Bernhard F. and Cynthia G. Manko - Page 17

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                    trial is required only if "'the court [is                         
                    left] with a firm belief that but for [the                        
                    erroneous exclusion], the defendant would most                    
                    likely not have been convicted.'"  Wallach,                       
                    935 F.2d at 456 (quoting Sanders v. Sullivan,                     
                    863 F.2d 218, 226 (2d Cir. 1988)).  We leave                      
                    this, and any other remaining issues as to the                    
                    effect of nondisclosure, to the judgment of                       
                    the district court.                                               
          Manko v. United States, 87 F.3d 50, 55 (2d Cir. 1996).  As of the           
          release date of the opinion in this case, the District Court has not        
          rendered its decision.                                                      
               G.  Respondent's Suspension Letter                                     
               On June 22, 1988, Mr. Kletnick sent petitioner a letter                
          (suspension letter) stating that, at the request of the U.S.                
          Attorney's Office, the IRS was "suspending consideration of the             
          settlement" of petitioner's case until  September  30,  1988.               
          Petitioner's counsel understood this letter only to mean that the           
          implementation of the settlement was deferred.  Mr. Kletnick never          
          received a response to the suspension letter.                               
               Prior to the issuance of the suspension letter, the IRS had            
          never treated the settlement of petitioner's case any differently           
          than the settlement of cases of the other Arbitrage Management              
          partners.  Nor did the IRS ever advise petitioner that respondent           
          would treat petitioner's distributive share of Arbitrage Management         
          partnership losses as a nonpartnership item.  At no time during the         
          settlement negotiations that preceded Ms. Kaplan's January 15, 1988,        







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