He's your $9-million man

[Gurinder]

From this morning's Globe and Mail (March 2, 2006)

He's your $9-million man

A judge has granted Leonard Cohen a multimillion-dollar judgment against the singer-songwriter's ex-manager. But can he collect?
JAMES ADAMS

Globe and Mail Update

A judge with Los Angeles County Superior Court has granted Leonard Cohen a default judgment of $9-million (U.S.) against the Canadian singer-songwriter's former manager.

Judge Kenneth Freeman made the ruling earlier this week in response to a civil suit Cohen filed last August alleging fraud, negligence and breaches of contract and fiduciary duty on the part of Kelley Lynch, who served as his business manager from early 1988 through October, 2004.

Meanwhile, another defendant named in the suit, investment adviser and tax lawyer Richard Westin, reached an out-of-court settlement with Cohen last month, details of which are subject to a confidentiality agreement.

Cohen's legal difficulties made international headlines last year after the creator of Suzanne became tangled in a web of claims and counterclaims that had him lashing out against Lynch, who'd briefly been his lover in 1990, for mismanaging his financial affairs. At the time, another previously trusted adviser, Neal Greenberg, was suing Cohen for conspiracy, extortion and defamation of character.

The Montreal-born Cohen, 71, has alleged that Lynch over eight years had siphoned off more than $5-million of his savings, so that by late 2004 his retirement nest egg had been reduced to about $150,000. Westin, now teaching law at the University of Kentucky in Lexington, was named in the claim because Cohen alleged that Westin helped Lynch with the $12-million sale of both Cohen's music-publishing company and artist royalties. Most of these proceeds went into a Lynch-created company, Traditional Holdings, of which Lynch had 99.5 per cent ownership.

Cohen alleged Lynch and Westin "misled [him] into believing Traditional was owned and controlled 99 per cent by Cohen's children," Adam, now 34, and Lorca, 32.

To pay his legal bills and replenish his accounts, Cohen has been in the public eye in an unprecedented way lately, visiting Toronto last month to be inducted into the Canadian Songwriters Hall of Fame; publishing, this coming May, his first collection of new poetry in 22 years; serving as producer and lyricist for a new CD in April by his current muse, Anjani Thomas; appearing in a feature-length documentary, Leonard Cohen: I'm Your Man, to be released later this year, and returning to the studio for a new set of Cohen songs that could be issued later this year or in 2007.

He's even taped a 30-second TV commercial for Book of Mercy, the new poetry collection. And there's serious talk of a singing tour later this year.

In the meantime, Cohen has to find a way to collect on the default judgment. Lynch neither responded to Cohen's suit of last summer nor filed any counterclaim. A subpoena of her financial records last fall was ignored.

Last August, she claimed her phone had been disconnected because she didn't have enough money to pay her bill. "We're still trying to figure out where all the money went," said Scott Edelman, one of Cohen's lawyers, this week. Nevertheless, he said he was "glad this chapter has ended successfully. Now we'll continue to focus our efforts on recovery from Mr. Greenberg."

An investment banker who lives in Boulder, Colo., Greenberg sued Cohen and Lynch in June last year (amended in August) claiming, on the one hand, that Lynch pilfered money from Cohen and, on the other, that the singer-songwriter and his lawyer (and ex-husband of Anjani Thomas) Robert Kory were plotting to make him the "fall guy" for Cohen's woes.

Lynch hired Greenberg as a money manager for Cohen in 1996. Over the years, according to Greenberg's statement of claim, he attempted to keep Cohen informed of his accounts, eventually warning Cohen that both his and Lynch's spending and borrowing habits were seriously harming Cohen's investments.

Greenberg alleges that, after Cohen realized the extent of his financial predicament in late 2004, the singer-songwriter and Kory informed Lynch that they'd be willing to "forgive" her failings if she joined them in a conspiracy to extort funds from Greenberg. If Greenberg didn't co-operate, according to Greenberg's filing, "Cohen would go out on tour . . . and give interviews to reporters in which he would insinuate that he was touring because he had been bankrupted" by Greenberg and others.

As a result, said Greenberg, his "spotless professional reputation" would be besmirched.

Cohen attempted to block or stall Greenberg's suit by trying to get Greenberg's complaints heard before an arbitration panel of the U.S. National Association of Securities Dealers.

Appearing in court in Colorado on Dec. 16 last year, Cohen's lawyers argued that an agreement their client inked in 1997 with Greenberg provides that "any dispute or controversy" had to be considered first via arbitration, not in court. However, the judge ruled that agreements signed in 2002 superseded the 1997 accord, with the result that Greenberg's suit still stands.

Yesterday, Edelman said he wasn't planning to appeal that ruling. Instead, he'll be proceeding with his own action against Greenberg "either in district court or arbitration court."


LINK: http://www.theglobeandmail.com/servlet/ ... nment/home

[Geoffrey]

Gurinder quoted from 'this morning's Globe and Mail'
>Cohen's legal difficulties made international headlines last year after the creator of Suzanne became tangled in a web of claims and counterclaims that had him lashing out against Lynch, who'd briefly been his lover in 1990, for mismanaging his financial affairs.


Leonard didn't, as far as I've seen, do any 'lashing out' against Kelley. His comments about her were never severe or designed to hurt - quite the contrary. He may have expressed disappointment, even criticised her maybe a tiny bit, but basically he remained cool and gentlemanly throughout. Unless my memory is failing me, there were reports that he'd asked Kelley upon what she had used the money, but that she seemed reticent to give very many details, if any. Personally, I have been impressed with the calmness and integrity Leonard has shown - in fact I cannot think how he managed it - taking into consideration that he'd been robbed of virtually every penny he had saved, as well as boxfull upon boxfull of his private manuscripts, journals, diaries, notebooks and letters. Many people would have been broken, aggressive against the perpetrator. I truly admire him. There remains only one thing about all of this that I still do not really understand, and that is why Kelley did it. How could she, and why did she, betray not only such a generous and caring man as Leonard Cohen, but also herself and her family? I sincerely hope she is capable of regret, and that she can find another nice job - and somehow rebuild some of the trust that was invested into her position as manager. I admit that I feel sorry for her, because nobody is all bad; maybe that's some of Leonard's influence brushing onto me after having monitored the impeccable manner in which he has handled this matter. He is an example to us. Congratulations, Leonard, with this successful judiciary milestone. I hope you are able to retrieve some of the stolen funds, but if not, I know you'll not become old and bitter. You are not the type, and that's what makes you stay special to me.

[Young dr. Freud]

Perhaps Kelley Lynch should write a book about her time with Leonard and the bubble baths. Make some money. Then Leonard could actually collect some of his nine million judgement.

YdF

[tomsakic]

That's the worst part. At least he isn't reliable for debts anymore, so he can work from the begining.

Kelley's book can't be concentrated on being with Leonard, I believe. She could title it "My time with Leonard Cohen's money, while he was away in Zen monastery".

[Simon]

Good for him! That is if he succeeds collecting the money back. But that may mean he might be less inclined to go on tour. Too bad for the fans...

[lizzytysh]

Hi Simon ~

I feel that's a premature speculation... for whatever reason Leonard might consider touring, I don't believe he would cancel it based upon this judgement. His regard for his fans is higher than that.


Hi Tom ~

You're right on the title of such a book. Regarding the 'why' of this all, it's seeming to me that at least part might be accounted to "Hell hath no fury like a woman scorned." It's looking like lasting friendship and an excellent, highly-coveted position weren't enough to make the difference.


Hi Geoffrey ~

Well said. All of it. I agree. His personal demeanour through all of this has been stellar... and it will continue so. Congratulations, Leonard. I'm glad to see that common sense and justice prevailed. Hopefully, the proper people can monitor Kelley's comings and goings and finances, and eventually access the money for recompense to Leonard.

~ Lizzy

[Young dr. Freud]

Hopefully, the proper people can monitor Kelley's comings and goings and finances, and eventually access the money for recompense to Leonard.

There isn't any money to access. It's gone. Spent. That's why she's has to write a book. A bestseller.


YdF

[lizzytysh]

It may be gone... it may be in hidden bank accounts for her own retirement. She's been foolish in her actions, but I believe she's cunning enough to have held some back somewhere.

~ Lizzy

[Simon]

Is there any possibility that she may appeal of the jugement? If she has money hidden somewhere she could afford it and the thing could last for ever...

[Nightstalker]

Geoffry,
I'm glad you posted concerning Leonard's behavior in this and from what I have read I agree with your position.

This is good news for Leonard. Sometimes just being vindicated by a court of law is enough to almost make up for what the defendant did to you. I still hope he can collect something.

Also, I haven't read anything one way or another but I would speculate that the source of the 'conspiracy against Greenburg' may well have been Kelley stirring the soup against Leonard. Has anyone seen anything about who started this? All I have seen said that Greenberg felt he was being coerced and that there was a conspiracy but I haven't heard what evidence he has for that.

[Tri-me]

In this prophecy the Year of the Dog has started out as predicted.

Characteristics of the Fire Dog year of 2006 include a supportive year with a sensible climate of justice, relief, harmony and peace prevailing over the globe, compared to the last few years.

Leonard seems to be having a good time now, after the turmoil of last year.

[Dem]

Some good news for Leonard at last!

I am also a dog in the Chinese horoscop.
Let's hope the prophecy will be for me too

(and,em... your Honor,.... I would be content with
far less than 9m $, ...thanks! )

As about why Kelley Lynch did what she did
my (wild) guess based on the limited information that was made
public is that she is suffering from manic-deppressive
disorder and she went on spenting sprees while being
on the manic phase of it (that's a typical symptom of this ilness)

Perhaps Leonard knows this
and he is not so harsh with her.

Well that's just my (wild) guess, anyway.

dem

[lizzytysh]

Hi Demetris ~

Thanks for your objectivity, Demetris, in presenting this possibility. I'm still too angry with Kelley, and it hadn't occurred to me in that way... even though I'd seen the manic-depression cited. You're right that it's one of they symptoms.

I much prefer your 'theory' to mine! Yes, that would summon additional compassion in Leonard, particularly since he's suffered the depression end of it. I don't recall that there's ever been any suggestion of his being manic-depressive, only depressive [with his being able to function more effectively during the times when the depression lifted ~ I say "more effectively," because it wasn't until more recently that he woke up, commenting to the effect of, "So, this is how most people feel!" as he finally felt a sense of joy with being alive]. This could also contribute to his willingness to keep Kelley in his employ. If she's suffered with this condition for a long time, this would not have been the first time he experienced some of its symptoms with her. At any rate, he knows very well how it is to try to function with something 'outside of yourself' in 'control.' This would explain many things regarding his attitude toward her in all of this mess. Of course, that kind of compassion being exploited and trampled upon makes it all the worse, in the sense of being 'used' in the sense of "Kindness is a sign of weakness." Still ~ the mental illness wouldn't be making those distinctions, either, so...

I just wish we could turn back time, and none of this happened. [Just had to say that, absurd as it is.]

Anyway, with regard to what I said, there are many women who are 'scorned' and would never dream to take such action [though most are not in such a position to do so, in the first place; and if they were, the position would go the way of the liaison/relationship, both ending together, but most women wouldn't do this, even so]. No matter how I view this set of circumstances, Leonard's role and behaviour show him to be very kind. He's a caring person.

~ Lizzy

[Byron]

The shared conditions of his depression and her bipolar disorder could explain leonard's seemingly 'soft' approach to the situation with her. Something akin to kindred spirits. If, and it's a very big IF, she was being subjected to bouts of impulsive spending, I might suggest that those of you who smoke, consider what it would be like to try and give up. A very difficult condition to experience and difficult to stop.
Dem's point is well taken and may explain so much.

[lizzytysh]

After reading Byron's posting and in re-reading my own, I feel the need to clarify what I meant by "more effectively" ~ this wasn't to suggest that Leonard's not being optimally effective now. It's meant to say that he was being effective, even during his years when depression plagued him. We have many songs and writings to prove it. So, my emphasis was on his being effective then, and even "more" effective since his depression has lifted, so now he has more time available for creativity and living life in ways that are more 'effective' for him ~ as he's now absent the depression.

Cigarette smoking is a good analogy... except the compulsive nature of the manifestations of "manic" goes even further, I believe. It's not as much a matter of what you are trying to control, with what you do, as much as it is actually 'who you are' during those manic periods. Not an 'excuse' of course, but as Leonard described so effectively somewhere, how it was when he was beneath the heavy, dark blanket of depression, and the room seemed tilted during those times. I can't remember the details of his description, but the visceral effectiveness of it.

Yes ~ absolutely, Byron... with what you've said regarding their being akin to kindred spirits... and his "soft" handling of this all, not wanting to go the legalistic route and expressing his disappointment as to how this all went wrong... and not wanting to be negative toward Kelley personally. Such fertile ground for ambivalence... and difficult position for him, with someone who's been a longtime friend and whose suffering he must understand so intimately.

~ Lizzy