v.
Dhs
NOTE: This disposition is nonprecedential.
United States Court of Appeals
for the Federal Circuit
______________________
JANE SPHATT,
Petitioner
v.
DEPARTMENT OF HOMELAND SECURITY,
Respondent
______________________
2020-1451
______________________
Petition for review of the Merit Systems Protection
Board in No. NY-0752-19-0146-I-1.
______________________
Decided: April 7, 2021
______________________
ALAN EDWARD WOLIN, Wolin & Wolin, Jericho, NY, for
petitioner.
TANYA KOENIG, Commercial Litigation Branch, Civil
Division, United States Department of Justice, Washing-
ton, DC, for respondent. Also represented by JEFFREY B.
CLARK, ROBERT EDWARD KIRSCHMAN, JR., LOREN MISHA
PREHEIM.
______________________
Before LOURIE, TARANTO, and STOLL, Circuit Judges.
Case: 20-1451 Document: 52 Page: 2 Filed: 04/07/2021
2 SPHATT v. DHS
TARANTO, Circuit Judge. Jane Sphatt was removed from her position as an Im- migration Officer at the Department of Homeland Secu- rity’s United States Citizenship and Immigration Services (the Agency) in April 2019 for misuse of her government position and government credentials, lack of candor, and unauthorized use of a government database. The Merit Systems Protection Board affirmed the Agency’s decision, finding all four charges supported by the evidence and the penalty of removal reasonable. J.A. 7–68; Sphatt v. Dep’t of Homeland Security, No. NY-0752-19-0146-I-1, 2020 WL 71044 (M.S.P.B. Jan. 2, 2020). The Board also rejected Ms. Sphatt’s affirmative defenses, including that the removal was tainted by procedural defects and was based on con- duct that occurred too long ago. We affirm. I Ms. Sphatt began working for the Office of Security and Integrity (OSI) within the Agency in 2002 and eventually became a Senior Immigration Services Officer. In March 2016, the Agency received an internal complaint that, in May 2015, in connection with an immigration matter in- volving Ms. Sphatt’s close friend, Jing Pei Mao, and his wife Ghun Feng Gan, Ms. Sphatt had included her official job title and a photocopy of her government credentials when submitting an affidavit to attest to the bona-fide na- ture of Mr. Mao and Ms. Gan’s marriage. The complaint came from an Agency employee handling the immigration matter of Mr. Mao and Ms. Gan. The same employee also filed a second complaint after Ms. Sphatt, on March 17, 2016, again included her official title and her credentials when submitting another affidavit in the same matter in support of Mr. Mao and Ms. Gan. In both documents, Ms. Sphatt also provided her government e-mail address and office phone number as preferred contact information for any further inquiries.
Case: 20-1451 Document: 52 Page: 3 Filed: 04/07/2021
SPHATT v. DHS 3 Following an internal investigation, on May 2, 2017, a Disciplinary Review Board of the OSI issued a Notice of Proposed Seven Day Suspension to Ms. Sphatt for misuse of her government position and misuse of government cre- dentials. J.A. 239, 1057–63. On June 27, 2017, while Ms. Sphatt’s suspension notice was pending review, the Agency received a separate complaint stating that, during the in- ternal investigation, Ms. Sphatt made certain representa- tions that conflicted with information she provided in employment security paperwork. J.A. 417–25. The inves- tigation into this new complaint unearthed thirteen occa- sions on which Ms. Sphatt used the Treasury Enforcement Communication System (TECS)—a secure government system that provides access to law enforcement databases and individuals’ personal information—to look for infor- mation about herself and her relatives. J.A. 407; see also J.A. 626. On October 23, 2018, the Agency issued a Notice of Proposed Removal, which stated four charges: the two previous charges for misuse of government position and credentials, and additional charges for lack of candor and unauthorized use of TECS. J.A. 1040–56. On April 25, 2019, the deciding official agreed with the proposal to remove Ms. Sphatt. The official found in favor of the Agency on all four charges. In fact, the official found in favor of all specifications alleged in support of all the charges except for the charge of lack of candor, as to which the official ruled for the Agency on three of seven original specifications. J.A. 112–22. Ms. Sphatt appealed the deci- sion to the Board on May 13, 2019. The Board, in an Initial Decision rendered by a Board administrative judge, upheld the Agency’s removal deci- sion. The Board found misuse of government position and credentials (treated as merged because they involved the same incidents, J.A. 15) based on all the circumstances sur- rounding Ms. Sphatt’s use of her government title and cre- dential in her filings in support of private interests. J.A. 16–23. The Board also found lack of candor in Ms. Sphatt’s Case: 20-1451 Document: 52 Page: 4 Filed: 04/07/2021 4 SPHATT v. DHS representations on Agency security forms that she did not have “close and/or continuing contact” with any foreign na- tional during a given time, notwithstanding the evidence of her contacts with her nephew (a foreign national then) and what was inferable about her contacts with Ms. Gan (a for- eign national) from Ms. Sphatt’s affidavits attesting to her knowledge of the bona fides of Ms. Gan’s marriage to Mr. Mao. J.A. 23–31. The Board similarly found unauthorized use of TECS; the Board found that the Agency prohibited use of the system for personal purposes, even in a training setting, and that Ms. Sphatt was aware of the prohibition. J.A. 36–41. The Board then rejected Ms. Sphatt’s affirma- tive defenses, J.A. 42–51, and upheld removal as a reason- able penalty to promote the efficiency of the service, J.A. 51–60. The Board’s Initial Decision became final on February 6, 2020. J.A. 61. Ms. Sphatt timely appealed. We have jurisdiction under 5 U.S.C. § 7703(b)(1)(A). 1 II We must uphold the Board decision unless we conclude it is “arbitrary, capricious, an abuse of discretion, or other- wise not in accordance with law,” was “obtained without procedures required by law, rule, or regulation having been followed,” or is “unsupported by substantial evidence.” 5 U.S.C. § 7703(c); see also Smith v. Gen. Servs. Admin., 930 F.3d 1359, 1364 (Fed. Cir. 2019). On factual questions, we do not “substitute our judgment for that of the board,” Whitmore v. Dep’t of Labor, 680 F.3d 1353, 1366 (Fed. Cir. 2012), but ask only if, on all the evidence, the Board could reasonably find the facts it did, even if a contrary finding To prove the charge of misuse of government position (Charge 1), it sufficed for the Agency to prove that Ms. Sphatt misused her public office for private gain. See Gardner v. Dep’t of Veterans Affs., 123 M.S.P.R. 647, 652 (2016); see also 5 C.F.R. § 2635.702. Relatedly, the Agency could show misuse of credentials (Charge 2) by proving that Ms. Sphatt used her government credentials without authorization. See O’Neill v. Dep’t of Hous. & Urb. Dev., 220 F.3d 1354, 1358–59 (Fed. Cir. 2000); Fuller v. Dep’t of Navy, 465 F. App’x 949, 952 (Fed. Cir. 2012) (per curiam); see also 5 C.F.R. § 2635.704. Here, the Board determined that Charges 1 and 2 “are based on the same incident and involve essentially the same misconduct,” and the Board treated the two charges together. J.A. 15 (citing Mann v. Dep’t of Health & Human Servs., 78 M.S.P.R. [1], 6–7 (1998)). Ms. Sphatt does not challenge that choice to merge the charges. The Board reasonably found the charges proved based on Ms. Sphatt’s use of her official government title and cre- dentials, accompanied by her government office contact in- formation, in connection with her affidavits attesting to the bona fides of the marriage of her close friend, Mr. Mao (a naturalized citizen), to Ms. Gan (a foreign national). Ms. Sphatt admitted that she knew of Mr. Mao and Ms. Gan’s difficulties in obtaining a visa for Ms. Gan to enter the United States, J.A. 1806 (Day 2 Tr. 81:9–13), and she also testified to her concern, based on her experience as an im- migration officer, that certain facts about the couple’s un- ion (e.g., a large age difference) might be viewed by an Agency adjudicator as “fraud indicators” and generate
[*1]Case: 20-1451 Document: 52 Page: 6 Filed: 04/07/2021 To sustain a charge of lack of candor, it sufficed for the Agency to prove that Ms. Sphatt gave incorrect or incom- plete information to the Agency and did so knowingly. Ludlum v. Dep’t of Justice, 278 F.3d 1280, 1284 (Fed. Cir. 2002). “Lack of candor” is “a broader and more flexible con- cept” than “falsification.” Id. “Although lack of candor nec- essarily involves an element of deception, ‘intent to deceive’ is not a separate element of that offense—as it is for ‘falsi- fication.’” Id. at 1284–85. In this case, substantial evi- dence supports the Board’s finding that the Agency proved each of three specifications underlying the charge of lack of candor. Two of the specifications involve Ms. Sphatt’s re- sponses on an Agency Questionnaire for National Security
[*2]Case: 20-1451 Document: 52 Page: 7 Filed: 04/07/2021 The Agency’s fourth and final charge alleged unauthor- ized use of TECS. To sustain this charge, it sufficed for the Agency to prove that Ms. Sphatt placed personal queries in TECS without authorization. See Hernandez v. Dep’t of Homeland Security, 324 F. App’x 908, 910 (Fed. Cir. 2009)
[*3]Case: 20-1451 Document: 52 Page: 9 Filed: 04/07/2021 The statute declares that a disciplinary action of the sort at issue here must be “for such cause as will promote the efficiency of the service,” 5 U.S.C. § 7513, a require- ment that is met if “the employee’s misconduct is likely to have an adverse impact on the agency’s performance of its functions,” Brown v. Dep’t of the Navy, 229 F.3d 1356, 1358 (Fed. Cir. 2000). “‘We give wide berth to agency decisions as to what type of adverse action is necessary to “promote the efficiency of the service,” provided that the agency’s de- cision bears some nexus to the reason for the adverse ac- tion.’” Avalos v. Dep’t of Hous. & Urb. Dev., 963 F.3d 1360, 1371 (Fed. Cir. 2020) (citation omitted). Ms. Sphatt argues that the Board could not reasonably find an appropriate nexus here because her “job perfor- mance and effectiveness were not diminished.” Sphatt Opening Br. at 25. But Ms. Sphatt fails to address the sub- stantial evidence that her misconduct affected manage- ment’s trust and confidence in her ability to support the Agency’s mission. See J.A. 52 (“I find that there is a legiti- mate government interest of not having the power of the government of the United States bear in personal mat- ters.”). As the Board noted, the deciding official testified to his lack of trust in Ms. Sphatt: “I have concerns about . . . the integrity of the officer.” J.A. 53 (alteration in original); see also J.A. 1524 (same); J.A. 1386 (“Not only do[] her ac- tions impair her credibility, but the credibility of [United States Customs and Immigration Services].”). The Board’s determination to credit that testimony supports the nexus finding.
Review of an agency’s penalty determination is “highly deferential.” Bieber, 287 F.3d at 1365. “‘It is a well-estab- lished rule of civil service law that the penalty for employee misconduct is left to the sound discretion of the agency,’” guided by the factors outlined in Douglas v. Veterans
Case: 20-1451 Document: 52 Page: 11 Filed: 04/07/2021