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ISCR Case 20-01217 — CASE

Case record

A decided public DOHA case, shown for research, not advice or a prediction.

Decision Date3/25/2021
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Related decisionSee the hearing decision (Case 20-01217.a1) →
Participants
Applicant Representation: Pro Se
Judge: LeRoy F. Foreman
Government Counsel: Aubrey M. De Angelis
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
- Guideline HDrug Involvement & Substance Misuse · Against Applicant

Similar decisions
Other decisions whose allegations read most like this one. Descriptive similarity of the allegations only — not a prediction.
Finding similar decisions…

ISCR Case 20-01217denied

Case Headnote

ISCR Case No. 20-01217

deniedMar 25, 2021· Hon. LeRoy F. Foreman· hearing

Summary

A 48-year-old self-employed IT company owner was denied a security clearance due to concerns under Guideline F (Financial Considerations) and Guideline H (Drug Involvement). The applicant admitted to failing to file federal income tax returns and pay taxes for the years 2010 through 2018, and state returns and taxes for 2013 through 2018. Additionally, the applicant admitted to illegal marijuana use from approximately December 1994 to May 2019, including use after submitting his Security Clearance Application.

The judge cited the applicant's failure to meet financial obligations, specifically referencing Disqualifying Conditions AG ¶ 19(a), AG ¶ 19(c), and AG ¶ 19(f). The applicant also failed to provide evidence of efforts to resolve these financial delinquencies.

Regarding drug involvement, the judge noted the applicant's ongoing marijuana use, which raised questions about reliability and trustworthiness, aligning with Disqualifying Conditions AG ¶ 25(a) and AG ¶ 25(c). The applicant did not present evidence of rehabilitation or abstinence from drug use. Consequently, the security clearance was denied.

Why the Applicant Was Denied

The applicant admitted to all allegations of financial issues and drug involvement.
The applicant failed to provide evidence of efforts to resolve financial delinquencies or to stop using marijuana.
The applicant's ongoing marijuana use raised questions about reliability and trustworthiness.

Conditions Referenced

Disqualifying

AG ¶ 19(a)appliedInability to Satisfy Debts
AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
AG ¶ 19(f)appliedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns or Failure to Pay Annual Federal, State, or Local Income Tax as Required
AG ¶ 25(a)appliedAny Substance Misuse
AG ¶ 25(c)appliedIllegal Possession of a Controlled Substance

Key Rule Quoted

“An applicant has the ultimate burden of demonstrating that it is clearly consistent with the national interest to grant or continue his security clearance.”
— ISCR Case No. 01-20700 at 3 (App. Bd. Dec. 19, 2002)

Procedural Posture

SOR issuedAug 4, 2020
Answer filednullUndated document
Hearing heldnullDecision on the written record without a hearing
Decision dateMar 25, 2021

Cite For

Denial of Clearance Due to Financial Irresponsibility Under Guideline F
Denial of Clearance Due to Ongoing Drug Use Under Guideline H
Importance of Demonstrating Rehabilitation and Responsible Conduct in Security Clearance Cases

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

Standardized Decision Profile

SEAD-4 Guideline F · descriptive summary of a decided case

Posture: Decision on RecordDecided: denied

The judge found against the applicant on financial considerations due to failure to file federal and state income tax returns for multiple years and significant student loan debts. The applicant's claims of ignorance and lack of steady employment were not accepted as mitigating factors, leading to a denial of the security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Failure to file federal income tax returns and pay the taxes as required for tax years 2010 through 2018.	Against Applicant	Tax Filing Failure	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations (f) failure to file / fraudulent filing of tax returns or unpaid tax	—	—
1.b	Failure to file state returns and pay the taxes as required for tax years 2013 through 2018.	Against Applicant	Tax Filing Failure	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations (f) failure to file / fraudulent filing of tax returns or unpaid tax	—	—

Descriptive standardized rendering of a decided public case (Guideline F). The verbatim source decision is shown in full below.

Standardized Decision Profile

SEAD-4 Guideline H (Drug Involvement) · descriptive summary of a decided case

Posture: Decision on RecordDecided: denied

The judge found that the applicant engaged in illegal use of marijuana from December 1994 to May 2019, including use after submitting his security clearance application. The judge ruled against the applicant on this allegation, concluding that the applicant's marijuana use was frequent and continued after he submitted his SCA, which raised significant security concerns.

¶	Allegation	Finding	Substance / event	Use level	Response	Disqualifying (¶25)	Mitigating applied (¶26)	Mitigation
2.a	Illegal use of marijuana with varying frequency from about December 1994 to about May 2019, including use after he submitted his SCA.	Against Applicant	MarijuanaWHILE CLEARED	Frequent	Admitted	—	—	—

Descriptive standardized rendering of a decided public case (Guideline H). The verbatim source decision is shown in full below.

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

HEARING

APPEARANCES

______________ ______________ DEPARTMENT OF DEFENSE DEFENSE OFFICE OF HEARINGS AND APPEALS In the matter of: ) ) [Redacted] ) ISCR Case No. 20-01217 ) Applicant for Security Clearance ) Appearances For Government: Aubrey M. De Angelis, Esq., Department Counsel For Applicant: Pro se 03/25/2021

STATEMENT OF CASE

FOREMAN, LeRoy F., Administrative Judge: This case involves security concerns raised under Guidelines F (Financial Considerations) and H (Drug Involvement and Substance Misuse). Eligibility for access to classified information is denied. Statement of the Case Applicant submitted a security clearance application (SCA) on December 27, 2018. On August 4, 2020, the Defense Counterintelligence and Security Agency Consolidated Adjudications Facility (CAF) sent him a Statement of Reasons (SOR) alleging security concerns under Guidelines F and H. The CAF acted under Executive Order (Exec. Or.) 10865, Safeguarding Classified Information within Industry (February 20, 1960), as amended; DOD Directive 5220.6, Defense Industrial Personnel Security Clearance Review Program (January 2, 1992), as amended (Directive); and the adjudicative guidelines (AG) promulgated in Security Executive Agent Directive 4, National Security Adjudicative Guidelines (December 10, 2016). Applicant answered the SOR in an undated document, and requested a decision on the written record without a hearing. Department Counsel submitted the Government’s

written case in an undated document. On November 30, 2020, a complete copy of the file of relevant material (FORM) was sent to Applicant, who was given an opportunity to file objections and submit material to refute, extenuate, or mitigate the Government’s evidence. He received the FORM on December 28, 2020, and did not respond. The case was assigned to me on February 25, 2021. The FORM included a summary of a personal subject interview (PSI) conducted on May 29, 2019. The PSI summary was not authenticated as required by Directive ¶ E3.1.20. Department Counsel informed Applicant that he was entitled to comment on the accuracy of the PSI summary; make any corrections, additions, deletions or updates; or object to consideration of the PSI summary on the ground that it was not authenticated. I conclude that he waived any objections to the PSI summary by failing to respond to the FORM. “Although pro se applicants are not expected to act like lawyers, they are expected to take timely and reasonable steps to protect their rights under the Directive.” ISCR Case No. 12-10810 at 2 (App. Bd. Jul. 12, 2016).

FINDINGS OF FACT

In Applicant’s answer to the SOR, he admitted all the allegations. His admissions are incorporated in my findings of fact. Applicant is a 48-year-old self-employed owner of an information-technology company. He has owned the company since October 2008. He also works as a network administrator for a federal contractor, who is sponsoring him for a security clearance. He has never married and has no children. He earned an associate’s degree in September 1996. He has never held a security clearance. In December 2005, Applicant was arrested, charged, and convicted of felony possession of marijuana and cocaine, and he was sentenced to probation for two years. His conviction was expunged after he successfully completed his probation. (GX 4 at 38; GX 5 at 2.) He stopped using cocaine after his arrest, but he continues to use marijuana a few times a week. He told a security investigator that he was willing to stop using marijuana for a job. (GX 5 at 3.) He was still using marijuana regularly when he submitted his SCA. (Answer to SOR.) In his answer to the SOR, he stated, “I understand that being granted with a security clearance from the Department of Defense make me an agent of the Federal government and I will immediately discontinue use.” (GX 3 at 3.) Applicant failed to file his federal and state income tax returns for tax year 2010. He did not owe any taxes for that year. He failed to file his federal and state income tax returns and pay the taxes as required for tax years 2011 through 2018. In his SCA, he attributed his failure to file the returns and pay the taxes to “ignorance of the process and lack of financial plan.” (GX 4 at 42-45.) He told a security investigator that he failed to file his returns and pay the taxes because of his lack of steady employment. (GX 5 at 3.) He filed his federal return for 2018 but has not paid the $4,137 due for that tax year. (Answer to SOR.)

A credit report from November 11, 2020, reflects that Applicant has two consolidated student loans referred for collection of $87,851 and $41,522, and a revolving charge account charged off for $142. (GX 6 at 2-3.) In his SCA, he attributed the delinquencies to inability to make consistent payments. (GX 4 at 47-49.) He submitted no documentary evidence of payments, payment agreements, or other efforts to resolve these debts. He provided no information about his current income and expenses. He provided no evidence of efforts to find steady employment.

POLICIES

“[N]o one has a ‘right’ to a security clearance.” Department of the Navy v. Egan, 484 U.S. 518, 528 (1988). As Commander in Chief, the President has the authority to “control access to information bearing on national security and to determine whether an individual is sufficiently trustworthy to have access to such information.” Id. at 527. The President has authorized the Secretary of Defense or his designee to grant applicants eligibility for access to classified information “only upon a finding that it is clearly consistent with the national interest to do so.” Exec. Or. 10865 § 2. Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines. These guidelines are not inflexible rules of law. Instead, recognizing the complexities of human behavior, an administrative judge applies these guidelines in conjunction with an evaluation of the whole person. An administrative judge’s overarching adjudicative goal is a fair, impartial, and commonsense decision. An administrative judge must consider all available and reliable information about the person, past and present, favorable and unfavorable. The Government reposes a high degree of trust and confidence in persons with access to classified information. This relationship transcends normal duty hours and endures throughout off-duty hours. Decisions include, by necessity, consideration of the possible risk that the applicant may deliberately or inadvertently fail to safeguard classified information. Such decisions entail a certain degree of legally permissible extrapolation about potential, rather than actual, risk of compromise of classified information. Clearance decisions must be made “in terms of the national interest and shall in no sense be a determination as to the loyalty of the applicant concerned.” Exec. Or. 10865 § 7. Thus, a decision to deny a security clearance is merely an indication the applicant has not met the strict guidelines the President and the Secretary of Defense have established for issuing a clearance. Initially, the Government must establish, by substantial evidence, conditions in the personal or professional history of the applicant that may disqualify the applicant from being eligible for access to classified information. The Government has the burden of establishing controverted facts alleged in the SOR. See Egan, 484 U.S. at 531. “Substantial evidence” is “more than a scintilla but less than a preponderance.” See v. Washington Metro. Area Transit Auth., 36 F.3d 375, 380 (4th Cir. 1994). The guidelines

Once the Government establishes a disqualifying condition by substantial evidence, the burden shifts to the applicant to rebut, explain, extenuate, or mitigate the facts. Directive ¶ E3.1.15. An applicant has the burden of proving a mitigating condition, and the burden of disproving it never shifts to the Government. See ISCR Case No. 02- 31154 at 5 (App. Bd. Sep. 22, 2005).

presume a nexus or rational connection between proven conduct under any of the criteria listed therein and an applicant’s security suitability. See ISCR Case No. 15-01253 at 3 (App. Bd. Apr. 20, 2016). An applicant “has the ultimate burden of demonstrating that it is clearly consistent with the national interest to grant or continue his security clearance.” ISCR Case No. 01- 20700 at 3 (App. Bd. Dec. 19, 2002). “[S]ecurity clearance determinations should err, if they must, on the side of denials.” Egan, 484 U.S. at 531.

ANALYSIS

Guideline F, Financial Considerations The SOR alleges a student loan placed for collection of $85,100 (SOR ¶ 1.a); a student loan placed for collection $40,222 (SOR ¶ 1.b); a revolving charge account past due for $142 (SOR ¶ 1.c); failure to file federal income tax returns and pay the taxes as required for tax years 2010 through 2018 (SOR ¶ 1.d); failure to file state returns and pay the taxes as required for tax years 2013 through 2018 (SOR ¶ 1.e); and failure to file state returns and pay the taxes as required (for a different state than alleged in SOR ¶ 1.e) for tax years 2010, 2011, and 2012 (SOR ¶ 1.f). The security concern under this guideline 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. . . . An individual who is financially overextended is at greater risk of having to engage in illegal or otherwise questionable acts to generate funds. . . . This concern is broader than the possibility that a person might knowingly compromise classified information to raise money. It encompasses concerns about a person’s self-control, judgment, and other qualities essential to protecting classified information. A person who is financially irresponsible may also be irresponsible, unconcerned, or negligent in handling and safeguarding classified information. See ISCR Case No. 11-05365 at 3 (App. Bd. May 1, 2012). Applicant’s admissions and the documentary evidence in the FORM establish the following disqualifying conditions under this guideline:

AG ¶ 19(a): inability to satisfy debts; AG ¶ 19(c): a history of not meeting financial obligations; and AG ¶ 19(f): failure to file or fraudulently filing annual Federal, state, or local income tax returns or failure to pay annual Federal, state, or local income tax as required. The following mitigating conditions are relevant: AG ¶ 20(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; AG ¶ 20(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; AG ¶ 20(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; AG ¶ 20(d): the individual initiated and is adhering to a good-faith effort to repay overdue creditors or otherwise resolve debts; and AG ¶ 20(g): the individual has made arrangements with the appropriate tax authority to file or pay the amount owed and is in compliance with those arrangements. None of these mitigating conditions are established. Applicant’s delinquent debts are recent, numerous, and were not incurred under circumstances making recurrence unlikely. His lack of steady employment is likely a condition largely beyond his control, although he submitted no evidence of efforts to find steady employment, and he submitted no evidence of responsible conduct, such as contacting his creditors or seeking professional help. Guideline H, Drug Involvement and Substance Misuse The SOR alleges that Applicant used marijuana with varying frequency from about December 1994 to about May 2019, including use after he submitted his SCA (SOR ¶ 2.a). It also alleges that he was arrested in January 1996, charged with felony possession

of a controlled substance, and placed on probation for two years. The concern under this guideline is set out in AG ¶ 24: The illegal use of controlled substances, to include the misuse of prescription and non-prescription drugs, and the use of other substances that cause physical or mental impairment or are used in a manner inconsistent with their intended purpose can raise questions about an individual's reliability and trustworthiness, both because such behavior may lead to physical or psychological impairment and because it raises questions about a person's ability or willingness to comply with laws, rules, and regulations. Controlled substance means any "controlled substance" as defined in 21 U.S.C. 802. Substance misuse is the generic term adopted in this guideline to describe any of the behaviors listed above. Appendix B to the Adjudicative Guidelines prohibits granting or renewing a security clearance to “an unlawful user of a controlled substance.” Since there is no evidence that Applicant has stopped using marijuana, Appendix B appears to apply. In addition, Applicant’s admissions establish the following disqualifying conditions under this guideline: AG ¶ 25(a): any substance misuse (see above definition); and AG ¶ 25(c): illegal possession of a controlled substance, including cultivation, processing, manufacture, purchase, sale, or distribution; or possession of drug paraphernalia. The following mitigating conditions are potentially applicable: AG ¶ 26(a): the behavior happened so long ago, was so infrequent, or happened under such circumstances that it is unlikely to recur or does not cast doubt on the individual's current reliability, trustworthiness, or good judgment; AG ¶ 26(b): the individual acknowledges his or her drug involvement and substance misuse, provides evidence of actions taken to overcome this problem, and has established a pattern of abstinence, including, but not limited to: (1) disassociation from drug-using associates and contacts; (2) changing or avoiding the environment where drugs were used; and (3) providing a signed statement of intent to abstain from all drug involvement and substance misuse, acknowledging that any future involvement or misuse is grounds for revocation of national security eligibility; and AG ¶ 26(d): satisfactory completion of a prescribed drug treatment program, including, but not limited to, rehabilitation and aftercare requirements, without recurrence of abuse, and a favorable prognosis by a duly qualified medical professional.

None of the above mitigating conditions are applicable. Applicant’s marijuana use is frequent and has continued after he submitted his SCA. He submitted no evidence of treatment or other actions to overcome his marijuana use and no evidence of abstinence.

WHOLE PERSON CONCEPT

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. In applying the whole- person concept, an 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. An 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. I have incorporated my comments under Guidelines F and H in my whole-person analysis and applied the adjudicative factors in AG ¶ 2(d). Because Applicant requested a determination on the record without a hearing, I had no opportunity to evaluate his credibility and sincerity based on demeanor. See ISCR Case No. 01-12350 at 3-4 (App. Bd. Jul. 23, 2003). After weighing the disqualifying and mitigating conditions under Guidelines F and H, and evaluating all the evidence in the context of the whole person, I conclude Applicant has not mitigated the security concerns raised by his delinquent debts and drug involvement.

FORMAL FINDINGS

I make the following formal findings on the allegations in the SOR: Paragraph 1, Guideline F: AGAINST APPLICANT Subparagraphs 1.a-1.f: Against Applicant Paragraph 2, Guideline H: AGAINST APPLICANT Subparagraphs 2.a and 2.b: Against Applicant

CONCLUSION

I conclude that it is not clearly consistent with the national security interests of the United States to grant Applicant eligibility for access to classified information. Clearance is denied. LeRoy F. Foreman Administrative Judge