, Leonard, welcome. [some minor technical difficulties]
Chris: - welcome back.
Leonard: Thanks for having me down, I appreciate it.
Chris: - It's good to have you here. I was startled when I got the phone call from
Kelley at your office. She says, "yeah we got these wild tribute albums. One
from the Czech Republic and one from Spain." These just landed in your
mailbox?
Leonard: yeah, they landed in the mailbox. And I was very impressed by the
performances and the treatment and I thought who can I turn to, to let people
hear this. Because these records are not readily available, or even available at
all, here in America. So I thought I'd like people to hear them.

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Chris: I see. Have you been writing lately?

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Leonard: Yes Ive been blackening pages, here and there, and scratching away.
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Chris: The reason I ask is because I was curious when we might get another
studio album from you.

Leonard: Ive been getting the same interest from the record company.

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Chris: Thats good, thats a positive sign.

Leonard: There is no special time or date for it. Its gonna take a while.

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Chris: It is gonna take a while.


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Leonard: Im just finishing a book now. Ive been concentrating on that for the
past few months.

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Chris: Is there anything you could tell us about it, at this point.

Leonard: Oh, its just a collection pieces over the past few years.

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Chris: I see. So are they new writings?

Leonard: New writings.


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Chris: They are new writings. The last studio album was the Future from
1992. It actually had a couple of songs on there that you didnt write; that were
cover versions.

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Chris: I should also point out that your son, Adam


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Cohen: Oh, my son does beautiful work. He is the real thing. He really knows
how to sing.

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Chris: He just recently got a record deal.

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Cohen: Yes, he signed with Sony and he is in the midst of recording now. Hes
written some very very beautiful songs.

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http://www.leonardcohenfiles.com/kcwr.html
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10.

In 1996, Armelle Brusq produced a documentary called Spring

1996. The film described the daily routing of the Zen monks at Mt. Baldy Zen
Center. Cohen is featured in the film and his cabin with his Technics KN 3000

synthesizer and computers are shown. He sings verses from his new song A
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Thousand Kisses Deep and recites three unpublished poems. The

documentary also shows Lynchs management office when Cohen visits with the

film maker. Spring 1996 also contains footage of Cohen in the recording studio,

working with his sound engineer and violinist, and then heading off with the

film maker to dine at Canters. The film ends with the song Never Any Good
which Cohen was recording for an upcoming live album. Leonard Cohen was

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not in a rigorous religious retreat; used Mt. Baldy as an opportunity to focus on


writing; and spent considerable amounts of time in Los Angeles with his

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daughter, Lynch, at Rinzai-Ji Zen Center, and in the recording studio. Cohen

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evidently felt that highlighting the time spent at a formal religious retreat,

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where he was absolutely viewed as a patron, would work best with his
rescission argument. The following You Tube links, which the Court should

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review, give an overview of Cohens cabin at Mt. Baldy, some of the material he
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was working on at the time, and his frequent trips to Los Angeles, California

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and my office. The interview footage, with Cohen in front of a white wall, was

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filmed in the office I provided Cohen in my management offices. The other

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footage of Cohen in his robes, in his office (which was provided as a courtesy to

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this individual), shows the boxes of archival materials (a great number of items

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from these materials appeared in Cohens related case matter) Cohen and his
daughter removed from my offices with every one of my personal business files.
Leonard Cohen - A Thousand Kisses Deep - 1996 Demo

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Scene from the French documentary "Leonard Cohen Spring 96", shot in
Leonard Cohen's cabin at Mt. Baldy Zen monastery by Armelle Brusq. Leonard
Cohen is recording song A Thousand Kisses Deep, using Technics KN 3000
synthesizer. The track is apparently an early, demo version to different lyrics
and complete different melody than one composed in collaboration with Sharon
Robinson, for 2001 album Ten New Songs. Also, the poem included in the 2006
Book of Longing, recited during 2008 Tour, doesn't have some of lyrics from
this demo.

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https://www.youtube.com/watch?v=ko7Pyz55ziU

Leonard Cohen on Mt. Baldy

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Video of Leonard on Mount Baldy. This was filmed in 1996 and it documents
Leonard's experiences and routine while at Mt. Baldy. I believe this "film" was
shot by a French artist named Armelle Brusq.

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https://www.youtube.com/watch?v=HJuJQI0RMiw

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11.

From 1996 until approximately 2001, I also worked as Adam

Cohens personal manager. Adam Cohen is Leonard Cohens son.


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12.

In late 1996, Bob Hilburn interviewed Leonard Cohen about the

Tower of Song tribute album. At the time, Mr. Hilburn, who personally met
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with Cohen on Mt. Baldy, confirmed: The 61-year-old songwriter and poet
hasn't turned his back on the world. He frequently heads down the mountain to
Los Angeles in his four-wheel-drive vehicle, either to visit an affiliated Zen

center, to visit his daughter in the Mid-Wilshire area or meet with Kelley Lynch,
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his manager. Leonard Cohen frequently gave interviews from Mt. Baldy and in

this case agreed to meet with Mr. Hilburn to talk about the tribute album that

will be released Tuesday by A&M Records. The collection, titled "Tower of

Song: The Songs of Leonard Cohen," features versions of his works by such

artists as Bono of U2, Peter Gabriel, Elton John, Willie Nelson, Sting, Billy Joel,
Aaron Neville, Tori Amos and Trisha Yearwood. Bob Hilburn also confirmed

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some of the projects Cohen was working on at that time: Cohen has plenty of
time here to devote to his writing. At present, he's working on an illustrated

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book of poems and songs for a future album. His workroom contains a primitive

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Macintosh computer and a synthesizer, tools for his music and his graphic art.

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There is also a radio in the room but no CD or cassette player. He has to go out
to his vehicle to play a CD. Exhibit A: Robert Hilburn Article; photo of Cohen

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working at Mt. Baldy.


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13.

In 1997, during his Mt. Baldy phase, Cohen oversaw the selection

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and release of More Best of Leonard Cohen album, which included the track,
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Never Any Good, and an experimental piece


The Great Event.

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14.

At some point in or around 1998, Cohen more or less left Mt. Baldy.

In 2001, he released his studio album Ten New Songs in 2001. In October
2004, Cohen released his studio album Dear Heather. Cohen's book of

poetry and drawings, Book of Longing, was published in May 2006. These
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projects were the focus of much of Cohens energy during his Mt. Baldy phase.

At no point did Leonard Cohen and I cease communicating; we spoke and saw

one another regularly; and he was not only kept apprised of the status of the

deals he demanded, he micro-managed them. This is not the image Cohen has

attempted to cultivate throughout his legal adventures.


BACKGROUND

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As stated above, I did not reside in Los Angeles from approximately

the fall of 2006 through June 2013 apart from an extended visit with my son

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and during the period of time when I was incarcerated from approximately

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March 2012 through September 2012. During my 2010 visit with my son, I took

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a temporary position with a paralegal group in Santa Monica, California. While


I began researching the issues related to a motion to vacate, I was not in Los
Angeles long enough to fully research, write, or file the document. I was also

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viciously attacked when I made my intentions a matter of public record. In

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fact, Leonard Cohens fan, Susanne Walsh, a Bay Area lawyer, Stephen Gianelli,

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and others seemed to intensify their harassment, stalking, and intimidation of

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my relatives, friends, and others. These individuals, and others, have engaged

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in what is clearly a highly coordinated campaign of harassment and slander


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meant to discredit me, discourage me from seeking legal remedies, and


intimidate people in my life. The activity continues to this day and the issues
relate to Leonard Cohen, slandering me, intimidating my witnesses, IRS and tax

fraud, and Phil Spector.


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16.

I have attached an email and documents the Boulder Combined

Court sent me on or about April 10, 2014. The Court confirmed that their order
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was not a domestic violence order and their computer print-out (and

conversations Ive had with the Court) revealed that employees who reviewed

their computer data when speaking with me (or others) interpreted the

information incorrectly when they advised me that the order expired on

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February 15, 2009. Evidently the temporary order, which was vacated on
September 2, 2008, expired on February 15, 2009. The reason this information

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is relevant here, apart from the use of restraining orders as litigation tactics, is
due to the fact that Robert Kory and Michelle Rice provided this Court with

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copies of their domestic violence related restraining orders (granted without

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a hearing) which were evidently issued with the assistance of the City

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Attorney's Family Violence Unit. The Boulder Combined Court stated


unequivocally that This case is not a domestic violence case which can be

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verified on the top right of the first page of the ICON; noted as "Type:
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Protection Order". On the motion for civil protection order, the Petitioner only

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checked off Stalking and Physical Assault, Threat, or Other Situation but not

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Domestic Abuse. On of Leonard Cohens concerns, when applying for this

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order, had to do with my online posts refuting appalling slander as well as my


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communications with third parties such as IRS, FBI, DOJ, and Dennis Riordan.
Exhibit B: Boulder Combined Court email and attached evidence; Kory & Rice
domestic violence related orders.

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17.

One of the issues this declaration addresses relates to Leonard

Cohens tactics. Those tactics have included the use of fraudulent restraining
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orders; coercion; the use of my sons as weapons; strong arm negotiating


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tactics; slanderous and defamatory allegations; lack of service; refusal of an

endless stream of lawyers to communicate with me; entrapment techniques;

perjured testimony and statements; and what appear to be operatives who have

targeted nearly everyone in my life past, present, and possibly future. My

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roommate, Paulette Brandt, I, and many others (including both of my sons and
sister) have been relentlessly harassed over issues relating to Leonard Cohen,

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this case, and federal tax matters. The harassment continues to this very day.
This is some of the background to the situation at hand.
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I have encountered numerous confusing and misleading situations

and statements with Los Angeles Superior Court. Those issues include, but are

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not limited to, being advised not to file a proof of service until after a new judge

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was appointed and a date set for a hearing on the motion; being advised that

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this Court does not accept CourtCall; being advised that, given the fact that I
filed my motion, I simply had to show up at the hearing with witnesses; and

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spending nearly two years attempting to obtain a transcript of the March 23,
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2012 bail hearing (Case No. 2CA94539-01). That case also involves a situation

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with respect to me and Leonard Cohen. I have been repeatedly advised (by
both LA Superior Court and the Court Reporters Office) that, due to the fact
that Judge Mayerson retired, a transcript was no longer available; due to the

fact that he no longer has a department with LA Superior Court, it is impossible


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to order a transcript; misdemeanor hearings are not recorded; misdemeanor

hearings are recorded but no one knows where the tapes are located; and other

variations on this general theme. Paulette Brandt and I were then surprised

when Judge Mayerson prevailed over a hearing in a matter related to the

domestic violence orders. On or about June 17, 2014, after advising the
individual at LA Superior Court that I would complain to the chief judge of Los

9
10

Angeles Superior Court over the situation, I was referred to Rosalina Nava.
Ms. Nava was kind enough to provide me with the court reporters name and

11

number and I was finally able to order a transcript of the March 23, 2012 bail

12

hearing. On August 14, 2014, I received a copy of that transcript from Annette

13

Van Olden. This hearing was important for a number of reasons.

Exhibit C:

Emails with court reporters re. March 23, 2012 hearing transcript.
14
15

19.

This transcript is of great importance due to the fact that Leonard

Cohen testified, when asked if I ever stole from him, with the words just my
16

peace of mind. I have attached hereto a MacLeans article dated August 22,
17

2005. This was publishing approximately one week after Cohen filed the

18

Complaint in the instant matter. Cohen is quoted extensively in this article;

19

posed for photographs; and provided the journalist (an awe inspired fan really)

20

with some of the emails he sent his financial adviser, Neal Greenberg. I
- 19 DECLARATION OF KELLEY LYNCH

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suppose Cohen may also have provided MacLeans with my photograph which
is included as well. At the end of the article, Brian Johnston includes this
interview with Cohen. Cohen had evidently contacted Johnson months earlier

in an email, and while dining with Johnson, explained that he had been stripped
4

of most of his assets, and was mired in a legal battle with his money managers,

who would excuse him of extortion. He said it would get nasty and personal,

and that his name would be dragged through the mud. Johnson found

Greenbergs lawsuit amusing from what I can tell. I can assure this Court that I

did not. It is important to note that Cohen must have provided Johnson with
Steve Lindseys information as he is quoted and lied about my being suicidal.

9
10

But what is most telling is Cohens comment that he was not accusing me of
theft. Cohen moved offensively in the news media and had to defend himself

11

against Greenbergs allegations and, no doubt, anticipated that something

12

might unfold after I reported the allegations that he committed criminal tax

13

fraud to Internal Revenue Service on April 15, 2005 and provided IRS with an
abundance of evidence. This article sets forth Leonard Cohens fabricated

14

fantastical narrative that is in no way, shape, or form supported by the evidence


15

or the facts. Exhibit C-1: MacLeans article. August 22, 2005.

16

20.
17

The March 23, 2012 hearing transcript is of great importance.

First, one of the individuals in the courtroom was an investigator with District

18

Attorney Steve Cooleys office. During my 2012 trial, Steve Cooley, prosecutor

19

Alan Jackson, appellate attorney Dennis Riordan, and Phil Spector were

20

constant themes. In fact, the prosecutor elicited testimony about Phil Spector
- 20 DECLARATION OF KELLEY LYNCH

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and a gun from witness Leonard Cohen. I do not believe this situation was
merely coincidental given the fact that the District Attorneys Office presented
a version of Leonard Cohens gun story in their Motion in Limine (Case No.

BA255233) in an attempt to introduce prior bad acts against Phil Spector. This
4

particular version of Leonard Cohens good rock n roll gun story about Phil

Spector involves Mr. Spector pointing a semi-automatic pistol at Cohens

chest. Mick Brown, UK Telegraph, has advised me that Cohens testimony or

statements were presented to the Grand Jury in the Spector case. Exhibit D:

Phil Spector Motion in Limine (Excerpted pages Leonard Cohen gun incident);
Mick Brown emails.

9
10

21.

While this information may seem tangential, it is not. As Ive stated

above, Phil Spector was a constant theme during my 2012 trial. Leonard Cohen
11
12

testified about Phil Spector. His testimony contradicts the statements used by
the prosecutors in the Phil Spector matter. Leonard Cohen evidently was not

13

afraid when Phil Spector allegedly held a gun to his head but fears for his life

14

over my alleged emails that LAPDs report describes as generally being

15

requests for tax information. Leonard Cohen testified during my trial that Phil
Spector held a gun to his head and was absolutely certain that the weapon was

16

an automatic. Perhaps that, in and of itself, is not problematic however, on


17

April 5, 2012, at the outset of my trial, Leonard Cohen wrote to the prosecutor

18

and included a version of his highly embellished Phil Spector gun story that, in

19

this telling, involved Mr. Spector pressing an automatic into Cohens neck.

20

This testimony, and the three separate versions of a gun incident involving Mr.
- 21 DECLARATION OF KELLEY LYNCH

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2

Spector, is material to this matter because it shows that Leonard Cohen has a
pattern and practice of changing stories, adding details, and fabricating
narratives. What makes this testimony so disturbing is the fact that for 20

years Leonard Cohen told me Phil Spector never held a gun on him and
4
5
6
7
8
9
10
11
12
13
14

continually advised me that his stories about Spector were good rock n roll
stories. Exhibit E: Trial Transcript (RT 308-309).
PD: Now, I want to talk to you about what you mean by threatened. You
actually -- you were telling us about Phil Spector. You were testifying about
talking to the LAPD. Cohen: Yes, Sir. PD: And you talked to the LAPD with
your attorney, correct? Cohen: With an attorney present, yes, Sir. PD: And
thats when you asked that or your attorney someone asked that Ms. Lynch
leave? Cohen: The attorney asked that Ms. Lynch leave. PD: So when Ms.
Lynch left, you started talking about an interview or story about Phil Spector,
correct? Cohen: Correct. PD: And how he would oftentimes have guns when
you were producing an album, correct? He would have guns in the studio when
he was producing an album with you? Cohen: Thats correct. PD: And, in fact,
one time you told the detective that, quote Well, before I go there, was Mr.
Spector -- was he drunk at the time when he had these guns? Cohen: I dont
remember, Sir. PD: Was he hostile at the time? Cohen: Not to me. PD:
Okay. But he actually put a gun to your head? Is that correct? Cohen:
Thats correct. PD: It was a revolver? Cohen: No, it wasnt a revolver. It
was an automatic. PD: But you werent actually -- you didnt feel threatened
when he put a gun to your head? Cohen: No, Sir. RT 308-309

15
16

22.

Leonard Cohen was a witness at the March 23, 2012 trial. He

perjured himself when he testified that I was his business manager. (RT 8)
17

There is a huge distinction between a personal manager and business manager

18

and I was the former. For approximately 17 years, I worked as Leonard

19

Cohens personal manager. Leonard Cohen testified that We have three

20

restraining orders against Ms. Lynch. (RT8) I am completely unaware of the


- 22 DECLARATION OF KELLEY LYNCH

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allegations made in connection with the 2005 restraining order matter. I did
not attend the hearing, Cohen and his lawyers refuse to provide me with any
documents, and I am unaware of the allegations made. I was present at the

2008 hearing in Boulder; personally asked the judge to make that order
4

permanent; and after the hearing discovered the excessive fraud and perjury in

the declaration Cohen provided the Court when applying for the TRO. Cohen

could not be bothered to attend the hearing and simply sent his

lawyer/witnesses, Robert Kory and Michelle Rice, in his stead. While I did ask

the judge to make the order permanent (a rather confusing word given the
fact that it has different meanings in different jurisdictions and some of the

9
10

permanent orders actually expire), have no arguments about service issues


(apart from the revolting fact that the process server ran around Boulder,

11

Colorado advising people that he had a check for my sons accident where his

12

fingers were ripped off), advised the judge that I found the situation insane, and

13

most certainly did not agree to an order of any sort that was based on fraud
and perjury which I did not discover until after I reviewed the court file

14

following the hearing and discovered Leonard Cohens startling declaration. As


15

for the third order, Cohen is evidently addressing the registration of the foreign

16

Boulder, Colorado order with LA Superior Court on May 25, 2011. I believe

17

that is in fact a new order. That order is at issue and somehow transformed

18

into a domestic violence order although Leonard Cohen and I were never in

19

an intimate dating or engagement relationship and the Boulder, Colorado


order was not a domestic violence order. Natural Wealths June 2005

20

- 23 DECLARATION OF KELLEY LYNCH

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3
4

Complaint addressed the fact that Cohen planned to use restraining orders to
discredit me and prevent me from serving as a credible witness.
23.

What Leonard Cohen has failed to address is the fact that his

representatives refused to communicate with me during the litigation in this


matter; other matters; and both he and his representatives refuse to provide

me with IRS required tax and corporate information and are using the
6

restraining order to argue that it prevents them from transmitting IRS required

tax information and effecting service on certain Cohen representatives who also

serve as witnesses and happen to be the registered agent for one of the

Plaintiffs, LC Investments, LLC. At the March 23, 2012 hearing, Cohen

10

confirmed that his email address is baldymonk@aol.com. (RT 10) This will
become relevant with respect to evidence submitted with this motion and

11
12

declaration. Cohen concealed the fact that I repeatedly contacted him to


request IRS required tax and corporation information. I was unaware of the

13

fact that he and his legal representatives had taken the position that, not only

14

do the restraining orders interfere with the transmission of federal tax

15

documents, but the default judgment in this matter absolves Leonard Cohens
obligation to provide me with tax information for the years 2004 and 2005. The

16

prosecution also essentially printed out the same email over and over again to
17

ensure that their binders looked thick. One issue that annoyed Leonard Cohen,

18

according to his testimony, is his own desire to die by firing squad (RT 18). At

19

least thats what he told me since approximately 1989 when he was interviewed

20

for Rolling Stone Magazine by Mikal Gilmore. Mr. Gilmores brother was
- 24 DECLARATION OF KELLEY LYNCH

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executed by firing squad in the United States and this somehow struck Cohens
fancy because for the next 15 years or so, he continuously advised me that he
would like to die by firing squad and furnished details such as what his last

meal would be, the fact that he would have a cigarette, etc. Another issue that
4

annoyed Leonard Cohen is my parody email regarding former DA Steve Cooley

(RT 18). I am not all that clear as to why any comment of mine with respect to

Steve Cooley would cause Leonard Cohen to live in a state of fear but Ive

given up trying to figure it out. The repeated references to Steve Cooley by

Leonard Cohen are one of the reasons I do feel this might be a very material
issue. At one point during the March 23, 2012 hearing, Cohen was asked Are

9
10

you aware that Ms. Lynch is involved in some sort of a tax proceeding with the
IRS and he answers that he understands she failed to file. (RT 20) I have not

11

failed to file my tax returns. Leonard Cohen refuses to provide me with the

12

information I have been requesting for approximately 10 straight years now. I

13

evidently have to file a lawsuit to obtain IRS required tax and corporate
information. I am not involved in a tax proceeding of any sort. On April 15,

14

2005, I reported allegations that Leonard Cohen committed criminal tax fraud
15

to Internal Revenue Service. During the March 23, 2012 hearing, Cohen is

16

asked when the last time he saw me was and he acknowledged that he hasnt

17

seen me since 2004. He is then asked the following questions: Q: Has she

18

vandalized any of your property during that time? Cohen: No. Q: Or stolen

19

anything? Cohen: Just my peace of mind. (RT 20) Leonard Cohen has
accused me of misappropriating over $5 million and his answer to a question

20

- 25 DECLARATION OF KELLEY LYNCH

1
2

about my stealing from him is essentially no just his peace of mind. I would
like to point out that the expense ledger includes alleged misappropriations
for the year 2004 and Leonard Cohen is exceedingly aware of the default

judgment and forensic accounting used to support that judgment. Therefore,


4

it is truly impossible that he might have misunderstood the question and felt my

lawyer was asking him if he thought I may have stolen a potted plant, or

something similar, from his front porch. On a final note, with respect to the

March 23, 2012 hearing, Cohen was asked if I was employed by him as a

business manager. Cohen answers correct although I was not. He is then


asked Was that the extent of your relationship? and his answer was Yes, Sir.

9
10

(RT 20). I believe it is important for this Court to take note of Cohens
contradictory testimony, blatant lies, and self-serving fraudulent

11

misrepresentations. I have only addressed the more extreme examples in these

12

documents. Exhibit F: Transcript March 23, Hearing. Cohen changed his

13
14
15
16
17
18
19
20

testimony during my 2012 trial over the relationship issue:


PD: Okay. Now, you also mentioned earlier that there was a brief intimate
relationship between you and Ms. Lynch, correct? Cohen: Thats
correct. PD: You wouldnt say that that was probably the best idea, to have a
romantic relationship with your business partner, correct? Streeter: Objection;
relevance. Court: Overruled. Cohen: I dont think it goes to the description of
romantic. PD: But it was a sexual relationship, correct? Cohen: It was an
intimate relationship, yes. PD: Was it a sexual relationship? Cohen: It
involved a sexual -- yes. PD: Now, it was - It was actually spanning years,
correct? Cohen: Im sorry? PD: It actually spanned years, correct? Cohen: I
dont know how long it spanned, Sir. PD: Okay. But you would agree with me
that it was on and off for a period of time? Cohen: Yes, Sir. PD: Now why did
that that part of the relationship, what you called the intimate part of the
relationship, why did that end or when did it end? Court: Those are two
- 26 DECLARATION OF KELLEY LYNCH

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3
4
5
6
7
8
9
10
11
12
13
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different questions. PD: Ill go with the latter. PD: When did it end? Cohen: I
dont remember exactly when it ended. Like many relationships, it -- it just
dissolved. PD: But its fair to say that it ended before your business
relationship ended, correct? Cohen: Thats correct. PD: Okay. And do you
know why it ended? Cohen: I would say that part of the relationship exhausted
itself and dissolved naturally. RT 276 PD: Okay. Do you remember testifying
on March 23rd at another hearing? Cohen: March 23rd, yes. PD: Of this year.
You were in this courthouse testifying, correct? Cohen: That is correct. PD:
Now, you were asked if this was -- if your relationship with Ms. Lynch was
purely a business relationship. Do you remember that? Cohen: I did. PD: And
you actually said that it was, yes, purely a business relationship. Cohen: I have
said repeatedly that there was an intimate relationship, but the lady denies it.
So I did not want to insist. PD: Im not asking you about what Ms. Lynch said.
Im asking about what you said. You said that yes, that it was purely a
business relationship, correct? Cohen: May I explain. PD: Im just asking for
if thats what you said on March 23rd. Cohen: Yes. PD: In fact, you were
asked a follow up question that -- asking you if that was the extent of it, and
again you said yes, that was the extent of it, correct? Cohen: Correct. RT 273277

PD: When you testified on March 23rd, you said that -- you didnt give the same
answer that you gave now, correct, regarding your relationship with Ms.
Lynch? Cohen: Thats correct. PD: Okay. But you -- when you did testify, you
stood in front of the counsel table, you raised your right hand, correct? Cohen:
Correct. PD: You swore to tell the truth, the whole truth? Cohen: Correct.
Kelly: And then the same oath that you just took right now, correct? Before
testifying, correct? Cohen: Correct. PD: Okay. And you understand that you
were under the penalty of perjury on March 23rd? Streeter: Objection;
argumentative. Court: Sustained. Kelly: Nothing further. RT 321-322

16
17

23.

Leonard Cohen has a pattern of falsely accusing his

representatives; stealing from them; and, withholding commissions due them.


18

This identical situation occurred with his former managers, Machat & Machat.
19

Marty Machat, as Ive said, passed away in April 1988. Leonard Cohen

20

- 27 DECLARATION OF KELLEY LYNCH

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2

personally removed the corporate records from Mr. Machats office and after he
and I parted ways, I discovered a very relevant letter. Marty Machats letter to
Cannon Carter of Irving Trust Company dated November 25, 1970 confirmed

that Stranger music was owned by Leonard Cohen (70%), 15% by Machat &
4

Machat, and allegedly record producer Bob Johnston had a 15% ownership

interest. A spreadsheet created at the time of the Stranger Music, Inc. sale to

Sony shows prior owners of this entity limited to Leonard Cohen and his former

managers, Mary Martin and Judith Berger. It then shows Leonard Cohen and

his two charitable remainder trusts as the owners of the asset. It fails to show
the ownership interests of Machat & Machat or Bob Johnston. This company

9
10

owned the intellectual property related to Leonard Cohens music publishing


catalogue. Immediately after Mr. Machats death, Leonard Cohens attorney

11

and I negotiated to buy back the rights to Suzanne and two other songs

12

which were then assigned to Stranger Music, Inc. The Complaint in this matter

13

alleges that Leonard Cohen Stranger Music, Inc. (as the company came to be
known when it registered to do business in California) was wholly owned by

14

Leonard Cohen. That allegation is contradicted by Marty Machats letter to


15

Irving Trust Company. This is extremely relevant because it proves that, time

16

and time again, Leonard Cohen conceals information, breaches contracts,

17

falsely accuses others of misrepresenting him, and seems to steal from people.

18

It also may be evidence that proves Leonard Cohen removed corporate records

19

from Marty Machats office, after his death, and sanitized the files and

20

- 28 DECLARATION OF KELLEY LYNCH

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2
3
4

corporate records intentionally. Exhibit G: Marty Machat letter dated


November 25, 1990; Stranger Music, Inc. Spreadsheet.
24.

On January 5, 1972, Berger, Berger & Beal (Cohens prior

managers) transmitted a letter and enclosures to Marty Machat regarding


Stranger Music, Inc. The letter acknowledged receipt of full payment in

accordance with the terms of the Stock Purchase Agreement dated May 28,
6

1970 between Stranger Music., Inc., as buyer, and Mary Martin and E. Judith

Berger, as sellers. Enclosed with this letter were the stock shares owned by

Mary Martin; stock shares owned by E. Judith Berger, Security assignments for

the 36 compositions; reassignment to Stranger Music, Inc., of the said 36

10

compositions. The list of 36 compositions is attached to this letter. It is


relevant to note that for years Leonard Cohen has publicly stated that his first

11
12

managers, Berger & Martin, stole the copyrights to Suzanne, Dress


Rehearsal Rag, and Song of Isaac. These three songs do not appear on the

13

assignment list transmitted, with the actual assignments, to Mr. Machat. After

14

Marty Machats death, Cohens transaction lawyer and I negotiated the

15

purchase of those three songs on behalf of Cohen and at no time was there
evidence that these copyrights were ever stolen. Steven Machat, in his book

16

Gods, Gangsters, confirms that Cohen, falsely accused Berger & Marti of
17

ripping him off. Steven Machat is not merely a bystander with a casual opinion,

18

his father and he worked as Cohens managers and attorneys and negotiated

19

many deals on Cohens behalf for a period of nearly 20 years. Exhibit H:

20

Berger, Berger & Beal letter to Marty Machat dated January 5, 1972.
- 29 DECLARATION OF KELLEY LYNCH

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2

26.

Steven Machat and his father worked as Cohens personal

managers and attorneys until Marty Machats death in April 1988. Steven
Machat is familiar with the early deals; he and Marty Machat had the same

compensation agreement with Cohen that I had; and, Cohen allegedly stole
4

their share of intellectual property, refused to pay them commissions due, and

stopped paying royalty payments related to the song When I Need You.

Steven Machats comments about Leonard Cohen are extremely material:

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

9
10

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

11

repeat behaviour. My father duly got rid of Berger and Martin, set up a new

12

company called Stranger Music for Cohen and agreed to manage Leonard for

13

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

14

Leonards exposure to American tax, just like any other rich individual trying to
15
16
17

minimise their tax liabilities. Exhibit I: Email to Steven Machat dated March
2, 2015 confirming book excerpts.
27.

When Marty Machat was ill, Herschel Weinberg sent a letter

18

advising Mr. Machat to release all of Leonard Cohens files to him. I spoke to

19

Mr. Machat about this letter and he told me to release all of the files to Cohen

20

and did not believe it was necessary to copy the files. Phil Spector also
- 30 DECLARATION OF KELLEY LYNCH

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requested that his files be returned and Mr. Machat confirmed that they should
be shipped to Mr. Spector in California. Other individuals were equally
concerned about their personal files and the situation was quite overwhelming

and very upsetting. Leonard Cohen personally flew into New York to meet with
4

Marty Machat and his companion, Avril Giacabbi privately. He was also

meeting with Herschel Weinberg. At one point, Cohen advised me that Marty

Machat stole his $400,000 advance on Im Your Man. I was present when Mr.

Machat returned from Sony, after picking the check up, and recalled that he

told me he stopped at Bankers Trust and deposited the check into his attorney
escrow account. Cohen then phoned Avril Giacobbi who confirmed with

9
10

Charles Aaron, Bankers Trust, that this was precisely what had occurred.
Cohen didnt say much and, due to the extreme confusion and drama

11

surrounding the situation leading up to Marty Machats death, I didnt think too

12

much about the allegation. During this period, Leonard Cohen came into Marty

13

Machats suite of offices and wanted to enter his personal office. While I
normally had the keys to Marty Machats office, and was advised to permit

14

Cohen to enter and relax when he was in New York, I had recently gone to
15

Martys 5th Avenue apartment, picked him up with a car service, helped him

16

into the office (because he was quite weak from the cancer), and accompanied

17

him back to our offices. After Marty finished whatever he was working on, I

18

accompanied him back to his apartment, visited with him for a while, and

19

inadvertently left the key to his office in his apartment. I, therefore, did not
have access to Mr. Machats office. Leonard Cohen instructed me to call Marty

20

- 31 DECLARATION OF KELLEY LYNCH

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to ask if it would be all right for him to hire a locksmith to open the door to let
him in. Marty had no problem with that request and I called a locksmith who
came by shortly thereafter. Leonard Cohen then entered Mr. Machats office by

himself. I did not enter Mr. Machats office with Cohen and sometime later he
4

exited the office. I do not recall what, if anything, he took with him. I do recall

his advising me that he was going to see Herschel Weinberg and then stop by

Martys apartment for a visit. He said he had some paperwork to review with

Marty.

8
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10
11
12

28.

At this time, Cohen also advised me that he had an account in the

Netherlands. He asked me to find the phone number for New Era, BV on my


rolodex which I did and wrote it down for him.
29.

After Cohen resolved whatever matters he and Herschel Weinberg,

Charlie Aarons of Bankers Trust, and Marty Machat were addressing, he left
town. He did not return for Mr. Machats funeral in April 1988. Cohen asked if

13
14

I would be willing to replace Marty Machat as his manager. I was somewhat


conflicted due to the fact that Steven Machat offered to keep me on for a spell.

15

Steven Machat and I became quite close during the period leading up to his

16

fathers death and I liked the idea of working for him very much. However, due

17

to the drama that was occurring with respect to Avril Giacobbi and others, I
concluded that I simply did not want to be caught up in the middle. After the

18

day of Marty Machats funeral, I never again spoke with Avril Giacobbi due to
19

her conduct leading up to his death. Leonard Cohen personally avoided her

20

- 32 DECLARATION OF KELLEY LYNCH

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like the plague throughout the years I represented him because she was
convinced that Machat & Machat had a 15% ownership interest in Stranger
Music, Inc. Steven Machat also advised me of this. Marty Machat personally

asked me to witness his last Will & Testament. I, therefore, assumed that I
4

would be called as a witness by one of these parties should they decide to

pursue the matter legally. That never occurred. While I was visiting him one

day, Marty Machat privately asked me to assist Steven Machat, told me he was

brilliant , and asked me provide him with whatever information or evidence he

8
9
10

requested.
30.

In any event, I decided to work for Leonard Cohen and made

arrangements, based upon his direct instructions, to have the remainder of his
files moved to my apartment on the Upper West Side. Mark Cristini, an

11
12

attorney who rented office space from Machat & Machat, was present and
specifically advised me that he called Steven Machat to inform him that Cohen

13

instructed me to remove the files and that this is what was occurred. I left the

14

office and some, but not all, of the materials Cohen advised me belonged to him

15

were delivered to the apartment. As Cohen never advised me to follow up with


Steven Machat, or made an issue out of the matter, I assumed that Steven

16

Machat had reviewed the files and removed what did not belong to Leonard
17

Cohen. I was aware at some point after Marty Machats death that Steven

18

Machat was questioning the whereabouts of certain bearer bonds, corporate

19

records, and other materials, that he believed were in his fathers office.

20

Evidently, Mark Cristini had advised Steven Machat that the bearer bonds were
- 33 DECLARATION OF KELLEY LYNCH

1
2

in his fathers office before his death. In 2011, I advised Steven Machat that
shortly before Cohen and I parted ways, I was sitting at his work table in his
apartment, and flipped open a file nonchalantly. I am convinced that inside that

file was a bearer bond made payable to R&M Productions. Steven Machat
4

confirmed that R&M Productions was Machat & Machats company, where they

placed their publishing, and the letters R and M stood for his parents

initials, Roz and Marty Machat. Exhibit J: Transcript of Steven Machat &

Kelley Lynch conversation.

8
9
10

31.

In the documents that were shipped to my apartment was a tax

memorandum from Ken Fratto to Bill Dubey regarding Tax Planning for
Leonard Cohen. This document is dated August 22, 1977 and was prepared on
Elmer Fox, Westheimer & Co (CPA) letterhead. This document is essentially a

11
12

blue print for committing tax evasion or tax fraud. The document takes the
position that Leonard Cohen, who owned houses in several countries, did not

13

have to pay taxes in the United States, Canada, or Greece. It instructs Cohen

14

not to have a U.S. green card and goes into some detail about funneling monies

15

into off-shore accounts, how to handle U.S. source income, and to remain a
Canadian citizen while residing outside of Canada. It is my personal belief that

16

Leonard Cohen filed non-resident income tax returns in the United States while
17

holding a U.S. green card that he obtained in 1970. The IRS would have to

18

confirm that for a fact. This memorandum is astounding and may very well

19

prove that Leonard Cohen has a 40 plus year history of tax fraud and/or evasion

20

in the United States and Canada. That would explain the lengths this man has
- 34 DECLARATION OF KELLEY LYNCH

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gone to destroy my life; coerce me into what I viewed as illegal deals; and
illegally seize my business records and property. It would not explain Leonard
Cohens conduct in court or with respect to the Internal Revenue Service.

Nothing would explain that satisfactorily. Exhibit K: Elmer Fox, Westheimer &
4

Co. Tax Planning Memo for Leonard Cohen dated August 22, 1977.

32.
6

On September 12, 1988, Internal Revenue Service wrote Cohen c/o

Lynch with respect to SSN: xxx-xx-8917. This SSN differs from Cohens

present SSN which ends in 5124. Cohen had provided his accountant, Burt

Goldstein, with a Power of Attorney to deal with this matter. In fact, it was

Cohen who brought his numerous social security number problem to both Burt

10

Goldstein and my attention after Marty Machats death. Apparently the


information the Internal Revenue Service had on file (re. Cohens SSN) did not

11
12

agree with the information the Social Security Administration had on file.
Leonard Cohen testified that he never changed his SSN. That is perjured

13

testimony and the fact that he had numerous social security numbers is

14

extremely suspect. Exhibit L: IRS Notice dated September 12, 1988.

15
16
17

[Confusion re. alternate SSN & IRS account]


32.

After Marty Machats death in April 1988, Leonard Cohen and his

personal family friend and lawyer, Herschel Weinberg, began unraveling offshore accounts; establishing new entities in Delaware; dealing with Sony on at

18

least one recording contract that was evidently inadvertently assigned to a


19

Nevada entity Cohen created; etc. Leonard Cohen advised me that he planned

20

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1
2

to abandon his green card and return to Canada. I was not privy to most
conversations or matters that he and Herschel Weinberg were privately dealing
with. Herschel Weinberg was a fanatic about attorney/client privileged

matters. Over the years, Cohen did speak to me about many of these matters
4

and I became familiar with some of them from our conversations or documents

I discovered. I was also asked to work with Cohens transaction attorneys, at

the Shukat firm, on some auxillary issues connected to the unraveling of the off-

shore accounts or matters being reviewed by Cohens immigration attorney in

Niagara Falls. Cohen understood that my brother-in-law was a very intelligent


attorney in Halifax, Nova Scotia. He expressed great concern about the

9
10

possibility that Canada would view him as a resident and ask him to pay taxes
for prior years. Evidently Cohen did not pay Canadian taxes. Cohen personally

11

asked me to speak with Van Penick, my brother-in-law, about Canadian

12

Residence issues. On October 26, 1988, I received a letter from Van who

13

explained that For Income Tax purpose, if you are resident in a country which
levies Income Tax, then generally your tax is calculated on your world-wide

14

income from all sources Van went into some of the factors that figure into the
15

Canadian residence equation which include: location of dwelling places;

16

location of spouse and dependents; location of personal property and social

17

ties; intention to be resident in a particular country shown, for example, by

18

renting out your home (not selling it) and retaining your resident club

19

memberships when you move to another country. Leonard Cohen and I phoned
my brother-in-law to discuss this at greater length. In the Case History

20

- 36 DECLARATION OF KELLEY LYNCH

1
2

attached to my Motion to Vacate, I addressed some of the issues that concerned


Cohen with respect to Canada and badges of residency. Cohen felt that he
might potentially be viewed as a resident and, after consulting with Herschel

Weinberg, decided to abandon his U.S. green card and apply for another.
4

Initially, and this became a relatively famous Immigration case (as Cohen

repeatedly pointed out because that bothered him), Cohen attempted to apply

for a new green card through the corporation L.C. Stranger Music, Inc. This

attempt failed. Cohen again applied and was ultimately granted a new green

card in 1993 based on his own recognizance. Leonard Cohen personally


advised me that the final deciding factor in his decision to reapply for a U.S.

9
10
11
12
13

green card is the fact that Canada Revenue asks where you paid your taxes the
prior year while IRS does not. Please also see Case History. Exhibit M: Van
Penicks letter to Kelley Lynch dated October 26, 1988.
34.

In 1989, Leonard Cohen and Herschel Weinberg continued

unraveling certain off-shore accounts, publishing contracts assigned to those


accounts, and continued to relate to issues that arose in connection with

14

Cohens U.S. residency status. On or about December 7, 1989, Leonard Cohen


15

wrote his friend, Dominique Issermann, a letter transmitting the sum of

16

$100,000. as a gift to her from his Amro Bank Account (No. 47-25-92-874) in

17

Amstelveen, The Netherlands. This letter was notarized at the time. It is

18

evidence that Leonard Cohen followed the advice contained in a 1977 tax

19

memorandum instructing him to maintain ties with Canada, remain outside of


Canada, declare U.S. source income, and funnel international publishing into an

20

- 37 DECLARATION OF KELLEY LYNCH

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2

off-shore account. That is precisely what this bank account is and the funds
deposited into that account, as will be addressed in this declaration below,
related to music publishing income. Unfortunately, Leonard Cohen was in

possession of a U.S. green card while funneling music publishing income to


4

this, and possibly other, off-shore accounts. Due to the fact that I was involved

in creating new publishing agreements, I am familiar with this situation.

Furthermore, Dominique Issermann sent her draft letter for Leonard Cohen to

me. This matter is also relevant because the non-revocable corporate

assignments, related to intellectual property assets, date back to 1967 and


were not valued prior to the entry of default judgment. Exhibit N: LC letter to

Dominque Issermann dated December 7, 1989 (off-shore account).

10

35.
11
12

The above referenced account may have linked to a company known

as New Era, B.V. in the Dutch Antilles. To the best of my recollection New Era,
B.V. administered the worldwide music compositions written by Leonard Cohen.

13

After Marty Machats death, Cohen and Herschel Weinberg, unraveled the off-

14

shore accounts and Cohens new entertainment transaction attorney and,

15

pursuant to Leonard Cohens instructions, created new agreements with new


publishers or replaced the New Era B.V. agreements with Stranger Music, Inc.

16

agreements. Jonas Herbsman, one of Cohens transaction attorneys, wrote a


17

letter to Herschel Weinberg, Esquire, on January 8, 1990. He confirmed that a

18

letter had been prepared acknowledging the assignment to Stranger Music,

19

Inc. of musical compositions that were previously administered by New Era,

20

B.V. and forwarded a copy of same to the various subpublishers having


- 38 DECLARATION OF KELLEY LYNCH

1
2

agreements with New Era, B.V. At the time this letter was written, Warner
Bros. Music Italy S.R.L. had returned a fully-executed copy of their agreement
with Stranger Music, Inc. Other letters and agreements were sent to

publishers listed on the attached letter. These songs were owned, at the time,
4
5
6

by Stranger Music, Inc. Exhibit O: Jonas Herbsman letter to Herschel


Weinberg dated January 8, 1990.
36.

On February 19, 1991, Leonard Cohen entered into an agreement

with the Society of Computers and Music Publishers of Canada (SOCAN). This

agreement was automatically extended throughout the entire time I worked for

Leonard Cohen. The agreement is terminated by written confirmation. This

10

agreement was assigned to Blue Mist Touring Company, Inc. in 1998. SOCAN,
based on internal rules and regulations, refused to pay royalties to Blue Mist

11
12

Touring Company, Inc. as it was not a company wholly owned by Leonard


Cohen, the writer. Therefore, due to the fact that Cohen was examining a bond

13

securitization deal with CAK, it was agreed that LC Investments, LLC would

14

collect the royalties paid by SOCAN while Blue Mist Touring Company, Inc.

15

actually owned the assets. These royalties should have been transferred to
Blue Mist Touring Company, Inc. and included on the federal tax returns. At

16

various times, Westin mentioned this could be problematic but felt the IRS
17
18

would never stumble upon the SOCAN agreement. Exhibit P: SOCAN


Agreement (with Leonard Cohen).

19
20

- 39 DECLARATION OF KELLEY LYNCH

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2

37.

Clause 39 of Leonard Cohens Complaint asserts that Blue Mist

Company, Inc. was formed in Delaware in March 1993. Blue Mist Touring
Company, Inc., a Delaware entity, was not formed in 1993. The entity, formerly

known as Leonard Cohen Productions, Inc., a Delaware entity, was formed in


4

1989. LC Productions, Inc., was formed, by Leonard Cohen, after Marty

Machats death in 1989. Cohen worked with his family friend and lawyer,

Herschel Weinberg, after Marty Machats death to unravel and sort through

many corporate, financial, and other issues. I do recall Leonard Cohen advising

Sony, sometime following Mr. Machats death, that Marty Machat inadvertently
assigned his record contract to a Nevada entity. I am unclear if that entity was

9
10
11
12

Leonard Cohen Productions, Ltd., a Nevada entity, that was formed sometime
around 1970.
38.

In 1993, this entity was registered to do business in California. The

Certificate of Amendment of Certificate of Incorporation of Leonard Cohen

13

Productions, Inc., signed by Leonard Cohen on March 11, 1993, resolved to

14

amend the name of the corporation to Blue Mist Touring Company, Inc. Blue

15

Mist Touring Company, Inc. continues to list its business address as my former
P.O. Box; me as the registered agent; and my former office address as the agent

16

address. Its status is SOS/FTB forfeited. Exhibit Q: Leonard Cohen


17

Productions, Inc. Certificate of Amendment of Certificate of Formation

18

(changed name to BMT) dated March 11, 1993; Articles of Incorporation of

19

Leonard Cohen Productions, Ltd., Nevada; Statement and Designation by

20

foreign corporation.
- 40 DECLARATION OF KELLEY LYNCH

1
2

39.

My fax to Richard Feldstein, Cohens business manager, dated

December 7, 1993, fax is highly material and contains a quote from an opinion
Cohen received with respect to his potential Canadian residency problems.

These concerns of his continued after he abandoned his 1970 green card and
4

obtained a new one in 1993: If Leonard leaves Canada for more than two

years and gives up substantially all ties with Canada, such as closing bank

accounts, ceasing to donate to Canadian charities, emigrating with his family,

and winding up the majority of his active business enterprises in Canada, while

acquiring residency elsewhere, he would only then be considered to have given


up his Canadian residence. Leonard Cohens question to his business

9
10

manager is contained in my final paragraph to Richard Feldstein: I probably


should have been more specific in my fax to you: if Leonard were to give a

11

donation to a Canadian charity would this in fact jeopardize his position that he

12

is not a Canadian resident. Please advise. Leonard Cohen was extremely

13

concerned about his potential tax/residence issues in Canada. I have discussed


this situation with Canada Revenue. This document is also relevant because

14

Robert Korys declaration takes the position that Cohen is in good standing
15

with tax authorities throughout the world and there is evidence that this may

16

be a defense rather than a fact. It also relates to bias and motive. Exhibit R:

17

Kelley Lynch fax to Richard Feldstein dated December 7, 1993.

18
19
20

40.

After Leonard Cohen personally met with, and hired, Neal

Greenberg, an attorney by the name of Ed Dean was brought onboard to assist


with the creation of two charitable remainder trusts Cohen decided to create. I
- 41 DECLARATION OF KELLEY LYNCH

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2

am aware of only two trusts. The expense ledger appears to list a third trust
that may very well be the revocable trust created for probate. I do not recall
any Cohen account with Greenberg, including these two charitable remainder

trusts, being assigned to the revocable trust. Ed Dean, who had previously
4

raised concerns about assigning personal service contracts to these entities,

wrote on November 15, 1996: I am confident that the IRS could not

successfully argue that the charitable trusts are receiving compensation

income or unrelated business taxable income that would disqualify them for

tax-exempt status. This letter also addresses the concerns that had been
raised with respect to issues involving self dealing. I personally believe IRS

9
10
11
12

could successfully argue these matters. Exhibit S: Ed Dean letter to LC and KL


dated November 15, 1996.
41.

Neal Greenbergs February 10, 1998 fax to Cohens transaction

attorney, Jonas Herbsman, is evidence that Greenberg was extremely

13

instrumental in the corporate, tax, and financial issues that arose with respect

14

to the intellectual property deals being pursued. This fax addresses the fact

15

that Greenberg had spoken to Richard Westin the night before regarding
Sonys concerns about tax matters. This was a relentless and continuous

16

issue. Leonard Cohen is the individual who demanded complex corporate


17

structures and the tax issues that arose are due to his attempts to evade paying

18

ordinary income taxes, a topic he routinely obsessed over. These issues also

19

made these deals unattractive to most buyers other than Sony Music who

20

owned certain rights that made them more valuable to Sony. Exhibit T: Neal
- 42 DECLARATION OF KELLEY LYNCH

1
2
3
4

Greenbergs fax to Cohens transaction attorney, Jonas Herbsman February 10,


1998.
42.

Leonard Cohen, his lawyers and representatives, handled all

corporate matters. During Lynchs 2012 trial, Cohen confirmed that the
corporate accounting and corporate books were handled under the direction of

his lawyer. Attached hereto are the annual minutes of Blue Mist Touring
6

Company, Inc. from 1993 through 1998. They are signed by Leonard Cohen

who, at that time, was sole shareholder and Kelley Lynch as assistant secretary.

Cohens lawyer, Herschel Weinberg, personally asked if I would agree to serve

as assistant secretary and I simply agreed to do so. I had no ulterior motives

10

and was not planning a coup with respect to Leonard Cohen that related to
corporate assets and intellectual property. He obviously needed to argue that

11
12

someone controlled him but has actually argued that he views himself as the
alter ego of these entities and has engaged in self-dealing. It would be humanly

13

impossible to control Leonard Cohen. Attached hereto is Richard Westins June

14

1, 1998 letter to me. In the letter, Westin asked if I could locate the book

15

publishing contracts related to Cohens 11 books that were published as of that


date. He also requested a copy of the SOCAN performing rights society

16

agreement that relates to the writers share of intellectual property. At this


17

time, Cohen and his representatives were entertaining a number of potential

18

deals. Various potential buyers were interested in purchasing Cohens literary

19

work as they felt it would be a valuable asset. Cohen agreed to offer his

20

literary work, as contained in his first 11 books, for sale. Richard Westin
- 43 DECLARATION OF KELLEY LYNCH

1
2

therefore prepared Minutes of a Special Meeting of the Board of Directors of


Blue Mist Corporation and the assignments were presented for consideration.
Leonard Cohen agreed to transfer, as the creator, the following books to the

corporation: Let Us Compare Mythologies; Spice Box of Earth; Favorite Game;


4

Flowers for Hitler; Parasites of Heaven; Beautiful Losers; Selected Poems

(1968); Energy of Slaves; Death of a Ladys Man; Book of Mercy; and Stranger

Music. The Board reviewed the copyright certificates and it was agreed that

counsel for the corporation [Richard Westin] would prepare and submit notices

of assignment of copyright with respect to all the above books. Also addressed
in these Minutes and assigned at this time were Leonard Cohens rights to 1)

9
10

the writers share of music publishing (excluding the publishing share sold to
Sony/ATV in 1996) which included writers share of performance income and

11

artist record royalties from Sony Music International for the sale of records

12

worldwide. It was agreed that these rights were embodied in the attached

13

documents beneath the cover page captioned WRITERS/ARTISTS SHARES


and attached to these Minutes. The President of the company, Leonard Cohen,

14

authorized the acceptance of these works on behalf of Blue Mist Touring


15

Company, Inc. This document is signed. Leonard Cohen and his daughter,

16

Lorca Cohen, went into my office and removed every single business file they

17

felt entitled to. That would include my personal business and corporate

18

records. The original of this document would have been in those files. As of

19

this date, these assets were formally assigned to BMT and the minutes reflect
that fact. Exhibit U: Richard Westin letter to Kelley Lynch dated June 1, 1998;

20

- 44 DECLARATION OF KELLEY LYNCH

1
2
3
4

Minutes of a Special Meeting of the Board of Directors of Blue Mist


Corporation; Trial Transcript (page 279-293).
PD: Okay. Who handled your corporate books at the time, as of 2004? 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 my lawyer. [RT 279-283]

5
6
7
8

43.

According to the Cohens Opposition to CAKs Motion for an Order

of Attachment dated August 30, 2000, in early 1999, Cohen, through certain of
his representatives, engaged in preliminary discussions with CAK concerning a
possible loan transaction. Specifically, the parties discussed the possibility that

plaintiffs (CAK) would make a loan to an entity established by Cohen for that

10

purpose in an amount to be determined that would be secured by a security

11

interest in the Rights and the royalty income generated therefrom. Following

12

further discussions between the parties, on or about May 10, 1999, CAK and

13

Cohen signed a document entitled Proposed Royalty Income Loan for Leonard
Cohen Summary of Terms & Conditions (the Term Sheet). This litigation

14

relates to the document Cohen signed and the payment of a $290,000


15

Origination Fee. This document confirms that Leonard Cohen terminated

16

CAKs engagement and Cohens representatives discussed with Sony Music

17

their acquisition of the Rights. In November of 1999, Cohens representatives

18

conformed CAK that Cohen was seriously considering selling the Rights to
Sony, if acceptable financial and related terms could be reached. In response,

19

CAK wrote Cohens personal manager and advised her that in light of the
20

- 45 DECLARATION OF KELLEY LYNCH

1
2

recent events regarding Sony and their potential offer to purchase Leonard
Cohens assets, we offer an alternative to the proposed Loan structure. This
document confirms that Cohen decided not to proceed with the CAK loan. It

also confirms that CAK would direct their communications to Cohens lawyers,
4

copying me, but on this one occasion they sent a letter (without copying

Cohens lawyers) to my office. The document that was sent at this time was a

commitment letter, that triggered an obligation, requesting that Cohen

confirm his agreement by signing the letter and returning a fully executed copy

to CAK by 5 PM on November 19, 1999. One of the key arguments in this


particular matter has to do with CAKs failing to communicate with Cohens

9
10

lawyer, simply sending a commitment letter to my office, and the fact that I
placed this on Cohens desk (as was my custom and routine) for him to review.

11

I assumed that, as with every single other document in that matter, CAK had

12

sent a copy to Cohens lawyers. Exhibit V: Cohens Opposition to CAKs Motion

13
14
15

for an Order of Attachment dated August 30, 2000.


44.

Leonard Cohens declaration in the CAK bond deal confirms that he

was well aware of this deal, the 2001 Sony deal, and he made the ultimate
decisions and was the driving force behind them. He is aware that I was his

16

personal manager, as is his lawyer, and understands that he receives


17

substantial royalties. Leonard Cohen also confirmed that I receive what I view

18

to be substantial royalties, on a regular basis, from sales of my albums and uses

19

of my compositions. This completely undermines and contradicts allegations

20

in the Complaint that Leonard Cohen felt an intellectual property sale was
- 46 DECLARATION OF KELLEY LYNCH

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2

financially urgent. Exhibit W: Leonard Cohens Declaration dated August 30,


2000[CAK litigation, Case No. 00 Civ. 1068 (DAB), United States District Court,
Southern District of New York].

3
4

45.

In March of 1999, Leonard Cohen instructed Richard Westin to

cancel Cohens sole ownership in Blue Mist Touring Company, Inc. (500 shares)
5

and issue Lynch 75 shares of Blue Mist, representing a 15% equity interest, and
6

himself (Cohen) 425 shares, representing an 85% equity interest. The

corporate minutes, according to Cohens Complaint, were issued to Lynch as

compensation for her services to the Corporation, with great gratitude for her

efforts. Leonard Cohen personally dictated that language. Exhibit W-1: Blue

10
11
12

Mist Touring Company, Inc. Stock Ledger (Westins handwriting).


46.

Ken Clevelands fax to Kelley Lynch dated June 24, 1999. This fax

relates to an IRS audit of Cohens decision to give Mt. Baldy a gift of LC


Stranger Music, Inc. stock in anticipation of the closing of the 1996 deal with

13
14

Sony/ATV. Cohen hired Ken Cleveland to handle this audit and then decided to
keep him on as his accountant due to the successful outcome of the audit. This

15

fax is relevant because the P.S. states: Kelley, the IRS has the SSN as 5724. I

16

will call them on it but I dont think it will get you out of the audit. Leonard

17

Cohens last for SSN numbers are 5124 and the Court should review the above
mentioned IRS Notice related to an entirely different SSN. This is confirmed in

18

the attachment to this letter. Confusion with respect to IRS matters, Cohens
19

social security number, corporate ID numbers were a continual issue and high

20

- 47 DECLARATION OF KELLEY LYNCH

1
2

suspect. Leonard Cohen personally signed the Power of Attorney to IRS


proving that he hired Cleveland and he notified IRS that Cleveland was his
representative. Leonard Cohens letter to Mt. Baldy dated November 1, 1996

shows that he is very familiar with the first Sony deal and his personal decision
4

to make a gift to the Center in form of capital stock of Leonard Cohen

Stranger Music, Inc., a New York corporation. Exhibit X: Ken Cleveland fax to

Kelley Lynch dated June 24, 1999; Leonard Cohen POA to IRS; Leonard Cohen

letter to Mt. Baldy Zen Center dated November 1, 1996.

8
9
10

47.

Ken Clevelands fax of July 22, 1999 answered certain questions I

had asked. He confirmed that he did have Leonard Cohens personal Power of
Attorney on file; was handling Adam Cohens tax matters with IRS and had set
up a payment plan; would file extensions for the truth and individuals until

11
12

October 15, 1999 and would like the information by September 15th; confirms
that corporate returns are due by September 15th and he would appreciate that

13

information by August 15th; and, addresses the IRS audit of Cohens decision to

14

restructure LC Stranger Music, Inc. (in anticipation of the closing the 1996

15

Sony deal) and give Mt. Baldy Zen Center a gift of stock totaling approximately
$500,000. Ken Cleveland advised me that he spoke with Steve Insfeld (who

16

was part of Cohens previous accounting firm), about stock appraisals (one did
17

not appear to exist) and an item on the worksheet Insfeld sent me. Ken

18

Cleveland noticed that Sony valued the stock at a certain amount (which was

19

NOT the payment amount to Cohen) and deducted $142,723.23 for outstanding

20

liabilities and paid the various stockholders a lesser amount. Ken Cleveland
- 48 DECLARATION OF KELLEY LYNCH

1
2

asked Cohens former accountant if the $142,000 was an advance that Cohen
counted as income in prior years and paid tax on or , if he didnt pay tax on it, is
there a note and did Cohen pay interest on the funds to prove to IRS that it

was in fact a loan and was not income. The handling of income as loans was
4
5
6
7
8
9

an ongoing issue and one that I suspect would interest Internal Revenue
Service. Exhibit Y: Ken Cleveland fax to Kelley Lynch dated July 22, 1999.
48.

Leonard Cohens Complaint in this matter alleges that while Lynch

and Westin were still


working on their joint project SOCAN refused to agree to pay Cohens
performance royalties to a company not wholly owned by a member artist.

10

Accordingly, in furtherance of the plan to control all of Cohens royalties, either

11

Lynch or Westin suggested the formation of a new entity, Leonard Cohen

12

Investments, LLC. LCI LLC was formed as a sole member (with Cohen owning
100% interest) Delaware limited liability company on October 19, 1999. Once

13
14

LCI LLC was formed SOCAN was instructed to pay Cohens performance
royalties directly to LCI LLC. I didnt have a joint project with Richard

15

Westin who represented Leonard Cohen. It makes absolutely no sense

16

whatsoever that I would create a company wholly owned by Leonard Cohen in

17

order to control all of Cohens royalties particularly as I have a 15%


ownership interest in Blue Mist Touring Company, Inc. and the intellectual

18

property assets it owns. Leonard Cohens estate planning attorney, Reeve


19

Chudd, caused the formation of LC Investments, LLC. His explanation

20

- 49 DECLARATION OF KELLEY LYNCH

1
2

regarding the creation of this entity, as set forth in his September 8, 1999
letter, is as follows: Dear Kelley, This memorandum summarizes my
discussions with Peter [Lopez], my partner Ken Luer and Paul Baumgarten

regarding LCs contemplated transaction. Peter Lopez worked as Cohens


4

transaction attorney and Paul Baumgarten was part of CAKs negotiating team.

This entity was formed to accommodate a potential bond securitization deal

that Cohen addresses in his declaration attached hereto. With the approval of

Paul Baumgarten, the transaction documents will be drafted so that (1) LC

transfers the specified music rights to the LLC and (2) the lender permits LC to
then transfer his interest in the LLC to the Trust without any further consent

9
10

from the lender. This trust is a revocable trust specifically for probate
purposes. The single member LLC will be disregarded for income tax

11

purposes Thus, the royalty income from the music rights will be received by

12

the LLC as ordinary income, and LC will report such income, for income tax

13

purposes in the same manner, as if he received it directly Because LC is


treated (for income tax purposes) as the owner of these income rights, they will

14

not be considered assets under Section 1221(e) of the Internal Revenue Code.
15

Accordingly, the LLC structure of this transaction will not change the rights (or

16

the LLC interest into a capital asset, capable of a sale generating capital gain

17

or loss. The purpose of the use of the LLC, as Peter has alluded to in the past

18

are (1) from LCs point of view, to create a bankruptcy-protected entity which

19

will protect LCs personal assets from the creditors of the LLC (e..g. the lender
in this transaction); and (2) from the lenders point of view, to create a

20

- 50 DECLARATION OF KELLEY LYNCH

1
2

bankruptcy remote entity, the assets of which (i.e., the music rights
transferred by LC) will not be reachable by LCs creditors if he were to file
personal bankruptcy. This letter also confirms that Leonard Cohen is the sole

owner of LC Investments, LLC. This entity was created specifically to


4

accommodate the CAK bond deal that Leonard Cohen, according to his own

declaration, decided not to pursue. Nothing was assigned to this entity and the

assets are owned by Blue Mist Touring Company, Inc. The reason nothing was

assigned to LCI is due to the fact that it had no purpose whatsoever other than

the proposed CAK bond securitization deal. Exhibit Z: Reeve Chudd letter to
Kelley Lynch dated September 8, 1999.

9
10

49.

LC Investments, LLC was formed by Leonard Cohens estate

planning attorney who worked with, among others, Cohens transaction


11
12

attorney (Peter Lopez), Richard Westin, and others. The specific reason for the
formation of this entity was to accommodate the proposed CAK bond deal

13

securitization. At this moment in time, the CAK deal was on the verge of

14

closing. In November 1999, Sony would step in with a very solid offer and

15

Cohen personally decided to pursue that deal rather than close the CAK deal.
Nothing was assigned to LC Investments, LLC and the reason for that is

16

because he had no purpose, other than to accommodate CAKs demands, and


17
18

the bond securitization deal fell apart due solely to the decisions of Leonard
Cohen who was keenly involved in all of these deals.

19
20

- 51 DECLARATION OF KELLEY LYNCH

1
2

50.

CAK demanded a bankruptcy proof entity. While the details, as to

who Cohen would ultimately pursue intellectual property deals or a bond


securitization with, were being sorted out, an issue arose with SOCAN. Their

policies prohibit them from paying royalties related to the writers share of
4

income to any entity not owned 100% by the writer. Leonard Cohen and I

agreed that LC Investments, LLC could therefore collect the royalties with

respect to the assets owned by Blue Mist Touring Company, Inc. in order to

accommodate this situation. Cohen ultimately chose not to pursue the CAK

bond deal and therefore nothing was formally assigned to LC Investments, LLC
or transferred from Blue Mist Touring Company, Inc. Leonard Cohens

9
10

fabricated narrative in no way resembles what actually occurred and he and his
representatives appear to be making it up as they are going along. I tend to

11

doubt I would create an entity wholly owned by Leonard Cohen in order to

12

control anything. Exhibit AA: LC Investments, LLC Certificate of Formation

13
14
15

dated October 19, 1999; Operating Agreement dated August 21, 2000.
51.

At the beginning of November 1999, as the CAK deal was on the

verge of closing, I received a call from Stuart Bondell of Sony. Sony did not
want Cohen involved with the bond securitization deal. It set precedence for

16

other artists; caused Sony to pay someone other than the artist; and interfered
17

with Sonys ability to pay advances to their artists which, as Stuart Bondell

18

wisely noted, are the currency of the music industry. After this call, I phoned

19

Leonard Cohen who advised me that he would agree to pursue the intellectual

20

property deal with Sony, and forego the bond securitization deal, if they paid
- 52 DECLARATION OF KELLEY LYNCH

1
2

him a substantial, non-refundable deposit or prepayment in the amount of $1


million. Cohen wanted Sony to show their good faith and intention to swiftly
move through this deal and close it. Sony agreed and on November 5, 1999

transferred $1 million into Leonard Cohens personal bank account. The


4

amount was deemed a partial prepayment against the proposed $8 million

buyout of certain intellectual property and contractual rights. Cohen, his

representatives, and I began what would become a very long and complex

series of negotiations. CAK continued to offer different terms that Cohen

ultimately chose not to entertain. We were also involved with negotiations


related to Cohens recording contract, royalty rate, and were considering other

possible intellectual property deals as well.

10

52.
11
12

Leonard Cohens email of May 19, 2000 confirms that he was the

controlling and directing force behind the intellectual property deals: Dear
Kelley, I received Dons email which you kindly forwarded to me. I must

13

confess I am losing patience, and frankly losing interest in this deal. The

14

dragging of feet is deafening. I dont know if its you, or the lawyers, or Sony,

15

but something is very wrong. I had a good bond deal on the table with CAK,
until Sony spoke up, and now I am in litigation with CAK, and Sony is busy

16

revising the figures downwards. Cohen goes onto state that he believes Sony
17

destroys my deal with CAK (so as not to establish any precedent of their artists

18

leaving the fold), dumps me into litigation, then they postpone the closing of

19

their deal for seven months until they can discover that my catalogue sales are

20

lagging and then they will lower the price. This is too obvious and too familiar.
- 53 DECLARATION OF KELLEY LYNCH

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2

Cohen was intimately involved in what he views as his deals. He understands


that the royalty income being generated is dwindling. The reason he knows
this is because he was completely aware of all income related to intellectual

property assets, performance income, book publishing, and so forth and so on.
4

These deals were an extraordinary amount of work; required ongoing

negotiations; and were unnecessarily complicated by Cohens demands related

to the sale of stock versus a rather straightforward asset sale. No one on earth,

who simply wanted to pick up some quick income, would create complicated

structures that very few potential buyers were interested in unless that
individual was interested in avoiding personal income taxes. This letter also

9
10

confirms that CAK sued Leonard Cohen personally and the payment of
settlement amounts with respect to that litigation have nothing whatsoever to

11

do with Traditional Holdings, LLC except Leonard Cohens belief that these

12

entities are his personal piggy banks and he is their alter ego. It is important

13

for the Court to understand that the purpose of Cohens letter, which he wrote
while requesting my thoughts, had as its sole intention the goal of urging Sony

14

to move more swiftly with respect to the deal and give them a clear warning
15

that he will withhold the studio album he planned to deliver. Cohen may have

16

decided to change his tactic of threatening Sony executives, like Don Ienner,

17

since the time Bob Bowlin and Mel Ilbermann called me into their office to

18

advise me that Don Ienner does not appreciate receiving threatening faxes

19

from Leonard Cohen. I assured them that I received them all the time and the
ones Don was on the receiving end of were mild in comparison. Exhibit BB:

20

- 54 DECLARATION OF KELLEY LYNCH

1
2
3
4

Leonard Cohens email (baldymonk@aol.com) dated May 19, 2000 to Kelley


Lynch (tsimar).
53.

Richard Westins May 23, 2000 memorandum addressed the

concerns he and Ken Cleveland had with respect to the use of Blue Mist
Touring Company, Inc. in connection with a stock sale to Sony Music and

collapsible corporation issues. Westin begins this memorandum by positing


6

the theory that Internal Revenue Code Section 341 contains a weapon

designed to prevent the manipulation of collapsible corporations. The

Congressional fear behind the provision is that aggressive taxpayers would

convert ordinary income into capital gains by hiding the ordinary income in a

10

corporation. For example, a taxpayer might buy whiskey in barrels, contribute


the barrels to a corporation and wait a year and a day and sell the stock of the

11
12

corporation at a favorable long-term capital gain. The Congressional remedy is


to render gains on sales of such stock as ordinary gains as opposed to capital

13

gains. The result is highly adverse. While I have no tax expertise, a simple

14

plain reading of the words collapsible corporation together with the concept

15

that one is essentially attempting to convert ordinary income into capital gains
tax treatment, I feel it is safe to assume that this involves some form of

16

potentially illegal shenigans that involves tax evasion. I must say that I had
17

grave concern about this issue; the one year and a day holding periods; and,

18

with respect to the ongoing and relentless attempts to transform ordinary

19

income into capital gains. Nevertheless, this is not my area of expertise and

20

that is precisely why Leonard Cohen had a professional team of lawyers,


- 55 DECLARATION OF KELLEY LYNCH

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2

accountants, business managers, financial advisers, and others, counseling him


on these and other matters. Richard Westin goes onto confirm that Arguably,
Blue Mist falls into the collapsible corporation category and concludes that in

order to finesse the issue, he [Ken Cleveland] and I agree that we should have
4

Blue Mist make a so-called Section 341(f) election. Evidently, according to

this memorandum, that would permit the sale of stock in this manner while

addressing the collapsible corporation concerns. Exhibit CC: Richard

Westin Memorandum dated May 23, 2000.

8
9
10

54.

Westin instructed Cohen and myself as to what needs to be done at

this time: The corporation needs to have a board meeting at once in which it
consents to Section 341(f) treatment. There is also a letter to file with the IRS.
The contract with Sony should assure that the election is not somehow

11
12

repudiated or undermined. The consent is given by means of a statement,


signed by a duly authorized officer, that the corporation consents to have the

13

gain recognition provisions of Section 341(f) apply to dispositions of its Section

14

341(f) assets. The statement is filed with the district director having

15

jurisdiction over the corporations income tax return for the year for which the
statement is filed. The consent is effective for six months (beginning of the

16

date filed). There is no limitation on the number of consents which may be


17

filed. Leonard will be that officer, namely President. I will provide a letter for

18

that. On or around September 21, 2000, Richard Westin faxed through the

19

letter Blue Mist Touring Company, Inc. sent to Internal Revenue Service

20

advising them that the corporate taxpayer consents, pursuant to the lawful
- 56 DECLARATION OF KELLEY LYNCH

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2

Board action, to have Section 341(f)(2) of the Internal Revenue Code apply to
any disposition by it of subjection f assets as provided in that section.
Leonard Cohen, as President, personally signed this document. This document,

signed by Cohen, does tend to prove (particularly given the fact that is a simple
4

one page letter, that Leonard Cohen understood Blue Mist Touring Company,

Inc. was the entity that owned the intellectual property assets, some of which

were being sold to Sony, and his representatives felt this IRS election was

important at the time due to the fact that the intent of all parties involved was

to pursue the second Sony intellectual property deal through a Blue Mist
Touring Company, Inc. stock sale. To summarize, Section 341(f) election,

9
10

according to this memorandum, permits the sale of stock in this manner while
addressing the collapsible corporation concerns. Therefore, Leonard Cohen

11

understood that the intellectual property was in Blue Mist Touring Company,

12

Inc. and the parties intent was to pursue a stock sale which he personally

13
14
15

demanded. Exhibit DD: BMT letter to IRS re. 341(f) election.


55.

The regulations, according to Westin, also evidently require the

corporation to attach a copy of the corporations consent to its income tax


return for the year of the sale. I attach hereto a copy of Blue Mist Touring

16

Company, Incs 2000 federal tax return. The 341(f) election, signed personally
17

by Leonard Cohen, is not attached. I also attach hereto a copy of Blue Mist

18

Touring Company, Incs 1999 federal tax return. The $1 million pre-payment

19

from Sony on this deal was not reported as income to this entity in the year it

20

was received (1999). Nor is there any evidence on the 2000 tax return proving
- 57 DECLARATION OF KELLEY LYNCH

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2

that this prepayment was handled as a loan or advance between Leonard


Cohen and Blue Mist Touring Company, Inc. All parties were clear that the
intellectual property assets were owned by Blue Mist Touring Company, Inc.

and yet Leonard Cohen personally took possession of that income which later
4

became the subject of an IRS audit. That audit clearly should be revisited. The

original audit was handled by Hochman, Rettig who Cohen personally hired.

When I attempted to provide them with the Traditional Holdings, LLC

corporate documents and annuity agreement, noting that I wondered if

something might be wrong, Steve Blanq personally advised me that Richard


Westin spoke to him and reminded him about his attorney/client privilege with

9
10

Leonard Cohen. I found that rather mind-boggling given the fact that I had a
99.5% ownership interest in Traditional Holdings, LLC and the IRS was

11

auditing a prepayment against the 2001 intellectual property deal. Richard

12

Westins May 23, 2000 memorandum to KL and Leonard Cohen. Exhibits EE:

13
14
15

BMT 1999 and 2000 federal tax return.


56.

On September 15, 2000, Leonard Cohen, as Assignor and on behalf

of LC Investments, LLC, attempted to assign Property to LC Investments, LLC


as trustee for the Leonard Cohen Family Trust. The trust is a revocable trust

16

for the sole purpose of avoiding probate. The Property Cohen attempted but
17

failed to transfer into this entity is described in Exhibit A attached hereto:

18

Exclusive Songwriter Agreement between Sony/ATV an Leonard Cohen dated

19

November 18, 1996 and SOCAN agreement. The SOCAN agreement is dated

20

February 19, 1991 and included an attachment consisting of a certain


- 58 DECLARATION OF KELLEY LYNCH

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agreement dated April 14, 1967 between BMI Canada and Leonard Cohen.
These properties are owned by Blue Mist Touring Company, Inc. and were not
Leonard Cohens to assign to LC Investments, LLC. Exhibit FF: Cohen signed

Assignment (signature page only) dated September 15, 2000.


4

57.

Richard Westins September 16, 2000 letter addresses matters

related to various corporate


6

entities: 1) Blue Mist binder: I placed the original stock 500 share certificate
7

for Leonard Cohen Productions after the particular set of Minutes and wrote
8

VOID/CANCELED over the certificate of Leonard Cohen Production stock.

This shows that Leonard Cohen directed his lawyer to cancel his stock interest

10

in Leonard Cohen Productions, Inc. 2) Leonard Cohen Productions Binder: I

11

placed the original certificate of incorporation at the front of the binder where

12

it belongs I put a copy of the documents relating to the name change at the
front of the binder Now it makes sense that there are two binders [Blue Mist

13
14

Touring, Inc. and Leonard Cohen Productions, Inc.] Except for the trivial fact
that tax returns (showing no income) should have been filed, I think the volume

15

is in adequate order to pass must in a due diligence inquiry. The lack of tax

16

returns is unlikely to upset anyone. LC Investments, LLC Binder: I want to

17

hang onto this folder. There are some problems that need to be straightened
out. This letter should prove that Blue Mist Touring Company, Inc. was

18

previously LC Productions. It clearly states that no tax returns previously filed


19

with respect to this entity. I am unclear how the Delaware LC Productions

20

- 59 DECLARATION OF KELLEY LYNCH

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2
3
4

entity relates to the Nevada LC Productions entity. Exhibit GG: Richard


Westins September 16, 2000 letter to Kelley Lynch.
58.

In October, 2005, Los Angeles Sheriffs Department, related Case

No. BC341120, unlawfully seized corporate, partnership, and tax information


from me unlawfully. I have an ownership interest in Blue Mist Touring

Company, Inc., Traditional Holdings, LLC, Old Ideas, LLC, and possibly with
6

respect to other entities. Cohen has simply fabricated a narrative and, by

failing to serve me the summons & complaint, wrongfully converted my

property to his. However, based on his testimony that he is not obligated to

provide me with any tax information, it is overwhelmingly obvious that his

10

motive relates to undesirable IRS inquiries. LASDs Inventory, which is


incomplete and does not accurately address the seized items, indicates an

11
12

unlawful seizure of property belonging to me, Machat & Machat, and Phil
Spector. That would include, but is not limited to, the horn slave [master tape]

13

of Elton Johns Im Your Man and the master to Elton Johns Im Your Man

14

recording These tracks are related to a tribute album I worked as executive

15

producer on that contained cover versions of Leonard Cohen songs. The seized
property also included a mix tape of an Adam Cohen recording and Steve

16

Lindseys Adam Cohen Reel. I worked as Adam Cohens personal manager


17

and these items did not belong to Leonard Cohen. Other items seized were

18

Adam Cohens Tell Me Everything (2 reels); Box of records Leonard Cohen

19

promotion use (Stranger Managements property); Box Misc. Videos (Stranger

20

Managements property); Box Misc. Books Leonard Cohen (Stranger


- 60 DECLARATION OF KELLEY LYNCH

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2

Managements property); Box Misc. Stranger Music Documents Leonard


Cohen (Machat & Machat property); Box No Top 2 Books Tower of
Songs, The Songs of Leonard Cohen (Stranger Managements Property); Box

Misc. Books/Damaged (Stranger Managements Property); Box Misc Books


4

Leonard Cohen (Stranger Managements Property); Box Misc.

Documents/Blue Mist (Kelley Lynch Property); Box Blue Mist Touring, Inc.

Misc. Legal Papers(Stranger Managements Property); Box Labeled Stranger

Management (Stranger Management Property); Box Gold Star Recording

Reel Tape Heart On Phil Spector (Phil Spector Property); Box Documents
Traditional Holdings, LLC (Kelley Lynchs Property); Box Misc. Tax

9
10
11
12
13
14

Returns; Box Misc. Leonard Cohen Productions, Ltd. (Belongs to BMT;


Nevada Entity).
59.

Exhibit HH: LASD Inventory dated October 18 & 24, 2005.

Leonard Cohen did not need to file a lawsuit to prepare a full

accounting with respect to


these corporate entities or amounts paid to him, myself, or anyone else. Cohen
and his daughter, Lorca Cohen, personally removed all business and corporate

15

records from my offices. That would include my business files which Cohen

16

refuses to return. Leonard Cohen was in possession of all bank statements

17

(personal and corporate), financial records, accounting records, corporate


records (including, as of October 2004, all corporate books that were provided

18

Greenberg, Glusker), royalty statements, agreements, and so forth and so on.


19

It is my personal position that Leonard Cohen had an ulterior motive for

20

- 61 DECLARATION OF KELLEY LYNCH

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2

subpoenaing my personal bank records given the fact that they were not
required to prepare an actual accounting. The expense ledger, used to the
support the default judgment, is evidence of financial fraud and fraudulent

evidence. The ledger in no way represents an actual accounting that would


4

take into consideration corporate ownership interests, assets, liabilities, and/or

equities. It is a list of numbers, and a random handful of documents, that is

meaningless. The ledger was not audited and Neal Greenbergs financial data,

in particular, is wholly untrustworthy. Leonard Cohen is the individual who has

stolen from me and withheld commissions due me with respect to services


rendered as his personal manager. An example of the type of my property is

9
10

attached hereto. This is a copy of the May 21, 1994 letter Tom Robbins
personally wrote me after I asked him to write an introduction to the Tower of

11

Songs tribute album. I have advised Leonard Cohens lawyer, Jeffrey Korn,

12

that my property (including all bank records unlawfully seized) should be

13

preserved. Many artists covered Leonard Cohens songs but this was not one
of his albums. I worked as co-executive producer with David Anderle of A&M

14

Records on this project. Exhibit II: May 21, 1994 letter to Kelley Lynch from
15

Tom Robbins.

16

60.
17

On September 19, 2000, Don Friedman, Cohens transaction

attorney, wrote Stuart Bondell of Sony Music. Copied into this letter were

18

Kelley Lynch, Greg McBowman, Richard Westin, Arthur Indursky, and Stuart

19

Fried. The letter summarized the proposed basic structure of the transaction

20

Cohen was pursuing and the assets that Sony was interested in purchasing:
- 62 DECLARATION OF KELLEY LYNCH

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Blue Mist Touring, Inc. (BMT) is a Delaware corporation, the capital stock of
which is owned 85% by Leonard Cohen and 15% by Kelley Lynch. (Cohen owns
425 shares and Lynch owns 75 shares.) The letter goes onto address the assets

Blue Mist Touring Company, Inc. planned to sell to Sony Music not the actual
4

assets it owned or was legally assigned. The understanding, per this letter, was

that Sony would purchase Cohens and Lynchs stock in BMT (representing

100% of the equity interest in BMT). Cohens Complaint confirms that the

assignments to BMT were not removed and remain in Blue Mist Touring

Company, Inc. Lynch has a rightful ownership interest in this and other
entities. At some point hereafter, Richard Westin phoned me to explain that he

9
10
11
12

had spoken to Ken Cleveland who raised concerns about Blue Mist Touring
Company, Inc. and collapsible corporation concerns. Exhibit JJ: Don
Friedmans letter to Stuart Bondell, Sony, dated September 19, 2000.
61.

While I most certainly have no expertise in tax or corporate

13

matters, and handled nothing having to do with those matters, the article

14

Collapsible Corporations in a Nutshell provides a general overview and

15

addresses the fact that this is used as a tax avoidance device which has long
concerned the U.S. Treasury Department. It is my personal recollection that

16

Cohens representatives decided not to use Blue Mist Touring Company, Inc. to
17

pursue the anticipated stock deal with Sony, due to the collapsible corporation

18

concerns, while Cohens Complaint alleges that Sony refused to pursue the

19

transaction using this entity. That is blatantly untrue and, in fact, Sony began

20

their due diligence with Blue Mist Touring Company, Inc. All parties
- 63 DECLARATION OF KELLEY LYNCH

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2
3
4

understood that I had a 15% ownership interest in the entity and the
intellectual property assets it owned
62.

Richard Westin wrote Greg McBowman and myself a letter on

September 20, 2000. At this time, all intellectual property had been formally
and irrevocably assigned to Blue Mist Touring Company, Inc. At this time, the

assets Sony was interested in purchasing were described as those belonging to


6

Blue Mist Touring Company, Inc. while the assets they were not purchasing,

which did in fact belong to Blue Mist, were listed as the property of LC

Investments, LLC. Westin breaks these two sets of assets down: Blue Mist

owns the record royalty entitlements (which does include the mechanical

10

royalties although Sony was not purchasing them) under Recording Agreement
between Leonard Cohen and CBS/Sony. LC Investments would potentially own

11
12

the writers share of music publishing (including the writers share of


performing rights income plus the artist royalty LC receives from Sony Music

13

International for the sale of records worldwide. Westin specifically mentions

14

two agreements: November 18, 1996 Exclusive Songwriter Agreement. This

15

agreement was never assigned to LC Investments, LLC. Nothing was. Westin


fails to address the book publishing that is also owned by Blue Mist Touring

16

Company, Inc. Greg McBowman provided a breakdown of Leonard Cohen and


17

Kelley Lynchs share of the Sony Music sale of the intellectual property listed as

18

belonging to Blue Mist. The sale price was listed as $8 million, due to Cohens

19

demand for a stock deal and the present day valuing of the assets, and the

20

estimated expenses totaled approximately $825,000 as Leonard Cohen well


- 64 DECLARATION OF KELLEY LYNCH

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2

understood. Cohens share totaled a net of approximately $6 million while


Lynchs totaled slightly over $1 million. These amounts represent Cohen and
Lynchs rights to the intellectual property specifically described as belonging to

Blue Mist Touring Company, Inc. Proper valuations of all intellectual property
4

owned by Blue Mist Touring Company, Inc. are required as well as an

accounting of the royalty income LC Investments, LLC collected with respect to

assets owned by Blue Mist Touring Company, Inc. Exhibits KK: Westin fax to

KL and Greg McBowman dated September 20, 2000; McBowman schedule.

8
9
10

63.

A fax from Richard Westin to Cohen and me dated October 10, 2000

shows the ongoing concerns related to IRS matters, the use of Blue Mist
Touring Company, Inc. to pursue the stock sale to Sony, and the beginnings of
Westins proposal with respect to a deferred annuity. Westin also raises a

11
12

suggestion related to an Employee Stock Ownership Plan for Blue Mist. The
good news is that Kelley need not participate in either of these plans which

13

she most certainly chose not to. The comments specifically related to IRS

14

concerns are as follows: The problem is that in this case it is being very late in

15

the day and the IRS could argue that the real sale was from Leonard to Sony,
with the role of the insurer ignored. Nevertheless, Cohen pursued the option

16

of using a private annuity, new entity, and has now evidently not only taken the
17

position that he is the alter ego of that entity, who embezzled approximately

18

$6.7 million in corporate assets, but someone entitled to substantial tax refunds

19

due to a theft loss based solely on the Complaint filed in this matter and

20

possibly some version of the expense ledger. Its difficult to know what
- 65 DECLARATION OF KELLEY LYNCH

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2

ledger was submitted to IRS because that was submitted to them hastily in
December 2005 approximately six months before the default judgment. The
Complaint and default judgment themselves are evidence of overt acts used to

obstruct justice and, from my perspective, cover up and obfuscate the facts
4

related to the allegations that Cohen committed criminal tax fraud. The news

media coverage of a wanton, reckless female manager, ex-lover, who cold-

heartedly raided the elderly Buddhist Leonard Cohens retirement account

while he was on Mt. Baldy, and apparently wanted to attend one of his concerts

and communicate with him for no legitimate reason, really worked wonders
also. Exhibit KK: Fax from Richard Westin to Cohen and me dated October 10,

2000.

10

64.
11
12

On November 19, 2000, Richard Westin set forth a new proposal for

the disposition of assets, other than those that qualify for capital gain
treatment. The letter is addressed to Mr. Leonard Cohen and is clearly meant

13

to serve as a professional opinion of some sort. Leonard Cohen and I were

14

together when we received this. Cohen submitted a series of questions to

15

Richard Westin in response. Of course, the issues raised with respect to IRS
were of concern: The structure is novel and must be put in place before a

16

contract is entered into or is a sure thing. Neal and I think that the proposal
17

works, but there are no guarantees. The IRS could attack the deal by claiming

18

the real seller to say, Sony was yourself and the rest of the deal was a

19

contribution to an LLC. In other words, the IRS can attempt to unwind the

20

deal. That could be bad because the logical next step would be for the IRS to
- 66 DECLARATION OF KELLEY LYNCH

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2

claim that money that actually went to the LLC was a gift from you made
indirectly to your children, thereby attracting significant gift taxes. I will
provide you with an opinion that the deal works. That should eliminate any

penalties, but despite my august station, it may do nothing to discourage a


4

Revenue Agent from pressing the theories I just described. Westin went onto

advise Cohen: In order to get Neal wrapped in attorney-client privilege, it is

important that I get a letter from you (by fax is fine) authorizing me to hire

Neal to act on your behalf, with Neal reporting to me when I seek his financial

and consulting advice. The letter should suggest that this has been the
understanding all along, but we just now decided to formalize the

9
10

arrangement. After further discussions with Richard Westin and Neal


Greenberg, Cohen did provide Westin with the letter he requested on December

11

7, 2004. Prior to submitting that, Cohen wanted Westin to come up with a

12

proposal that would not potentially invite IRS inquiries. Exhibit LL: Richard

13
14
15

Westin Proposal to Leonard Cohen dated November 19, 2000.


65.

Therefore, on December 4, 2000, Westin wrote a letter to Kelley

Lynch and Leonard Cohen with responses Cohen submitted to Westin via email.
Apart from the IRS concerns about self-dealing and gifts to his children, Cohen

16

did not want his children involved in any corporate entity related to him and did
17

not want his children made beneficiaries with respect to this deal. This letter

18

addresses the questions raised. That would include the specific monies allotted

19

to me to repay the promissory note. That amount totaled $24,000. It is

20

addressed in the corporate records and, together with the $20,000 per year
- 67 DECLARATION OF KELLEY LYNCH

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2

payment in the management agreement, provided me with the income


necessary to pay down the promissory note and pay the taxes due on the
monies I received. This was Richard Westins proposal and both Leonard

Cohen and Neal Greenberg were well aware of that fact. The decision to use
4

any type of trust was nixed in favor of the LLC. At no time did I sell back my

income shares. I did ask if I could be indemnified and Westin felt Leonard

Cohen could agree to protect me from losses and with respect to certain

liabilities. Of course, a possible argument by the IRS is included in this letter:

The IRS may argue that there never really was a sale by the LLC, that in fact
LC sold the assets to SONY. As long as there is no current contract with SONY,

9
10

it is a tough position for them to take, but not impossible. Certain issues
raised in this fax were discussed, hashed out, and Leonard Cohen decided to

11

proceed with the transaction using a company he named Traditional Holdings,

12

LLC with the full understanding of my 99.5% ownership interest and the reason

13

for that interest. One of the reasons we both understood was due to the fact
that I was investing in this entity. Leonard Cohen also understood that this

14

entity bypassed his estate and reconfirmed this understanding when he signed
15

the Annuity Agreement, prepared by his personal tax and corporate lawyer, on

16

December 7, 2000. Natural Wealths Complaint addresses the fact that Cohen

17

personally was involved in the discussions about these deals, his desire to

18

pursue aggressive stock transactions, his full awareness of Traditional

19

Holdings, LLC structure (including his and my ownership interests); and


understood that the assets in Blue Mist Touring Company, Inc. (specifically

20

- 68 DECLARATION OF KELLEY LYNCH

1
2

being sold to Sony) were to be valued, formally removed from Blue Mist
Touring Company, Inc.), and formally assigned to Traditional Holdings, LLC. It
was our understanding that Richard Westin would handle these legal

formalities. I was also given assurances that I would receive the Indemnity
4

Agreement on January 21, 2001 Cohen and I executed. See below. It was also

agreed that the parties could borrow monies from Traditional Holdings, LLC.

Any and all loans required documentation and Richard Westin agreed to

prepare those as they arose. It was my understanding, at the time, that

Leonard Cohens loans (advances & expenditures) were to be repaid within 3


years at 6% interest. I was repeatedly advised that all corporate distributions

9
10

to me should be handled as shareholder loans that Westin would recharacterize


at a later date. I was told that any actual loans I received from Traditional

11

Holdings, LLC would have to be repaid before the annuity obligation arose in

12

2011 but a 3-5 year repayment plan would generally be best. Leonard Cohen

13

and I discussed and understood these matters and he was well aware of the
fact that the profit and loss sharing with respect to this entity was

14

commensurate with our ownership interests as set forth in the corporate books
15

and records. I personally read the formal documents, prepared and filed by his

16

lawyer, to Leonard Cohen while we sat at his kitchen table. There was and

17

remains no trust, agreement related to a trust, or any discussion, once Cohen

18

elected to use Traditional Holdings, LLC, about a potential trust. I did not hold

19

my shares of this entity in trust for Leonard Cohen. Exhibit MM: Richard
Westin Proposal to Kelley Lynch and Leonard Cohen dated December 4, 2000.

20

- 69 DECLARATION OF KELLEY LYNCH

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2

66.

On December 7, 2000, Leonard Cohen wrote Richard Westin a

letter advising him: Further to our conversation, this is to confirm the


understanding that I have appointed Mr. Neal Greenberg to assist you in your

legal advice to me. Please explain to Mr. Greenberg (if you have not already)
4

that I expect him to treat my communications between himself and yourself in

confidence. This letter was signed by Leonard Cohen and wrapped Cohen,

Westin, and Greenberg in attorney/client privilege essentially leaving me in

the dark. This letter also confirms that Cohen was intimately involved with

these deals, understood all aspects of them (including the use of corporate
structures, etc.), and spoke to his representatives about these matters. Exhibit

9
10
11
12

NN: Leonard Cohen letter to Westin dated December 7, 2000 (wrapping


Greenberg in A/C privilege).
66.

On December 7, 2000, I was induced, by Cohen and his

representatives, to sign an Annuity Agreement. I was advised that Leonard

13

Cohens personal tax lawyer, Richard Westin, would form this entity properly;

14

make any and all necessary assignments; address the assignments that are

15

owned by Blue Mist Touring Company, Inc., would handle all tax matters, and
so forth. I relied on their statements and had no reason to doubt that these

16

matters would be handled properly. The Private Annuity Agreement, dated


17

December 7, 2000 was signed by me and Leonard Cohen and it is notarized.

18

This document sets forth an agreement with respect to an annuity obligation

19

and proves that Cohens arguments about my 99.5% ownership interest in

20

Traditional Holdings, LLC are moot and self-serving. This obligation was real
- 70 DECLARATION OF KELLEY LYNCH

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2

and the agreement was binding. The annuity obligation totaled $4,890,000.
Cohen was promised that the payments would begin in or around January 2011.
The Agreement clearly states that the obligations terminate upon the death of

the annuitant, Leonard Cohen. The Agreement also clearly states that Cohen
4

may receive advances (or loans). However, Until an advance has been paid in

full, the unpaid portion thereof shall bear interest and At the discretion of

Purchaser, such advances may be repaid by withholding payments otherwise

due under this Agreement. If Annuitant shall die with advances due and owing

Purchaser [Traditional Holdings, LLC], then such advances shall be satisfied by


Annuitants estate. The Annuitant is Leonard Cohen. His loans, advances,

9
10

and/or personal expenses, relating to Traditional Holdings, LLC are presently in


the vicinity of $6.7 million. That is approximately $2 million above and beyond

11

the annuity obligation. Cohen agreed to repay these loans at an interest rate of

12

3% and understood they had to be repaid within 3 years. He refuses to repay

13

the loans; will not address the loans; concealed this information from the Court;
attempted to argue that his personal expenses are corporate expenses; and has

14

now taken the position that he is free to embezzle nearly $7 million from a
15

corporation due to Los Angeles Superior Courts default judgment. The default

16

judgment releases Cohen from obligations to Lynch but is silent on his

17

obligations to the corporations themselves or the corporations obligations

18

towards Lynch. Additionally, Cohen gave the warranties and representations

19

that the Property he is transferring to the Purchase is free and clear of all
liens, pledges, and encumbrances of any kind whatsoever. The assets belong

20

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to Blue Mist Touring Company, Inc. Cohen understood that the assignments to
that entity were non-revocable and the Complaint confirms that these matters
were not formally unwound or addressed. Richard Westin prepared Traditional

Holdings, LLC Minutes ratifying on behalf of the Company the Private Annuity
4
5
6

Agreement being formally entered into between the Company and Leonard
Cohen, as seller.
67.

Exhibit OO: Annuity Agreement dated December 7, 2000.

On December 7, 2000, I was induced into executing a Promissory

Note with Traditional Holdings, LLC. This document, as is true of the above,

was executed by Leonard Cohen and myself. It was also notarized. I am not in

possession of the original document at this time that there does not seem to be

10

a dispute as to whether or not I was provided with a Promissory Note and


instructed to sign it. This document was prepared by Leonard Cohens

11
12

personal tax and corporate lawyer, Richard Westin. The Note is in the amount
of $240,000. One disturbing aspect of this document is the statement that

13

Traditional Holdings, LLC had its principal place of business c/o Stranger

14

Management, 419 North Larchmont, Suite 91, Los Angeles, California. TH was

15

the holder of this note. I had an ongoing conflict with Richard Westin about his
position with respect to these entities have places of business or offices in

16

California and, specifically, at my former P.O. Box or former office address. It is


17

irrelevant to me whether they legally did or not. I remain convinced that these

18

entities have been treated as shams; all corporate formalities have been

19

willfully disregarded; and Leonard Cohen has now taken the position that he is

20

the alter ego and I was defrauded and fraudulently induced into entering into
- 72 DECLARATION OF KELLEY LYNCH

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2

many agreements and included on fraudulently included on various federal and


state tax returns and other documents transmitted to IRS, FTB, and State of
Kentucky. Ultimately, according to my legal and accounting representatives,

this Promissory Note was extinguished from the 2002 Traditional Holdings
4

federal tax return without my knowledge, permission, or authorization.

Perhaps Plaintiffs can now take the legal position that I am in default with

respect to this instrument. Richard Westin prepared the Traditional Holdings,

LLC Minutes ratifying this Promissory and the Management Agreement that

Cohen has interpreted in an interesting manner by willfully disregarding the


fact that it calls for two separate payments and electing to ignore the

9
10
11
12

paragraph that he finds distasteful. Exhibit PP: Kelley Lynch/TH Promissory


Note; Corporate Minutes dated December 21, 2000.
68.

On December 18, 2000, after Leonard Cohens decision to pursue

the 2001 Sony deal using a new entity that would own a private annuity,

13

Richard Westin caused Traditional Holdings, LLC to be formed. I personally

14

provided Cohens tax/corporate lawyer, Westin, with a very limited Power of

15

Attorney that granted him authority to file the formation documents. I also
attach hereto a copy of the Traditional Holdings, LLC 2001, 2002, and 2003

16

Annual Reports prepared by Leonard Cohens personal tax and corporate


17

lawyer, Richard Westin. Exhibit QQ: Traditional Holdings Formation

18

documents; Lynch & Cohen Powers of Attorney to Westin re. TH; State of

19

Kentucky Email; TH 2001, 2002, 2003 Annual Reports; Application for

20

Employer ID prepared by Westin who signed Kelley Lynchs name.


- 73 DECLARATION OF KELLEY LYNCH

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69.

On December 20, 2000, upon receipt of the Black Beauty binder

and stock certificates Richard Westin presented to Traditional Holdings, LLC, I


was instructed, by Westin, to fill out Stock Certificates 1, 2, and 3 as follows:

Stock Certificate 1 certifies that Kelley Lynch is the owner as to Class B


4

common shares, all; Stock Certificate 2 certifies that Kelley Lynch is the

owner as to Class A common shares, 99.5 percent of all; and, Stock Certificate

3 certifies that Leonard Cohen is the owner as to .5% of all. Stock

Certificates 1 and 2, evidencing my ownership interest in Traditional Holdings,

LLC were signed and dated by me on December 20, 2000. Stock Certificate 3
was signed and dated by Leonard Cohen on January 8, 2001. Leonard Cohens

9
10

Stock Certificate 3, which he personally signed, is a simple one page document


that clearly states that he has a .5% of all units of the above above Limited

11

Liability Company. It is my personal opinion that this Stock Certificate alone

12

proves that Leonard Cohen understood his and my respective ownership

13

interests in Traditional Holdings, LLC well in advance of the closing of this


April 2001 transaction. Leonard Cohen testified at my 2012 trial that his tax

14

lawyer, in hindsight after we parted ways, rectified my ownership interest in


15

this entity. I find that preposterous and illegal. I attach hereto the Stock

16

Ledger filled in by Cohens tax lawyer, Richard Westin, which has entries

17

written by Westin himself. Those entries clearly indicate that Kelley Lynch

18

owns all shares of Class B; Kelley Lynch owns 99.5% of Class A; and, Leonard

19

Cohen owns .5% of Class A common shares. As of the date Cohen and I parted
ways, October 21, 2004, these stock certificates were not cancelled and/or held

20

- 74 DECLARATION OF KELLEY LYNCH

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2
3
4

in trust for Leonard Cohens benefit. Exhibit RR: Traditional Holdings Stock
Certificates No. 1, 2, 3; Stock Ledger.
70.

John Rosenbergs January 2, 2001 letter to Kelley Lynch. John

Rosenberg was Leonard Cohens litigation attorney who handled the failed CAK
bond deal transaction and settlement negotiations. The Settlement Agreement,

dated December 7, 2000, was between Leonard Cohen and CAK/UCC Lending.
6

Clause 62 of Leonard Cohens Complaint sets forth a rather astounding

argument with respect to his personal transaction fees. The settlement

Plaintiffs accepted totaled $90,000. And yet, the Complaint lists $200,000 for

a failed transaction leading to the 2001. The CAK deal, which Cohen

10

personally chose not to pursue, did not lead to the 2001 sale. They were
pursued separately and this is the reason for the creation of LC Investments,

11
12

LLC. Its difficult to imagine what the remaining $110,000 might relate to.
Peter Lopez, Cohens transaction attorney, who negotiated the CAK deal with a

13

group of other people, including myself, died years after the CAK settlement.

14

After Cohens decision to pursue a stock deal with Sony, rather than the CAK

15

bond deal, Peter Lopez submitted a bill totaling $90,000. Cohen refused to pay
him and I spoke with Peters assistant, Christian, after his death in 2010, who

16

confirmed that the bill remained unpaid. Leonard Cohen made the decision not
17
18

to pursue the CAK deal but saw a reason to defraud Peter Lopez. Exhibit SS:
CAK Settlement Agreement dated December 7, 2000.

19
20

- 75 DECLARATION OF KELLEY LYNCH

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71.

I was quite concerned about investing in an entity, Traditional

Holdings, LLC, via promissory note. No one was able to answer my questions
in a satisfactory manner. I therefore asked for and received an Indemnity

Agreement. I spoke directly with Leonard Cohen about this matter and he
4

agreed to indemnify me. He also instructed his personal tax and corporate

lawyer, Richard Westin, to draw up this document which was signed by both

Cohen and myself on January 8, 2001 and notarized. The agreement confirms

that Kelley Lynch has agreed to assist Leonard Cohen with certain personal

financial arrangements that entail the creation of Traditional Holdings, LLC


and in so doing has provided and will provide value assistance to Leonard

9
10

Cohen. The promissory note I signed, in the amount of $240,000, was


notarized as well. For the value received, the Leonard agreed to indemnity,

11

save, and hold harmless Kelley Lynch from any and all claims, actions,

12

damages, liabilities, or litigation arising out of the following circumstances: any

13

obligation on her part to make good on a certain note for$240,000 in favor of


Traditional Holdings, LLC (TH) in the event that TH was for any reason unable

14

to: pay in the full the promise of full payment of a put described in the said;
15

or causes her to have to make any payment to TH (or the assignee or

16

transferree or successor of TH) with respect to the note. Cohen, at his own

17

expense, agreed to faithfully and completely defend and protect me against any

18

and all liabilities arising from this claim, cause of action and/or notice, and shall

19

at once stand in the shoes of Kelley Lynch and pay all amounts due as they
become payable with no right offset or to her claim for immediate and full

20

- 76 DECLARATION OF KELLEY LYNCH

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2

payment. Cohen further agreed that, if he failed to successfully defend Lynch,


she may defend, pay or settle the claim, with full rights of recourse against
Cohen for any and all fees, costs, expenses and payments, including but not

limited to attorney fees, and settlement payments, made or agreed to be paid,


4

in order to discharge the claim, cause of action, dispute or litigation. This

agreement is also binding upon our heirs, successors, and representatives. My

lawyers continually advised Robert Kory to review this document. I will remind

the Court that Leonard Cohens personal tax lawyer, without my knowledge or

permission, extinguished the promissory note from the Traditional Holdings,


LLC 2002 federal tax returns. It is important to note that I was repeatedly

9
10
11
12
13
14

asked to assist Leonard Cohen not to control anything. Exhibit TT: KL


Indemnity Agreement dated January 8, 2001.
72.

Leonard Cohen and his lawyer extinguished the annuity in 2003 and

the promissory note in 2002. Therefore, this indemnity agreement covers


everything.
73.

On August 13, 2001, Internal Revenue Service issued a notice to

15

Leonard Cohen Requesting Information About Your 1999 Tax Return. This

16

inquiry asked Cohen to compare his tax records with the following list which

17

shows income amounts reported to IRS by your payers. This notice is


material and relevant due to the fact that the list provided by IRS includes a $1

18

million 1099 issued to Cohen by Sony in the year 1999. That $1 million was the
19

prepayment against the 2001 Traditional Holdings, LLC deal. Cohen had asked

20

- 77 DECLARATION OF KELLEY LYNCH

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2

me to advise Sony that he would pursue the deal with them only if they
provided him with a non-refundable substantial prepayment or down payment
in the amount of $1 million. Leonard Cohen and his representatives handled

this amount as a loan for federal tax purposes in 1999. Sony then issued a
4

1099 in the amount of $1 million and transmitted this information to IRS. This

is also evidence that IRS inquiries into the manner in which Cohen and his

representatives handled his tax matters became consistent and increasingly

frequent. Leonard Cohen never transferred (or paid through) this amount to

Traditional Holdings, LLC. Exhibit UU: IRS Notice: August 13, 2001 - $1
million prepayment TH deal.

9
10

74.

Clause 61 of Cohens Complaint lists Traditional Holdings, LLC

payment of $500,000 for federal income taxes and penalties due on Sonys $1
11
12

million advance paid in 1999. This advance was paid directly to Leonard
Cohen; he elected to handle it as a loan rather than the non-refundable

13

prepayment or down payment; Sony is the party that inadvertently issued the

14

$1 million 1099 to Leonard Cohen for the year 1999 which was corrected; and

15

Leonard Cohen did not transfer the $1 million to Traditional Holdings, LLC.
Cohen simply believes that due to his decision that this entity is obligated to

16

pay his personal expenses.


17

75.

On April 18, 2001 Grubman, Indursky wrote Cohen summarizing

18

the agreement between Sony Music International, Leonard Cohen and


19

Traditional Holdings, LLC. Leonard Cohen and I carefully reviewed this letter.

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- 78 DECLARATION OF KELLEY LYNCH

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2

I was forced to read it to him while he soaked in a bubble bath and exposed
himself to me. The letter confirms: As a separate matter, we also want to
advise you and Holdings that this firm is not a financial or tax advisor and has

not provided any tax-related advice to you or Holdings in connection with this
4

transaction. In addition, we have had no role in the formation of Holdings (and

have not reviewed or been provided with copies of any of its formation

documents) or in structuring the legal arrangement between you and Holdings.

While we have prepared certain documents required to implement the tax and

financial advice of your other advisors, we have done so at their request and
direction. We have also assisted your tax and financial advisors by providing

9
10

explanations of the relevant entertainment industry and intellectual property


issues raised by the transaction. With respect to the tax-related issues

11

presented by the Agreement, we have, pursuant to your and Holdings request,

12

consulted with and followed the advice of Richard Westin. It is our

13

understanding that you are relying on their advice regarding these matters. I
did not provide any advice whatsoever related to tax, financial, corporate, or

14

legal matters. Cohen personally hired Neal Greenberg and Richard Westin.
15

Those were the individuals, who consulted with Cohen about these matters,

16

handling the tax and financial advice. The Grubman firm represented Leonard

17

Cohen. Richard Westin represented Leonard Cohen. I was unrepresented.

18

Exhibit VV: Grubman, Indursky & Schindler letter dated April 18, 2001 to

19

Cohen and TH.

20

- 79 DECLARATION OF KELLEY LYNCH

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76.

At Leonard Cohens request, I agreed to a Durable General Power

of Attorney prepared by his attorney. This document was signed by Leonard


Cohen, in his individual capacity and as Trustee of the Leonard Cohen Family

Trust UTD October 2, 1998. It was notarized and Cohen asked my parents to
4

serve as witnesses. Leonard Cohen has not explained the type of mental

impairment he evidently had the entire time I knew him that permitted him to

micro-manage deals, direct his business affairs, scrutinize his sales figures,

royalties, income, finances, and expenditures, sign documents, and so forth. I

do not have Mata Haris miraculous seduction powers and there is no evidence
that Cohen was under a spell of any sort. This is a highly educated individual

9
10

with a background, according to interviews he personally has given over the


years, in business, law, and commerce. Cohen is also highly literate and

11

understands the meanings of words, sentences, agreements, and concepts.

12

And, Cohen has advised at least one interviewer that he personally handled his

13

business matters, negotiations, and financial discussions and would no longer


rely on a lawyer. Leonard Cohen asked me to assist him with many matters;

14

began traveling more extensively; needed my help with homes he purchased


15

(using Traditional Holdings, LLC assets) for his girlfriend and son; and I

16

agreed. That is the actual reason that he executed this Durable Power of

17

Attorney. Cohen testified that he did indeed use assets to purchase homes and

18

took money from the Traditional Holdings, LLC account. He simply refuses to

19

address the fact that the Traditional Holdings, LLC assets had been
dissipated due to the fact that he personally borrowed or caused to be

20

- 80 DECLARATION OF KELLEY LYNCH

1
2
3
4
5
6
7
8
9
10

expended approximately $6.7 million and feels entitled to those sums. Exhibit
WW: Trial Transcript (pages 285-288); Kelley Lynch Power of Attorney.
PD: Now, you learned in 2004 that your that the account that Traditional
Holdings account, the money that you were running low, correct? Cohen: It
was running low PD: That funds in that account, that Traditional Holdings
account, they were running low, yes or no? Do you remember that? Cohen: I - I
discovered that they were being dissipated. PD: Okay. Now, you panicked
correct? Cohen: I was concerned, yes. 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:
Thats correct. PD: To buy a house for your girlfriend? Cohen: Yes. Kelly:
Okay. So you -- its fair to say that you did take money from that account?
Cohen: Thats correct, Sir. PD: You were aware enough about that account to
know that you could take money from that account? Cohen: Thats correct.
PD: Now, isnt it true that well, before I go there, do you blame well, you
actually had a financial consultant who invested the money in that account,
correct? Streeter: Objection; relevance. Court: Let me see counsel at sidebar.
RT 285-288

11
12

77.

At some point in or around February 2002, Sony transmitted a $7

million 1099 to Leonard Cohen for income related to the Traditional Holdings,
13

LLC deal. This caused tremendous hysteria on the part of Leonard Cohen,
14

Richard Westin, Neal Greenberg, Ken Greenberg, and possibly others. I merely

15

faxed the 1099 to Clevelands with a note asking him to call me the following

16

Monday. Cleveland decided to compose a rather alarming letter to Leonard

17

Cohen, which was sent directly to Cohens home in Los Angeles, concluding

18

that he shuddered to think of the penalties and interest due on that amount and
raising other tax, financial, and accounting matters. I attach hereto two emails

19

between Leonard Cohen, Richard Westin, and me dated February 11, 2002. My

20

- 81 DECLARATION OF KELLEY LYNCH

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2

email to Cohen (with Westin copied in) is a response to some of the matters
raised in Clevelands letter that he later advised me and Stuart Fried, Grubman
firm, was a cover-your-ass letter. Some of the issues I addressed were the

sloppy records kept by Cohens bookkeeper, Jen Brown, who was a friend of
4

Lorca Cohens and took over some of the bookkeeping after Jean Ransick

retired in or around 1998; the fact that I would not be the person to handle any

1099 matter including the inadvertent $1 million 1099 Sony issued Cohen

with respect to the non-refundable prepayment on the Traditional Holdings,

LLC deal; the fact that I would not advise anyone on the handling of income as
a loan or anything else for that matter; the countless problems with IRS that

9
10

have arisen due to these deals, corporate structures, and so forth; the fact that
I am incapable of resolving anything with the IRS and I assume, as has always

11

been the case in the past with accountants, that when I forward something to

12

them they are dealing with it; the problems that would arise when Cohens

13

accountant would advise us that substantial tax payments were due on October
15, 2005 (when the returns were finalized and messengered) which provided no

14

time whatsoever to address where the funds to pay the bills would come from;
15

the fact that paperwork needed to be prepared when monies were taken from

16

Traditional Holdings, LLC and Westin was in charge of that; the fact that Ken

17

Cleveland assumed the $7 million was personal income to Cohen when he had

18

worked on the Traditional Holdings, LLC deal; the fact that I am not an

19

accountant and it is not my job to handle many of the things that Ken raised
which would extend to notifying Sony that the 1099 had been issued; the fact

20

- 82 DECLARATION OF KELLEY LYNCH

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2

that Cohens entities were causing considerable extra work because I had to
pursue various parties and provide paperwork to have simple bills paid for
accounting services on Cohens behalf; and my position that Ken Clevelands

letter was a blessing in disguise because it gave me an opportunity clarity


4

many things with Leonard Cohen personally. Richard Westin responded to my

email, copying Cohen in on this reply, and confirmed that he agreed with the

issues and statements I made in my email; advising how the situation with

respect to tax returns should be handled; and telling Cohen to hire a new

accountant. Cohen personally elected not to. Exhibit XX: Lynch & Westin
emails (cc: Cohen) dated February 11, 2002.

9
10

78.

Richard Westins letter to Leonard Cohen dated March 6, 2002,

excerpted in the Complaint, gives an overview of these entities and my role.


11
12

Richard Westin advises Cohen that all loans must be documented. That is not
something that I handled. Westin confirms that without my assistance,

13

investment actually, IRS could view this transaction as Leonard Cohen simply

14

selling something to himself. In other words, IRS could raise issues related to

15

self-dealing. Westin explains that I am to be provided with $44,000/year


($20,000 addressed in the Management Agreement; $24,000 addressed in the

16

corporate formation documents). Westin also confirms that I received $240,000


17

from Traditional Holdings, LLC to allow me to pay taxes. As this amount

18

relates to profit, which was to be distributed in accordance with Cohen and

19

my equity interest (99.55% Lynch; .5% Cohen), there are no issues with respect

20

to this amount apart from the fact that I was being allotted monies to pay
- 83 DECLARATION OF KELLEY LYNCH

1
2

corporate taxes and Westin failed to address (although I repeatedly raised this
issue) how these distributions would ultimately be addressed. I was
continuously assured that Richard Westin would recharacterize the nature of

all share holder loans which is how I was instructed to characterize all
4

distributions. I followed those instructions. The letter then goes onto address

the never ending discussion about Leonard Cohens gifts to family members

and friends. That is also something I would not have handled. Due to some of

the very serious issues that arose with respect to inadvertent Sony 1099s to

Leonard Cohen in the amounts of $1 million and $7 million; IRS inquiry into the
1999 $1 million prepayment against the 2001 Traditional Holdings, LLC deal;

9
10

the fact that the assets remained in Blue Mist Touring Company, Inc.; and, my
involvement in these entities, I asked Richard Westin to write a letter

11

confirming what my role was with respect to these entities for Leonard Cohen

12

personally. In the Complaint filed in this matter, Cohen acknowledged receiving

13

and reviewing this document. A number of these items were addressed, on the
fraudulent expense ledger as misappropriated funds. At least two payments

14

($44,000 each) from Traditional Holdings, LLC to me (and then my repayments


15
16
17

to the entity) are completely missing from the expense ledger. Exhibit YY:
Richard Westin letter dated March 6, 2002.
79.

On March 10, 2002 Richard Westin wrote a letter to Leonard Cohen

18

& Kelley Lynch regarding Traditional Holdings, LLC and comments on the

19

binder which refers to the Black Beauty corporate book. The letter explains

20

certain documents and addresses minutes adopting a management agreement.


- 84 DECLARATION OF KELLEY LYNCH

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2

Westin explains that all this agreement does is move the money Kelley gets for
managing TH from inside the operating agreement to a separate document.
This is done for the technical reason that it creates tax law clarity to as the

nature of the payment. Having it in the operating agreement makes it unclear


4

whether it is a so-called guaranteed payment or a payment deemed made with

an outsider. Because the allocation provisions in the LLC agreement are

complicated enough, I wanted to remove this piece to keep the tax picture

clearer. This is purely a technical issue. This was fastened on as compensation

in order to keep the structure commercially reasonable. To date, KL has not


been paid. She is owed for the year 2000 and 3 months of 2001. The next

9
10

payment is due June 30. This letter relates specifically to my Management


Agreement which provides for two payments: $20,000 per month and $20,000

11

per year. The only reason Westin decided to create this document, as he clearly

12

states, is due to the tax picture and keeping it clearer. The monies provided

13

for in this agreement are taken from the yearly profits. I have asked Internal
Revenue to address this management agreement as it relates specifically to the

14

tax picture. Leonard Cohen and I signed this management agreement and
15

the minutes were signed as well. At least one copy of this agreement was

16

placed, with the minutes, into my business file that Leonard Cohen wrongfully

17

seized from my office. He is now allegedly arguing that he never signed the

18

document. The same minutes also ratify the stock certificates to be issued by

19

the company and approves the note I signed. Westin also enclosed minutes
ratifying the Private Annuity Agreement signed by Leonard Cohen and Kelley

20

- 85 DECLARATION OF KELLEY LYNCH

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2

Lynch. Westin goes onto address the durable Power of Attorney that I was
asked to sign; was prepared by Richard Westin; and the sole purpose of the
document was to clarify to anyone dealing with later documents that Kelley

had the authority she claimed to deal with Leonards stake in the company. It
4

was also used to assist Cohen with matters such as closings related to the

homes he purchased for his son and girlfriend using Traditional Holdings, LLC

assets. Westin foresaw Cohen amalgamating his loans and repaying them as

one. This is precisely what Leonard Cohen confirmed he planned to do time

after time again. Westin also states that Leonard Cohens pattern of
borrowing is dangerous to the structure and prepared Minutes with respect to

9
10
11
12

that pattern. Exhibit ZZ: Richard Westin letter to Cohen & Lynch dated March
10, 2002.
80.

On October 8, 2002, David Woltz, IRS Office of Chief Trial Counsel,

sent a letter to Richard Westin. Mr. Woltz had begun preparing for trial and

13

requested a meeting and information and documentation. The document

14

request included 1) all documents related to the $1 million payment from Sony,

15

including correspondence, contract, agreements, royalty obligations, loan


documents, emails, letters, checks; 2) all documents related to all royalty

16

arrangements between the Cohen and Sony; 3) all documents that you intend to
17

present to the Tax Court at trial; 4) identify all facts and documents supporting

18

your allegation that the $1 million payment from Sony is not taxable income in

19

the tax year 1999. It is important to note that Cohen argued that this income

20

was not taxable in the year 1999 and would have been recoupable had the deal
- 86 DECLARATION OF KELLEY LYNCH

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2

not closed. Sony pursued a deal first with Blue Mist Touring Company, Inc. and
then, due to concerns about collapsible corporations, with Traditional Holdings,
LLC. This $1 million was income to Traditional Holdings, LLC in the year 1999

and should have been transferred to the corporation and repaid with interest.
4

Sony does not have an account with Traditional Holdings, LLC from which they

could recoup this amount. Their account is with Leonard Cohen. David Woltz

should revisit this matter. Furthermore, Cohen requested a substantial, $

million, non-refundable downpayment. At this point, I had serious concerns

about the manner in which both the 1996 and 2001 deals had been handled by
Cohen and certain of his representatives. It is my personal opinion that when

9
10

the IRS began to audit the $1 million prepayment, submitted a document


request to Richard Westin, while I simultaneously asked how to repay the

11

promissory note, it is entirely possible the arguments I am addressing were

12

conjured up in anticipation of further potential inquiries by IRS. It is

13

impossible to imagine that someone who received inadvertent 1099s for $1


million and $7 million, respectively, wouldnt have cause for great alarm,

14

particularly when Leonard Cohens accountant wrote that he shuddered to


15

think of the penalties and interest. A copy of this Motion and all attachments is

16

being simultaneously hand delivered to Agent Lius Tejeda, Internal Revenue

17

Service. Exhibit AAA: David Woltz, IRS Office of Chief Counsel, letter to

18

Richard Westin dated October 8, 2002.

19
20

81.

Richard Westin, Leonard Cohens personal tax and corporate

attorney, prepared and transmitted LC Investments, LLC K-1 partnership for


- 87 DECLARATION OF KELLEY LYNCH

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2

the year 2003 to the State of Kentucky. The Kelley Lynch K-1 indicates that I
have a 99.55% ownership interest in LC Investments, LLC while the K-1 for
Leonard Cohen indicates that he has .45% ownership interest in LC

Investments, LLC. Leonard Cohen submitted a declaration to the Court in


4

support of the default judgment. That declaration, the Complaint and other

documents, are evidence that he is the sole owner of LC Investments, LLC. The

LC Investments, LLC K-1s show $0 income for 2003 and undermine the

expense ledger used to support the default. Exhibit BBB: State of Kentucky

8
9
10

Schedule K-1 for Lynch & Cohen 2003; LC Investments, LLC Cohen K-1.
82.

Leonard Cohens Complaint in this matter refers to letters he

received from Neal Greenberg on January 16, 2004 and June 25, 2004,
respectively. While Cohen attempts to argue that I intercepted these letters,

11
12

the notion is preposterous. Leonard Cohen intentionally provided my


management offices mailing address to everyone but his closest friends. I

13

provided Leonard Cohen with an office in Stranger Managements offices. I did

14

not charge Leonard Cohen rent for this office. Cohen had a desk, in box, out

15

box, filing cabinet, table where fan mail was stored until it could be reviewed,
and boxes of archival materials. Cohen had keys to Stranger Managements

16

office and frequently spent time there alone reviewing his mail, statements,
17

business documents, legal documents, corporate records, and all personal and

18

business mail. Cohen and I would spend hours reviewing the materials in his

19

office that were not merely to be filed. What Cohen fails to address with

20

respect to the Warning Letters are the references to IRS matters and his
- 88 DECLARATION OF KELLEY LYNCH

1
2

nearly $6.7 million in loans (and expenditures) from Traditional Holdings, LLC.
Leonard Cohen received and reviewed these letters. His response was to
advise me, and others, not to inform Neal Greenberg of future income. That

included, but was not limited to, the $1 million advance Cohen received with
4

respect to the studio album Dear Heather. Rather than invest this money

with Neal Greenberg, Cohen personally chose to maintain these funds in his

personal City National Bank account. Neal Greenberg was concerned about

Cohens level of borrowing from the Traditional Holdings, LLC account and

advised me of that numerous times. I absolutely conveyed this information to


Leonard Cohen but had no obligation to do so; was not in charge of Cohens

9
10

finances; and was not hired to be his mother. If Neal Greenberg and Richard
Westin felt Cohens level of borrowing was dangerous to the structure they had

11

a duty and obligation to discuss this with Cohen personally. No one had the

12

ability to interfere with Cohen, Westin, and Greenbergs ability to pick up the

13

phone and call one another or email one another directly. Leonard Cohens
Affidavit in the Natural Wealth matter (attached hereto as Exhibit IIII) is highly

14

instructive. It appears that in the year 2002, after IRS began inquiring about
15

numerous matters, Leonard Cohen (and possibly some of his representatives)

16

intentionally began to confuse issues, willfully failed to communicate with one

17

another properly (if that was indeed what occurred), and may have planned to

18

defend themselves in this manner. Of course, at that point in time, Cohen,

19

Westin, and Greenberg felt that Cohen and I would remain close personal
friends. No one that would put me and my family in this type of situation was

20

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1
2

ever a friend of mine. And no one who was a friend of mine would lie so
excessively about me and attempt to blame their wrongdoing on me while
wrongfully converting my property to themselves and obtaining fraudulent tax

refunds blaming me while pursuing third party recovery from numerous


4

parties.

Excerpt of January 16, 2004 cover your ass letter.


6
7
8
9
10
11

1. Please make sure the loans from Traditional Holdings, LLC are properly
documents. 2. We havent been reflecting any unearned interest in the value of
the loans from Traditional Holdings on our monthly statements. Hence, the
loan amounts are larger. Also, the monthly earnings amount would be larger is
we reflected the accrued interest. 3. By borrowing so much money, there is an
argument, perhaps remote, that the IRS may question the original transaction.
If the loans have been documented, there is a better case. There would be
millions of dollars of back taxes if the IRS successfully challenges the original
transaction.

12

Excerpt of June 25, 2004 cover your ass letter.


13
14
15
16
17
18
19

2. IRS DANGERS: TWO ISSUES. A. The first issue is that Traditional


Holdings is being run without all the formalities required of a business. The
IRS might find it easier to recharacterize the original transaction (the sale for
a private annuity). The fact that our monthly emails to you shows that
Traditional Holdings treats the loan as an asset is good. If you pay the loans
back, that too is good. B. A second issue can arise. Insofar as you have been
taking loans from an operating business, the IRS might classify them as
disguised salary. If so, there are huge back taxes to pay. Once again, our
monthly email which shows you treating the assets as loans effectively (by
treating total assets as including the loan balances) probably only helps a tiny
bit. Paying back the loans will indeed help.

20

- 90 DECLARATION OF KELLEY LYNCH

Exhibit CCC: Neal Greenberg IRS Danger Warning letters dated January 16,
2004 and June 25, 2014.

2
3
4
5

83.

Leonard Cohen and my compensation agreement had three

components. I was to receive 15% of all gross income; she was to own 15% of
all intellectual property including book publishing and artwork/lithographs;
and, I was to receive an entirely different percentage with respect to

6
7

merchandising in connection with Cohens tours. Furthermore, Cohen agreed


to compensate me properly for the period from April 1988 to approximately

1995 when he did not pay me the full 15% commission although I most

certainly was his personal manager and worked incredibly hard and diligently

10

on behalf of this individual and his family. The agreement with respect to
commissions for services rendered as personal manager were, as is customary,

11

in perpetuity for items created and released during the period I served as
12

manager. In this instance, that would be all music publishing, book publishing,

13

lithographs, and other royalty generating products such as sheet music, ring

14

tones, and so forth. On June 30, 2004, Richard Westin wrote and confirmed

15
16

that Old Ideas, LLC had been formed as a Delaware entity and for income tax
purposes it was a partnership. The Certificate of Formation is included in the
body of these emails. Westin confirmed that this was formed as a partnership

17

because he assumed I wanted to get the commission. Westin understood that I

18

have a 15% interest in all Cohens IP including that intellectual property

19

related to the Dear Heather studio album. While he did not represent me,

20

and had no actual understanding of Cohen and my agreements, Richard Westin


- 91 DECLARATION OF KELLEY LYNCH

1
2

understood very clearly that I had a 15% interest in all intellectual property. As
of October 21, 2004, the publishing related to Dear Heather was to be
assigned to Old Ideas, LLC and that is why this entity appears in the liner

notes. The judgment is silent as to this entity and my 15% ownership interest.
4

This company did not register to do business in California until 2011. Exhibit

DDD: Westin emails re. Old Ideas, LLC; Dear Heather liner notes publishing

Old Ideas, LLC.

84.

Richard Westins email of July 1, 2004 (to Kelley Lynch and Cohens

transaction attorney, Stuart Fried) confirms that he caused CT Corporation

Systems to form Old Ideas, LLC, a Delaware corporation, and it is a

10

partnership for income tax purposes. The reason for this is because Westin
understood that my compensation arrangement with Cohen included a 15%

11
12

ownership interest in all intellectual property. I was assuming you wanted to


be a 15% member to get the commission. While Westin referred to my

13

ownership interest as a commission, he was not my attorney and was not

14

familiar with the specific terms of Cohen and my agreements. It is not

15
16
17

technically a commission. It is an interest in that intellectual property.


85.

My emails to Stuart Bondell, Ian MacKay, and Denise Donlon, Sony

Music, dated July 22, 2004, express Cohens grave concern about being viewed
as a Canadian roster artist. Cohen is one of the only artists, if not the only

18

artist, on Sony who is not assigned to his home country (Canada) but rather is
19

contractually signed internationally through New York. These emails also

20

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2

demonstrate some of the issues I was actually involved in negotiating. For


example, the royalty rate Cohen received. These emails were forwarded to
Cohen, who had commented that the first email to Ian MacKay and Denise

Donlon (Sony Canada) was an excellent letter. This particular note to Cohen
4

states that I hope this is an excellent letter as well. I tried to be as direct and

as skillful as possible. Sony ultimately wrote Cohen thanking him for

permitting me to step in, cut through the over-lawyering, table certain

unresolved issues, and deliver Dear Heather. I have now evidently

misappropriated my commission for that work. Everything was run past


Leonard Cohen; reviewed with Leonard Cohen; discussed with Leonard Cohen;

9
10

and done in accordance with Cohens wishes, instructions, and demand.


Personally, I could care less where he was signed U.S. or Canada. The

11

obvious concern on his part is the possibility that the tax authorities in Canada

12

might view him as a resident and the fact that he was a Canadian roster artist

13

as evidence of that. Exhibit FFF: KL email to Leonard Cohen with forwards of


emails to Stuart Bondell (Sony International), Ian MacKay (Sony Canada), and

14

Denise Donlon (Sony Canada) dated July 22, 2004.


15

86.

In my (tsimar@aol.com) email to Leonard Cohen (baldymonk) dated

16

September 16, 2004, I respond to Cohens question (contained in the body of


17

the email) Business Expenses $168,254.93 Is that a commission? My

18

response was: Yes, did you receive the attachment to the breakdown. It lists

19

each and every item and the category is next to it. Business expenses include

20

my commission and that is why this is so high. Sorry. As a courtesy, due to


- 93 DECLARATION OF KELLEY LYNCH

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Cohens obsessive interest in the gifts he provided his family and friends, I
would break down his monthly expenditures (as they appeared on his personal
bank statement) for Cohen and email him this breakdown. This email between

Cohen and myself is highly relevant for a number of reasons. First of all, Cohen
4

is referring to his personal bank statements which were mailed directly to his

home. I did not pick up (or intercept) his mail at his home in Los Angeles.

He lived there and his daughter lived downstairs. Due to the fact that Cohen

was obsessive about the gifts and support he provided his family and others,

income and expenses, I would present him with monthly breakdowns of the
checks written. This was done purely as a courtesy. Cohen also personally

9
10

signed most of the checks (written against his account) that were included with
the statements and copies of all checks, incoming and outgoing wires, bank

11

overdrafts, Canadian drafts, credit card payments, automatic payments, and

12

other items were included (explicitly) with the statements. Another reason for

13

the relevance of this email is that it is dated September 16, 2004. As of


September 16, 2004, Cohen had reviewed his personal bank statement,

14

questioned an item on the statement, and I clarified what that expense was.
15

Cohen reviewed his statements each and every month and I, as a courtesy,

16

would email Cohen a summary showing items in categories he requested (such

17

as gifts to his adult children). The only irregularity Cohen stumbled upon in the

18

October 2004 was my decision to report what I felt was tax fraud to Internal

19

Revenue Service. Exhibit GGG: Kelley Lynch (tsimar) email to Leonard Cohen
(baldymonk) dated September 16, 2004 [Commission 1099 information].

20

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87.

City National Bank provided Stranger Management with a copy of

Cohens personal bank statement so that we had easy access when Cohens
accountants, business manager, or other representatives, requested

information. At no time, prior to September 16, 2004, did Cohen raise concerns
4

about irregularities with respect to this personal account. In this particular

email Cohen is referring to the commission I was paid for services rendered in

connection with the extremely long negotiations and advance related to the

2004 studio album, Dear Heather. I have received no actual royalty payments

or reports in connection with that album or any other income for my share of
intellectual property. The advance Cohen received was deposited directly into

9
10

Cohens personal City National Bank account and I was most certainly entitled
to a commission . Cohen personally confirmed that he was aware of that fact in

11

this email. However, Clause 21, of Kevin Prins declaration, in support of the

12

default judgment, states: As discussed above, no agreement existed between

13

Cohen and Lynch pursuant to which Lynch was to receive any income or
payments from Cohens personal checking account. My agreement with

14

Leonard Cohen, pursuant to my services as his personal manager, was 15% of


15

all gross income. Period. No caveats, no exclusions. Cohen steadfastly refuses

16

to provide me with a 1099 for commissions paid in the year 2004 (including

17

with respect to the amount listed in this email); the documents submitted to

18

this Court are confusing, obfuscate issues, are entirely fraudulent; and nothing

19

is properly addressed on the expense ledger. Furthermore, I believe I was


paid additional commissions from Leonard Cohen personally in the year 2004

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and he is the only individual in possession of that information. An additional


element of confusion has arisen because Leonard Cohen has taken the position,
in hindsight, that any checks made payable to me personally are not valid

Evidently, Cohen thinks he has the right to tell me how I should have checks
4

made payable to me. All checks were payable to me personally because

Stranger Management was a d/b/a. Leonard Cohen is an entirely controlling

and aggressive individual. City National Bank confirmed that they do not keep

records dating back this far. Exhibit HHH: Diane Baxa, City National Bank,

8
9
10

email to Kelley Lynch dated March 29, 2013.


88.

Leonard Cohen testified at my 2012 trial that his email account is

the same, baldymonk (aol). He also testified that he had never changed his
social security number and did not have a California drivers license. This

11
12

testimony raises additional problems. Cohen did indeed have numerous social
security numbers and, after Marty Machats death, asked his accountant to

13

resolve this situation. He is well aware that he had previously changed his

14

social security number. Cohen also testified that he does not have a California

15

drivers license. What he failed to address is the fact that, for the entire 20
years I knew him, he used his sisters New York address as his New York

16

drivers license address. Leonard Cohen has resided in California since 1993
17

and the Complaint confirms that he is a resident of Los Angeles. The California

18

DMV has the following rules for new residents to the State of California: If

19

you are a visitor in California over 18 and have a valid driver license from your

20

home state or country, you may drive in this state without getting a California
- 96 DECLARATION OF KELLEY LYNCH

1
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driver license as long as your home state license remains valid. If you become
a California resident, you must get a California driver license within 10 days.
Residency is established by voting in a California election, paying resident

tuition, filing for a homeowner's property tax exemption, or any other privilege
4

or benefit not ordinarily extended to nonresidents.

http://www.dmv.ca.gov/portal/dmv/detail/dl/dl_info. These matters are relevant

and material to the issues at hand because they prove that Cohen perjured

himself over the social security information (which I did not email around as

the prosecutor stated during my trial but did bring issues related to the his
numerous social security numbers to the attention of IRS as Agent Sopko

9
10

specifically advised me to do so) but it proves that even with something as


simple as a drivers license, Leonard Cohen feels that he is above the law. It is

11

Leonard Cohens sense of entitlement that has led to his overwhelmingly

12

preposterous situation. Fortunately, he has money and powerful and a team of

13

lawyers, and government actors, who appear willing to say or do anything for
him. Most Americans would be in prison by now. Exhibit III: Trial Transcript

14

(pages 301-303; 319)


15
16
17
18
19

PD: Okay. You also you never changed you know Ms. Lynch had information
regarding your drivers license and social security? Cohen: Thats correct.
PD: You never changed your social security number, correct? Cohen: Thats
correct. PD: You never changed your social security number? Cohen: NO, I
didnt change my social security number. PD: Or your California drivers
license? Cohen: I dont have a California drivers license? PD: Okay. Youve
never changed your email, correct? Cohen: Correct. PD: Its still the same
email, baldymonk, since youve been using since the 90s, correct? Cohen:
Thats correct. RT 301-303

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1
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3

Streeter: How come you havent changed your social security number? Cohen:
I dont think thats -- I dont think you can change your social security number.
RT 319

4
5
6
7

89.

I received what I viewed as an alarming email from Richard Westin

on September 24, 2004. Communications with Cohen, Westin, and Greenberg


were becoming increasingly bizarre, paranoid, and incomprehensible. This
email was particularly startling. In this email Westin addressed the tax return

he prepared, as Cohens tax and corporate lawyer, for LC Investments, LLC and
9

tax payments due. At this time, Westin was also handling the tax returns for

10

Traditional Holdings, LLC on Cohens behalf. This rather brief email ends with

11

the following remarkable statements: Incidentally, this year, I plan to stand up

12
13

and fight for you over your position in TH. Out of kindness (or something) you
got into that deal for LCs benefit and then Neal [Greenberg] tried to (pardon
me) fuck you. That has to stop. We need to put our heads together about that.

14

Perhaps I am wrong I hope so. I did not ask Westin for any details about this

15

matter; had already replaced Ken Cleveland with Dale Burgess as an

16

accountant; and had submitted paperwork to IRS confirming they were

17

permitted to discuss her personal tax matters with her new accountant. One

18

thing Greenberg and Westin differed over was whether I should receive nearly
100% of the profit or 50%, if I recall correctly. This occurred at some point

19

during the 2002 extended discussion between all parties including Cohen. This
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- 98 DECLARATION OF KELLEY LYNCH

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was particularly odd as this issue was addressed in the corporate records and
something they discussed with Leonard Cohen directly in 2002 when Lynch
inquired about the payments necessary to address the promissory note

requirements. That issue also caused quite a lot of hysteria on the part of
4

Cohen, Greenberg, and Westin. Westin advised Lynch, and he prepared the

corporate records, that the documents provided addressed profit and loss

sharing in accordance with Lynch and Cohens equity interests. At any rate, no

explanation was given for how Greenberg intended to fuck Lynch. Exhibit JJJ:

8
9
10

Richard Westin email to Kelley Lynch dated September 24, 2004.


90.

Richard Westins email of September 20, 2004 to Kelley Lynch (with

my original message of 9/20/2004 enclosed) addresses my position that Cohen


related entities do not have a business address at my office. This was an

11
12

ongoing situation and I was adamant about my position: There is no office for
this. I have an office here Stranger Mgmt. and LCI has a mailing address.

13

This is only a mailing address so this is not an office for LCI. And theres no

14

way you can make this an office. This is MY office. Westin wrote that it does

15

seem surreal, but California has a decent case for imposing its tax on the
entity. Frankly, it seems unlawful rather than surreal. Westin went onto state

16

that the reason for the decision to use my office address (for Cohen related
17

entities) was that the only office was mine, even though it is little more than a

18

mail drop, it is where the books and records are kept and mail is received,

19

including royalty checks. My business office is not where the mail was

20

received including royalty checks. The mail went, as Cohen and I agreed, to my
- 99 DECLARATION OF KELLEY LYNCH

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P.O. Box on Larchmont Blvd. That has now been turned into something sinister
as well so I do wonder if Cohen told the truth about his reasons for doing
anything throughout the years. Westin then raised the Franchise Tax Board, an

ongoing concern with respect to these entities, and argued that My advice is
4

to get the entity out of California by establishing some kind of mail drop office

in Nevada or maybe Delaware. I imagine CT Corporation Systems can do it

efficiently. I do it for my consulting company. I use a Nevada service and I hold

my breath hoping KY does not seek to tax the company. Leonard Cohen

refused to entertain the notion of a Nevada company although he appears to


have had one, Leonard Cohen Productions, Ltd., as early as 1972. The issues

9
10

addressed in this email were ongoing concerns about tax matters, state taxes,
and whether or not an office actually existed in California for LC Investments,

11

LLC. As of the date I filed the Motion to Vacate (August 9, 2013), this entity

12

continued to list me as the Registered Agent and my former PO Box as the

13

place of business. Leonard Cohen evidently decided to address that, after the
Motion was filed, and Robert Kory became the Registered Agent and his office

14

address is now the business address. I am evidently not permitted, according


15

to the response documents, to effect service upon the Registered Agent of an

16

LLC that transmitted fraudulent K-1s to the State of Kentucky and IRS

17

indicating that I am a 99.5% partner (Kentucky K1s) with no income for the

18

years 2003, 2004, and 2005. That information, in and of itself, proves that the

19

expense ledger is evidence of perjury, financial and accounting fraud. This


information was transmitted to Internal Revenue Service in an attempt to

20

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defend Leonard Cohen against the allegations that he committed criminal tax
fraud. Robert Kory was quite clear with Agent Tejeda when he wrote that my
prior comments were a nuisance but Agent Sopkos email was a game

changer. In any event, it is quite convenient that Leonard Cohen is able to use
4

fraudulent restraining orders to prevent lawful service of process, prohibit me

from requesting IRS required tax and corporate information, and/or prevent

Leonard Cohen from providing me with that information. It is particularly

convenient given the fact that the default judgment was entered against me on

May 15, 2006, does not appear to be retroactive, and some of the information I
have requested is for the years 2004 and 2005. Blue Mist Touring Company,

9
10

Inc. continues to list Lynch as its Registered Agent and her former P.O. Box as
its place of business. Traditional Holdings, LLC only seems to have an address

11

in Kentucky c/o Richard Westin, Cohens personal tax and corporate lawyer.

12

Exhibit KKK: Westin emails to Lynch dated September 20, 2004 (LCI Office)

13
14
15

91.

On October 6, 2004, adding to my sense of alarm, Richard Westin

provided me with a copy of a letter he sent to the Kentucky Revenue Cabinet.


The letter enclosed Kentucky Form 765 and two K-1s for Lynch and Cohen,
respectively. Westin advised the State of Kentucky that LC Investments, LLC is

16

owned by for the benefit of a person residing in California and The entitys
17

only contact with Kentucky is the formality of being organized here. There is

18

no income from Kentucky and none passes through Kentucky, nor is there any

19

property or payroll here. My ownership interest in this company is listed as

20

99.55%. The K-1 shows $0 income for the year 2003 from LC Investments, LLC.
- 101 DECLARATION OF KELLEY LYNCH

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Cohen, as Ive stated above, has steadfastly refused to address this matter. I
personally believe this mistake relates to the hysteria over California
Franchise Tax Board inquiries, demands, and notices. Exhibit LLL: Westin

letters to State of Kentucky; Lynch and Cohen) dated October 6, 2004.


4

92.

On or around December 6, 2000, I provided Richard Westin with a

power of that was limited in its terms of only giving authority to act on her
6

behalf in connection with filing documents to establish Traditional Holdings,

LLC. That was the extent of his authority to represent me. In all other matters

related to Leonard Cohen, Richard Westin worked solely for him and there were

no conflicts of interest. Leonard Cohen has attempted to argue that Richard

10

Westin and I were in some type of joint project. The argument is absurd and
blatantly false.

11
12

93.

After Dale Burgess and DiMascio & Berardo reviewed the

Traditional Holdings, LLC tax returns, I was advised that Cohen failed to report
13
14

the 2001 income from the Sony sale; in 2002 (using a separate tax ID number)
Cohen extinguished my promissory note; and, in 2003, Cohen extinguished the

15

private annuity obligation from the federal tax return. This was done without

16

my knowledge, awareness, or permission. Given the fact that Complaint in this

17

matter confirms that Westin failed to file State of Kentucky tax returns on
behalf of Traditional Holdings, LLC, it is of interest to note that the 2003

18

federal tax return contains what appears to be a State of Kentucky return for
19
20

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1
2
3
4

this entity. I have attached hereto relevant pages from those tax returns.
Exhibit: LLL-1: 2001, 2001, and 2003 Traditional Holdings, LLC tax returns.
94.

On November 13, 2004, Dianne DiMascio wrote Robert Kory. At

that time, he evidently took over the full representation of Cohen from
Greenberg, Glusker who had been discharged. My lawyer addressed the fact

that City National Bank has placed a freeze on all of the accounts held by Ms.
6

Lynch, as well as the bank account of Ms. Lynchs son at City National Bank.

DiMascio pointed out that I had made a payment to IRS, based on a previously

arranged installment agreement, and the check bounced although the funds

were in my account which is beyond outrageous. The letter confirms that

10

DiMascio & Berardo understood that Cohen had been in contact with Ms. Marie
DeMirdjian of City National Bank about my bank account, based upon

11
12

comments he made to Lynchs lawyers when he met with them on or around


October 30, 2004. I have no further details about that conversation. I was told,

13

by my lawyers, that Cohen attended the meeting with Richard Westin, as his

14

personal legal representative, as well as Riccardo Cestero of Greenberg,

15

Glusker. At that meeting, Richard Westin was evidently asked Why didnt you
set this up legally and he replied This is how we do things in Kentucky.

16

Therefore, one can safely assume that this entity (and possibly the annuity
17

itself) is illegal. The letter confirms that the freeze was placed on my account

18

at the BEHEST of Mr. Cohen but that does not explain the freeze her sons

19

account. The letter also confirms that Kory agreed to contact Ms. DeMirdjian

20

on Monday and demand that the freeze on all accounts be lifted immediately.
- 103 DECLARATION OF KELLEY LYNCH

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It is important to note that I was forced to ask her lawyers to address Leonard
Cohens harassment of her parents. Only two weeks earlier Cohen had written
my father to say his work was impeccable. That changed when he could not

coerce me into entering into a settlement agreement, or unraveling these


4

entities, and decided to up the ante by making false allegations about her

parents. Exhibit MMM: DiMascio letter to Robert Kory dated November 13,

2004 (CNB account freeze).

95.

On November 20, 2004, I received an inconceivably evil notice in

the mail from the United States Postal Service advising me that the Postal

Service received a change-of-address order asking them to forward mail from

10

my home address (for my business, Stranger Management). I had not filed this
change-of-address with respect to my mail. I phoned USPS and was advised

11
12

that address the mail was being forwarded to was Leonard Cohens home
address in Los Angeles. I received Confirmation #OR18421598 regarding this

13

mail fraud. The tactics used against me have been utterly abusive and, at

14

times, unlawful. Exhibit NNN: USPS Mail Fraud Notice & Confirmation

15
16
17

No.OR18421598.
96.

My January 5, 2005 email to DiMascio & Berardo, and my

accountant (Dale Burgess), addressed financial and accounting fraud with


respect to Cohens expense ledger and an inordinate amount of highly

18

questionable items being placed in Lynchs column. Leonard Cohen was not
19

interested in participating in an actual accounting that would include corporate

20

- 104 DECLARATION OF KELLEY LYNCH

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2

ownership interests, proper financial statements, assets, liabilities, and


equities. What the Court should pay specific attention to is the fact that
millions of dollars were randomly placed in my alleged column when these

amounts were not paid to me and had nothing whatsoever to do with me. I
4

literally spent months researching and refuting this information and take great

offense at Cohens deceitful comments that I refused to provide him with an

accounting. Leonard Cohen refused to provide my representatives with royalty

statements, bank statements, agreements, and other information necessary to

prepare an actual accounting. This particular email alone addresses hundreds


of thousands of dollars that actually went to Leonard Cohens account. These

9
10

amounts were simply assigned to my column. At one point, Anjani Thomas and
Adam Cohens homes (Cohens girlfriend and son) were listed in my column.

11

This email also addressed the fact that income or amounts alleged to belong to

12

the revocable family trust (solely for probate purposes) are actually items that

13

relate to Leonard Cohens personal CNB account. Leonard Cohens personal


bank account was not part of the revocable family trust and this is evidence of

14

further fraud. The perjury and fraud related to this particular matter alone is
15

so extensive that it would literally take every lawyer and accountant at the IRS

16

and DOJ in Washington, DC to address it properly. Exhibit OOO: Kelley Lynch

17

email to DiMascio & Berardo dated January 5, 2005 (accounting fraud re.

18

expense ledger).

19
20

97.

On February 7, 2005, after months of negotiations and discussions

between Cohen and Lynchs lawyers and accountants, Dianne DiMascio sent
- 105 DECLARATION OF KELLEY LYNCH

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2

me a privileged letter regarding a meeting she attended with Robert Kory.


While I advised my lawyers NOT to provide Cohens representatives with any
documents until there was a formal discovery phase, this letter confirms that

Kory continued to review documents we provided back in November 2004.


4

Lynch is unaware of the documents that were provided to Kory but the letter

goes onto state that We asked for copies of what they have received from

Leonard and they will provide those documents to us. This was clearly a lie

and no documents were ever provided to us. That would include all documents

necessary to prepare a proper forensic accounting. Kory evidently advised


DiMascio that Cohen wanted to settle but came up with some inane position

9
10

that I merely had a show proof that the monies were not hidden in a foreign
bank account. This was and remains a ruse to obfuscate issues. It is my belief

11

that the letters sent to my lawyers, and myself, are nothing other than a paper

12

trail to be used to defend Leonard Cohen. It also was a fabricated narrative

13

used to unlawfully gain access to my personal bank statements which were not
needed for the expense ledger or an accounting for that matter. I have

14

advised Cohen and his legal representatives not to destroy my bank statements
15

and notified them that I will sue over any spoliation issues. Kory, according to a

16

private conversation I had with accountant Ken Cleveland, repeatedly asked for

17

copies of my tax returns. Perhaps they also planned to blackmail me over them.

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Obviously, Robert Kory is not the Internal Revenue Service so he must have

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been looking for something specific with respect to my returns. The Traditional
Holdings, LLC assets were dissipated and Leonard Cohen should explain his

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position with respect to the nearly $6.7 million in loans (including expenses
paid on his behalf that he authorized) he personally received. Of course, Kory
has attempted to argue that while Leonard Cohen had a right to receive loans

(or expend monies), I had no authority to authorize them. I was provided with a
4

broad and durable Power of Attorney and when Cohen took a loan, I was legally

authorized to provide them. I also didnt have to forge checks because I had

a broad and durable Power of Attorney. That does not explain why checks were

made payable to my name and then also listed f/b/o Leonard Cohen. I

personally believe this is further evidence of some type of plan on the part of
Cohen and his representatives and have asked IRS to review that matter very

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carefully. Additionally, Leonard Cohen (who is a highly literate individual)


signed the Annuity Agreement and understood that Traditional Holdings, LLC

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was permitted to provide him with loans or advances. In addition to a simple

12

confirmation that she didnt place funds in off-shore accounts (something my

13

parents were wrongfully accused of as well in order to pressure me and coerce


false testimony from me), they wanted my cooperation in pursuing the Agile

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Group and Richard Westin. In this regard, they seem to want you to
15

acknowledge that you knew that Neal and Richard wanted to defraud Leonard

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and that you approved their conduct. The mere notion is absurd. Cohen and

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Kory, both of whom I spoke to privately about these matters, wanted me to

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testify that Neal Greenberg and Richard Westin defrauded Leonard Cohen.

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They would have had a snowballs chance in hell of coercing me into saying I
approved of any type of fraud. I most certainly did not. If I was interested in

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fraud, I would have entered into a settlement agreement with Leonard Cohen.
I was also told, by Robert Kory, that they were going after Greg McBowman and
members of the Grubman, Indursky law firm for fraud in the inducement. At

lunch, in or around May 2005, Robert Kory personally advised me that I had a
4

cause of action against every one of Cohens representatives and they would

help me pursue those claims. Kory alleged to have evidence that does not exist.

This is how Leonard Cohen, Robert Kory, Michelle Rice, and possibly others,

operate. They also distort evidence and make up facts. Exhibit PPP: DiMascio

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&Berardo letter to Kelley Lynch dated February 7, 2005.


98.

In the aforementioned letter, DiMascio emphasized that I owned

99.5% of Traditional Holdings, LLC. That is correct. The default judgment


does not change that fact. The default judgment does not actually change any

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facts. It is evidence of theft. Leonard Cohen has also alleged fraud and
rescission due to the fact that he had to unwind these transactions and find a

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narrative for Internal Revenue Service. Michelle Rice, co-counsel in this case,

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was very transparent when she testified as follows: But, as you know, you can

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make any kind of allegations in a Complaint. When I reviewed the attorney


notes I was provided from my 2012 trial, I noticed that public defender Nikhil

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Ramnaney (who I believe attempted to represent me properly but did not have
17

the facts straight and did not have the time to represent me properly) focused

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on this particularly telling comment as well. I personally disagree with Ms.

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Rices theory and I know for a fact she is willing to lie as unpleasant as that

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word may appear. I would also be interested to know who the 50 Does were.
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Clearly, Cohen and his legal representatives believed that there were
approximately 50 people at fault and yet I do not see any evidence of one other
actual defendant apart from Richard Westin. It is also highly problematic that

Neal Greenberg was not a defendant in this case. I recently discovered that
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Leonard Cohen filed some type of case in the U.S. District Court in Los Angeles,

California that may have involved some type of arbitration with Greenberg. I

have no further details but do find it rather strange that the Colorado lawsuit

really only seemed to substantively argue attorneys fees.

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99.

DiMascio ends with comments about TH Tax Returns. Cohens

Complaint confirms that his personal tax lawyer, Richard Westin, failed to file
Kentucky state tax returns. It is my personal opinion that Robert Kory
attempted to con my lawyers when he acknowledged that he did not know if

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any federal TH tax returns were filed and, if they were, he does not know which
one was filed for the 2001 tax year the one dated March 3, 2001, March 5,

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2001, or March 9, 2001. Why would Cohen and Kory bring former IRS

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employee Mike Mesnick on board to sort out IRS and tax issues if they were not

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in possession of the tax returns? The most alarming aspect of DiMascios letter
is the statement that: Neither Kory, nor David, and myself feel comfortable

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contacting the IRS for copies of filed tax returns as we do not know whether
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this will alert the Service to possibly inquiry into TH. We all agreed that we

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want to avoid this result. It seems rather bizarre that IRS would become

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alerted to Traditional Holdings, LLCs failure to report $8 million in income

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through a simple request for a copy of the tax returns. In fact, Leonard Cohen
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now seems convinced that IRS is uninterested in this blatant failure to report
income. Hes evidently hedging his bets. The letter ends with DiMascio
advising Kory to look closely at the Indemnity Agreement for TH before

taking a position with respect to indemnification. I asked for, and received, an


4

Indemnity Indemnity Agreement well in advance of the closing of the 2001 TH

deal. Leonard Cohen and I personally discussed my interest in this document

and he authorized Westin to prepare this document. Evidently it is merely

another agreement that Leonard Cohen believes he can willfully disregard,

breach, and/or explain away. The following excerpts from my 2012 trial relate
to Leonard Cohen and Michelle Rices testimony. That would include the

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mistake Westin evidence rectified and Michelle Rices understanding that a


restraining order prohibits her from transmitting tax documents to me but does

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not prevent her from emailing me and advising me that I must use the

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discovery process in this case to obtain IRS required tax information. Exhibit

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QQQ: Trial Transcripts (pages 351-358)


PD: Now I want to talk to you about this issue in 2004. You had a financial
crisis, correct? Cohen: Thats right, Sir. PD: And you you had a company
thats called Traditional Holdings, correct? Cohen: Correct. PD: Now, this
company, you created this company before you sold copyrights to Sony, correct?
Cohen: I dont know. PD: Okay. Do you know why you created this company?
Cohen: No, not really. PD: Okay. SO you had no involvement with the creation
of the company? Cohen: It wasnt it was it was created in some some tax
purposes. I asked two questions when it was created. I asked: Is it legal and
it is safe? PD: And what were the answers to those questions? Cohen: The
questions answers were yes and yes. But, Sir, all these matters PD:
Objection; no question pending. Court: Just wait for a question. PD: Now, you
agree with me that you created this company, Traditional Holdings, for tax
purposes, correct? Cohen: I dont know, Sir. It was created and I asked two
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questions concerning the creation. PD: Okay. 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 lawyers name? Cohen: Richard Westin. PD: And you had arbitration
with him? Cohen: Thats correct. PD: And when did you have that
arbitration? Cohen: I dont remember the exact date. I think it was perhaps
2007. PD: Now, you learned in 2004 that your that the account that
Traditional Holdings account, the money that you were running low, correct?
Cohen: It was running low PD: That funds in that account, that Traditional
Holdings account, they were running low, yes or no? Do you remember that?
Cohen: I - I discovered that they were being dissipated. PD: Okay. Now, you
panicked correct? Cohen: I was concerned, yes. 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: Thats correct. PD: To buy a house for your girlfriend?
Cohen: Yes. Kelly: Okay. So you -- its fair to say that you did take money
from that account? Cohen: Thats correct, Sir. PD: You were aware enough
about that account to know that you could take money from that account?
Cohen: Thats correct. PD: Now, isnt it true that well, before I go there, do
you blame well, you actually had a financial consultant who invested the
money in that account, correct? Streeter: Objection; relevance. Court: Let
me see counsel at sidebar. RT 285-288

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PD: Now, Ms. Rice, Im going to show you this email. Do you recognize this as
the same email that you sent to Ms. Lynch? Rice: Yes. PD: And the portion of
the email I believe theres some extraneous forwards in that Rice: Uh huh.
PD: -- to Ms. Streeter, and Mr. Streeter sent that to me. But in the portion that
you drafted to Ms. Lynch, do you see a bracketed portion that Ive highlighted?
Rice: I do. PD: Could you read that portion out loud, please? Rice: It says,
Through the Full Faith & Credit Clause of the United States Constitution,
protect orders issued by a sister state, in this case Colorado, are recognized
and fully enforceable in any jurisdiction in the United States. Mr. Cohens
protective order is registered in the State of California and will be fully
recognized and enforced by California law enforcement. I want to take this
opportunity to remind you that the Colorado order never expires and can only
be canceled or modified by the Court from which it was issued. PD: Thank
you, Ms. Rice. Now, again, you sent this email on February 14th; is that correct?
Rice: Correct. PD: Okay. And you didnt actually file the Colorado order in
- 111 DECLARATION OF KELLEY LYNCH

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California until May 25th, which is approximately three months later; is that
correct? Rice: That is correct. PD: So you told Ms. Lynch that you had filed it
when in fact you hadnt at that point. Rice: Well, at that point we were actually
doing research, legal research regarding how to file it in the State of California.
And I was actively involved in the research portion, and we were going to file
that you know, around the time that we said that we were going to file it in the
date of that email, February 14, 2011, because it was. PD: Thank you. So you
were doing research, you said, but you had not actually filed it yet? Rice: That
is technically correct, yes. PD: And you didnt actually file it until
approximately three months later in Superior Court? Rice: That is correct.
PD: Now I want to take you back to the actual permanent restraining order
hearing in Colorado. You said you were present during that hearing; is that
correct? Rice: I was. PD: And Mr. Cohen was also present during that
hearing? Rice: Mr. Cohen was not at the permanent restraining order hearing.
He appeared and testified for the preliminary hearing which was August 15th.
PD: Okay. Were you there on that hearing? Rice: I was. PD: Now, for that
permanent hearing, were you the only other person present as a witness? Rice:
No. Mr. Kory was there as well. PD: You and Mr. Kory together, and another
attorney, Mr. Steinberg; is that correct? Rice: Harvey Steinberg was the
Colorado counsel. Im not admitted in Colorado, so we had to retain local
counsel. PD: Now, you observed this entire proceeding as it occurred? Rice:
Yes. PD: And Ms. Lynch was also present. Rice: She was. PD: Okay. Now, is
this the first time youve met Ms. Lynch? Rice: No. PD: When was the first
time you met her? Rice: She came to our office a couple of times [one time
perjury]. PD: When did she come to your office? Rice: I believe it was
probably Spring of 2005. PD: And both occurrences were in Spring of 2005
that she came to your office? Rice: One may have been in the summer of 2005.
PD: So both in 2005? Rice: Well, there was a third one, yet another
proceeding that, yes, I had occasion to interact with Ms. Lynch, yes. During
2005 PD: And even though you were there to testify at this permanent
hearing and evidentiary hearing, it didnt actually take place; isnt that correct?
Rice: That is correct. And it was at Ms. Lynchs insistence that the evidentiary
hearing not proceed. RT 351-354 PD: But isnt it also true that Ms. Lynch,
during that proceeding, asked the judge if she could attack this restraining
order at a later date and he told her he couldnt give her legal advice; isnt that
correct? Rice: Correct. It was actually a female judge. It was Carolyn
Enichen. RT 355 PD: Isnt it also true that Ms. Lynch asked the Court, in open
Court, whether or not or whom she could direct inquiries regarding any
ongoing litigation because Mr. Cohen and her were in litigation at that point?
Rice: That is incorrect. There was no ongoing litigation at that point. By the
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point when we had the 2008 permanent restraining order haring, the default
judgment had been rendered by the LA Superior Court in May of 2006.
Perjured Testimony Judge Babcocks Opinion in the Colorado matter was not
rendered until September 5, 2008. This hearing was September 2, 2008. This
is a very serious material lie. There are also very serious federal tax and
corporate matters outstanding. PD: Okay. Was there also a case in in
Federal District of Colorado between Mr. Neal Greenberg against both your
client, Leonard Cohen, and also naming Ms. Lynch as a defendant regarding
the same issues that surrounded the end of their business relationship? Rice; I
believe that the Federal District Court action was also concluded by the time
the permanent restraining order, but I again, Id have to look there. But we
filed a motion for summary judgment on behalf of Mr. Cohen in May of 2008.
The September 2008 hearing was sixth months later. PD: So there was
litigation in 2008 where Ms. Lynch was a party, Mr. Cohen was also a party and
it was in the State of Colorado; it that correct? Rice: In 2008, correct. But by
the time the permanent restraining order hearing concluded, that action had
concluded with regard to Mr. Cohen. RT 355-357 PD: And you were an
attorney of record in the federal case? Rice: I was. RT 357 PD: So you were
familiar with the pleadings of that case and the procedural posture of that
case? Rice: It is to the best of my recollection that Ms. Lynch never made an
appearance in that lawsuit. She never answered any complaint that Mr.
Greenberg filed. She you know, this was a multiyear litigation matter that I
only became attorney of record for Mr. Cohen in the later stages of that. Prior
to that, he had Colorado counsel, Jay Horowitz. PD: But indeed the nature of
the allegation in that lawsuit involved very heavily the relationship between Ms.
Lynch and Mr. Cohen; is that correct? Rice: No. I would characterize the
litigation in that way. RT 357 PD: How would you characterize it? Rice: I I
mean, basically, the investment firm sued Mr. Cohen first, and I believe Ms.
Lynch was only made a party later in the proceeding. So I would characterize
it as basically primarily between the investment adviser and Mr. Cohen in the
beginning stages. He also sued Mr. Kory. PD: But isnt it also true that in that
allegation of that lawsuit that Ms. Lynch, Mr. Cohn and Mr. Kory were engaged
in civil extortion and fraud against the Plaintiff in that case, Mr. Greenberg?
Rice: That is what they can state in the Complaint. But, as you know, you can
make any kind of allegations in a Complaint PD: And they named Ms. Lynch
as one of the conspirators in that civil conspiracy; is that also correct? Rice: I
dont believe Ms. Lynch was named as a co-conspirator. RT 358

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100. On February 11, 2005, Robert Kory wrote Dianne DiMascio. He


allegedly made substantial progress on the tax analysis. This letter takes the
position that Kory does not believe Leonard has any material exposure, though

depending on how we handle Traditional Holdings, he may have some tax


4

liability if and when loans to him from Traditional Holdings are forgiven.

Leonard Cohen personally hired Richard Westin who prepared the federal tax

returns. Those tax returns, for the years 2001, 2002, and 2003, failed to report

the income from the 2001 Sony sale; extinguished my promissory note in 2002;

and extinguished the annuity obligation in 2003. This was brought to my


attention by my lawyers and accountants in the fall of 2005. Clearly, I

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personally have no exposure with respect to the tax returns because I has no
expertise in tax matters and was quite clear with Cohen, Westin, and others,

11

that I did not handle tax, financial, accounting, legal, corporate, or IRS matters.

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All income must be reported to the Internal Revenue Service on an annual tax

13

return. In fact, Internal Revenue views unreported income as potential tax


fraud activity. Exhibit RRR: Kory letter to DiMascio dated February 11, 2005

14

(Traditional Holdings, LLC problematic loans to Leonard Cohen).


15

101. On May 2, 2005, Steve Lindsey, Lynchs younger sons father, sent
16

an email advising me that Robert Kory is not my lawyer. Kory had evidently
17

phoned Lindsey, who he did not know, in a last ditch attempt to have you settle

18

this. I thought it was probably the best thing to do. But its your life, sorry I

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tried to help. He told me today and before you were going to jail, so reluctantly

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I talked to him and Leonard about having my father help out. Sorry, I thought
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you were in over your head since he told me you dont have that attorney you
said you did. Leonard Cohen and Robert Kory certainly became emboldened
after I was briefly represented by Bert Deixler. Bert Deixler personally advised

me, after reviewing the evidence she left with him, that he could walk me into
4

the Attorney Generals Office and have the poet arrested. This email is

evidence that Leonard Cohen and Robert Kory evidently thought threatening

me through my younger sons father was an appropriate negotiating tactic.

Approximately three weeks after this attempt to threaten me into a settlement

agreement, a custody matter would be coordinated. Exhibit SSS: Steve


Lindsey email to Kelley Lynch dated May 2, 2005.

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102. On May 25, 2005, a SWAT incident occurred at my home that was
featured in Ann Diamonds draft article for Rolling Stone. This incident arose

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because I, as was my right, elected to keep my younger son home from school
due to the fact that he was not feeling well. Steve Lindsey was relatively

13

hysterical at this moment in time. He was in a new relationship with Dinah

14

Englund; they had a new baby; and he had extreme financial concerns. The

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Natural Wealth lawsuit confirms that Leonard Cohen, Robert Kory, Steve
Lindsey, and Betsy Superfon conspired to have me falsely arrested on this date.

16

That would seem self-evident given the fact that the SWAT and Killer King
17

matters have been used against me in connection with the coordinated custody

18

matter and raised in connection with fraudulent restraining orders and during

19

my 2012 trial. The bottom line is this: I kept my son home from school. At

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some point that morning, I asked my older son to pick my younger son up and
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drop him off at the bottom of the hill with his father who I did not want on my
property in the extremely aggressive mental state he exhibited on the phone.
Lindsey demanded that he be permitted to pick my younger son up and take

him to school. My older son did indeed pick my younger son up but the party
4

waiting at the bottom of the hill for my younger son was actress Cloris

Leachman, the mother of Dinah Englund. Rutger dropped Ray off with

Leachman and saw Steven Lindsey and approximately 7 or so squad cars racing

up the hill to my former home on Mandeville Canyon. Rutger had just been

with me; spoke with Lindsey moments before and was told he was in Beverly
Hills; and understood that I was alone in my house and his brother was no

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longer there. Rutger and his friend, Evan Reiss, returned to our home and
what unfolded thereafter is inconceivably outrageous. Approximately 20-25

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armed men were in front of my home; at times they had my son in front of their

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weapons; and they willfully disregarded his statements that I was home alone;

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he had taken his brother down the street; and chose to rely on Steve Lindseys
statements while willfully disregarding Rutgers. Evan Reiss was also with

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Rutger when he picked Ray up. At that time, Rutger took the phone from Rays
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hand, handed it to me, put Ray in the car, and I confirmed this for Lindsey who

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was on the other end of the phone and hung up. Therefore, Lindsey was well

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aware that Ray was not on my property and our son was being driven down the

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street to meet him. I have not seen the police reports related to this incident;

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advised DOJ, IRS, and FBI that I believe they should obtain these documents;
but understand, from conversations Ive had with West LAPD, that the police

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heard that shots were fired. No shots were fired; I did not have access to my
sons rifle in his separate locked guest house; and the rifle was legally
registered and not a reason for SWAT to descend on my home. As the Court

should understood, the people of the United States have second amendment
4

rights. I personally felt that my son, who was over the age of 18, should learn

safe fire arm handling procedures and saw nothing wrong with his going to a

gun club to learn to handle a rifle. I also was very demanding about the fact

that, given the fact that we had a minor in our home, the rifle had to be locked

in Rutgers guest house; locked in his closet; and locked in a case so that there
were numerous obstacles preventing my younger son from gaining access.

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Furthermore, the bullets were not kept in the same vicinity as the gun. In any
event, this situation evidently disturbed Steve Lindsey although he had no

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problem whatsoever insisting that we purchase a handgun after the riots in Los

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Angeles. I had problems with that and ultimately decided, after Lindsey and I

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separated in 1997, that I did not want a hand gun in my home and gave it to
him. He was well aware of that fact. I thought my dogs, some of which were

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highly trained guard dogs, were much better protection. Evidently, LAPD felt
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the same because Rutger assured these officers that I was in the house alone;

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his brother was no longer present; and I had no access to his rifle. That did not

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deter these individuals. Rutger was advised that Inglewood PD was present.

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At various times, he was advised that these officers would shoot me, shoot my

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dog, he could stay and watch, or they would take him somewhere. From my
perspective, Rutger was used as a hostage negotiator, human shield, and

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placed in a very dangerous situation. At no time was I asked to come out of my


house. At no time did anyone come to my door. At one point, I was absurdly
asked what my hostage demands were although the officers were told that I

was in the home alone. At another point, Rutger asked if I would like a
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cigarette and, from what I could tell, was in front of many armed men. I,

therefore, came out of my house, with my dog on my leash, and asked Who is

my hostage? My dog? I think its important to note that I was also in my

bikini and these officers could clearly see that I did not have a weapon and

posed no threat to them. In any event, the situation ended with LAPD rushing
my backyard; illegally detaining me in handcuffs; and transporting me nearly 3

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hours (in traffic) to King Drew based upon their obscene position that I might
be dangerous to myself or others while surrounded by armed men who willfully

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disregarded the facts of the situation. Ultimately, Rutger was advised by some

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of these officers that my dog was my hostage and they were taking precautions.

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After I was removed from my home, Steve Lindsey (who had left earlier)
phoned Rutger to ask him to go into Leonard Cohen/Robert Korys office to sign

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over or transfer my house to them. Lindsey advised Rutger that he would be


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compensated and Lindsey would be provided with money to care for us. Rutger

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immediately phoned his father, was advised to consult with a lawyer, and

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decided not to respond to any further calls Lindsey made. Exhibit TTT: Ann

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Diamond (draft article for Rolling Stone).

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103. While this scenario was unfolding, I was taken to King Drew,
questioned about Phil Spector en route, asked about any gun incidents that
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involved Mr. Spector, and advised that this would be good for me when I
questioned why I was being taken so far from my home in Brentwood and
whether or not King Drew would place me in a dangerous environment. I

attach hereto the first page of the King Drew report related to that incident.
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The Court should note that my name, as usual, is misspelled; my religion is

listed as Christian while I am a Buddhist; the birth place is listed as California

when I was born in Pennsylvania; the original date of birth is listed as August 5,

1985 (and crossed off after I advised King Drew on the phone later that my date

of birth was 1/27/57); the original social security number listed is not mine (and
was crossed off after I advised King Drew on the phone later that this was not

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my social security number); and the Medical identification number is not mine.
This file does not represent me. The entire file is fraudulent. I was advised by

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the Social Security Administration that the original social security number used

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relates to someone whose name is similar to Kelly Lynch but is not Kelly

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Lynch. I was also advised by SSA to file a criminal complaint about this matter
which I have done. Obviously, I have asked IRS, FBI, and DOJ to thoroughly

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investigate this situation. I have repeatedly attempted to gather facts about


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this incident but have been stonewalled every step of the way. The incident

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was addressed, together with matters related to Leonard Cohen, tax fraud,

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harassment, etc. in a September 2009 letter I sent to Phil Spectors prosecutor

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Alan Jackson. This letter was hand delivered to former DA Steve Cooley, DDA

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Alan Jackson and DDA Truc Do, two of the prosecutors in the Spector case.
This is a very serious incident; led to the loss of custody of my younger son (via

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default judgment); has been used by Leonard Cohen to obtain a 2005


fraudulent restraining order; and continues to be used to discredit me. I
personally think it should horrify people rather than serve to discredit me. One

tactic that has been used against me repeatedly is character assassination. I


4

can assure this Court that calling me a drunken slut, and other names, will not

deter me from seeking appropriate legal remedies and addressing the truth of

this obscene scenario. Exhibit UUU: King Drew May 225, 2005 fraudulent

report.

Lindsey Declaration Custody Matter May 25, 2005 (coordinated with


SWAT Korys Declaration)

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Page 2: Until approximately October, 2004, Respondent worked as a manager


for singer/songwriter/poet Leonard Cohen. However, she was terminated due
to suspicion that she stole over $8 million from Mr. Cohen. It is my
understanding that over approximately the past seven months, Mr. Cohen and
his attorney, Robert Kory, have been attempting to negotiate with Respondent
to avoid filing a lawsuit.

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Mr. Korys attempts at negotiation have been without success, and he in on the
verge of filing a complaint against Respondent. A criminal action may also be
brought against Respondent, and she has told me that she may face time in jail.
LIE. ATTACH HIS EMAIL WHERE HE SAYS KORY TOLD HIM THAT.

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Page 3: LAPD Lindsey called. 20 officers around the house. LAPD asked
Lindsey to go to the house. One officer asked if she kept any guns. Rutger
said he owned one but it was in the guesthouse.
Page 4: Confirms that he approached me and told me to contact Cohen to
negotiate a deal.

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Page 5: Lindsey received a phone call from Kory informing him that KL and
Ray had come to his office unannounced, and Respondent was exhibiting
strange behavior such as interrogating Ray.

Exhibit VVV: Trial Transcript (pages 293-297)


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5

Cohen Testimony at trial 2012:

PD: Now, I also want to talk to you in 2005 there was a custody issue with
Ms. Lynch and her son, Ray, Ray Lynch. Do you remember that? Cohen: I
know there was a custody issue. PD: Okay. Now, you now that the police came
to her house, correct? Cohen: Yes, Sir. PD: And her son was given to her
father, correct? Cohen: Do you mean at that moment? PD: Around that time,
yes, in 2005. Cohen: Do you mean when the police came to her house, her son
was given to father or subsequently? PD: Subsequently. Cohen: I Im not
completely aware of the details of that custody battle. PD: Okay. But you were
aware that the police was at Ms. Lynchs house, correct? Cohen: Thats
correct. PD: Do you know how the police got there? Cohen: I believe it was
Ms. Lynch called them. PD: You believe Ms. Lynch called them? Cohen: Yes.
In one of her domestic partners emails, he says that You yourself called the
police. PD: And when was this Cohen: Otherwise thats thats the only
information I have about the police. PD: When was that email that youre
referring to? Cohen: I dont remember. PD: Can you give an estimate?
Cohen: 2005. PD: Okay. You actually wrote a declaration in 2005, correct?
Cohen: No, Sir. PD: You never wrote a declaration in 2005? Cohen: No. PD:
May I approach? Court: Yes. PD: May I approach the witness? Court: Yes.
PD: Let the record actually, I believe shes marked this already.

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Defense Exhibit A Leonard Cohen 2005 Declaration [in support of 1st


restraining order?]

18
19
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Court: Whats the title of the document, Mr. Kelly? PD: Defense A will be the
it will be a declaration of Leonard Cohen. Do you recognize that document I
just gave you? Cohen: All those things are correct. PD: Okay. And you
actually wrote that declaration in 2005, correct? Cohen: Yes, Sir. PD: Okay.
- 121 DECLARATION OF KELLEY LYNCH

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5
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No in that declaration you say that on May 25, 2005, LAPD responded to a 911
emergency call at Ms. Lynchs resident. Cohen: Thats correct. PD: How did
you know that information? Cohen: Ms. Lynch wrote hundreds of emails about
that incident. PD: And in in 2005 she wrote hundreds of emails? Cohen:
Over the years shes written hundreds, if not thousands, of emails about that
particular incident. PD: But, you wrote this in October of 2005, correct?
Cohen: Yes, Sir. PD: So she wrote hundreds of emails between? Cohen: I
dont know how many emails she wrote in that period. PD: Okay. Isnt it true
that your attorney wrote a declaration in her custody issue? Cohen: Thats
true, yes. PD: Okay. So your attorney got involved in Ms. Lynchs custody with
her son, correct? Cohen: Yes, after an incident in my attorneys office. PD:
Okay. So thats correct? Cohen: Yes, Sir. PD: And you also said in your
declaration that Ms. Lynch had a psychiatric evaluation? Cohen: Thats true.
PD: How did you know that information? Cohen: Ms. Lynch wrote about that
in her emails. RT 293-297

141. On June 5, 2005, Natural Wealth Real Estate, Inc. (Neal Greenberg

10

and other Greenberg companies) sued Leonard Cohen and Robert Kory.

11

Leonard Cohen had to confront and defeat Neal Greenbergs allegations that he

12

and his lawyer, Robert Kory, engaged in improper and criminal conduct

13

including bribery, intimidation of a witness (Lynch), witness tampering,


extortion, coercion, mail fraud, wire fraud, legal conspiracy, racketeering,

14
15
16
17

subornation of perjury, defamation, and disparagement. See Motion Exhibit 2


(Greenberg Amended Complaint; Factual Statements.)
104. On August 3, 2005, while representing myself and before this
retaliatory lawsuit was filed, I wrote Leonard Cohen (baldymonk) and Robert

18

Kory (rkory@rbklaw.com) confirming that I had notified Agent Betzer of IRS

19

that I was going to the IRS Criminal Investigation Unit. The email also advises

20

Cohen and Kory that both IRS and the Kentucky Revenue Cabinet told me they
- 122 DECLARATION OF KELLEY LYNCH

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view Traditional Holdings, LLC as a partnership. I ask Cohen and Kory if the
actual problem is the fact that Cohens lawyer failed to report the gross income
on the 2001 TH tax returns; extinguished my promissory note in 2002; and

extinguished the annuity obligation in 2003. This letter also confirms that the
4

reason Cohen and I parted ways was due to the fact that I refused to meet with

Cohen and Westin and unravel this entity (and other matters) without my own

representation. The letter notes that once my lawyers wrote Cohen and Westin,

on October 27, 2004, the blackmail began. I close this letter by asking Cohen

why he and his representatives intentionally dragged me into tax fraud. I have
not received an answer yet but I assume this lawsuit is part of their response.

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Exhibit WWW: KL email to Cohen & Kory dated July 30, 2004 & August 3, 2004
(advising them that I have reported the allegations that Cohen committed
criminal tax fraud).
105. On August 15, 2005, Leonard Cohen and LC Investments, LLC filed
the Complaint in the instant matter.
106. On August 24, 2005, the proof of service related to the Summons
and Complaint was filed with this Court and it is evidence of fraud.
107. On October 11, 2005, Leonard Cohen filed the Complaint in Related

17

Case No. BC341120. Jeffrey Korn has provided me with numerous documents

18

filed in that matter but refuses to provide me with the proof of service related

19

to the Complaint and/or Steve Lindseys declaration. Steve Lindsey had not
seen me in over 5 months and we had not lived together since 1997. Therefore,

20

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any declaration Lindsey provided with respect to what I stored for Leonard
Cohen as a courtesy, including in my garage, is entirely irrelevant and no doubt
misleading. I did hear Michelle Rice, standing in my garage, discuss Steve

Lindsey on her cell phone with someone when she accompanied the Los
4

Angeles Sheriffs Department to my home to retrieve Leonard Cohens

abandoned property that he failed to make arrangements to pick up after

being advised, by my lawyers, to do so. I do not have time to address the

fraudulent misrepresentations or potential perjury in the related case. In the

spring of 2010, Judge Freemans court reporter brought the separate related
case to my attention.

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108. On November 14, 2005, Tactical Allocation Services, LLC (a Neal


Greenberg company) filed an Ex Parte Application in Intervention for Order

11
12

Protecting & Preserving Documentary Evidence, Etc. On November 14, 2004


Judge Kenneth Freeman denied the Application. This Application contains very

13

serious evidence and facts. Since I was unaware of the case, it would have

14

been impossible to comply with CCP 514.030(1)(a). However, I do not

15

understand how a court can legally order me to deposit $100,000 to


provisionally recover possession of my own property. That would include, but

16

is not limited to, my business files, corporate and partnership documents, and
17

federal and state tax returns. I was advised by LASD that they were permitted

18

to take anything with Leonard Cohens name on it. I found that statement

19

highly questionable. My personal business files were not Leonard Cohens

20

property and LASD to seize them. The proper manner in which that should
- 124 DECLARATION OF KELLEY LYNCH

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have been handled is by Cohens lawyer contacting me and asking if they could
make copies of my files, pay for the copying, and pick up/delivering the files
back to me. I had no obligation to preserve Leonard Cohens abandoned

property and a photocopy of a manuscript in a business file is worth the ink and
4

paper it is written on. I have received legal advice about that matter in

connection with Leonard Cohens desire to donate his body of work to the

University of Montreal in exchange for a U.S. tax credit. His lawyer informed

me that he was not an alchemist and every lawyer I spoke with (at Cohens

request) told me these items were worth precisely what the ink and paper were
worth. In the instant case, less than $300. I had a legal right to destroy those

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items and, in the alternative, send them to the IRS Commissioners Staff in
Washington, DC. Cohen was not interested in the three plastic PROCAN

11

statues and gave them to me. I wasnt interested in them either. Thats why

12

they were stored in a box in my garage that rats had been in for a number of

13
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15

years.
109. Tactical Allocations Services, LLC advised LA Superior Court that
the seized documents should be preserved and maintained because such an
order is necessary to prevent the potential loss or destruction of relevant

16

evidence pending discovery in the Colorado matter between Cohen and Agile.
17

It was also necessary to preserve for any potential IRS prosecution and my

18

personal litigation matters. As Tactical Allocations advised LA Superior Court,

19

there would be no harm in preserving that evidence and, in fact, an order of

20

the kind requested is likely to protect the rights and interests of all parties
- 125 DECLARATION OF KELLEY LYNCH

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here. Tactical Allocations Ex Parte order confirms that Leonard Cohen


conspired with others to defraud and extort money from Agile through (among
other things) a threat of defamation which would irreparably damage Agiles

reputation. Central to Cohens extortionate scheme was the continued


4

concealment of critical documents in the possession of defendant here, Kelley

Lynch documents proving that Cohen and others effected their conspiracy and

that the conspirators should have been and were aware that their threats of

legal action against Agile and others were entirely pretextual. The document

goes onto state that Cohen recently commenced the present action without
breathing a word of it to Agile or its attorneys a calculated attempt at

9
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concealment that served his purposes. The lawsuits aim, as reflected on the
face of the complaint, was to recover possession of certain business, financial

11

and other documents and items from Lynch, his former personal manager,

12

whom he accuses of misappropriating several million dollars. (Lynch is also a

13

defendant in the Colorado action, although she is not accused of being a coconspirator with Cohen.) When Lynch refused to cooperate in Cohens

14

extortionate scheme against Agile [and others] by declining to cover up and


15

lie for him, Cohens gambit became to seize documents in Lynchs possession

16

(some of which she had previously revealed to Agile [Boies Schiller actually].

17

According to the Ex Parte Application, Cohen filed this second lawsuit here

18

against Lynch without the required Notice of Related Case (Counsel is required

19

to file and serve a Notice of Related Case promptly upon learning that the
action is related to another pending action CRC 804(a)) which Cohen and his

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counsel knew from the start). Leonard Cohen and his legal team engage in
these types of deceptive practices, including as they relate to service issues,
because it furthers their goal of winning at all costs. As Cohen is aware, Lynch

has made no appearance in either of the other cases and, as he no doubt


4

anticipated, she made no appearance here is a very astute remark. I was not

served the Summons & Complaint in the instant matter and, with respect to the

Colorado case, had no interest in the interpleader funds and advised Judge

Babcock that I personally believed the lawsuit was meant to obfuscate issues,

cover up potential criminal tax fraud, and obstruct justice. I also did not
provide the U.S. District Court for the District of Colorado with my email

9
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address or Phil Spectors California address and find it odd that someone else
filed information on my behalf. I believe that may have been Michelle Rice, an

11

individual I do not know who has spent approximately 10 years targeting me,

12

lying about me and many issues involved in this case, and received a promotion

13

due to her work with respect to me. The Ex Parte Application confirms that I
own 99.5% of Traditional Holdings, LLC and Cohen owned .5% and, beginning

14

on page 5, addresses some of the underlying facts. However, Cohens


15

communications with Neal Greenberg were not screened by me and his

16

Affidavit in that matter proves otherwise. Leonard Cohen is an adult who was

17

free to communicate with any of his representatives and did. This document

18

fails to address Leonard Cohens loans from Traditional Holdings, LLC that

19

total approximately $6.7 million but does confirm that The boxes of documents
secretly obtained by Cohen include documents pertaining to Traditional

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Holdings, LLC and Blue Mist. I have a legal ownership interest in both of
those entities and the government had no right to seize my property. It is my
personal belief that I have now irretrievably lost evidence otherwise available if

this order had been granted or the property was not seized. Tactical
4

Allocations even offered to copy the documents at their own expense. I have no

information related to David Givens statement that My office first learned of

this lawsuit by chance, while discussing issues pertaining to the First L.A.

Action with the Sheriffs Department. Nor do I understand what LASD had to

do with this case. Jeffrey Korn failed to provide copies of all exhibits attached
to this document including LASDs inventory. Nevertheless, I have obtained

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a copy of that document. See Related Case File (Ex Parte Application in
Intervention for Order Protecting & Preserving Documentary Evidence; Natural
Wealth August 2, 2005 Complaint attached thereto as Exhibit A.)
110. I have attached hereto my February 17, 2007 complaint to the

13

California State Bar regarding former District Attorney Steve Cooley. This is

14

highly relevant as Leonard Cohen, the former District Attorney, and the City

15

Attorney joined forces against me when I was falsely arrested and imprisoned
in 2012. I had previously filed a complaint with Lieutenant William Brown,

16

Special Operations, District Attorneys office. This complaint addresses the fact
17

that I filed a complaint regarding Cohen, his theft from me, and tax fraud, with

18

Cooleys Major Fraud Unit in 2006. This unit was evidently headed by

19

Spectors prosecutor, Alan Jackson. At that point, Cooleys office (who had

20

approached me regarding Phil Spector and advised me that I was probably a


- 128 DECLARATION OF KELLEY LYNCH

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witness as early as the winter of 2005), became utterly hostile to me; began
threatening me; hung up on me; and began bullying me. I memorialized some
of that conduct in this complaint and kept the IRS, FBI, DOJ, Treasury, Phil

Spectors legal team, and others, apprised of the situation as it unfolded. The
4

title of the suits I addressed therein were Leonard Cohen Tax Fraud; State of

California v. Phil Spector. Attached to my complaint is this statement about

the DA: If it comes to Phil Spector, I suppose he didnt like my messages

reminding him that Cohen told the detectives [LASD] one thing about Phil

Spector (a good rock n roll story) and then seems to have perjured himself
before a secret grand jury. Thats just a guess could have been something

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else I said. I also attach hereto a copy of my February 17, 2007 complaint to
the State Bar regarding Steve Lindseys custody lawyers, Daniel Bergman and

11

Dana Wolinsky. The custody matter was most definitely coordinated with a

12

number of things including this case. The complaint notes that I am the

13

mother of two children who have basically been destroyed by Petitioner, his
lawyers, and others. It also addresses the vicious tactics many California

14

State Bar members have used against me. This is evidently commonplace when
15

one is representing oneself. I did hear from the California State Bar regarding

16

Steve Cooley. They essentially advised me that the District Attorney does not

17

have jurisdiction over federal tax matters. The theft from me of millions of

18

dollars in intellectual property and commissions due is not a federal tax matter

19

but it is interesting to note that nearly every single matter I am involved with
before LA Superior Court seems to be nothing other than a federal tax matter.

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Exhibit XXX: Kelley Lynch State Bar Complaints re. Cooley & Lindseys custody
lawyers dated February 17, 2007.
111. On February 28, 2007, I received the attached letter from the State
Bar of California with respect to my complaint regarding former DA, Steve
Cooley. The State Bar reviewed the Complaint and, after careful review,

determined that the matter did not warrant further investigation or


6

prosecution. Some examples they provided me with are as follows: For

example we do impose discipline for prosecuting a criminal case where there is

evidence to support charges and We cannot impose discipline for alleged

failure to prosecute a criminal case where there is evidence to support

10

charges. The first matter relates to Phil Spectors trial and the second to the
DAs failure to prosecute Leonard Cohen. Evidently, according to the State Bar,

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the decisions of District Attorneys are not subject to review by the State Bar of
courts, absent some other crime such as bribery. I do not know if a quid pro

13

quo would technically satisfy a bribery claim. Exhibit YYY: State Bar Letter re.

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Cooley dated February 28, 2007.

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112. In or around February 2007, I received a phone call from Agent


Kelly Sopko of the U.S. Treasury. She advised me that she would be flying into
Los Angeles and made arrangements to meet with me. Sometime shortly
thereafter, I met with Agent Sopko and her partner. We discussed a variety of

18

matters include my emails documenting matters for IRS. Agent Sopko


19

confirmed that the IRS Commissioners Staff was reading my emails and

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various parties were handling various aspects of them. Other matters were
discussed. On March 6, 2007, following that meeting, I received an email from
Agent Sopko [that has been entered into evidence in this and other matters by

Leonard Cohen] referring me to Agent Luis Tejeda, head of a fraud group at


4

IRS. What I discussed with Agent Sopko and her partner related to the

allegations of criminal tax fraud I originally reported to IRS Agent Bill Betzer

on April 15, 2005; IRS directly via its website; and IRS in Washington, DC due

to the high profile nature of this matter and the unconscionable tactics

(including the Swat incident and custody matter) being used against me. And
now this lawsuit. Agent Sopko advised me that Agent Tejeda needed a

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summary of all important details, with as much specificity as I have. I have


documented everything in emails to IRS since reporting these allegations to

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them on April 15, 2005. Agent Sopko specifically noted that examples of

12

evidence supporting these allegations would be copies of any paperwork

13

involved, social security numbers of people involved, etc. As Leonard Cohen


had at least two social security numbers, I am not clear on which was is

14

legitimate or why he had a second.


15

113. In Korys letter dated March 9, 2007 to Agent Tejeda/IRS (attached


16

to his declaration), he uses the default judgment to defend Leonard Cohen with
17

Agent Tejeda, head of fraud IRS LA. This letter confirms that In response to

18

Mr. Cohens civil claims, Ms. Lynch has been sending mass emails to a wide

19

range of individuals including Mr. Cohens friends, business associates and the

20

press. In many of those communications, she has alleged that she is reporting
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Mr. Cohen to the Internal Revenue Service for tax fraud. While a nuisance,
these communications have had little effect in part because the emails involved
incoherent ranting and because there was no evidence that the Internal

Revenue Service was taking her allegations serious. Now the situation has
4

changed. Ms. Lynch has managed to obtain a return email from Special Agent

Kelly Sopko, the contents of which I read to you. In our call ,you asked me how

I had access to that email. I answered that it had been forward [sic] to Mr.

Cohen and me from Ms. Lynch by email. Attached are copies of several emails

from Ms. Lynch in which she forwards the email from Agent Sopko to a very
broad email list, including another such email sent today. You will note from

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the enclosed emails that her circulation of the communications from Agent
Sopko is increasing. One of the more notable fraudulent allegations contained

11

in Korys letter to Agent Tejeda is as follows: Please note that Ms. Lynch is

12

using communications from the Internal Revenue Service to defame Mr. Cohen

13

and to use the threat of an IRS investigation to attempt to extort resolution of


civil claims. First of all, I didnt sign a secrecy agreement about this matter

14

with IRS or Treasury. I do feel it was nave of me to make this information


15

public and now believe that tax fraud should be reported confidentially to IRS.

16

I did not think through the consequences of my actions which have been

17

extreme. Second, I have not attempted to extort a civil settlement or claim

18

from Leonard Cohen. Steve Lindsey is very clear in his May 25, 2005

19

declaration, attached hereto, that Cohen/Kory spent 7 months attempting to


coerce me into a deal/settlement. I refused because I felt that offering false

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testimony about Cohens representatives, and possibly engaging in insurance


fraud, was illegal. The settlement offers involved specific requirements that I
assist Cohen in mediations against Neal Greenberg, Richard Westin, and

possibly others. Third, I have a right to communicate with the Internal


4

Revenue Service, former business associates, and the news media. Kory was

very clear at this time that Sopkos email was a game changer. The head of

fraud for the Western Division of the United States, Agent Luis Tejeda, was now

involved. In any event, Korys emails from May 2005 confirm that he has

extremely generous negotiating authorities and further confirms that he


understood I had reported the allegations that Cohen committed criminal tax

fraud to IRS, State of Kentucky, and the DAs Criminal Division.

10

114. On September 5, 2008, Judge Lewis Babcock, in the Natural Wealth


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12

matter, relied on the default judgment in this matter when wrongfully


converting assets belonging to Traditional Holdings, LLC to Leonard Cohen

13

personally. I was added as a defendant in this matter solely with respect to the

14

interpleader funds before the Court. I advised Judge Babcock that I refused to

15

participate in this matter due to the fact that I had serious concerns related to
the use of that lawsuit to obstruct justice and cover up criminal tax fraud.

16

Judge Babcock wrote that The final judgment of the California court settles the
17

dispute between Lynch and Cohen over ownership of the interpleaded funds.

18

The amount of approximately $154,000 was evidently released directly to

19

Leonard Cohen. The reason for this outcome is due to the following language

20

inserted into the judgment that declared I was not the owner of any assets in
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Traditional Holdings, LLC and any interest I had in any other entity related to
Cohen she [held] as trustee for Cohens equitable title. These are blatant
falsehoods. In addition to this particular example of fraud that has crossed

state borders, Michelle Rice testified during my trial that at the time of the
4

Boulder, Colorado hearing (September 2, 2008) there was no litigation matter

involving me and Leonard Cohen. That was obviously perjured testimony.

There continue to be ongoing tax, corporate, and litigation matters that now

include the fact that I intend to file a federal lawsuit against Cohen over this

situation. Judge Babcocks order was raised in my 2012. Exhibit ZZZ: Judge
Lewis Babocks Order dated September 5, 2005; Trial Transcript (pages 356)

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PD: Isnt it also true that Ms. Lynch asked the Court, in open Court, whether or
not or whom she could direct inquiries regarding any ongoing litigation
because Mr. Cohen and her were in litigation at that point? Rice: That is
incorrect. There was no ongoing litigation at that point. By the point when we
had the 2008 permanent restraining order hearing, the default judgment had
been rendered by the LA Superior Court in May of 2006. RT 356

14
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16

Perjured Testimony Judge Babcocks Opinion in the Colorado matter was not
rendered until September 5, 2008. This hearing was September 2, 2008. This
is a very serious material lie. There are also very serious federal tax and
corporate matters outstanding.

17

115. Robert Kory attached his December 20, 2008 letter to IRS to his
18

declaration in an attempt to defend his client, Leonard Cohen. I was appointed

19

Tax Matters partner, on federal tax returns, by Leonard Cohens personal tax

20

lawyer, Richard Westin. It is my personal opinion that Leonard Cohen wasted


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the entire $8 million income that was produced in connection with the 2001
Sony deal. I, therefore, hand wrote a 1099 from Traditional Holdings, LLC and
sent it to the IRS Commissioners Staff in Washington, DC. I asked the IRS

Commissioners Staff to advise me if I had used the wrong form for this item. I
4

never handled tax matters, as Cohen understood, and was not clear about that

issue. The 1099 notes that I believe Traditional Holdings, LLC is a shell

company with an extinguished annuity, and addresses the fact that Cohen

personally received the $1 million non-refundable prepayment or down

payment in 1999; and the balance, less recoupment deductions (Cohens


personal account with Sony) and delivery requirement items. I also advised

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IRS Note: Will deal with Kentucky and California tax issues once the IRS
issues required opinion letter and Kelley Lynch addresses the LA Superior

11

Court fraud, the fact that she was defrauded, and obtains a proper and

12

complete forensic accounting for this entity, Blue Mist, and, LC Investments,

13

LLC, etc. I have repeatedly requested a proper accounting that addresses


corporate ownership interests, assets, liability, equity, and financial statements.

14

I have also asked the IRS for formal Opinions, or private letter rulings, with
15

respect to these entities and a wide variety of issues. A copy of this 1099 was

16

sent to Leonard Cohen. Robert Kory then wrote IRS and lied about many

17

matters. That would include his allegation that this document is fraudulent

18

and I was Cohens business manager. The letter states that Kory addressed

19

this matter with Mr. Tejeda in your fraud department. It refers to the
fraudulent default judgment which is being used to argue federal tax matters

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with IRS and, specifically, the allegations that Leonard Cohen committed
criminal tax fraud. And finally, Her sending the fraudulent 1099 is a violation
of the Colorado restraining order and an indication as Ms. Lynchs continuing

and illegal harassment of Mr. Cohen. Kory, of course, provided no evidence


4

that the IRS has elected to disregard this form 1099 or in support of his

statements about Agent Tejeda. Time and time again, Leonard Cohen and his

representatives rely on innuendo, false allegations, gossip, rumor, and hearsay

to advance their case. As I advised this Court in the January 17, 2014 hearing

on the Motion to Vacate, Robert Kory does not represent IRS, does not speak
for IRS, and this Court has no jurisdiction to hear federal tax matters. Agent

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10

Luis Tejeda, who is routinely quoted by Robert Kory, is the only individual who
can confirm his position with respect to this matter. As Kory knows, I issued a

11

subpoena to Agent Tejeda during my 2012 trial but Judge Robert Vanderet did

12

not believe, from what I could tell, that I had a right to defense witnesses or

13

impeach evidence. That would include Cohens refunds from IRS that I only
discovered on April 9, 2012 when the prosecutor blind-sided my lawyer with

14

the IRS Binder mid-trial although she had met with Kory, according to my
15
16
17

public defenders, two weeks earlier. Exhibit AAAA: IRS Binder Index (April 9,
2012 Trial Evidence).
116. In or around May 1, 2011 [original report date Wilshire PD]

18

Michelle Rice and Robert Kory evidently went into LAPDs Wilshire Division to

19

discuss what they alleged to be my ongoing harassment of Leonard Cohen.

20

Officer Manjra took the report and stated that Mrs. Rice submitted a detailed
- 136 DECLARATION OF KELLEY LYNCH

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summary of as to what has transpired since summer of 2005. All the contact
which Mrs. Lynch made with Mr. Cohen and his attorneys are highlighted in a
five page summary. See attached summary. See large envelope containing CD

ROMS. The two CD ROMS contain data logs of phone calls and email. There
4

is no information in this report to indicate or explain how this matter ended up

with LAPDs TMU, a celebrity stalking unit who also handles government

workplace violence matters. The summary of the report is as follows: In the

1980s the victim and suspect had a sexual relationship. For approximately 17

years the victim employed the suspect as his personal assistant and business
manager. In 2004, the victim fired the suspect, after learning the suspect

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10

misappropriated over $5 million of the victims money. In 2005, the victim filed
a civil action against the suspect in an attempt to recover the misappropriated

11

funds. During and after the civil action the suspect harassed the victim with

12

both telephone calls and emails. In September of 2008, Boulder, Colorado

13

courts granted the victim a permanent restraining order, which DOES NOT
EXPIRE. Since 2005, the suspect has violated the restraining order many,

14

many times. Exhibit BBBB: LAPD Report (emails are generally requests for
15

tax information.)

16

117. The LAPD summary is followed by notes re. the Investigation.


17

This investigation evidently took place on October 11, 2011 @ 1100 hours.

18

Detectives R. Smith and I met with the victim and his attorneys [listed as

19

witnesses above the Summary], Michelle Rice and Robert Kory. The meeting

20

took place at Michelle Rice and Robert Korys law office, located at 9300
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Wilshire Blvd., Beverly Hills, California. Mr. Cohen stated that he and the
suspect had a casual sexual relationship in the 1980s. In 1988 the person
handling his business affairs died. The victim replaced him with the suspect,

hiring her as his personal assistant and business manager. In 2004 the victim
4

discovered that the suspect stole over $5 million of his money. The victim

terminated the suspect and filed a civil action against her in 2005. The suspect

began sending him numerous emails from her AOL email account. The suspect

also created several Gmail accounts and continues sending email messages to

the victim. The messages were emailed directly to the victim as well as cc
the messages to third parties. Most of the messages were disturbing and

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11

defamatory toward the victim and his family. The contents of the emails often
had the victims personal address, private home telephone number and some
contained his social security number.

12
13

118. LAPDs June 14, 2011 report states: The violations occurred via

14

direct phone calls to the victim and emails to the victims attorneys, Rice and

15

Kory. The emails generally were in request of tax and financial information to
amend Kelley Rice [sic Lynch] 2001 through 2010 tax returns. Neither

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17

Robert Kory nor Michelle Rice were part of the 2008 original Boulder, Colorado
order. The judge included their physical place of business where Leonard

18

Cohen has an office. I had been to that office once in 2005 months before

19

Cohen obtained his first tactical restraining order against me.

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- 138 DECLARATION OF KELLEY LYNCH

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119. During my 2012 trial, where the default judgment was used against
me, the prosecutor began eliciting testimony about Phil Spector. The IRS, Phil
Spector, and the default judgment were the key issues throughout this trial.

The prosecutor argued that the default judgment is essentially evidence of


4

theft using a default judgment entered against me when the Court lacked

jurisdiction to do so. Her closing argument included utterly inane comments

about my having sticky fingers and not having an exit strategy. The two

primary things I didnt have was an excellent attorney and money. The fact that

I have not been represented throughout this matter, and others, is highly
relevant and material as well. The Complaint and default judgment have been

9
10

used to prosecute me, destroy my reputation, filed and amend federal tax
returns, obtain fraudulent IRS and FTB tax refunds, defend Cohen to the head

11

of tax fraud at IRS in Los Angeles, and is now being used to prevent me from

12

requesting/receiving IRS required tax and corporate information for 2004 and

13
14
15

2005 and thereafter.


120. Cohens testimony about Phil Spector throughout this 2012 trial
shows a pattern that tends to prove he is a chronic liar who may have received
some form of quid pro quo from the former District Attorney, Steve Cooley, who

16

elected not to prosecute Cohen after I filed a Complaint with his Major Fraud
17

Unit which was evidently headed by Spector prosecutor Alan Jackson. The

18

prosecutor advised the jurors that I fought with the DA over this issue. Ive

19

never spoken to Steve Cooley. I was extremely upset that the DAs office

20

refused to investigate and/or prosecute the individuals whose criminal


- 139 DECLARATION OF KELLEY LYNCH

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negligence led to my sons horrifying accident at Whole Foods. I think any


parent would be and this was a very serious public safety issue. Exhibit CCCC :
Trial Transcript (RT 40).

3
4
5

There is the evidence will show that Ms. Lynch was upset and Mr. Cohen and
fought with the District Attorneys office, the LA County District Attorneys
office didnt fie charges against Mr. Cohen. And some of those emails that were
sent to Mr. Cooley, the email will say Execute Steve Cooley. RT 40

6
7
8

121. Although I have no idea why Steve Cooley, Alan Jackson, Phil
Spector, and Dennis Riordan, and IRS were constant themes throughout my
2012 trial, the IRS remains a constant theme in the instant matter. Cohen has

advised this Court that the prejudice to him, should the motion be vacated, is

10

the fact that he filed his 2005 tax return and amended his 2004 and 2003 tax

11

returns using the Complaint. The evidence in the IRS binder proves that he

12

did not use the actual default judgment to file his returns, or obtain substantial

13

refunds from IRS, but rather rushed to the IRS with the Complaint. Thats the
primary motive behind this fabricated narrative.

14
15

122. Leonard Cohen testified that he has had no contact with Phil
Spector since they worked on the joint album project. However, in a BBC radio

16
17

interview, from 1994, he alleges that he and Spector had recently spoken and
goes onto say that Spectors no longer mad at him. Cohen also testified that I

18

accused him of perjuring himself in the Spector Grand Jury. According to the

19

prosecutor, this was evidently annoying to Cohen. I have been very clear that

20

Mick Brown, UK Telegraph, advised me that he reviewed the Phil Spector


- 140 DECLARATION OF KELLEY LYNCH

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Grand Jury testimony and Cohens testimony/statements were presented. I


have spoken with the legal adviser to the Grand Jury who could not advise me
what witness presented this testimony or statements. She advised me to

contact Phil Spectors appellate attorney about the numerous versions of the
4

Leonard Cohen good rock n roll story about Phil Spector before LA Superior

Court. Cohen was under oath during my trial when he testified that Spector

held a gun to his head and it was an automatic. I have also included below the

language from an email Leonard Cohen provided to the prosecutor at the outset

of my trial. In that particularly email, Cohen advised the prosecutor that


Spector held a gun to his neck. During my trial, Leonard Cohen testified that

9
10

Spector held an automatic weapon to his head. The District Attorney, in their
motion in limine in the Phil Spector Murder Trial (and, possibly before the

11

Spector Grand Jury, if Mick Brown was correct when he advised me that he

12

reviewed the Grand Jury Testimony and Cohen statements were included in the

13

transcript), used a version of Cohens good rock n roll story about Phil Spector
holding a semi-automatic weapon to his chest. There are now three versions of

14

this incident before LA Superior Court and/or with local LA government


15
16
17
18
19
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officials. It just depends which courtroom you were in at the time, I suppose.
Exhibit DDDD: Trial Transcript (RT 56-57)..
Streeter: Did Ms. Lynch ever mention People that both you and she knew?
Cohen: She talked about some well-known singers that both of us know.
Streeter: Im sorry well-known Cohen: She talked about some well-known
singers that both of us knew. Streeter: Such as who, Mr. Cohen? Cohen: Such
as Bob Dylan. Streeter: What about did she ever mention Phil Spector or
Phillip in any of those? Cohen: Yes, she accused me of she accused me of
testifying before a Secret Grand Jury which resulted in the conviction of Mr.
- 141 DECLARATION OF KELLEY LYNCH

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Spector. Streeter: Do you know Mr. Spector? Cohen: I knew him. He


produced a record of songs that we wrote together. It was in 1977. Streeter:
But you had no dealings with him since then; is that right? Cohen: No, I dont
believe I havent seen him. I dont remember if it was 77 or 78 that the
record came out. But since then, no, I have had no contact with him. RT 56-57

3
4

BBC Radio Interview With Leonard Cohen:

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6
7
8
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Transcript of BBC Radio 1 programme about Leonard Cohen, broadcast Sunday


7/8/94. Hesitations, "you know"s and other verbal tics have largely been
removed, except where useful to indicate the rhythm of the spoken words (LC
becomes particularly hesitant when talking about his time with Phil Spector).
Due to the fact that it was (apparently) unscripted, the grammar represents
patterns of speech, and may appear odd at first sight. Songs in brackets were
played (usually in part) during the programme, and often faded into the
background during the following speech. Excerpt [Cohen]: Hes [Phil Spector]
not mad any longer, Ive spoken to him on the phone recently, hes really quite
reasonable and calm, but we were, you know, I was flipped out at the time

10
11

http://www.webheights.net/speakingcohen/bbctrans.htm

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Leonard Cohen (baldymonk@aol.com)

13

to Sandra Jo Streeter (email sandrajo.streeter@lacity.org)

14

cc: Michelle Rice (mrice@koryrice.com)


Thu, April 5, 2012 at 9:31 PM

15
16

Dear Ms. Streeter,


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This is a short note I prepared for a biographer last year. I know youve been
burdened with an enormous heap of material, but this rounds off the answer to
question you asked about Phil Spector.

20

- 142 DECLARATION OF KELLEY LYNCH

1
2
3

Sincerely,
L

PHIL SPECTOR

4
5

Shortly after the death of Lana Clarkson, I was visited in my home by two
detectives from the Homicide Bureau of the Los Angeles Sheriffs Department,
Detective Paul Fournier, and Detective Richard Tomlin.

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Kelley Lynch thought it would be a good idea to have a lawyer present, so she
arranged for Attorney Steven M. Cron to be there for the interview. Mr. Cron
asked Kelley Lynch to excuse herself, and she left the room.

Apparently the detectives had come across some old interviews I did in 1978 or
1979 in which I spoke of the difficulties of recording Death of a Ladys Man
with Phil Spector: the brandishing of guns, armed bodyguards, drunkenness,
and Phils famous megalomania. Even though Phil put his arm around my
shoulder and pressed an automatic into my neck, except for the real possibility
of an accident, I never at any moment that that Phil meant to do me harm. I
never felt seriously threatened. I conveyed this to the detectives. I said the
incident was repeated in the press over the years, with exaggerations, but it
was basically just a good rock n roll story.

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17
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Then they asked me when I had last seen Phil Spector. I said its been over 20
years. They were very surprised. They said they were under the impression we
were close friends. I said no. Hearing this they thanked me for my time,
finished their coffees, and left. It was clear that I was not to be considered a
valuable witness.

I was never approached again by anyone concerned with the case. Needless to
say, I did not testify before a Grand Jury.

20

- 143 DECLARATION OF KELLEY LYNCH

1
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123. During the trial, the prosecutor (who had DA Steve Cooleys
investigator in the courtroom) elicited testimony about Phil Spector and a gun.
This was confirmed, as well, during the March 23, 2012 bail hearing when

Judge Mayerson asked who was in the courtroom. At that time, I decided to
4

contact Phil Spector through his trial attorney, Bruce Cutler. This led the

prosecutor to consult a domestic violence counselor who decided I should be

committed to a mental hospital and drugged. Streeter felt my letters to Cutler

were too chatty. I ultimately did write Phil Spector directly and he personally

responded. After all, Phil Spector has as much right to confront his accuser as
I do. Exhibit EEEE: Bail Hearing Transcript (RT 6 DA Investigator).

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Court: Well, there are three people in the courtroom. Are any of them defense
witnesses? Perroni: No, Your Honor. Streeter: No, they are not witnesses,
Your Honor. One is an investigator with Mr. Cohens law firm. The lady sitting
at the back is an investigator with the District Attorneys Office, and I believe
the other gentleman is a defense attorney, correct? He is a defense attorney.
Court: All right. As long as they are not witnesses, they are certainly entitled
to remain in the courtroom. Streeter: The reason why the District Attorney
investigator is here, Your Honor, is in the number of the emails that Ms. Lynch
has sent, shes also made threats against Mr. Cooley. That is why the District
Attorneys investigator is here today. Court: Shes entitled. Bail Hearing RT 6.

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PD: Do you think Steve Cooley was reading all of these emails? Cohen: I
wouldnt be surprised if he was. PD: Okay. But you dont know? Cohen: No,
Sir. PD: Do you believe that he was? Cohen: I believe that people close to him
were. PD: Do you believe that the IRS was reading every single one of these
emails? Streeter: Objection; relevance. Court: Sustained. RT 305

18
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124. As of April 5, 2012, according to the evidence the prosecutor


provided my lawyers during my high profile trial, the prosecutor was in
- 144 DECLARATION OF KELLEY LYNCH

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possession of an email from Leonard Cohen regarding Phil Spector, his Grand
Jury, and the alleged Spector gun incident. The prosecutor elicited testimony
from Cohen about an April 18, 2011 email I sent Dennis Riordan, Phil Spectors

appellate attorney. In that email, I confirmed for Mr. Riordan that Cohen told
4

me for 20 years that Spector never held a gun on him. The prosecutor asked

Cohen to review the email and confirm that he was one of the recipients. He

confirmed that he was and then read the portion the prosecutor found relevant:

my comments to Dennis Riordan. Exhibit FFFF: (April 18, 2011 email

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12
13
14
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testimony - RT 160-161; 266)


Streeter: I have Peoples 13. Now, thinking back to the emails that you
received from Ms. Lynch about Mr. Spector, would she use his whole name or
would she use part of his name, or did it vary? Cohen: It varied, but I think it
was usually Phil Spector Occasionally when she spoke of him as someone she
knew well, I think she would call him Phillip. Streeter: Im going to show you
an email. Its April 18, 2011. I misspoke. Its at 8.11 AM. Just look at the
first page on the date. See if that refreshes your recollection. Let me know
when youve done. Cohen: Yes Maam. Streeter: Did does that refresh your
recollection as to whether or not you received an email on April 18, 2011 at
approximately 8.11 AM in the morning. Cohen: Yes, this is the email I
received. Streeter: See if that email helps you recall whether or not there was
any mention of either a Phil, a Phillip, or Phil Spector in the email. Cohen: In
this particular email, Mr. Spector is called Phillip. Streeter: Okay. And on
what page is the email? What page is the mention of Mr. Spector? Cohen: I
havent studied the whole email, but it begins on the first page. Streeter: How
many pages is that particular email, Mr. Cohen? Cohen: Seven pages
Streeter: Is your name mentioned in any way with Phillip, Mr. Cohen? Cohen:
Yes. It says, Cohen told me Phillip never held a gun on him, and that would
support what he told LAPD. RT 160-161

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PD: I wanted to start, basically, where we left off in talking about certain
emails. Ms. Streeter asked you about certain emails. Do you remember that.
- 145 DECLARATION OF KELLEY LYNCH

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Cohen: Yes, she asked me about many. PD: Now, one of thee emails that she
mentioned was sent on April 18, 2011 at around 8.11 AM Do you remember
testifying about that email? Cohen: Yes, I believe I did. Kelly: Okay. And when
you testified about that email, you said that you remember receiving that
email? RT 265 Cohen: I think I did. Kelly: Can you point out where exactly
on the list of recipients that your email address shows up? Cohen: Perhaps I
missed this one. Kelly: Okay. But you did testify, though, that you remember
receiving that email, correct? Do you remember testifying to that? Cohen: I
believe I did. Kelly: Okay. Were you wrong when you -- did you misspeak when
you said that? Cohen: I havent checked every address. Kelly: Okay. You can
take a moment -- Cohen: Its very small. Kelly: Take all the time that you need.
Cohen: If you say its not here, I understand what your point will be PD:
And so youve had a chance to look over that email, the recipients? Cohen:
Yes. PD: And your email is not on that, correct? Cohen: Thats correct. RT
266
125. During cross-examination, my lawyers focused on Cohens mental
state and asked him if he was afraid of Phil Spector when he allegedly held a
gun to Cohens head. Cohen testified that he was not. He was evidently afraid
of my emails that LAPDs report confirms were generally requests for tax

12
13
14

information. His testimony about a gun contradicts the version the DA used in
motions filed with the Court in the Phil Spector matter.
126. Also during cross-examination, Leonard Cohen confirmed that he

15

was actually not a recipient of the April 18, 2011 email. This email is highly

16

material and relevant. The reason for this is due to the fact that 1) the

17

prosecutor concealed the elements of the email addressed to Internal Revenue

18

Service and Cohens lawyer, Michelle Rice, by saying she misspoke when she
noted that she misspoke and the time was actually 8.11 AM and concealed the

19

relevant 5.44 AM portions of the email; 2) Cohens testimony about the gun and
20

- 146 DECLARATION OF KELLEY LYNCH

1
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Spector contradicts the version he provided the prosecutor at the beginning of


my trial (as well as the version the DA used in the Spector case); and, 3) it
proves that Cohen continually lies under oath. He was not copied in on the

April 18, 2011 email and he confirmed that he reviewed it and he was. This
4

was clearly a way to elicit testimony about Phil Spector and a gun incident.

The emphasis on former DA Steve Cooley, Spector prosecutor Alan Jackson,

Phil Spector, and Dennis Riordan, throughout my 2012 trial, was and remains

inexplicable. And, while prosecutor Sandra Jo Streeter advised the jurors that I

fought with the LA DAs office (which is not factual) she did not explain the
details or provide any evidence supporting that assertion or providing any

9
10

information as to why the DA elected not to prosecute Leonard Cohen or how


she obtained that information. In December 2006, without knowledge of the

11

terms of the default judgment, I filed a complaint with the DAs Major Fraud

12

Unit against Leonard Cohen with respect to his theft from me, fraud, and issues

13

related to the entities in the default judgment. I was questioned by the


prosecutor over this complaint. She seemed to believe that I thought I could

14

find the tax information Cohen refuses to provide me on Cooleys website.


15
16
17
18

Exhibit GGGG: Trial Transcript (Spector & Cooley: Pages 40, 60-61, 56-57,
157-159, 305, 265-266); Mick Brown emails.
There is the evidence will show that Ms. Lynch was upset and Mr. Cohen and
fought with the District Attorneys office, the LA County District Attorneys
office didnt file charges against Mr. Cohen. RT 40

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20

- 147 DECLARATION OF KELLEY LYNCH

1
2
3

She accused me of testifying before a secret grand jury which resulted in the
conviction of Phil Spector. RT Streeter: Okay, in any of her emails, did she ever
mention Phil Spector? Cohen: She often mentioned Phil Spector, repeating
over and over that I had testified before a Grand Jury and I was involved in the
conviction of Phil Spector. RT 60-61

127. Because I have asked the Court to terminate this matter based upon
5

egregious fraud upon the court and refer this matter to the appropriate

authorities, I have prepared general summaries of the perjured statements in

the declarations of Leonard Cohen, Robert Kory, and Michelle Rice that were

submitted in response to my Motion to Vacate. I do have additional evidence

but feel that the evidence I have attached hereto, and made a part hereof, gives
a very good general overview of what actually occurred and what has unfolded

10
11
12
13

to date. Exhibit HHHH: Schedules of Perjury Declarations Leonard Cohen,


Michelle Rice, Robert Kory, and Kevin Prins; Misrepresentatives in Declaration
of Scott Edelman.
128. I have attached the following exhibits to this declaration in support

14

of my motion:

15

Exhibit A: Robert Hilburn Article; photo of Cohen working at Mt. Baldy.

16
17

Exhibit B: Boulder Combined Court email and attached evidence; Kory & Rice
domestic violence related orders.

18
19

Exhibit C: Emails with court reporters re. March 23, 2012 hearing transcript.

20

- 148 DECLARATION OF KELLEY LYNCH

Exhibit C-1: MacLeans article. August 22, 2005.

2
3

Exhibit D: Phil Spector Motion in Limine (Excerpted pages Leonard Cohen


gun incident); Mick Brown emails.

Exhibit E: Trial Transcript (RT 308-309).


5
6

Exhibit F: Transcript March 23, Hearing.

7
8

Exhibit G: Marty Machat letter dated November 25, 1990; Stranger Music, Inc.
Spreadsheet.

9
10

Exhibit H: Berger, Berger & Beal letter to Marty Machat dated January 5,
1972.

11
12

Exhibit I: Email to Steven Machat dated March 2, 2015 confirming book


excerpts.

13
14
15

Exhibit J: Transcript of Steven Machat & Kelley Lynch conversation.


Exhibit K: Elmer Fox, Westheimer & Co. Tax Planning Memo for Leonard
Cohen dated August 22, 1977.

16
17

Exhibit L: IRS Notice dated September 12, 1988. [Confusion re. alternate SSN
& IRS account]

18
19

Exhibit M: Van Penicks letter to Kelley Lynch dated October 26, 1988.

20

- 149 DECLARATION OF KELLEY LYNCH

Exhibit N: LC letter to Dominque Issermann dated December 7, 1989 (off-shore


account).

2
3

Exhibit O: Jonas Herbsman letter to Herschel Weinberg dated January 8, 1990.

Exhibit P: SOCAN Agreement (with Leonard Cohen).


5
6
7

Exhibit Q: Leonard Cohen Productions, Inc. Certificate of Amendment of


Certificate of Formation (changed name to BMT) dated March 11, 1993;
Articles of Incorporation of Leonard Cohen Productions, Ltd., Nevada;
Statement and Designation by foreign corporation.

8
9

Exhibit R: Kelley Lynch fax to Richard Feldstein dated December 7, 1993.

10
11
12
13
14
15

Exhibit S: Ed Dean letter to LC and KL dated November 15, 1996.

Exhibit S-1: Richard Westin letter to Kelley Lynch dated February 5, 1998
(Blue Mist).

Exhibit T: Neal Greenbergs fax to Cohens transaction attorney, Jonas


Herbsman February 10, 1998.

16
17

Exhibit U: Richard Westin letter to Kelley Lynch dated June 1, 1998; Minutes of
a Special Meeting of the Board of Directors of Blue Mist Corporation; Trial
Transcript (page 279-293).

18
19

Exhibit V: Cohens Opposition to CAKs Motion for an Order of Attachment


dated August 30, 2000.

20

- 150 DECLARATION OF KELLEY LYNCH

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2
3
4
5

Exhibit W: Leonard Cohens Declaration dated August 30, 2000[CAK litigation,


Case No. 00 Civ. 1068 (DAB), United States District Court, Southern District of
New York].

Exhibit X: Ken Cleveland fax to Kelley Lynch dated June 24, 1999; Leonard
Cohen POA to IRS; Leonard Cohen letter to Mt. Baldy Zen Center dated
November 1, 1996.

6
7
8

Exhibit Y: Ken Cleveland fax to Kelley Lynch dated July 22, 1999.
Exhibit Z: Reeve Chudd letter to Kelley Lynch dated September 8, 1999.

9
10

Exhibit AA: LC Investments, LLC Certificate of Formation dated October 19,


1999; Operating Agreement dated August 21, 2000.

11
12

Exhibit BB: Leonard Cohens email (baldymonk@aol.com) dated May 19, 2000
to Kelley Lynch (tsimar).

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14
15
16

Exhibit CC: Richard Westin Memorandum dated May 23, 2000.

Exhibit DD: BMT letter to IRS re. 341(f) election.


Exhibits EE: BMT 1999 and 2000 federal tax return.

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18

Exhibit FF: Cohen signed Assignment (signature page only) dated September
15, 2000.

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Exhibit GG: Richard Westins September 16, 2000 letter to Kelley Lynch.
- 151 DECLARATION OF KELLEY LYNCH

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3

Exhibit HH: LASD Inventory dated October 18 & 24, 2005.

Exhibit II: May 21, 1994 letter to Kelley Lynch from Tom Robbins.

4
5

Exhibit JJ: Don Friedmans letter to Stuart Bondell, Sony, dated September 19,
2000.

6
7

Exhibits KK: Westin fax to KL and Greg McBowman dated September 20, 2000.

8
9

Exhibit KK-1: Fax from Richard Westin to Cohen and me dated October 10,
2000.

10
11

Exhibit LL: Richard Westin Proposal to Leonard Cohen dated November 19,
2000.

12
13

Exhibit MM: Richard Westin Proposal to Kelley Lynch and Leonard Cohen
dated December 4, 2000.

14
15

Exhibit NN: Leonard Cohen letter to Westin dated December 7, 2000


(wrapping Greenberg in A/C privilege).

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19

Exhibit OO: Annuity Agreement dated December 7, 2000.

Exhibit PP: Kelley Lynch/TH Promissory Note; Corporate Minutes dated


December 21, 2000.

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- 152 DECLARATION OF KELLEY LYNCH

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2

Exhibit QQ: Traditional Holdings Formation documents; Lynch & Cohen


Powers of Attorney to Westin re. TH; State of Kentucky Email; TH 2001, 2002,
2003 Annual Reports; Application for Employer ID prepared by Westin who
signed Kelley Lynchs name.

3
4

Exhibit RR: Traditional Holdings Stock Certificates No. 1, 2, 3; Stock Ledger.

Exhibit SS: CAK Settlement Agreement dated December 7, 2000.


6
7

Exhibit TT: KL Indemnity Agreement dated January 8, 2001.

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Exhibit UU: IRS Notice: August 13, 2001 - $1 million prepayment TH deal.

Exhibit VV: Grubman, Indursky & Schindler letter dated April 18, 2001 to
Cohen and TH.

Exhibit WW: Trial Transcript (pages 285-288)

13
14

Exhibit XX: Lynch & Westin emails (cc: Cohen) dated February 11, 2002.

15

Exhibit YY: Richard Westin letter dated March 6, 2002.


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Exhibit AAA: David Woltz, IRS Office of Chief Counsel, letter to Richard Westin
dated October 8, 2002.

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Exhibit BBB: State of Kentucky Schedule K-1 for Lynch & Cohen 2003.

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- 153 DECLARATION OF KELLEY LYNCH

Exhibit CCC: Neal Greenberg IRS Danger Warning letters dated January 16,
2004 and June 25, 2014.

2
3

Exhibit DDD: Westin emails re. Old Ideas, LLC; Dear Heather liner notes
publishing Old Ideas, LLC.

4
5
6

Exhibit FFF: KL email to Leonard Cohen with forwards of emails to Stuart


Bondell (Sony International), Ian MacKay (Sony Canada), and Denise Donlon
(Sony Canada) dated July 22, 2004.

7
8

Exhibit GGG: Kelley Lynch (tsimar) email to Leonard Cohen (baldymonk) dated
September 16, 2004 [Commission 1099 information].

9
10

Exhibit HHH: Diane Baxa, City National Bank, email to Kelley Lynch dated
March 29, 2013.

11
12
13

Exhibit III: Trial Transcript (pages 301-303; 319; 290-293)

Exhibit JJJ: Richard Westin email to Kelley Lynch dated September 24, 2004.

14
15

Exhibit KKK: Westin emails to Lynch dated September 20, 2004 (LCI Office)

16
17

Exhibit LLL: Westin letters to State of Kentucky; Lynch and Cohen) dated
October 6, 2004.

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Exhibit: LLL-1: 2001, 2001, and 2003 Traditional Holdings, LLC tax returns.
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- 154 DECLARATION OF KELLEY LYNCH

Exhibit MMM: DiMascio letter to Robert Kory dated November 13, 2004 (CNB
account freeze).

2
3

Exhibit NNN: USPS Mail Fraud Notice & Confirmation No.OR18421598.

Exhibit OOO: Kelley Lynch email to DiMascio & Berardo dated January 5, 2005
(accounting fraud re. expense ledger).

5
6

Exhibit PPP: DiMascio &Berardo letter to Kelley Lynch dated February 7, 2005.

7
8
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Exhibit QQQ: Trial Transcripts (pages 351-358) Cohen & Rice testimony.

Exhibit RRR: Kory letter to DiMascio dated February 11, 2005 (Traditional
Holdings, LLC problematic loans to Leonard Cohen).

11

Exhibit SSS: Steve Lindsey email to Kelley Lynch dated May 2, 2005.
12
13

Exhibit TTT: Ann Diamond (draft article for Rolling Stone).

14

Exhibit UUU: King Drew May 225, 2005 fraudulent report.


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16
17
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Exhibit VVV: Trial Transcript (pages 293-297)


Exhibit WWW: KL email to Cohen & Kory dated July 30, 2004 & August 3, 2004
(advising them that I have reported the allegations that Cohen committed
criminal tax fraud).

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Exhibit XXX: Kelley Lynch State Bar Complaints re. Cooley & Lindseys custody
lawyers dated February 17, 2007.
- 155 DECLARATION OF KELLEY LYNCH

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3
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5

Exhibit YYY: State Bar Letter re. Cooley dated February 28, 2007.

Exhibit ZZZ: Judge Lewis Babocks Order dated September 5, 2005; Trial
Transcript (pages 355 )

Exhibit AAAA: IRS Binder Index (April 9, 2012 Trial Evidence).

Exhibit BBBB: LAPD Report (emails are generally requests for tax
7

information.)

Exhibit CCCC : Trial Transcript (RT 40).


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10
11
12

Exhibit DDDD: Trial Transcript (RT 56-57).


Exhibit EEEE: Bail Hearing Transcript (RT 6 DA Investigator).

Exhibit FFFF: (April 18, 2011 email testimony - RT 160-161; 266)

13
14

Exhibit GGGG: Trial Transcript (Spector & Cooley: RT 40, 60-61, 56-57, 157159, 305, 265-266); Mick Brown emails.

15
16

Exhibit GGGG-1: (SSN & Drivers License: RT 301-303, 319)

17
18

Exhibit HHHH: Schedules of Perjury Declarations Leonard Cohen, Michelle


Rice, Robert Kory, and

19

Kevin Prins; Misrepresentatives in Declaration of Scott Edelman.

20

- 156 DECLARATION OF KELLEY LYNCH

Exhibit IIII: Cohen Affidavit - Natural Wealth (Complaint attached as Exhibit


A to Tactical Allocations Ex Parte Application in Intervention for Order
Protecting & Preserving Evidence Related Case No. BC341220).

I declare under penalty of perjury under the laws of the State of California that

the foregoing is true and correct.


4

Dated: 12 March 2015


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______________________________________
7

Kelley Lynch, In Propria Persona

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- 157 DECLARATION OF KELLEY LYNCH