It is NOT groundbreaking,I already mentioned before in numerous threads that it is possible just depends on how bad they want you.Considering this guy served for years and has seen many things with a fake clearance,USCIS probably thought it better to give to him since he was discharged honorably.

He also served 10 with a somewhat exemplary record according to the article and yes USCIS has the authority to WAIVE all immigration violation including the biggest one here which is a false claim of US citizenship.The big thing is that he served "honorably" which allowed him to gain it.If he was not given that form of a discharge he certainly could not have gotten it and it is a huge risk as it is done on a case by case basis !