ISCR Case 23-01691

Case Headnote

ISCR Case No. 23-01691

deniedMar 31, 2025· Hon. Eric C. Price· hearing

Summary

A 33-year-old defense contractor was denied a security clearance due to concerns under Guidelines H (Drug Involvement), E (Personal Conduct), and F (Financial Considerations). The applicant admitted to purchasing anabolic steroids in September 2020, using them twice weekly from January to May 2021, and shipping them to himself in Country C in July 2022. This conduct led to his termination from employment in August 2022.

Additionally, the applicant failed to timely file federal and state income tax returns for tax years 2021 and 2022, and he falsified his August 2022 Security Clearance Application by not disclosing these tax delinquencies. He also had approximately $37,744 in delinquent debt, including a charged-off mortgage of $24,083. While some debts were resolved, the applicant admitted to other outstanding balances, including a loan with a balance of $23,083 and two other debts totaling $2,350.

The judge found that the applicant's admitted steroid use, employment termination for related conduct, and failure to file taxes demonstrated insufficient evidence of reliability and trustworthiness. Despite some debts being resolved, the overall pattern of behavior led to the denial of his security clearance.

Why the Applicant Was Denied

The applicant admitted to purchasing and using anabolic steroids, which raised significant concerns about his reliability and trustworthiness.
He was terminated from employment for shipping anabolic steroids to himself, indicating a lack of judgment and compliance with laws.
The applicant failed to file federal and state income tax returns, which further questioned his personal conduct and financial responsibility.

Conditions Referenced

Disqualifying

AG ¶ 25(a)raisedSubstance Misuse
AG ¶ 25(c)raisedIllegal Possession of a Controlled Substance
AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
AG ¶ 16(a)raisedDeliberate Omission or Falsification

Mitigating

AG ¶ 20(a)rejectedBehavior Occurred Long AgoThe applicant's drug involvement and financial issues were not infrequent and raised ongoing concerns.
AG ¶ 20(b)appliedConditions Beyond ControlThe failure of the applicant's trucking business contributed to his financial issues.
AG ¶ 20(g)appliedArrangements with Tax AuthoritiesThe applicant entered into payment plans with the IRS for overdue taxes.

Key Rule Quoted

“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.”
— Directive ¶ E3.1.15

Procedural Posture

SOR issuedNov 6, 2023
Answer filedJan 5, 2024
Hearing heldFeb 11, 2025via video teleconference
Decision dateMar 31, 2025

Cite For

Denial of Security Clearance Due to Drug Involvement Under Guideline H
Failure to File Taxes as a Disqualifying Factor Under Guideline F
Lack of Candor in Security Clearance Application Under Guideline E

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

¶	Allegation	Finding	Conduct	Concealed Issue	Response	Disqualifying (¶16)	Mitigating applied (¶17)	Mitigation
2.a	Applicant was fired from his employment in about August 2022 for shipping anabolic steroids to himself in Country C.	For Applicant	Rules Violation at Workplace	—	Admitted	—	—	—
2.b	Applicant falsified material facts in his August 2022 SCA by deliberately failing to disclose he failed to timely file and pay his TY 2021 Federal and state taxes.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Admitted	(b) deliberately providing false information to an investigator or official	—	Claimed Explanation of Omission Credible

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant was fired from his employment in about August 2022 for shipping anabolic steroids to himself in Country C.

For Applicant

Rules Violation at Workplace

—

Admitted

—

2.b

Applicant falsified material facts in his August 2022 SCA by deliberately failing to disclose he failed to timely file and pay his TY 2021 Federal and state taxes.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Admitted

(b) deliberately providing false information to an investigator or official

—

Claimed

Explanation of Omission Credible

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
3.a	Applicant has approximately $37,744 in delinquent debt including a mortgage charged off for $24,083. $37,744	For Applicant	Unspecified Financial	Admitted	—	—	—
3.b	Applicant admitted he was delinquent on the loan, stated the balance was $23,083, and estimated he would pay the debt off by November 2025. $24,083	For Applicant	Unspecified Financial	Admitted	—	—	—
3.c	Applicant admitted the allegation and said the balance was $1,084. $1,084	For Applicant	Unspecified Financial	Admitted	—	—	—
3.d	Applicant admitted the allegation and said the combined balance of the two debts was $2,350. $2,350	For Applicant	Unspecified Financial	Admitted	—	—	—
3.e	Applicant admitted the allegation and said the combined balance of the two debts was $2,350. $2,350	For Applicant	Unspecified Financial	Admitted	—	—	—
3.f	Applicant failed to timely file federal and state income tax returns for tax year (TY) 2021 and TY 2022.	Against Applicant	Tax Filing Failure	Admitted	(g) unexplained affluence	—	Claimed Financial Counseling

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

3.a

Applicant has approximately $37,744 in delinquent debt including a mortgage charged off for $24,083.

$37,744

For Applicant

Unspecified Financial

Admitted

—

3.b

Applicant admitted he was delinquent on the loan, stated the balance was $23,083, and estimated he would pay the debt off by November 2025.

$24,083

For Applicant

Unspecified Financial

Admitted

—

3.c

Applicant admitted the allegation and said the balance was $1,084.

$1,084

For Applicant

Unspecified Financial

Admitted

—

3.d

Applicant admitted the allegation and said the combined balance of the two debts was $2,350.

$2,350

For Applicant

Unspecified Financial

Admitted

—

3.e

Applicant admitted the allegation and said the combined balance of the two debts was $2,350.

$2,350

For Applicant

Unspecified Financial

Admitted

—

3.f

Applicant failed to timely file federal and state income tax returns for tax year (TY) 2021 and TY 2022.

Against Applicant

Tax Filing Failure

Admitted

(g) unexplained affluence

—

Claimed

Financial Counseling

¶	Allegation	Finding	Substance / event	Use level	Response	Disqualifying (¶25)	Mitigating applied (¶26)	Mitigation
1.a	Applicant purchased anabolic steroids in about September 2020, used anabolic steroids two times a week from January to May 2021, and shipped anabolic steroids to himself in Country C in July 2022.	Against Applicant	Anabolic Steroid Misuse	Regular	Admitted	—	—	Claimed Acknowledgment and Remorse

Allegation

Finding

Substance / event

Use level

Response

Disqualifying (¶25)

Mitigating applied (¶26)

Mitigation

1.a

Applicant purchased anabolic steroids in about September 2020, used anabolic steroids two times a week from January to May 2021, and shipped anabolic steroids to himself in Country C in July 2022.

Against Applicant

Anabolic Steroid Misuse

Regular

Admitted

—

Claimed

Acknowledgment and Remorse

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Case Profile

Summary

Why the Applicant Was Denied

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION