The DOB/SSN are matched. I also called his employer (big company) and get the employment verified. and I was able to find some public record using his name and it matched from what he has told me. His credit report is very good. It is Prior Address Locator Service (PALS) Results that yields this duplicate SSN case, not from his credit report. I also checked the court record, nothing is wrong other than the things he already told me.
I think this applicant is just a victim here.