Summary
A 35-year-old applicant, holding two full-time jobs, was denied a security clearance under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed primarily from the applicant's embezzlement of approximately $100,000 from a non-profit school between late 2009 or 2010 and September 2013. This misconduct was concealed from his first wife and during interviews.
Further issues included the applicant's falsification of his e-QIP application, where he failed to disclose his termination due to the embezzlement and denied other employment issues or misconduct. The applicant also did not respond to the embezzlement allegation in the Statement of Reasons. Financially, the applicant admitted to child support arrears due to unemployment, failed to resolve a repossessed car account, and disputed three delinquent credit union accounts without providing evidence. He also owed $222 for a student loan in deferment and had not provided restitution for the embezzled funds.
The judge determined that the applicant's actions raised significant trustworthiness concerns, which were not sufficiently mitigated. Disqualifying conditions related to personal conduct and financial irresponsibility were raised, and while some mitigating conditions were considered, they were insufficient to overcome the concerns, leading to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant embezzled approximately $100,000 from a non-profit school over several years.
- The applicant falsified information on his security clearance application, denying employment issues and misconduct.
- The applicant failed to provide restitution to the school despite opportunities to do so.
Conditions Referenced
- AG ¶ 16(a)appliedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- AG ¶ 16(b)appliedDeliberately Providing False or Misleading Information
- AG ¶ 19(d)appliedDeceptive or Illegal Financial Practices Such as Embezzlement
- AG ¶ 17(d)appliedAcknowledgment of Behavior and Positive Steps TakenThe applicant has made positive adjustments in his life since the embezzlement.
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlThe applicant's financial issues stemmed from his own actions, not external circumstances.
- AG ¶ 20(c)rejectedFinancial CounselingThere is no evidence that the applicant has received financial counseling.
Key Rule Quoted
“"Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security."”
Procedural Posture
- SOR issuedDec 7, 2021
- Answer filed—Undated answer admitted personal conduct allegations.
- Hearing heldJan 13, 2023Via Microsoft Teams.
- Decision dateApr 18, 2023
Cite For
- Disqualifying Conditions Related to Personal Conduct Under Guideline E
- Disqualifying Conditions Related to Financial Considerations Under Guideline F
- Insufficient Evidence to Mitigate Serious Trustworthiness Issues