ISCR Case No. 19-00114

DEPARTMENT OF DEFENSE DEFENSE OFFICE OF HEARINGS AND APPEALS

In the matter of: )

)

)

ISCR Case No. 19-00114

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) Applicant for Security Clearance )

For Government: Andrew Henderson, Esq., Department Counsel For Applicant: Pro se

September 9, 2019 ______________

______________

CEFOLA, Richard A., Administrative Judge:

Statement of the Case

On January 31, 2019, in accordance with DoD Directive 5220.6, as amended (Directive), the Department of Defense issued Applicant a Statement of Reasons (SOR) alleging facts that raise security concerns under Guideline F. The SOR further informed Applicant that, based on information available to the government, DoD adjudicators could not make the preliminary affirmative finding it is clearly consistent with the national interest to grant or continue Applicant’s security clearance.

Applicant answered the SOR on March 5, 2019, and requested a hearing before an administrative judge. (Answer.) The case was assigned to me on April 10, 2019. The Defense Office of Hearings and Appeals (DOHA) issued a notice of hearing on April 15, 2019, scheduling the hearing for May 7, 2019. The hearing was convened as scheduled. The Government offered Exhibits (GXs) 1 through 7, which were admitted into evidence. Applicant testified on her own behalf and offered one document, which I marked Applicant’s Exhibits (AppX) A, and admitted into evidence. The record was left open until June 10, 2019, for receipt of additional documentation. On June 3, 2019,

Applicant offered two additional documents, which I marked AppXs B and C, and admitted into evidence. DOHA received the transcript of the hearing (TR) on May 17, 2019.

Applicant admitted to all the allegations in SOR. After a thorough and careful review of the pleadings, exhibits, and testimony, I make the following findings of fact.

Applicant is a 52-year-old employee of a defense contractor. (GX 1 at pages 5 and 10.) She has been employed with the defense contractor since June of 2016. She has two adult children who live with Applicant, and a 16-year-old daughter. (TR at page 15 line 3 to page 19 line 25.) Applicant was unemployed for only one month in 2000. (TR at page 36 lines 11–22.) She filed for the protection of a Chapter 7 bankruptcy two months after the issuance of the SOR. (GX 7.) Her debts have not yet been discharged.

Guideline F - Financial Considerations

1.a. Applicant admits that she owes about $11,694 to Creditor A, as the result of an automobile repossession. (TR at page 21 line 1 to page 23 line 14.) Apart from the post-SOR Chapter 7 bankruptcy petition, Applicant has done little to address this 19- year-old past-due debt. This allegation is found against Applicant.

1.b. Applicant admits that she owes about $10,134 to Creditor B, as the result of a second automobile repossession. (TR at page 23 line 15 to page 24 line 25.) Apart from the post-SOR Chapter 7 bankruptcy petition, Applicant has done little to address this 15-year-old past-due debt. This allegation is found against Applicant.

1.c. Applicant admits that she owes about $1,299 to Creditor C, as the result of a third automobile repossession. (TR at page 25 line 1 to page 27 line 20.) Apart from the post-SOR Chapter 7 bankruptcy petition, Applicant has done little to address this 15- year-old past-due debt. This allegation is found against Applicant.

1.d. Applicant admits that she owes about $493 to Creditor D, and claims to have made some payments; but apart from the post-SOR Chapter 7 bankruptcy petition, Applicant has done little to address this past-due debt. (TR at page 27 line 21 to page 28 line 14.) This allegation is found against Applicant.

1.e. Applicant admits that she owed about $328 to Creditor E; and avers she has paid this debt, which her supported by a most recent, post-hearing credit report. (TR at page 28 line 15 to page 30 line 4, and AppX C at page 2.) This allegation is found for Applicant.

1.f. Applicant admits that she owes about $414 to Creditor F; but apart from the post-SOR Chapter 7 bankruptcy petition, Applicant has done little to address this past- due debt. (TR at page 30 line 5 to page 31 line 12.) This allegation is found against Applicant.

1.g. Applicant admits that she owed about $173 to Creditor G; and avers she has paid this 19-year-old debt, which his supported by a most recent, post-hearing credit report. (TR at page 31 line 13 to page 32 line 13, and AppX C at page 5.) This allegation is found for Applicant.

1.h. Applicant admits that she owes about $1,555 to Creditor H; but apart from the post-SOR Chapter 7 bankruptcy petition, Applicant has done little to address this past-due debt. (TR at page 32 line 14 to page 33 line 9.) This allegation is found against Applicant.

When evaluating an applicant’s national security eligibility, the administrative judge must consider the adjudicative guidelines (AG). In addition to brief introductory explanations for each guideline, the adjudicative guidelines list potentially disqualifying conditions and mitigating conditions, which are to be used in evaluating an applicant’s national security eligibility.

These guidelines are not inflexible rules of law. Instead, recognizing the complexities of human behavior, administrative judges apply the guidelines in conjunction with the factors listed in AG ¶ 2 describing the adjudicative process. The administrative judge’s overarching adjudicative goal is a fair, impartial, and commonsense decision. According to AG ¶ 2(a), the entire process is a conscientious scrutiny of a number of variables known as the whole-person concept. The administrative judge must consider all available, reliable information about the person, past and present, favorable and unfavorable, in making a decision.

The protection of the national security is the paramount consideration. AG ¶ 2(b) requires that “[a]ny doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.” In reaching this decision, I have drawn only those conclusions that are reasonable, logical, and based on the evidence contained in the record.

Under Directive ¶ E3.1.14, the Government must present evidence to establish controverted facts alleged in the SOR. Directive ¶ E3.1.15 states the “applicant is responsible for presenting witnesses and other evidence to rebut, explain, extenuate, or mitigate facts admitted by the applicant or proven by Department Counsel, and has the ultimate burden of persuasion as to obtaining a favorable clearance decision.”

A person who applies for access to classified information seeks to enter into a fiduciary relationship with the Government predicated upon trust and confidence. This relationship transcends normal duty hours and endures throughout off-duty hours. The Government reposes a high degree of trust and confidence in individuals to whom it grants access to classified information. Decisions include, by necessity, consideration of the possible risk the applicant may deliberately or inadvertently fail to protect or safeguard classified information. Such decisions entail a certain degree of legally

permissible extrapolation as to potential, rather than actual, risk of compromise of classified information.

Section 7 of Executive Order (EO) 10865 provides that adverse decisions shall be “in terms of the national interest and shall in no sense be a determination as to the loyalty of the applicant concerned.” See also EO 12968, Section 3.1(b) (listing multiple prerequisites for access to classified or sensitive information).

Guideline F - Financial Considerations

The security concern relating to the guideline for Financial Considerations is set out in AG ¶ 18:

Failure to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness, and ability to protect classified or sensitive information. Financial distress can also be caused or exacerbated by, and thus can be a possible indicator of, other issues of personnel security concern such as excessive gambling, mental health conditions, substance misuse, or alcohol abuse or dependence. An individual who is financially overextended is at greater risk of having to engage in illegal or otherwise questionable acts to generate funds. Affluence that cannot be explained by known sources of income is also a security concern insofar as it may result from criminal activity, including espionage.

The guideline notes several conditions that could raise security concerns under AG ¶ 19. Three are potentially applicable in this case:

(a) inability to satisfy debts;

(b) unwillingness to satisfy debts regardless of the ability to do so; and

(c) a history of not meeting financial obligations.

Applicant has significant past-due debt. The evidence is sufficient to raise these disqualifying conditions.

AG ¶ 20 provides conditions that could mitigate security concerns. I considered all of the mitigating conditions under AG ¶ 20 including:

(a) the behavior happened so long ago, was so infrequent, or occurred under such circumstances that it is unlikely to recur and does not cast

doubt on the individual's current reliability, trustworthiness, or good judgment;

(b) the conditions that resulted in the financial problem were largely beyond the person's control (e.g., loss of employment, a business downturn, unexpected medical emergency, a death, divorce or separation, clear victimization by predatory lending practices, or identity theft), and the individual acted responsibly under the circumstances;

(c) the individual has received or is receiving financial counseling for the problem from a legitimate and credible source, such as a non-profit credit counseling service, and there are clear indications that the problem is being resolved or is under control;

(d) the individual initiated and is adhering to a good-faith effort to repay overdue creditors or otherwise resolve debts; and

(e) the individual has a reasonable basis to dispute the legitimacy of the past-due debt which is the cause of the problem and provides documented proof to substantiate the basis of the dispute or provides evidence of actions to resolve the issue.

Applicant’s financial problems are ongoing. She has only most recently filed for the protection of a Chapter 7 bankruptcy. She has not demonstrated that future financial problems are unlikely. Mitigation under AG ¶ 20 has not been established.

Under the whole-person concept, the administrative judge must evaluate an applicant’s eligibility for a security clearance by considering the totality of the applicant’s conduct and all relevant circumstances. The administrative judge should consider the nine adjudicative process factors listed at AG ¶ 2(d):

(1) the nature, extent, and seriousness of the conduct; (2) the circumstances surrounding the conduct, to include knowledgeable participation; (3) the frequency and recency of the conduct; (4) the individual’s age and maturity at the time of the conduct; (5) the extent to which participation is voluntary; (6) the presence or absence of rehabilitation and other permanent behavioral changes; (7) the motivation for the conduct; (8) the potential for pressure, coercion, exploitation, or duress; and (9) the likelihood of continuation or recurrence.

Under AG ¶ 2(c), the ultimate determination of whether to grant eligibility for a security clearance must be an overall commonsense judgment based upon careful consideration of the guidelines and the whole-person concept.

I considered the potentially disqualifying and mitigating conditions in light of all facts and circumstances surrounding this case. I have incorporated my comments under Guideline F in my whole-person analysis. Some of the factors in AG ¶ 2(d) were addressed under those guidelines, but some warrant additional comment. She is well respected by a co-worker. (AppX B.) However, overall the record evidence leaves me with questions and doubts as to Applicant’s eligibility and suitability for a security clearance. For all these reasons, I conclude Applicant failed to mitigate the Financial Considerations security concerns.

Formal findings for or against Applicant on the allegations set forth in the SOR, as required by ¶ E3.1.25 of the Directive, are:

Paragraph 1, Guideline F:

AGAINST APPLICANT

Subparagraphs 1.a.~1.d:

Against Applicant

Subparagraph 1.e:

For Applicant

Subparagraph 1.f:

Against Applicant

Subparagraph 1.g:

For Applicant

Subparagraph 1.h:

Against Applicant

In light of all of the circumstances presented by the record in this case, it is not clearly consistent with the national interest to grant Applicant national security eligibility for a security clearance. Eligibility for access to classified information is denied.

________________________ Richard A. Cefola Administrative Judge