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Vorsanger and Mr. Keightley were authorized to settle with all
Arbitrage Management investors, including petitioners.
Mr. Kletnick's role was to advise the Arbitrage Management
taxpayers' lead counsel of the blanket settlement offer and its
terms. Similarly, Mr. Kletnick's January 21, 1988, letter to this
Court confirming acceptance of the blanket settlement offer did not
purport to be on his own authority. The letter expressly stated
that it was on authority of "Agatha L. Vorsanger, Regional
Counsel".
The testimony before us supports our conclusion that the
settlement offer was properly authorized. Mr. Kletnick testified
6(...continued)
Honor, is that neither Mr. Kletnick nor I
were particularly fond of settling the so-
called repo years, but that the decision was
made in Washington, I believe by Mr.
Keightley, that it would be in the
government's interest, for whatever reason,
to enter into that settlement and we were --
would enter into a settlement with respect to
those years, that we were instructed,
accordingly, to do so.
THE COURT: And you were instructed by your
supervisors?
THE WITNESS: We were instructed by the
national office, again, I believe by Mr.
Keightley, and that would have then flown
through the regional office to Mr. Kletnick
and then down to myself.
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