Friday, July 21, 2017

Kelley Lynch's Email to IRS Re. Leonard Cohen, Allegations of Cohen's Criminal Tax Fraud, Kelley Lynch Fact Check Site, Gianelli's Ongoing Harassment & His Slanderous Posts on Ann Diamond's Blog

From: Kelley Lynch <>
Date: Fri, Jul 21, 2017 at 4:06 PM
Subject: Stephen Gianelli
To: "*irs. commissioner" <*>, Washington Field <>, ASKDOJ <>, ": Division, Criminal" <>, Dennis <>, MollyHale <>, rbyucaipa <>, khuvane <>, blourd <>, Robert MacMillan <>, a <>, wennermedia <>, Mick Brown <>, "glenn.greenwald" <>, Harriet Ryan <>, "hailey.branson" <>, "stan.garnett" <>, "mayor.garcetti" <>, Opla-pd-los-occ <>, "Kelly.Sopko" <>, Whistleblower <>, Attacheottawa <>,, alan hootnick <>, bruce <>


As you know, Gianelli has been harassing me, emailing fraudulent information to LAPD's TMU, lying to Ann Diamond, and posting online attacks.  For example, at the Truth Sentinel site and on Ann Diamond's site.  Here are the posts and my responses.  Ann Diamond stumbled upon the website created to influence jurors, the news media, and which Cohen wanted "scholars" to study.  The blog refers people to Michelle Rice.  It is Cohen's defense to criminal tax fraud, entirely perjured and fraudulent, and the tactics - including the use of fraudulent restraining orders.  The operative, Stephen Gianelli, is quite busy defending Leonard Cohen and his representatives, Kory & Rice, and farcically arguing that these matters will be before a jury in the retaliatory proceedings.  I believe the IRS should have a representative at all proceedings from here on out.  LAPD and the City Attorney are lying about federal tax matters.  The City Attorney blatantly lied to jurors and had them VOTE on whether or not I had the corporate tax information, etc.  I did not but the prosecutor advised them that I did.  Clearly, the IRS should investigate all proceedings.  See comments below.  Gianelli, of course, is "Truth Teller."  He is also a criminal and a psychopath who targets witnesses and others.  



And for the trolls who keep spamming the Comments:


* He lied often, e.g. in order to manage situations that he had created. He used his loyal followers to help him manage his complicated affairs. When confronted with his own lies, he was brilliant and elusive.
* He turned his nannies and other women into accomplices in his sometimes unconscionable, secretive behaviour – .

* He was a drug addict and alcoholic – he used drugs and booze to mask his depression. How much of his depression was really guilt caused by having to live with the consequences of his own actions, whether he remembered them clearly or not?

* He lied about Kelley Lynch whom he accused of stealing his money. This has never been proved in a court of law.

He lied to the Roshi about his real reasons for going to India in 2000. They had nothing to do with 'spiritual enlightenment.'

* While adopting an image as a peaceful, impeccably kind and reasonable sage, he absolutely believed in violence. He owned guns and was trained in using them. How does that align with his public image?

* He had a number of apparently separate personalities – with different goals, different relationships, and secret histories. The likely cause of his dissociative behaviour is the documented fact that he was a victim of CIA mind control at one of the leading institutions where this program was created. He was probably a Manchurian Candidate since he went on missions to Cuba, Greece, and Ethiopia. He hid these facts about his early career while sometimes mentioning them in his writing, private conversations etc.

NOTE:  Cohen did confirm for Kelley Lynch, her mother, and others that he participated in CIA's MK Ultra program, was CIA recon during Bay of Pigs, etc.]

* He was skilled at psychological warfare techniques including ‘gaslighting’ – which he used on many people including myself, for years. He also understood the uses of gossip and 'fake news', particularly to discredit people he was close to. He both created chaos around him and meticulously managed it.

I'll be exploring these topics further in the second edition of THE MAN NEXT DOOR. Coming soon. (Paintings by Dianne Lawrence and David Wilson)

Blogger Ann Diamond said...
I found this yesterday just by chance. Scrolling down, the section on EVIDENCE reproduces 45 pages of cheques written by Kelley Lynch to herself from 2002-2004, totaling over $2.5 million. Most are labelled "Shareholder Loans" - i.e. it appears Kelley was "borrowing" from Traditional Holdings to finance her business, starting when Leonard was away in India.

I'm a bit shocked. I see this site only recently appeared, along with the evidence. All along I've just been waiting for proof -- this seems to be it. Quite a lot of the money (around $700,000) was turned into cash between February and May 2004 - ? Next question: where did it go?

Any comments?
July 21, 2017 at 1:11 AM
Blogger Truth-Teller said...
The checks total $3.5M, Ann.

As to "what happened to the money" I know that Kelley Lynch was, during the time the cash disappeared, December 2001 - September 2004, living (and paying mortgage, taxes, insurance, and maintenance on) a large home with a pool and a tennis court in Brentwood, California (OJ Simpson's old neighborhood in LA)and (according to the declaration she filed in court by a friend who visited her there at the time (Daniel Meade) Lynch was also paying a "domestic assistant" to cook and watch the kids after school while Lynch was working.

I spoke to a former Lynch friend named "Betsy Superfon" who was an independently wealthy retired businesswoman who was introduced to Lynch by her ex-boyfriend Steve Lindsey who thought they would hit it off. They did. Superfon found Lynch bright, funny, and good company.

Superfon told me that she introduced Lynch to her favorite jewelry store and was floored one day to see Lynch frop "six figures in jewelry purchases" in a single spree. Superfon told me that Lynch would also buy 8-pairs of very expensive ($800 a copy) woman's shoes in one afternoon.

I spoke to a former Lynch friend who called himself Sean Wilson. He told me he had since been through rehab, and that when he was hanging out with Lynch she was entertaining her Buddhist friends at a korokke restaurant, and treating 8 guests to sushi and sake several nights a week. Sean told me of an incident wherein Lynch and the group were leaving the korokke place one night and Lynch was so intoxicated she almost came to blows with another patron.

I am also aware that Lynch helped her parents buy a home in expensive Pacific Palisades - a seaside community north of LA.

While all these funds were being siphoned, Cohen was not recording or touring, and his income was way down, so Lynch's legitimate commission income as his manager was barely into the six figures and not enough to cover these lifestyle expenditures.

While the idea of spending this kind of cash is unfathomable to most people who are of ordinary means, if one is over their head financially, and perhaps drinking ore than they should and not paying attention, it is easy to go through a lot of cash.

I am told that when Cohen was first informed that his retirement nest egg was gone except for %150,000, he too refused to believe she could have spent that kind of cash, and was convinced for a long tome that she must have rat holed the cash somewhere. But it was later determined that all the cash Lynch withdrew was spent.

In 2004, when Lynch could still afford legal representation, she was urged to mediate, and told it would be awkward for Cohen to press her too hard on the missing funds because he was exposed to potential tax fraud liabilities in connection with the setting up of Traditional Holdings to shelter the $5M from US taxes.

Rather than mediate, though, Lynch decide to play the tax fraud card, Cohen made his peace with the IRS, and then came after Lynch in court.

To this day Lynch claims that Cohen, not she, siphoned the cash from Traditional Holdings. But if the two Kelley Lynch signatures on those $3.5M in checks are "forged" (along with all of those elaborate bank account markings and time stamps showing they were deposited into Lynch's personal bank account) it is a master conspiracy of the first order.

In any even, Ann, that is what I believed happened after looking into every source of information I could find.
July 21, 2017 at 6:32 AM
Blogger Ann Diamond said...
What I don't understand is why this evidence was not published earlier. It's the first time I've seen it. Kelley now says she was instructed to label all expenditures as "Shareholder Loans" -- can someone explain that?
July 21, 2017 at 9:39 AM
Blogger Truth-Teller said...
These checks have been available on-line through the LA court website (subscription required) since they were originally filed as an exhibit to the Declaration of Kevin Prins (Cohen's forensic accountant) in 2006 in support of Cohen's default judgment.

The Prins Declaration (and the attached checks) were also available through beginning in April of 2010.

The Prins Declaration + attachments (which includes documentary support for the entire $5m+ lynch stole, not just the $3.5M in checks she made out to herself, is quite voluminous, and most people just don't have the patience to wade through the entire filing and digest it all.

Note that in addition to the checks Lynch made payable to herself, there were also electronic funds transfers from Cohen accounts to her personal account. She was able to do this after Cohen gave Lynch a general power of attorney over his financial affairs before he left on an extended trip to India.

As for the "shareholder loans" that is what Lynch wrote on the memo line of the checks, but clearly the checks were made payable to Lynch herself, she endorsed the back of the checks with her own signature, and she deposited the checks into her own account.

This, of course, is completely at odds with Lynch's inconsistent claims that made at various times that this was legitimate commission income Cohen owed to her (why then call it a "loans" and not "commissions") and, more recently, that Cohen himself was the one who siphoned out all of the cash from Traditional Holdings.

The site is the first archive to attempt to centrally archive all of the various transcripts, pleadings, and evidence into a more accessible (and less argumentative) form to aid researchers.
July 21, 2017 at 9:59 AM
Blogger Kelley Lynch said...
Ann, thank you for questioning these issues. The Fact Check website, blessed by Leonard Cohen, is being used to influence potential jurors, news media, and other third parties. As this website is replete with slanderous, false allegations and information (including legal pleadings) I am reviewing it privately with a division of IRS. Many of these documents were transmitted to IRS. The site refers people to Michelle Rice's email. Rice has made a living targeting and lying about me.

The so-called checks, which are unauthenticated and taken out of context, conceivably represent corporate distributions for corporate taxes, distributions for promissory note repayments (authorized by Cohen and addressed in a declaration of his I have in my possession), confirmed for me and Cohen by his tax lawyer personally, agreed to when Cohen signed all of the valid corporate documents, represent legitimate corporate distributions, include loans that have been repaid with interest, and there are other items such as deposit slips not made out by me, etc. This is all hearsay. Furthermore, it has nothing whatsoever to do with corporate accountings, balance sheets, or corporate tax information due me. Leonard Cohen's loans, from corporation alone, totaled over $7 million at the time of his death and had to be repaid with interest. He signed the agreement confirming this fact. That agreement also confirmed that his heirs would be responsible. Gianelli, Rice, et al. want to overlook these facts and the corporations themselves. They are willfully disregarding the fact that Cohen's tax lawyer and accountants included me as a partner on federal tax returns, transmitted corporate tax forms to me, and I paid taxes on the income. I don't think the IRS will simply agree that Leonard Cohen and representatives fraudulently included me on tax returns. Cohen also collected income related to assets owned by other corporations. He refused to account for any of this. Cohen withheld commissions due me per our agreements. Those are separate from the corporate items.
July 21, 2017 at 3:48 PM
Blogger Kelley Lynch said...
I was in excellent financial shape when Cohen and I parted ways. I didn't have a large home with a tennis court. I didn't have a domestic assistant. I also don't know Gianelli. I had a baby sitter who helped take care of my kids because I worked. This is Cohen's story line that Kory & Rice have advanced with my stalker, Stephen Gianelli.

Stephen Gianelli spoke with Betsy Superfon? I never dropped six figures on jewelry. Betsy Superfon would have Neimans messenger her 10-20 pairs of shoes. She must be talking about herself. In any event, she will have to speak for herself and the fact that this criminal has contacted her is of interest. She is aware of deals Kory offered me and concluded they were illegal.

I don't know who the other nut is and it is irrelevant. I never took eight people or anyone out several nights a week. I rarely went out and didn't even have a glass of wine for a number of years. It upset my stomach. These are just lies Cohen, et al. have created. I know one guy who had a serious meth problem, visited while a Tibetan lama was with me, freaked my girlfriend out, and had to be asked to leave. That's probably who Gianelli is talking about. I didn't really know the individual and he seemed unhinged. He was a translator.

I never helped buy my parents a home. Cohen also lied to people that I bought a home for a Tibetan lama.

Cohen was spending way too much money as his representatives informed him. His tax lawyer prepared corporate minutes confirming Cohen's loans were dangerous to the corporate structure and should be repaid. His investment adviser raised the same issue. What was Cohen's response? Don't tell them about any future income. Leonard Cohen - not I - was the individual with a lifelong history of drug and alcohol abuse.

Cohen didn't simply have $150K left. He could have repaid the $7 million with interest. I can assure you that I didn't withdraw or spent it and have evidence supporting all of this.

Leonard Cohen and his representatives offered me millions of dollars to settle. I have witnesses to that, it's memorialized by people that were present, etc. There were no missing funds. This is fabricated narrative. Cohen and his representatives, and I have this in writing from Kory, failed to report $8 million in income from one sale alone on corporate returns and that's only one of the very serious issues on the tax returns. I had nothing to do with preparing them, corporate books and/or records, legal documents, loan documents, financial documents, accountings, etc.

Once Cohen understood, and I have Kory's emails from May 2005, that I went to IRS, he retaliated with a sham lawsuit. Cohen hasn't made his peace with IRS. I've challenged his tax refunds as fraudulent, spoken to IRS representatives about the tax information he refused to provide me.

In any event, Ann. We're clear - Gianelli represents Leonard Cohen and now represents Kory & Rice. This has nothing whatsoever to do with the corporate tax information Cohen was required to provide me. His lawyers have a fiduciary duty to provide it. Also, Kory submitted a declaration recently raising concerns about his potential role in criminal tax fraud and theft of royalty income. Never overlook the obvious.
July 21, 2017 at 3:48 PM
Blogger Kelley Lynch said...
Ann, the individual who would have to explain the Shareholder Loan designation is Cohen's tax and corporate lawyer, Richard Westin. He wanted everything characterized in that manner and advised me personally that he would recharacterize everything at a later date. Cohen and I had an agreement that there would corporate accountings related to all corporations. Unfortunately, I am not in a position to address that designation. It might have something to do with Cohen's loans actually being "disguised income." This is something his financial adviser mentioned in letters noting that IRS could overturn the structure if Cohen didn't repay the loans. Why? The IRS could view it all as self-dealing. Cohen elected not to repay the loans. He, as others have noted, felt entitled to treat corporate accounts as his piggy bank. He has done this previously and stole Machat & Machat's share of a corporation, withheld commissions due them, and even sold Phil Spector's master tapes.
July 21, 2017 at 3:52 PM
Blogger Kelley Lynch said...
As for the rest of Gianelli's comments, the renewal of judgment is under appeal. The expense ledger is fabricated and not something anyone would attach to a federal corporate or personal tax return. I've discussed this with IRS. I am owed K-1s, balance sheets (where Cohen's loans should be addressed), etc. for 2004 and 2005. LA Superior Court, regardless of this fraud judgment, has no authority to advise anyone that IRS reporting requirements and tax compliance were not relevant in 2004 and/or 2005 because they entered a fraud default judgment in 2006. The tax information was due me prior to entry of the default. This is merely a narrative and jurors during my 2012 trial were asked to VOTE on whether or not I had the IRS required tax information. The answer is no and they were lied to. Kevin Prins declared that I was not entitled to my commissions if Cohen deposited the income into his personal account. This is farcical, a blatant lie, and I even have Cohen's personal confirmations re. commissions paid to me even when deposited into his personal account. My agreement was 15% of all gross income. There were no caveats and this is perjury in Prins' declaration. Therefore, they have also said I embezzled commissions for which I received tax forms for years. Attached to the Prins declaration is a meaningless list of hearsay numbers. It's not relevant to the federal tax returns that need to be filed and that includes corporate returns. Cohen testified that his lawyer, and people working with him, handled the corporate records and accountings. I handled nothing. They have willfully decided not to file tax returns which is illegal.

Cohen had me execute a power of attorney because he was buying homes from corporate assets for his girlfriend and son. Also, and I have this in writing, his lawyer wanted everyone to be clear that I had the authority to act on Cohen's behalf including re. monies Cohen requested which were deposited into his personal accounts. Cohen's bank statements went to his home and he routinely questioned them so he didn't see any irregularities.

I've explained that Cohen's tax lawyer - not I - wanted the SHL designation. The IRS can speak to him directly. I also gave them access to my emails with Cohen and his representatives so they confirm these types of things independently. Sometimes, Cohen authorized payments to me (and signed documents to Greenberg, etc.) and the checks were sent in his name. That's why they were endorsed. I have back-up documentation for this. Cohen must have forgotten what he wrote, emailed, etc. The corporation distributions to me are not commissions. Gianelli is lying.

As I've said, I am reviewing all documents at the Fact Check blog with a division of IRS. Cohen wanted scholars to study them so perhaps tax scholars will. In fact, tax, corporate and other attorneys have been reviewing the corporate records, pleadings, fabricated narrative, etc. They understand that Cohen and his representatives are lying.
July 21, 2017 at 4:01 PM

Q: What's brown and looks really good on a lawyer?
A: A Doberman.