RECORD OF PROCEEDINGS


      IN THE CASE OF:


      BOARD DATE:        25 October 2005
      DOCKET NUMBER:  AR20040008612


      I certify that hereinafter is recorded the true and complete record
of the proceedings of the Army Board for Correction of Military Records in
the case of the above-named individual.

|     |Mr. Carl W. S. Chun               |     |Director             |
|     |Mr. Robert J. McGowan             |     |Analyst              |

      The following members, a quorum, were present:

|     |Mr. James E. Anderholm            |     |Chairperson          |
|     |Mr. Jose A. Martinez              |     |Member               |
|     |Ms. LaVerne M Douglas             |     |Member               |

      The Board considered the following evidence:

      Exhibit A - Application for correction of military records.

      Exhibit B - Military Personnel Records (including advisory opinion,
if any).

THE APPLICANT'S REQUEST, STATEMENT, AND EVIDENCE:

1.  The applicant requests that he be reinstated in the Army or be allowed
to honorably retire as a Major (MAJ/O-4) upon issuance of a 20-year letter.

2.  The applicant states because of a poor personal decision in his
civilian life, he was unjustly dropped from the Army's rolls after serving
nearly 20 years.

3.  In a self-authored letter dated 5 October 2004, the applicant states:

      a.  He joined the Iowa Army National Guard (IAARNG) at age 17.  He
attended the University of Iowa as a Reserve Officer's Training Corps
(ROTC) cadet and Simultaneous Membership Program (SMP) participant and was
appointed a Second Lieutenant (2LT) 15 May 1985.  He eventually became a
member of the Illinois Army National Guard (ILARNG), rising to the rank of
MAJ on 1 September 1994. On 16 June 1999, he transferred to the US Army
Reserve (USAR).  He was selected for promotion to Lieutenant Colonel (LTC/O-
5) in March 2001.

      b.  In August 1996, he was an Assistant Vice President and Commercial
Lender at Alpine Bank of Illinois.  He made an improper loan and then went
to work for the person to whom the loan was made.  After 3 months of
employment, he was "laid off."  The loan defaulted.  He was charged by
Federal authorities with "acceptance of a thing of value in excess of
$1,000.00" and following a plea agreement, he was sentenced to serve 16
months at Oxford Federal Prison Camp and to repay $186,000.00 to Alpine
bank.

4.  The applicant provides:

      a.  A 3-page, self-authored letter dated 5 October 2004.

      b.  A letter of reference, dated 27 September 2004, from the
Assistant Division Commander, 85th Division (TS).

      c.  Copies of two DA Forms 67-9 (Officer Evaluation Report) for the
period 19990517-20000516 and 20000517-20001105.

      d.  Two copies of email correspondence dated 10 September 2001 and
10 December 2002.

      e.  A copy of NGB Form 22, dated 16 May 1999.

      f.  A copy of Orders 01-253-012, Headquarters, US Army Reserve
Command (USARC), Fort McPherson, Georgia discharging him effective
10 October 2001 with an uncharacterized separation under the authority of
Army Regulation (AR) 135-175.

5.  The applicant indicates that he provided a copy of his chronological
statement of retirement points, but the document was not included with his
application.

CONSIDERATION OF EVIDENCE:

1.  The applicant was a MAJ assigned to the USAR.  On 10 October 2001, he
was discharged under the authority of AR 135-175.  His separation was
uncharacterized.

2.  The applicant has provided a 5 October 2004 self-authored statement
concerning his legal problems; however, he has provided no evidence
confirming his Federal indictment for bank fraud, any plea agreement, or
his conviction and subsequent sentence to a Federal Prison Camp.  This
information is presumed correct without supporting evidence.

3.  AR 135-175 (Army National Guard and Army Reserve – Separation of
Officers) prescribes the policies, criteria, and procedures governing the
separation of Reserve officers of the Army.  It states "an officer who is
found guilty, or action is taken which is tantamount to a finding of
guilty, by any Federal or State court may be released by the Secretary of
the Army from an active status immediately when the offense involves moral
turpitude, regardless of the sentence received or maximum punishment
permissible under any code.  If the finding of guilty is subsequently set
aside, the officer may with his/her own consent and the approval of the
Secretary of the Army, be returned to an active status."

DISCUSSION AND CONCLUSIONS:

1.  The applicant, by his own admission, committed an offense (bank fraud)
involving moral turpitude.  Under the provisions of AR 135-175, he was
properly released from military service.

2.  It is unfortunate that the applicant's lengthy career was interrupted
short of his qualification for retirement; however, his Federal conviction
for bank fraud was a matter of his own doing and the Army was correct in
releasing him.

3.  There is no injustice in this case.
BOARD VOTE:

________  ________  ________  GRANT FULL RELIEF

________  ________  ________  GRANT PARTIAL RELIEF

________  ________  ________  GRANT FORMAL HEARING

__jea___  __jam___  __lmd___  DENY APPLICATION

BOARD DETERMINATION/RECOMMENDATION:

The evidence presented does not demonstrate the existence of a probable
error or injustice.  Therefore, the Board determined that the overall
merits of this case are insufficient as a basis for correction of the
records of the individual concerned.




                                  James E. Anderholm
                                  ______________________
                                            CHAIRPERSON



                                    INDEX

|CASE ID                 |AR20040008612                           |
|SUFFIX                  |                                        |
|RECON                   |                                        |
|DATE BOARDED            |20051025                                |
|TYPE OF DISCHARGE       |                                        |
|DATE OF DISCHARGE       |                                        |
|DISCHARGE AUTHORITY     |                                        |
|DISCHARGE REASON        |                                        |
|BOARD DECISION          |DENY                                    |
|REVIEW AUTHORITY        |                                        |
|ISSUES         1.       |110.0300                                |
|2.                      |131.0900                                |
|3.                      |                                        |
|4.                      |                                        |
|5.                      |                                        |
|6.                      |                                        |


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