Since my denial came as a result of my 2nd naturalization interview which was conducted rather rigorously after i filed a 1447-B because it had been almost 2 years since the first interview. Is it safe to expect the USCIS to be vindictive and thinking herefore go after my LPR?
There is absolutely no way of knowing what the thought process is of the USCIS. Each officer makes a determination based on the information provided to them, on a case by case basis. It seems like they may have taken forever to make a decision because they were investigating the H1B violations. They don't have the time or resources to dedicate to being vindictive. They just want to make sure you are following the letter of the law, and that you are not receiving benefits you are not entitled to. If you were eligible to request the 1447 mandamus, then there is no reason for them to be vindictive. But if you violate the law, they will not reward you for doing so, by granting you a benefit you may not deserve.
I just can't help but think they may be up to something as the letter stating the removal of conditions was not mailed till 12/23 even though it was dated 10/27 and then the denial itself was mailed on 12/21?
It is quite possible letters for different processes come from different offices, which may or may not know what the other office is doing. It also could be that they went ahead and continued the process, and only punished you by not allowing you to apply for naturalization. They may be doing you a favor by only delaying your naturalization, rather than taking away any immigration status you have, and asking you to leave.
QUESTION: Can they do this even tough I am legally married with kids and have never committed a crime, misdemeanor or felony?
ANSWER: Yes. And remember, you committed immigration violations, and possible, immigration fraud, by using the H1B for benefits for which you were not entitled. Also, immigration is completely discretionary in nature. You have no rights until you are a US citizen. Your current status is a privilege.
I wouldn't read too much into the issue of dates. Just sit tight and wait to hear something. If it's bad news, then you can confront it head on. But for now, speculating about what any of several USCIS officers may or may not have been thinking at any given time will not be of any use to you.
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