Zabetti A. Pappas - Page 44




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          rule when the statement sought to be introduced is only                     
          collateral to the statement against the declarant’s interest.               
          Williamson v. United States, 512 U.S. 594, 599-600 (1994).  Such            
          is the case with the statement respondent seeks to introduce.  We           
          accordingly decline to consider respondent’s allegation that                
          petitioner had embezzlement income in an increased amount of                
          $17,700 from Ms. R.  The sole basis for the allegation is                   
          inadmissible hearsay.9                                                      
               With respect to respondent’s original determination that               
          petitioner had embezzlement income of $15,000 from Ms. R. in                
          1990, the two letter memoranda executed by petitioner establish             
          to our satisfaction that petitioner received $5,000 and $10,000             
          from Jennifer R. in July and November 1990, respectively.  In               
          these memoranda, petitioner acknowledges receipt of the foregoing           
          amounts, promises to invest the money, and guarantees a “minimum            
          return” or “return” of 25 percent in 1 year (in one instance) or            
          45 days (in the other).  We are struck by the similarity of these           
          arrangements with those that petitioner foisted upon John K.                
          That is, in the same year, with respect to both John K. and                 
          Jennifer R., petitioner first obtained a substantial sum                    


               9 Respondent also concedes on brief that the revenue agent’s           
          notes provide the sole basis for his determination that                     
          petitioner had unreported income of $2,600 in 1990 from the sale            
          of electronics to Jennifer R.  Because the notes are likewise               
          inadmissible hearsay with respect to this transaction, there is             
          no competent evidence that petitioner had this specific item of             
          income, and we accordingly do not sustain the determination.                





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