There's a compelling reason to lie about it and that's to keep his good image, especially if he's applying to be a mod. I never did look at the case so I won't weigh in on it but saying he would have confessed by now is silly, there is absolutely no gain to confessing.
If he did cheat, it shows that he did not own up to his mistakes like other people have, and that's a serious quality a mod needs. Because he was banned for cheating, the assumption as a mod that you should be making is that he did indeed cheat unless you actually looked at the case, which I doubt.
If he didn't cheat, then that is really sucky for him but you just can mod him based on that assumption, IMO
Serious question: did gaf ever say he did indeed cheat? I know he was banned for it of course
No. Absolutely not. He still says he never cheated and I don't really see any reason why he'd lie about it after such a long time. Especially when he told a then super new player (me) about it he had no reason whatsoever to lie.
So yeah, to answer another question, I can admit to being a mod that knew about Gaf's background. I also believe him 100%.
If past conduct, in a game no less, doesn't influence the present capabilities and competence of a potential moderator to do his/her job, then there is little to argue against.
Additionally if the past conduct wasn't committed in a position of power, then there is even less reason for dispute, since the past unrelated behaviour is non-indicative of the persons use of said power.
Finally, if there is control (from admins, mods, and the public), like with any other moderator, then any cause for concern should be reduced proportionally. It is not a perfect system, anybody has the potential to do errors, so don't have unrealistic expectations to the selection of possible candidates.