Fuller v. United States

127 Fed. Cl. 640, 2016 U.S. Claims LEXIS 1022, 2016 WL 4060117
CourtUnited States Court of Federal Claims
DecidedJuly 28, 2016
Docket15-418C
StatusPublished
Cited by5 cases

This text of 127 Fed. Cl. 640 (Fuller v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fuller v. United States, 127 Fed. Cl. 640, 2016 U.S. Claims LEXIS 1022, 2016 WL 4060117 (uscfc 2016).

Opinion

Military Discharge; Judgment on the Administrative Record; Legal Hold; Retirement; Drop from Rolls; Military Control; Supervised Release; SECNA-VINST 1620.6C.

OPINION AND ORDER

WILLIAMS, Judge.

This military pay case comes before the Court on the parties’ cross-motions for judgment on the Administrative Record (“AR”). Plaintiff challenges the decision of the Board for Correction of Naval Records (“BCNR”) denying his request for reinstatement of his retirement benefits, back pay, and an honorable discharge. Plaintiff was dropped from the rolls of the Marine Corps as a result of his incarceration in a civilian penitentiary, after pleading guilty to two felony counts involving financial transactions.

Because the Marine Corps properly dropped Plaintiff from the rolls and correctly determined that he was eligible for, but not entitled to, retirement benefits, the BCNR did not act arbitrarily, capriciously, or illegally in denying Plaintiffs request for relief. As such, Defendant’s motion for judgment on the AR is granted.

Findings of Fact 1

Plaintiff began his career as an enlisted Marine in 1992, and served for two years before being commissioned as a Reserve Officer. From February 2005 until September 2005, Plaintiff was deployed to Iraq. At that time Plaintiff was a Major. During Plaintiffs deployment, he mailed 20 envelopes to his wife for storage in their home safe. Plaintiffs wife reported this to a confidential informant because she believed the envelopes contained cash based on their size and shape. After his return from Iraq, Plaintiff made a series of deposits, each beneath mandatory reporting amounts, into accounts in several different banks. On January 9, 2006, Plaintiff attempted to deposit $7,700 with a Navy Federal Credit Union, but when the bank informed him it would generate a currency transaction report, he canceled the deposit.

On May 19, 2009, Plaintiffs retirement application was approved with a predicted retirement date of July 1, 2009. However, on May 25, 2009, the Naval Criminal Investigation Service (“NCIS”) initiated an investigation into Plaintiffs conduct during his 2005 Iraq deployment. As a result of the investigation, Plaintiffs command placed him on “legal hold” commencing on June 5, 2009. Being placed on legal hold freezes all personnel actions, such as promotion, retirement, and moving to a new command. While on legal hold, Plaintiff continued working in a paid status as a Marine while stationed in Arizona, but his retirement was held in abeyance until the investigation and any disciplinary actions were completed.

On June 25, 2009, Plaintiff requested to be released from legal hold. On July 16, 2009, after NCIS reported the results of its investigation to Plaintiffs command, the Marine Corps denied Plaintiffs request to be released from legal hold, finding that the NCIS investigation sufficiently established the basis for the legal hold.

Nearly a year later, on May 11, 2010, the Department of Justice (“DOJ”) indicted Plaintiff on 22 counts of violating 31 U.S.C. § 5324(a)(3), “Structuring Financial Transactions Through A Domestic Financial Institution.” AR 46-51, On August 4, 2010, Plaintiff pled guilty to two counts of knowingly and purposely circumventing reporting and recordkeeping requirements in structuring financial transactions, a felony. Plaintiff was *643 sentenced to two terns of confinement, served concurrently, for one year and one day, and was fined $198,510. As part of the arrangement, DOJ dropped the remaining 20 counts pending against Plaintiff. On February 4, 2011, Plaintiff began his term of confinement and remained in prison until his release on December 16, 2011.

During Plaintiffs confinement, on June 22, 2011, the Commander of Marine Forces in Central Command submitted a recommendation to drop Plaintiff from the rolls. Either the President or the Secretary of the Navy may complete the action of dropping an officer from the rolls, and the Marine Corps’ Deputy Commandant for Manpower and Reserve Activity normally initiates the proce-, dure. The action to drop an officer from the rolls is discretionary and is authorized once an officer has been sentenced to confinement and that sentence has become final. SECNA-VINST 1920.6c Enel. 4, at 6. There is no required timeline for the service to complete the process. Because Plaintiff pled guilty and received two concurrent sentences in a federal penitentiary, the Deputy Commandant for Manpower and Reserve Affairs recommended to the Secretary of the Navy that Plaintiff be dropped from the rolls.

Once an officer is dropped from the rolls, no certificate of discharge is issued, and the service member does not receive a characterization of service (e.g. honorable, dishonorable). An officer’s characterization of service controls which benefits that officer receives and at what level. "While being dropped from the rolls does not nullify any prior service, the officer is directly severed from all ties with his branch of service and loses his eligibility for retirement,

On November 28, 2011, while still confined, Plaintiff was notified he was being dropped from the rolls. Shortly thereafter, on December 16, 2011, Plaintiff was released from confinement and began two years of supervised release. After consulting with a civilian attorney, on January 4, 2012, Plaintiff submitted a response to the recommendation to drop him from the rolls, arguing that he was inappropriately kept on legal hold beyond his approved retirement date and would unjustly be denied retirement pay if dropped from the rolls. After submitting his response, Plaintiff submitted a request to retire voluntarily, which, if granted, would have terminated any future administrative actions against him. In response, the Marine Corps acknowledged that Plaintiff had the requisite service time to be eligible for retirement and that he had received approval to be retired at the discretion of the President. However, the Marine Corps distinguished this approved retirement request from an entitlement to retirement pay. Noting that officers serve at the pleasure of the President, the Marine Corps found that Plaintiffs continued legal hold was proper due to the NCIS investigation and that regulation required continuation of the hold until the Deputy Commandant for Manpower and Reserve Affairs decided to retain Plaintiff or the Secretary of the Navy separated him for substantiated misconduct.

On June 22, 2012, based on a finding of substantiated misconduct, the Secretary of the Navy approved dropping Plaintiff from the rolls. Following this decision, on July 9, 2012, the Deputy Commandant for Manpower and Reserve Affairs denied Plaintiffs request for voluntary retirement in light of Plaintiffs misconduct and prison time. Ultimately, Plaintiff was discharged from the Marine Corps effective August 13, 2012.

After being discharged, on December 5, 2012, Plaintiff submitted an application to the BCNR seeking correction of his military records and challenging the Navy’s decision to drop him from the rolls. Plaintiff asserted that he was entitled to retirement pay and that his legal hold violated regulations. Additionally, Plaintiff argued that because he was returned to militaiy control, he no longer could be subject to a drop-from-the-rolls action.

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Cite This Page — Counsel Stack

Bluebook (online)
127 Fed. Cl. 640, 2016 U.S. Claims LEXIS 1022, 2016 WL 4060117, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fuller-v-united-states-uscfc-2016.