The charge on her record was felony embezzlement, which would totally freak me out if I saw it on a background check for an employee. Yes, maybe they could have asked her about it, but from a legal perspective it's safer for them to just dismiss her without explanation. That's not their fault, that's the way that the system is set up.

It is their fault if they don't notify the candidate as to why she was terminated. Eeoc title 7