Tripp was 19 years old when she was arrested for grand larceny in the alleged theft of money and a watch from two men at a motel in upstate New York. Whether she was "drinking alcohol" or not, that had nothing to do with the charges against her (which were later reduced in a plea bargain to "loitering"). More important, perhaps, no Pentagon official leaked the story of Tripp's arrest to New Yorker reporter Jane Mayer, who was the first to report it in March 1998. In the course of preparing a profile of Tripp, Mayer learned about the arrest from Tripp's stepmother.
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At the time, Tripp's arrest was germane not so much because of anything it revealed about her youthful character but because it proved she had lied on her application for a top Pentagon security clearance. That Defense Department form required the applicant to disclose any prior arrest -- and indeed, the form itself warns that failure to disclose such information in pursuit of a security clearance may constitute a felony offense. When Tripp omitted the information about her 1969 arrest from the DOD form and then signed it, she violated those provisions (an offense for which she has never been punished).
The Pentagon couldn't have revealed Tripp's arrest record to Mayer for a very simple reason: Nobody there knew about it. What the Pentagon officials told Mayer was that they had no record of Tripp's arrest. This was the "invasion of privacy" underlying her subsequent lawsuit and the barrage of right-wing propaganda that pilloried Mayer and the Pentagon.
So Tripp is being paid almost $600,000 because Pentagon spokesmen told the New Yorker that the Defense Department knew of no arrests in her background.
http://www.salon.com/opinion/conason/2003/11/04/privacy/index.html