As a general rule, the US Government is not responsible for the negligence of its employees unless immunity is waived. It appears that’s what happened here, probably under the Federal Tort Claims Act. The AFOSI personnel who failed to report the conviction were (IMHO) criminally negligent, probably relying on the “nobody ever checks this stuff and what are the chances anything will happen” reasoning. Inexcusable.
Colonel, USAF JAGCR (Ret)
There are no consequences within the military?