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4DECLARATION OF KELLEY LYNCH
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 witness.2.In approximately 1984, I began working for
legendary entertainment industry attorney, Marty Machat. From
approximately 1994 until the time of his death, in April 1988, I
worked as Mr. Machats personal and legal assistant. Mr. Machat and
his son, Steven Machat, had an entertainment industry clientele. It
was during this period of time that I was introduced to Phil
Spector and Leonard Cohen who were two of Machat & Machats
legendary clients. After Mr. Machats death in April 1988, Leonard
Cohen hired me to work as his personal manager. I worked as Leonard
Cohens personal manager from approximately April 1988 through
October 21, 2004. Following Marty Machats death, Phil Spector hired
me as his personal assistant/intern. I worked for Mr. Spector from
sometime in 1988 through, 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 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.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 son, Rutger Penick. This was a
particularly busy moment in time as Leonard 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 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 most
territories. 4.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 from a relatively brief period
of time when I visited my son in 2010 and took a temporary
position. From 2006 through the Spring of 2007, I lived in Santa
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-term temporary position with Deneuve
Construction in Boulder, Colorado. I left Boulder, Colorado at
sometime in late 2008 and went to stay with family friends 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 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 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 details I could with respect to the secret mediations and
Cohens agreement with Richard Westin. I briefly discussed this
matter with a lawyer who advised 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 issues related
to vacating a judgment. A friend of mine in Ft. Lauderdale, Florida
invited me to stay with him. I left Los Angeles, flew to Ft.
Lauderdale, and stayed with this individual until approximately
December 2011 at which point I relocated to Berkeley, California.
One of the reasons I chose to relocate to Berkeley, California is
due to the fact that many Tibetan lamas are there, 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 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 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, 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, did not understand the facts; and the jurors ultimately
advised my lawyers in debriefing of the follow: they wanted to hear
from IRS; one juror relied on the prosecutors statements about
Traditional Holding, LLCs assets although the judge instructed the
jury not to rely on attorney statements (one juror felt sorry for
Cohen); and, evidently some jurors felt I was rough on the
prosecutor. For reasons I cannot imagine, people seem to think that
lying is acceptable, targeting people is acceptable, destroying a
family is appropriate, stealing is acceptable, and the correct
response is to send thank you notes and flowers. I remain
unconvinced and view this as evidence of highly confused and
neurotic thought processes. I was convicted and sentenced under
domestic violence statutes although there was and remains no
domestic violence. The Boulder 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 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 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. Suarez, who was
kind enough to file this document for me, also turned my
declaration and the case history into one document and signed it. I
authorized 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 various parts of this country, I used a
perjury statement that California does not use although I think
that one does take this oath to the best of their knowledge and
belief. That generally addresses the fact that I have not resided
in Los Angeles, California, except for a brief visit in 2010, from
2006 through June 2013. I also did not have the financial ability
to file a motion and fly in for a hearing. Therefore, I diligently
pursued what I was capable of and in a timely 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 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 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 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 lease on our
former premises and moved my management company offices there. It
was around this time that Leonard Cohen and I entered into a new
agreement with respect to my services as his personal manager. That
agreement included, but was not limited to, paying me the proper
commission for my services as his personal manager (15%) and
compensating me with 15% of all intellectual property. Everything
was relatively congenial during this period of time. Leonard Cohens
daughter, Lorca Cohen, was frequently at my home for dinner and I
frequently helped her with homework; drove her, my step daughter,
and son to and from their respective schools; and the situation was
all rather familial. 6.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 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 the Mt. Baldy Zen Center. From
approximately 1994 through 1998, Leonard Cohen spent time on Mt.
Baldy which is located approximately 45 minutes from 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
seemed to be more of a formality than any type of actual religious
vow. Leonard Cohen was not, contrary to the allegations in his
Complaint, in a rigorous retreat during his Mt. Baldy phase. He
worked on his musical, literary, and artwork projects; gave quite a
number of interviews; participated in the filming of a documentary;
recorded at least two new songs; oversaw the compilation and
production of at least one live album; began regularly
communicating with a fan site, the Leonard Cohen Files, which he
viewed as a critical marketing tool; and was frequently in Los
Angeles staying in his home which was located one block from my
office. Cohen and his daughter, Lorca 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.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. 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 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 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
accuse me of having sex with Oliver Stone in a blatant attempt to
stir up a custody matter with my younger sons father. 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 known as the Bowie Bond and Cohen, together
with his representatives, fervently pursued a similar type of deal.
Cohen would now like to change 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 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 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 generated by the deals would have been
far greater. The complex structures and tax planning were conjured
up for the sole benefit of Leonard Cohen. The 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
since at least 1977 when a tax memo was prepared for him that took
the position that, although Cohen had residences in the U.S. and
Canada, he was not obligated to pay taxes in either country and
encouraged him to funnel income into off-shore accounts. 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 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 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.Excerpt Interview with Leonard Cohen, KCRW,
February 18, 1997:
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 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.
Chris: I see. Have you been writing lately?
Leonard: Yes Ive been blackening pages, here and there, and
scratching away.
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.
Chris: Thats good, thats a positive sign.
Leonard: There is no special time or date for it. Its gonna take
a while.
Chris: It is gonna take a while.
Leonard: Im just finishing a book now. Ive been concentrating on
that for the past few months.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.
Chris: I see. So are they new writings?
Leonard: New writings.
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.Chris: I should also
point out that your son, Adam
Cohen: Oh, my son does beautiful work. He is the real thing. He
really knows how to sing.
Chris: He just recently got a record deal.
Cohen: Yes, he signed with Sony and he is in the midst of
recording now. Hes written some very very beautiful songs.
http://www.leonardcohenfiles.com/kcwr.html10.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 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 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 daughter, Lynch, at Rinzai-Ji Zen Center, and in
the recording studio. Cohen evidently felt that highlighting the
time spent at a formal religious retreat, where he was absolutely
viewed as a patron, would work best with his rescission argument.
The following You Tube links, which the Court should review, give
an overview of Cohens cabin at Mt. Baldy, some of the material he
was working on at the time, and his frequent trips to Los Angeles,
California and my office. The interview footage, with Cohen in
front of a white wall, was filmed in the office I provided Cohen in
my management offices. The other footage of Cohen in his robes, in
his office (which was provided as a courtesy to this individual),
shows the boxes of archival materials (a great number of items 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
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.
https://www.youtube.com/watch?v=ko7Pyz55ziU
Leonard Cohen on Mt. Baldy
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.
https://www.youtube.com/watch?v=HJuJQI0RMiw
11.From 1996 until approximately 2001, I also worked as Adam
Cohens personal manager. Adam Cohen is Leonard Cohens son.12.In
late 1996, Bob Hilburn interviewed Leonard Cohen about the Tower of
Song tribute album. At the time, Mr. Hilburn, who personally met
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, 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 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 book of poems and songs for a future album. His
workroom contains a primitive Macintosh computer and a synthesizer,
tools for his music and his graphic art. 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 working at Mt. Baldy.13.In 1997, during his Mt. Baldy phase,
Cohen oversaw the selection and release ofMore Best of Leonard
Cohenalbum, which included the track, Never Any Good, and an
experimental piece The Great Event.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
releasedhis studio album Dear Heather. Cohen's book of poetry and
drawings,Book of Longing, was published in May 2006. These 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
15.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 and during the period of time when I was
incarcerated from approximately March 2012 through September 2012.
During my 2010 visit with my son, I took 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 viciously attacked when I made my intentions a
matter of public record. In fact, Leonard Cohens fan, Susanne
Walsh, a Bay Area lawyer, Stephen Gianelli, and others seemed to
intensify their harassment, stalking, and intimidation of my
relatives, friends, and others. These individuals, and others, have
engaged in what is clearly a highly coordinated campaign of
harassment and slander 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. 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 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 February
15, 2009. Evidently the temporary order, which was vacated on
September 2, 2008, expired on February 15, 2009. The reason this
information 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 copies of their domestic
violence related restraining orders (granted without a hearing)
which were evidently issued with the assistance of the City
Attorney's Family Violence Unit. The Boulder Combined Court stated
unequivocally that This case is not a domestic violence case which
can be verified on the top right of the first page of the ICON;
noted as "Type: Protection Order". On the motion for civil
protection order, the Petitioner only checked off Stalking and
Physical Assault, Threat, or Other Situation but not Domestic
Abuse. On of Leonard Cohens concerns, when applying for this order,
had to do with my online posts refuting appalling slander as well
as my 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. 17.One of the issues this declaration addresses relates to
Leonard Cohens tactics. Those tactics have included the use of
fraudulent restraining orders; coercion; the use of my sons as
weapons; strong arm negotiating 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 roommate, Paulette Brandt, I, and many others (including
both of my sons and sister) have been relentlessly harassed over
issues relating to Leonard Cohen, this case, and federal tax
matters. The harassment continues to this very day. This is some of
the background to the situation at hand. 18.I have encountered
numerous confusing and misleading situations and statements with
Los Angeles Superior Court. Those issues include, but are not
limited to, being advised not to file a proof of service until
after a new judge was appointed and a date set for a hearing on the
motion; being advised that 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 spending nearly
two years attempting to obtain a transcript of the March 23, 2012
bail hearing (Case No. 2CA94539-01). That case also involves a
situation 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 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 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 number and I was finally able to
order a transcript of the March 23, 2012 bail hearing. On August
14, 2014, I received a copy of that transcript from Annette Van
Olden. This hearing was important for a number of reasons. Exhibit
C: Emails with court reporters re. March 23, 2012 hearing
transcript.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 peace of mind. I have attached hereto a
MacLeans article dated August 22, 2005. This was publishing
approximately one week after Cohen filed the Complaint in the
instant matter. Cohen is quoted extensively in this article; posed
for photographs; and provided the journalist (an awe inspired fan
really) with some of the emails he sent his financial adviser, Neal
Greenberg. I 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 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. 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 against Greenbergs allegations and, no doubt,
anticipated that something might unfold after I reported the
allegations that he committed criminal tax fraud to Internal
Revenue Service on April 15, 2005 and provided IRS with an
abundance of evidence. This article sets forth Leonard Cohens
fabricated fantastical narrative that is in no way, shape, or form
supported by the evidence or the facts. Exhibit C-1: MacLeans
article. August 22, 2005.20.The March 23, 2012 hearing transcript
is of great importance. First, one of the individuals in the
courtroom was an investigator with District Attorney Steve Cooleys
office. During my 2012 trial, Steve Cooley, prosecutor Alan
Jackson, appellate attorney Dennis Riordan, and Phil Spector were
constant themes. In fact, the prosecutor elicited testimony about
Phil Spector 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 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.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 testified about Phil Spector. His testimony contradicts the
statements used by the prosecutors in the Phil Spector matter.
Leonard Cohen evidently was not afraid when Phil Spector allegedly
held a gun to his head but fears for his life over my alleged
emails that LAPDs report describes as generally being 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 an automatic. Perhaps that, in and of itself, is not
problematic however, on April 5, 2012, at the outset of my trial,
Leonard Cohen wrote to the prosecutor and included a version of his
highly embellished Phil Spector gun story that, in this telling,
involved Mr. Spector pressing an automatic into Cohens neck. This
testimony, and the three separate versions of a gun incident
involving Mr. 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 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
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) There is a huge distinction between a personal manager and
business manager and I was the former. For approximately 17 years,
I worked as Leonard Cohens personal manager. Leonard Cohen
testified that We have three restraining orders against Ms. Lynch.
(RT8) I am completely unaware of the 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 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 permanent orders actually expire), have no arguments about
service issues (apart from the revolting fact that the process
server ran around Boulder, Colorado advising people that he had a
check for my sons accident where his fingers were ripped off),
advised the judge that I found the situation insane, and 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 following the hearing and discovered Leonard Cohens
startling declaration. As for the third order, Cohen is evidently
addressing the registration of the foreign Boulder, Colorado order
with LA Superior Court on May 25, 2011. I believe that is in fact a
new order. That order is at issue and somehow transformed into a
domestic violence order although Leonard Cohen and I were never in
an intimate dating or engagement relationship and the Boulder,
Colorado order was not a domestic violence order. Natural Wealths
June 2005 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 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 confirmed that his email address is
[email protected]. (RT 10) This will become relevant with respect
to evidence submitted with this motion and declaration. Cohen
concealed the fact that I repeatedly contacted him to request IRS
required tax and corporation information. I was unaware of the fact
that he and his legal representatives had taken the position that,
not only do the restraining orders interfere with the transmission
of federal tax 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 prosecution also
essentially printed out the same email over and over again to
ensure that their binders looked thick. One issue that annoyed
Leonard Cohen, according to his testimony, is his own desire to die
by firing squad (RT 18). At least thats what he told me since
approximately 1989 when he was interviewed for Rolling Stone
Magazine by Mikal Gilmore. Mr. Gilmores brother was 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 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 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 failed to
file my tax returns. Leonard Cohen refuses to provide me with the
information I have been requesting for approximately 10 straight
years now. I 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, 2005, I reported allegations
that Leonard Cohen committed criminal tax fraud to Internal Revenue
Service. During the March 23, 2012 hearing, Cohen is asked when the
last time he saw me was and he acknowledged that he hasnt seen me
since 2004. He is then asked the following questions: Q: Has she
vandalized any of your property during that time? Cohen: No. Q: Or
stolen 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 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, 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. (RT 20). I believe
it is important for this Court to take note of Cohens contradictory
testimony, blatant lies, and self-serving fraudulent
misrepresentations. I have only addressed the more extreme examples
in these documents. Exhibit F: Transcript March 23, Hearing. Cohen
changed his 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 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 273-277
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
23.Leonard Cohen has a pattern of falsely accusing his
representatives; stealing from them; and, withholding commissions
due them. This identical situation occurred with his former
managers, Machat & Machat. Marty Machat, as Ive said, passed
away in April 1988. Leonard Cohen 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
& 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 owned the intellectual property related to Leonard Cohens
music publishing catalogue. Immediately after Mr. Machats death,
Leonard Cohens attorney and I negotiated to buy back the rights to
Suzanne and two other songs which were then assigned to Stranger
Music, Inc. The Complaint in this matter 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
Leonard Cohen. That allegation is contradicted by Marty Machats
letter to Irving Trust Company. This is extremely relevant because
it proves that, time and time again, Leonard Cohen conceals
information, breaches contracts, falsely accuses others of
misrepresenting him, and seems to steal from people. It also may be
evidence that proves Leonard Cohen removed corporate records from
Marty Machats office, after his death, and sanitized the files and
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, 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
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 managers, Berger & Martin, stole
the copyrights to Suzanne, Dress Rehearsal Rag, and Song of Isaac.
These three songs do not appear on the assignment list transmitted,
with the actual assignments, to Mr. Machat. After Marty Machats
death, Cohens transaction lawyer and I negotiated the 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 Gods, Gangsters, confirms that Cohen, falsely accused
Berger & Marti of ripping him off. Steven Machat is not merely
a bystander with a casual opinion, his father and he worked as
Cohens managers and attorneys and negotiated many deals on Cohens
behalf for a period of nearly 20 years. Exhibit H: Berger, Berger
& Beal letter to Marty Machat dated January 5, 1972.26.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 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 him
off. He signed an agreement, and when he wanted to get rid of the
contract, he accused everyone of ripping him off. You could say it
became repeat behaviour. My father duly got rid of Berger and
Martin, set up a new company called Stranger Music for Cohen and
agreed to manage Leonard for 15% as well as 15% of Stranger. The
idea of the company was twofold: one, to maintain ownership of the
copyrights duly created; and two, to minimise Leonards exposure to
American tax, just like any other rich individual trying to
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 advising Mr. Machat to
release all of Leonard Cohens files to him. I spoke to Mr. Machat
about this letter and he told me to release all of the files to
Cohen and did not believe it was necessary to copy the files. Phil
Spector also 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 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 Charles Aaron, Bankers
Trust, that this was precisely what had occurred. Cohen didnt say
much and, due to the extreme confusion and drama surrounding the
situation leading up to Marty Machats death, I didnt think too much
about the allegation. During this period, Leonard Cohen came into
Marty 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 Cohen to enter and relax when he was in New
York, I had recently gone to Martys 5th Avenue apartment, picked
him up with a car service, helped him into the office (because he
was quite weak from the cancer), and accompanied him back to our
offices. After Marty finished whatever he was working on, I
accompanied him back to his apartment, visited with him for a
while, and 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 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 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.
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 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. Steven Machat and I
became quite close during the period leading up to his fathers
death and I liked the idea of working for him very much. However,
due 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 day of Marty Machats funeral, I never
again spoke with Avril Giacobbi due to her conduct leading up to
his death. Leonard Cohen personally avoided her 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 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 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 attorney who
rented office space from Machat & Machat, was present and
specifically advised me that he called Steven Machat to inform him
that Cohen instructed me to remove the files and that this is what
was occurred. I left the office and some, but not all, of the
materials Cohen advised me belonged to him 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
Machat had reviewed the files and removed what did not belong to
Leonard Cohen. I was aware at some point after Marty Machats death
that Steven Machat was questioning the whereabouts of certain
bearer bonds, corporate records, and other materials, that he
believed were in his fathers office. Evidently, Mark Cristini had
advised Steven Machat that the bearer bonds were 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 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.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 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 have to pay taxes in the United States, Canada,
or Greece. It instructs Cohen not to have a U.S. green card and
goes into some detail about funneling monies 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 Leonard Cohen filed non-resident income tax
returns in the United States while holding a U.S. green card that
he obtained in 1970. The IRS would have to confirm that for a fact.
This memorandum is astounding and may very well prove that Leonard
Cohen has a 40 plus year history of tax fraud and/or evasion in the
United States and Canada. That would explain the lengths this man
has 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 & Co. Tax
Planning Memo for Leonard Cohen dated August 22, 1977. 32.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 Goldstein and my attention after Marty
Machats death. Apparently the information the Internal Revenue
Service had on file (re. Cohens SSN) did not agree with the
information the Social Security Administration had on file. Leonard
Cohen testified that he never changed his SSN. That is perjured
testimony and the fact that he had numerous social security numbers
is extremely suspect. Exhibit L: IRS Notice dated September 12,
1988. [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 off-shore
accounts; establishing new entities in Delaware; dealing with Sony
on at least one recording contract that was evidently inadvertently
assigned to a Nevada entity Cohen created; etc. Leonard Cohen
advised me that he planned 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
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 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 asked me to speak with Van Penick,
my brother-in-law, about Canadian Residence issues. On October 26,
1988, I received a letter from Van who 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
income from all sources Van went into some of the factors that
figure into the Canadian residence equation which include: location
of dwelling places; location of spouse and dependents; location of
personal property and social ties; intention to be resident in a
particular country shown, for example, by renting out your home
(not selling it) and retaining your resident club 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 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. 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. 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 Cohens U.S. residency status. On or about
December 7, 1989, Leonard Cohen wrote his friend, Dominique
Issermann, a letter transmitting the sum of $100,000. as a gift to
her from his Amro Bank Account (No. 47-25-92-874) in Amstelveen,
The Netherlands. This letter was notarized at the time. It is
evidence that Leonard Cohen followed the advice contained in a 1977
tax memorandum instructing him to maintain ties with Canada, remain
outside of Canada, declare U.S. source income, and funnel
international publishing into an 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 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).35.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. After Marty Machats
death, Cohen and Herschel Weinberg, unraveled the off-shore
accounts and Cohens new entertainment transaction attorney and,
pursuant to Leonard Cohens instructions, created new agreements
with new publishers or replaced the New Era B.V. agreements with
Stranger Music, Inc. agreements. Jonas Herbsman, one of Cohens
transaction attorneys, wrote a letter to Herschel Weinberg,
Esquire, on January 8, 1990. He confirmed that a letter had been
prepared acknowledging the assignment to Stranger Music, Inc. of
musical compositions that were previously administered by New Era,
B.V. and forwarded a copy of same to the various subpublishers
having 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, 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 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 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 securitization deal with CAK, it was agreed
that LC Investments, LLC would collect the royalties paid by SOCAN
while Blue Mist Touring Company, Inc. actually owned the assets.
These royalties should have been transferred to Blue Mist Touring
Company, Inc. and included on the federal tax returns. At various
times, Westin mentioned this could be problematic but felt the IRS
would never stumble upon the SOCAN agreement. Exhibit P: SOCAN
Agreement (with Leonard Cohen).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
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 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 Productions, Inc., signed by Leonard
Cohen on March 11, 1993, resolved to amend the name of the
corporation to Blue Mist Touring Company, Inc. Blue 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 address. Its status is SOS/FTB forfeited. 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. 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 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 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 donation to a Canadian charity would
this in fact jeopardize his position that he is not a Canadian
resident. Please advise. Leonard Cohen was extremely concerned
about his potential tax/residence issues in Canada. I have
discussed this situation with Canada Revenue. This document is also
relevant because Robert Korys declaration takes the position that
Cohen is in good standing with tax authorities throughout the world
and there is evidence that this may be a defense rather than a
fact. It also relates to bias and motive. Exhibit R: Kelley Lynch
fax to Richard Feldstein dated December 7, 1993.40.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 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 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 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 instrumental in the corporate, tax, and
financial issues that arose with respect to the intellectual
property deals being pursued. This fax addresses the fact that
Greenberg had spoken to Richard Westin the night before regarding
Sonys concerns about tax matters. This was a relentless and
continuous issue. Leonard Cohen is the individual who demanded
complex corporate structures and the tax issues that arose are due
to his attempts to evade paying ordinary income taxes, a topic he
routinely obsessed over. These issues also made these deals
unattractive to most buyers other than Sony Music who owned certain
rights that made them more valuable to Sony. Exhibit T: Neal
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 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 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 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 impossible to control Leonard Cohen. Attached
hereto is Richard Westins June 1, 1998 letter to me. In the letter,
Westin asked if I could locate the book 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
agreement that relates to the writers share of intellectual
property. At this time, Cohen and his representatives were
entertaining a number of potential deals. Various potential buyers
were interested in purchasing Cohens literary work as they felt it
would be a valuable asset. Cohen agreed to offer his literary work,
as contained in his first 11 books, for sale. Richard Westin
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; 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) the writers
share of music publishing (excluding the publishing share sold to
Sony/ATV in 1996) which included writers share of performance
income and artist record royalties from Sony Music International
for the sale of records worldwide. It was agreed that these rights
were embodied in the attached documents beneath the cover page
captioned WRITERS/ARTISTS SHARES and attached to these Minutes. The
President of the company, Leonard Cohen, authorized the acceptance
of these works on behalf of Blue Mist Touring Company, Inc. This
document is signed. Leonard Cohen and his daughter, Lorca Cohen,
went into my office and removed every single business file they
felt entitled to. That would include my personal business and
corporate records. The original of this document would have been in
those files. As of 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; 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]
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
purpose in an amount to be determined that would be secured by a
security interest in the Rights and the royalty income generated
therefrom. Following further discussions between the parties, on or
about May 10, 1999, CAK and Cohen signed a document entitled
Proposed Royalty Income Loan for Leonard Cohen Summary of Terms
& Conditions (the Term Sheet). This litigation relates to the
document Cohen signed and the payment of a $290,000 Origination
Fee. This document confirms that Leonard Cohen terminated CAKs
engagement and Cohens representatives discussed with Sony Music
their acquisition of the Rights. In November of 1999, Cohens
representatives conformed CAK that Cohen was seriously considering
selling the Rights to Sony, if acceptable financial and related
terms could be reached. In response, CAK wrote Cohens personal
manager and advised her that in light of the 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, 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 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. I assumed that, as
with every single other document in that matter, CAK had sent a
copy to Cohens lawyers. Exhibit V: Cohens Opposition to CAKs Motion
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
personal manager, as is his lawyer, and understands that he
receives substantial royalties. Leonard Cohen also confirmed that I
receive what I view to be substantial royalties, on a regular
basis, from sales of my albums and uses of my compositions. This
completely undermines and contradicts allegations in the Complaint
that Leonard Cohen felt an intellectual property sale was
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].45.In March
of 1999, Leonard Cohen instructed Richard Westin to cancel Cohens
sole ownership in Blue Mist Touring Company, Inc. (500 shares) and
issue Lynch 75 shares of Blue Mist, representing a 15% equity
interest, and 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 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 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 fax is relevant because
the P.S. states: Kelley, the IRS has the SSN as 5724. I will call
them on it but I dont think it will get you out of the audit.
Leonard 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 the attachment to this letter.
Confusion with respect to IRS matters, Cohens social security
number, corporate ID numbers were a continual issue and high
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 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, 1996.47.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 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 information by
August 15th; and, addresses the IRS audit of Cohens decision to
restructure LC Stranger Music, Inc. (in anticipation of the closing
the 1996 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 was part of Cohens previous
accounting firm), about stock appraisals (one did not appear to
exist) and an item on the worksheet Insfeld sent me. Ken Cleveland
noticed that Sony valued the stock at a certain amount (which was
NOT the payment amount to Cohen) and deducted $142,723.23 for
outstanding liabilities and paid the various stockholders a lesser
amount. Ken Cleveland 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
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. Accordingly, in
furtherance of the plan to control all of Cohens royalties, either
Lynch or Westin suggested the formation of a new entity, Leonard
Cohen Investments, LLC. LCI LLC was formed as a sole member (with
Cohen owning 100% interest) Delaware limited liability company on
October 19, 1999. Once LCI LLC was formed SOCAN was instructed to
pay Cohens performance royalties directly to LCI LLC. I didnt have
a joint project with Richard Westin who represented Leonard Cohen.
It makes absolutely no sense whatsoever that I would create a
company wholly owned by Leonard Cohen in order to control all of
Cohens royalties particularly as I have a 15% ownership interest in
Blue Mist Touring Company, Inc. and the intellectual property
assets it owns. Leonard Cohens estate planning attorney, Reeve
Chudd, caused the formation of LC Investments, LLC. His explanation
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 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 from the lender.
This trust is a revocable trust specifically for probate purposes.
The single member LLC will be disregarded for income tax purposes
Thus, the royalty income from the music rights will be received by
the LLC as ordinary income, and LC will report such income, for
income tax 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 not be considered assets
under Section 1221(e) of the Internal Revenue Code. Accordingly,
the LLC structure of this transaction will not change the rights
(or the LLC interest into a capital asset, capable of a sale
generating capital gain or loss. The purpose of the use of the LLC,
as Peter has alluded to in the past are (1) from LCs point of view,
to create a bankruptcy-protected entity which 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 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 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, 1999.49.LC Investments, LLC was formed by Leonard Cohens estate
planning attorney who worked with, among others, Cohens transaction
attorney (Peter Lopez), Richard Westin, and others. The specific
reason for the formation of this entity was to accommodate the
proposed CAK bond deal securitization. At this moment in time, the
CAK deal was on the verge of closing. In November 1999, Sony would
step in with a very solid offer and 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 because
he had no purpose, other than to accommodate CAKs demands, and the
bond securitization deal fell apart due solely to the decisions of
Leonard Cohen who was keenly involved in all of these deals.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 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
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 doubt I would create an entity wholly owned
by Leonard Cohen in order to control anything. Exhibit AA: LC
Investments, LLC Certificate of Formation 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 other artists; caused Sony to pay someone other than the
artist; and interfered with Sonys ability to pay advances to their
artists which, as Stuart Bondell wisely noted, are the currency of
the music industry. After this call, I phoned Leonard Cohen who
advised me that he would agree to pursue the intellectual property
deal with Sony, and forego the bond securitization deal, if they
paid 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 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. 52.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 confess I am losing
patience, and frankly losing interest in this deal. The dragging of
feet is deafening. I dont know if its you, or the lawyers, or Sony,
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 revising the figures downwards. Cohen goes onto
state that he believes Sony destroys my deal with CAK (so as not to
establish any precedent of their artists leaving the fold), dumps
me into litigation, then they postpone the closing of their deal
for seven months until they can discover that my catalogue sales
are lagging and then they will lower the price. This is too obvious
and too familiar. 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. 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 confirms that CAK
sued Leonard Cohen personally and the payment of settlement amounts
with respect to that litigation have nothing whatsoever to do with
Traditional Holdings, LLC except Leonard Cohens belief that these
entities are his personal piggy banks and he is their alter ego. It
is important 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 to move more swiftl