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ISCR Case 11-10114.a1 — CASE

ISCR Case 11-10114.a1denied

Case Headnote

ISCR Case No. 11-10114.a1

Apr 9, 2013· Hon. Jeffrey D. Billett· appeal

Summary

A security clearance applicant, representing himself, was denied clearance primarily under Guideline F (Financial Considerations) and Guideline E (Personal Conduct). The denial stemmed from significant medical debt totaling $62,667.

While the applicant had a history of responsible financial behavior, the judge found insufficient evidence of good faith efforts to resolve the debt over a period exceeding one year. Specifically, the applicant failed to provide documentation to support claims of settlement negotiations with the collection agency.

Ultimately, the judge determined that the applicant's financial issues were not sufficiently mitigated by his medical emergency, leading to the denial of the security clearance.

Conditions Referenced

Disqualifying

AG ¶ 20raisedFinancial Considerations

Mitigating

AG ¶ 20(b)rejectedMitigating ConditionThe judge concluded that the applicant did not act responsibly in addressing his financial issues.

Key Rule Quoted

“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)

Procedural Posture

SOR issuedOct 15, 2012
Answer filed—
Hearing heldFeb 12, 2013
Decision dateApr 9, 2013

Cite For

Insufficient Evidence of Good Faith Efforts to Resolve Financial Issues Under Guideline F
Impact of Medical Emergencies on Financial Considerations
Presumption of Regularity in Judges' Decision-making Processes

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 was filed by the applicant after the Administrative Judge denied his request for a security clearance based on financial considerations under Guideline F. The applicant argued that the Judge failed to consider certain documents and that his financial difficulties were due to a medical emergency. The Board affirmed the Judge's decision, finding no harmful error in the Judge's analysis or conclusions.

Appealed bythe applicant

Applicant representationPro se (self-represented)

Judge belowDarlene Lokey Anderson — denied the clearance

Decided ona hearing

Guidelines belowGuideline F

What the Board reviewed

Judge mis-weighed or ignored evidence — raised by the applicantRejected
The Judge erroneously failed to consider job performance reports and a letter of recommendation.
Decision arbitrary, capricious, or contrary to law — raised by the applicantRejected
The Judge's decision is not supported by the record evidence.

Why the Board ruled this way

The Board found that the Judge properly considered the evidence and articulated a satisfactory explanation for the decision, affirming the unfavorable security clearance decision.

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
Jeffrey D. Billett
Jean E. Smallin

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 DIGEST: Applicant failed to corroborate his claim that he submitted documents not included in the record. There is a presumption of regularity and good faith by Judges as they decide cases. There is a presumption that a Judge properly considered those mitigating conditions applicable to an applicant’s case. Adverse decision affirmed. CASE NO: 11-10114.a1 DATE: 04/09/2013 DATE: April 9, 2013 In Re: ---------------- Applicant for Security Clearance ) ) ) ) ) ) ) ) ISCR Case No. 11-10114

APPEAL BOARD DECISION

APPEARANCES

FOR GOVERNMENT James B. Norman, Esq., Chief Department Counsel FOR APPLICANT Pro se The Department of Defense (DoD) declined to grant Applicant a security clearance. On October 15, 2012, DoD issued a statement of reasons (SOR) advising Applicant of the basis for that decision—security concerns raised under Guideline F Financial Considerations) of Department of Defense Directive 5220.6 (Jan. 2, 1992, as amended) (Directive). Applicant requested a hearing. On February 12, 2013, after the close of the record, Defense Office of Hearings and Appeals (DOHA) Administrative Judge Darlene Lokey Anderson denied Applicant’s request for a security clearance. Applicant appealed, pursuant to the Directive ¶¶ E3.1.28 and E3.1.30.1 Applicant raises the following issue on appeal: whether the Judge’s decision should be reversed because the Judge erroneously failed to consider job performance reports and a letter of recommendation, and because Applicant is honest, hard working, and he got into financial difficulty solely because he got sick without insurance. For the following reasons, the Board affirms the Judge’s unfavorable security clearance decision. The Judge found: Applicant was employed on a cruise ship in October 2005 where he had limited medical insurance which lasted as long as he was employed there. He started experiencing debilitating joint pain that forced him to quit his job. He then became very sick, experiencing lung and kidney failure. Although he had no medical insurance, he had a credit card which he used to pay for medical care. After a series of tests it was determined that he had lupus. He stayed in the hospital three weeks. Applicant later learned that he owed a debt to the hospital in the amount of $62,667. He did not know about this debt until an interview with a DoD investigator in June 2011. When he received the SOR, he contacted the hospital to obtain more information, but they were unable to provide him with information about his account. Upon contacting the hospital a second time because he was worried about his security eligibility, he obtained his account information. Applicant stated that he then contacted the collection agency on his account to work out an agreeable settlement offer. The Judge concluded that Applicant has normally been a responsible individual who has a history of paying his bills on time and living within his means. However, after his medical emergency, he became tremendously delinquently indebted to one creditor. He has known about the delinquent medical account for over a year. Since then, he has done nothing more than contact the collection agency to negotiate a settlement. Although he testified that he is still in the process of working out the arrangements, he has failed to provide any documentation to corroborate his efforts at settlement negotiations or to substantiate any of his testimony. The medical emergency brings some mitigation. However, since learning of the debt, Applicant has done very little to address it, and cannot be said to have acted responsibly under the circumstances. He cannot be said to have made a good faith effort toward resolving it, nor has he shown financial rehabilitation. At the time of the hearing, Applicant was given additional time to submit documents that could speak to his character. He notes that the Judge’s decision stated that he had not submitted any documents. Applicant claims that he put a letter in the mail shortly after the hearing that contained annual performance reviews and a letter of recommendation. We have, in the past, remanded cases to the appropriate Judges for consideration of documents that applicants had submitted but which were not incorporated into the records. However, after reviewing the documents, the discussion 2 See Directive, Enclosure 2 ¶ 20(b). “[T[he 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, or a death, divorce or separation), and the individual acted responsibly under the circumstances[.]” between Applicant and the Judge in the transcript (pp. 46-48), wherein the Judge asked Applicant to submit additional information about resolving the debt, and the Judge’s decision, we conclude that consideration of the documents by the Judge would not likely have produced a different outcome. See, e.g., ADP Case No. 09-02670 at 2 (App. Bd. Jan. 20, 2011). Furthermore, in this case, Applicant has offered nothing to corroborate his claim that he submitted additional documents. Accordingly, we find no reason to remand the case. See, e.g., ISCR Case No. 10-09433 at 2 (App. Bd. Jul. 2, 2012). Insofar as the documents Applicant has attached to his appeal brief are outside the record, we cannot consider them. Directive ¶ E3.1.29. Applicant states that he would like the Judge’s decision to be reversed because he is a good, hard working and honest employee who got sick while without insurance. He asserts that he is not a person who has a lack of judgment and poor self-control. He states that he currently has minimal credit and a comfortable umbrella for emergencies. The Board construes these representations as an assertion that the Judge’s decision is not supported by the record evidence, or that the Judge gave insufficient weight to matters in mitigation. There is a presumption in favor of regularity and good faith on the part of DOHA Judges as they engage in the process of deciding cases. See, e.g., ISCR Case No. 99-0019 at 5 (App. Bd. Nov. 22, 1999). Thus, there is a presumption that the Judge properly considered those mitigating conditions in the Adjudicative Guidelines that were applicable to the case. 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. See, e.g., ISCR Case No. 06-10320 at 2 (App. Bd. Nov. 7, 2007). 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. 06-17409 at 3 (App. Bd. Oct. 12, 2007). Applicant’s appeal brief essentially argues for an alternate interpretation of the record evidence. A review of the Judge’s decision reveals that, regarding Guideline F, the Judge listed a potentially applicable mitigating condition2 and then discussed in her analysis why the applicability of that factor was of insufficient magnitude to effect a favorable outcome. The Board concludes that the Judge appropriately weighed the mitigating evidence in the record against the seriousness of the disqualifying conduct and adequately discussed why the disqualifying conduct established under Guideline F was not mitigated. The Board does not review a case de novo. The favorable evidence cited by Applicant is not sufficient to demonstrate the Judge’s decision is arbitrary, capricious, or contrary to law. See, e.g., ISCR Case No. 06-11172 at 3 (App. Bd. Sep. 4, 2007). After reviewing the record, the Board concludes that the Judge examined the relevant data and articulated a satisfactory explanation for the 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 ultimate unfavorable security clearance decision is sustainable.

ORDER

The decision of the Judge is AFFIRMED. Signed: Michael Y. Ra’anan Michael Y. Ra’anan Administrative Judge Chairperson, Appeal Board Signed: Jeffrey D. Billett Jeffrey D. Billett Administrative Judge Member, Appeal Board Signed: Jean E. Smallin Jean E. Smallin Administrative Judge Member, Appeal Board Applicant raises the following issue on appeal: whether the Judge’s decision should be reversed because the Judge erroneously failed to consider job performance reports and a letter of recommendation, and because Applicant is honest, hard working, and he got into financial difficulty solely because he got sick without insurance. For the following reasons, the Board affirms the Judge’s unfavorable security clearance decision. The Judge found: Applicant was employed on a cruise ship in October 2005 where he had limited medical insurance which lasted as long as he was employed there. He started experiencing debilitating joint pain that forced him to quit his job. He then became very sick, experiencing lung and kidney failure. Although he had no medical insurance, he had a credit card which he used to pay for medical care. After a series of tests it was determined that he had lupus. He stayed in the hospital three weeks. Applicant later learned that he owed a debt to the hospital in the amount of $62,667. He did not know about this debt until an interview with a DoD investigator in June 2011. When he received the SOR, he contacted the hospital to obtain more information, but they were unable to provide him with information about his account. Upon contacting the hospital a second time because he was worried about his security eligibility, he obtained his account information. Applicant stated that he then contacted the collection agency on his account to work out an agreeable settlement offer. The Judge concluded that Applicant has normally been a responsible individual who has a history of paying his bills on time and living within his means. However, after his medical emergency, he became tremendously delinquently indebted to one creditor. He has known about the delinquent medical account for over a year. Since then, he has done nothing more than contact the collection agency to negotiate a settlement. Although he testified that he is still in the process of working out the arrangements, he has failed to provide any documentation to corroborate his efforts at settlement negotiations or to substantiate any of his testimony. The medical emergency brings some mitigation. However, since learning of the debt, Applicant has done very little to address it, and cannot be said to have acted responsibly under the circumstances. He cannot be said to have made a good faith effort toward resolving it, nor has he shown financial rehabilitation. At the time of the hearing, Applicant was given additional time to submit documents that could speak to his character. He notes that the Judge’s decision stated that he had not submitted any documents. Applicant claims that he put a letter in the mail shortly after the hearing that contained annual performance reviews and a letter of recommendation. We have, in the past, remanded cases to the appropriate Judges for consideration of documents that applicants had submitted but which were not incorporated into the records. However, after reviewing the documents, the discussion between Applicant and the Judge in the transcript (pp. 46-48), wherein the Judge asked Applicant to submit additional information about resolving the debt, and the Judge’s decision, we conclude that consideration of the documents by the Judge would not likely have produced a different outcome. See, e.g., ADP Case No. 09-02670 at 2 (App. Bd. Jan. 20, 2011). Furthermore, in this case, Applicant has offered nothing to corroborate his claim that he submitted additional documents. Accordingly, we find no reason to remand the case. See, e.g., ISCR Case No. 10-09433 at 2 (App. 4 See Directive, Enclosure 2 ¶ 20(b). “[T[he 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, or a death, divorce or separation), and the individual acted responsibly under the circumstances[.]” Bd. Jul. 2, 2012). Insofar as the documents Applicant has attached to his appeal brief are outside the record, we cannot consider them. Directive ¶ E3.1.29. Applicant states that he would like the Judge’s decision to be reversed because he is a good, hard working and honest employee who got sick while without insurance. He asserts that he is not a person who has a lack of judgment and poor self-control. He states that he currently has minimal credit and a comfortable umbrella for emergencies. The Board construes these representations as an assertion that the Judge’s decision is not supported by the record evidence, or that the Judge gave insufficient weight to matters in mitigation. There is a presumption in favor of regularity and good faith on the part of DOHA Judges as they engage in the process of deciding cases. See, e.g., ISCR Case No. 99-0019 at 5 (App. Bd. Nov. 22, 1999). Thus, there is a presumption that the Judge properly considered those mitigating conditions in the Adjudicative Guidelines that were applicable to the case. 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. See, e.g., ISCR Case No. 06-10320 at 2 (App. Bd. Nov. 7, 2007). 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. 06-17409 at 3 (App. Bd. Oct. 12, 2007). Applicant’s appeal brief essentially argues for an alternate interpretation of the record evidence. A review of the Judge’s decision reveals that, regarding Guideline F, the Judge listed a potentially applicable mitigating condition4 and then discussed in her analysis why the applicability of that factor was of insufficient magnitude to effect a favorable outcome. The Board concludes that the Judge appropriately weighed the mitigating evidence in the record against the seriousness of the disqualifying conduct and adequately discussed why the disqualifying conduct established under Guideline F was not mitigated. The Board does not review a case de novo. The favorable evidence cited by Applicant is not sufficient to demonstrate the Judge’s decision is arbitrary, capricious, or contrary to law. See, e.g., ISCR Case No. 06-11172 at 3 (App. Bd. Sep. 4, 2007). After reviewing the record, the Board concludes that the Judge examined the relevant data and articulated a satisfactory explanation for the 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 ultimate unfavorable security clearance decision is sustainable. Order The decision of the Judge is AFFIRMED. Signed: Michael Y. Ra’anan Michael Y. Ra’anan Administrative Judge Chairperson, Appeal Board Signed: Jeffrey D. Billett Jeffrey D. Billett Administrative Judge Member, Appeal Board Signed: Jean E. Smallin Jean E. Smallin Administrative Judge Member, Appeal Board

FOOTNOTES

1 The SOR was later amended to include concerns under Guideline E (Personal Conduct). The Judge made a formal finding favorable to the Applicant on an allegation brought forth under Guideline E. That favorable finding is not challenged on appeal.

3 The SOR was later amended to include concerns under Guideline E (Personal Conduct). The Judge made a formal finding favorable to the Applicant on an allegation brought forth under Guideline E. That favorable finding is not challenged on appeal. DATE: April 9, 2013 In Re: ---------------- Applicant for Security Clearance ) ) ) ) ) ) ) ) ISCR Case No. 11-10114 APPEAL BOARD DECISION APPEARANCES FOR GOVERNMENT James B. Norman, Esq., Chief Department Counsel FOR APPLICANT Pro se The Department of Defense (DoD) declined to grant Applicant a security clearance. On October 15, 2012, DoD issued a statement of reasons (SOR) advising Applicant of the basis for that decision—security concerns raised under Guideline F Financial Considerations) of Department of Defense Directive 5220.6 (Jan. 2, 1992, as amended) (Directive). Applicant requested a hearing. On February 12, 2013, after the close of the record, Defense Office of Hearings and Appeals (DOHA) Administrative Judge Darlene Lokey Anderson denied Applicant’s request for a security clearance. Applicant appealed, pursuant to the Directive ¶¶ E3.1.28 and E3.1.30.3