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Marie, please don't panic. The fact that you were never convicted the fact that the story is explained in your homestudy make it highly unlikely that this unfortunate situation will cause you to be rejected by INS or your homestudy agency. However, if you fail to disclose it, then you will look dishonest and the _lie_ could cause you to be rejected. It's not the "crime" it's the lie. I honestly think you have nothing to fear from INS, if you tell the truth.
If it will put your fears to rest, discuss it with your agency. But I doubt what was a false arrest where you were found blameless will be a problem at all, particularly since you are now leading a life with different values.
There are people who were actually convicted of crimes that have gone on to adopt -- please don't worry.
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