When the Java server is run on Mac OS X as a daemon, it attempts to access the window system. It fails to launch and results in the following messages:

Jan 18 19:20:14 domain.com java[552]: Untrusted apps are not allowed to connect to Window Server before login.
Jan 18 19:20:14 domain.com java[552]: This user is not allowed access to the window system right now.

Please see the following:

http://stackoverflow.com/questions/18603055/getting-a-mac-to-trust-an-application-synergy-on-loginwindow
https://developer.apple.com/library/mac/technotes/tn2083/_index.html#//apple_ref/doc/uid/DTS10003794-CH1-SUBSECTION14

A daemon MUST NOT access the window server prior to login. To fix the problem, the server binary should be stripped of any GUI related code; it should never attempt to access the window system.

If necessary, I can provide the relevant launch daemon plist files and associated scripts needed to recreate the issue.

In response to the question below (can't add comments after it's marked as resolved) yes, '--nogui' works, 'nogui' fails and causes the error.