Summary
A 52-year-old aircraft mechanic was denied a security clearance due to concerns under Guidelines E (Personal Conduct), F (Financial Considerations), and J (Criminal Conduct). The Statement of Reasons alleged the applicant was a defendant in a civil suit for embezzling $627,000 from a former employer. Additionally, he was accused of falsifying his 2014 security clearance application by failing to disclose two prior arrests for driving while intoxicated (DWI) in 2002 and 2011, as well as the civil embezzlement lawsuit.
Financial concerns included the embezzlement incident and approximately $20,000 in delinquent credit accounts that were charged-off or in collections. The applicant was also indebted to a credit card company for about $14,943 on a charged-off account. Evidence of criminal conduct included the civil suit for embezzlement and the DWI arrests.
The denial was based on the applicant's involvement in the embezzlement scheme, his failure to disclose criminal history and civil litigation on his application, and his guarded testimony, which lacked full acknowledgment of his criminal conduct. The judge concluded that the applicant's actions raised significant doubts about his trustworthiness and reliability, making a clearance inconsistent with national security interests.
Why the applicant was denied
- The applicant was involved in an embezzlement scheme resulting in significant financial loss to his employer.
- He failed to disclose relevant criminal history and civil litigation on his security clearance application.
- The applicant's testimony was guarded and lacked full acknowledgment of his involvement in criminal conduct.
Conditions referenced
- AG ¶ 16(a)appliedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- AG ¶ 19(d)appliedDeceptive or Illegal Financial Practices Such as Embezzlement
- AG ¶ 31(d)appliedEvidence of Criminal Conduct
- AG ¶ 17(c)rejectedThe Offense Is so Minor, or so Much Time Has Passed, or the Behavior Is so InfrequentThe applicant's participation in the theft scheme was extensive and not mitigated by time.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's financial issues stemmed from his own criminal conduct.
- AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsSome debts were resolved post-hearing.
Key rule quoted
“No one has a ‘right’ to a security clearance.”
Procedural posture
- SOR issuedJan 19, 2018
- Answer filedMar 20, 2018
- Hearing heldJul 11, 2018
- Decision dateDec 13, 2018
Cite for
- Denial of Clearance Due to Embezzlement and Falsification of Information
- Impact of Criminal Conduct on Security Clearance Eligibility
- Failure to Disclose Relevant Information During the Application Process