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ISCR Case 07-18216.a1 — CASE

ISCR Case 07-18216.a1denied

Case Headnote

ISCR Case No. 07-18216.a1

Mar 9, 2011· Hon. Michael Y. Ra'anan· appeal

Summary

A security clearance applicant, representing himself, was denied a clearance primarily due to unresolved financial issues under Guideline F (Financial Considerations), with Guideline E (Personal Conduct) also raised. The denial was affirmed on appeal.

The applicant had significant outstanding debts, including a repossessed auto loan and two foreclosed mortgages. The judge determined these financial problems were ongoing and not caused by circumstances beyond the applicant's control. Furthermore, the judge found that the applicant possessed sufficient assets to satisfy his creditors.

While some mitigating conditions were considered, they were insufficient to overcome the disqualifying conditions. The applicant's security clearance was ultimately denied.

Conditions Referenced

Disqualifying

AG ¶ 19raisedFinancial Considerations

Mitigating

AG ¶ 20rejectedFinancial ConsiderationsThe judge found the mitigating evidence insufficient to overcome the government's security concerns.
AG ¶ 15appliedPersonal Conduct

Key Rule Quoted

“A party’s disagreement with the Judge’s weighing of the evidence is not sufficient to demonstrate that the Judge erred.”

Procedural Posture

SOR issuedJul 7, 2010
Answer filed—
Hearing heldDec 13, 2010
Decision dateMar 9, 2011

Cite For

Ongoing Financial Issues Under Guideline F
Insufficient Mitigating Evidence Does Not Compel a Favorable Decision
The Weighing of Evidence by the Judge Is Not Subject to De Novo Review.

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

Appeal at a glance· Full written decision

Affirmed

The appeal involved an applicant seeking a security clearance after being denied due to financial considerations and personal conduct. The applicant argued that the judge's decision was arbitrary and capricious. The Board affirmed the judge's decision, finding that the applicant's financial issues were ongoing and that the judge properly weighed the evidence presented.

Appealed bythe applicant

Applicant representationPro se (self-represented)

Judge belowJoan Caton Anthony — denied the clearance (split findings)

Decided ona hearing

Guidelines belowGuideline FGuideline E

What the Board reviewed

Decision arbitrary, capricious, or contrary to law — raised by the applicantRejected
Applicant argued that the Judge's adverse clearance decision was arbitrary, capricious, or contrary to law.

Why the Board ruled this way

The Board found that the Judge's decision was supported by substantial evidence and articulated a satisfactory explanation for her decision, including a rational connection between the facts found and the choice made.

Standard of review applied

Harmful-error gatekeeperSubstantial-evidence reviewArbitrary-and-capricious reviewProcedural complianceNo de-novo re-decisionNo new evidence on appealDeference to the judge’s credibility calls

Appeal Board panel

Michael Y. Ra’anan — Chair
Michael D. Hipple
William S. Fields

Descriptive structured reading of this decided, public Appeal Board decision — what the case says, not a prediction or advice.

Full decision

The complete, official text — footnotes and signatures included — is in the original PDF.

Decision text, by section

DEFENSE OFFICE OF HEARINGS AND APPEALS

APPEAL

SYNOPSIS

KEYWORD: Guideline F; Guideline E DIGEST: A party’s disagreement with the judge’s weighing of the evidence is not sufficient to demonstrate that the Judge erred. Adverse decision affirmed. CASENO: 07-18216.a1 DATE: 03/09/2011 DATE: March 9, 2011 In Re: ------ Applicant for Security Clearance ) ) ) ) ) ) ) ) ISCR Case No. 07-18216

APPEAL BOARD DECISION

APPEARANCES

FOR GOVERNMENT James B. Norman, Esq., Chief Department Counsel FOR APPLICANT Pro se The Defense Office of Hearings and Appeals (DOHA) declined to grant Applicant a security clearance. On July 7, 2010, DOHA issued a statement of reasons (SOR) advising Applicant of the basis for that decision—security concerns raised under Guideline F (Financial Considerations) and Guideline E (Personal Conduct) of Department of Defense Directive 5220.6 (Jan. 2, 1992, as amended) (Directive). Applicant requested a hearing. On December 13, 2010, after the hearing, Administrative Judge Joan Caton Anthony denied Applicant’s request for a security clearance. Applicant appealed pursuant to the Directive ¶¶ E3.1.28 and E3.1.30. Applicant raised the following issue on appeal: whether the Judge’s adverse clearance decision is arbitrary, capricious or contrary to law. Applicant seeks reversal of the Judge’s adverse decision arguing that the record evidence shows that he is not financially overextended. As part of his submission on appeal, he includes copies of several of the exhibits admitted into the record at the hearing as well as a detailed explanation of his financial circumstances. Applicant’s presentation does not demonstrate that the Judge’s decision is arbitrary, capricious or contrary to law. The presence of some mitigating evidence does not alone compel the Judge to make a favorable security clearance decision. As the trier of fact, the Judge has to weigh the evidence as a whole and decide whether the favorable evidence outweighs the unfavorable evidence, or vice versa. A party’s disagreement with the Judge’s weighing of the evidence, or an ability to argue for a different interpretation of the evidence, is not sufficient to demonstrate the Judge weighed the evidence or reached conclusions in a manner that is arbitrary, capricious, or contrary to law. See, e.g., ISCR Case No. 09-04354 at 2 (App. Bd. Oct. 29, 2010). In this case, the Judge found against Applicant under Guideline F as to three significant debts—a loan account relating to an automobile that had been repossessed and two mortgages on property that had been foreclosed upon. On the day of the hearing, Applicant had reached an agreement with the creditor to begin payment of the delinquent auto loan account, but had not yet made any payments in furtherance thereof. Moreover, he still owed a deficiency of approximately $100,000 which occurred when he failed to make payments on two mortgages, and the property securing the mortgages was foreclosed on and sold in 2007. In reaching her adverse decision, the Judge noted that Applicant’s unresolved financial delinquencies did not appear to be the result of a situation beyond his control, and he appeared to possess sufficient assets to satisfy his creditors. Decision at 9. In light of the foregoing, the Judge could reasonably conclude that Applicant’s financial problems were still ongoing. The Judge weighed the mitigating evidence offered by Applicant against the length and seriousness of the disqualifying conduct and considered the possible application of relevant conditions and factors. She found in favor of Applicant under Guideline E and with respect to two of the SOR factual allegations under Guideline F, but reasonably explained why the mitigating evidence was insufficient to overcome all of the government’s security concerns. The Board does not review a case de novo. After reviewing the record, the Board concludes that the Judge examined the relevant data and articulated a satisfactory explanation for her decision, “including a ‘rational connection between the facts found and the choice made.’” Motor Vehicle Mfrs. Ass’n of the United States v. State Farm Mut. Auto. Ins. Co., 463 U.S. 29, 43 (1983) (quoting Burlington Truck Lines, Inc. v. United States, 371 U.S. 156, 168 (1962)). “The general standard is that a clearance may be granted only when ‘clearly consistent with the interests of the national security.’” Department of the Navy v. Egan, 484 U.S. 518, 528 (1988). Therefore, the Judge’s unfavorable security clearance decision is sustainable.

ORDER

The decision of the Judge denying Applicant a security clearance is AFFIRMED. Signed: Michael Y. Ra’anan Michael Y. Ra’anan Administrative Judge Chairperson, Appeal Board Signed: Michael D. Hipple Michael D. Hipple Administrative Judge Member, Appeal Board Signed: William S. Fields William S. Fields Administrative Judge Member, Appeal Board