ISCR Case 14-04190.h1

Case Headnote

ISCR Case No. 14-04190.h1

deniedOct 25, 2016· Hon. Arthur E. Marshall, Jr.· hearing

Summary

A 51-year-old deputy program manager was denied a security clearance due to concerns under Guidelines E (Personal Conduct), F (Financial Considerations), and J (Criminal Conduct). The denial stemmed primarily from his past embezzlement from a credit union and his failure to provide truthful information during the security clearance application process.

Specifically, the applicant admitted to stealing approximately $52,000 from his employer around 2008 to meet mortgage obligations, ultimately repaying about $14,000. This conduct led to a felony conviction and a permanent debarment from employment at federally-insured financial institutions. Additionally, his security clearance application answers regarding his departure from the credit union were deemed troubling despite acknowledging the theft. The applicant also had prior criminal conduct, including a 2002 guilty plea for Assault and Battery, resulting in a suspended 90-day jail sentence, and guilty pleas in 2004 and 2005 for Driving Under Revocation/Suspension.

Despite some efforts toward rehabilitation and financial management, the judge found that the severity and recent nature of the criminal conduct, coupled with the untruthful application responses, raised significant security concerns, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant admitted to theft and embezzlement from his employer, which resulted in a felony conviction and permanent debarment from federally-insured financial institutions.
The applicant's failure to provide truthful answers on his security clearance application raised questions about his reliability and trustworthiness.
The applicant's criminal conduct and financial mismanagement occurred within a recent timeframe, undermining claims of rehabilitation.

Conditions Referenced

Disqualifying

AG ¶ 16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
AG ¶ 16(c)raisedCredible Adverse Information in Several Adjudicative Issue Areas
AG ¶ 31(a)appliedA Single Serious Crime or Multiple Lesser Offenses
AG ¶ 31(c)appliedAllegation or Admission of Criminal Conduct
AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
AG ¶ 19(d)appliedDeceptive or Illegal Financial Practices

Mitigating

AG ¶ 17(c)rejectedThe Offense Is so Minor, or so Much Time Has Passed, or the Behavior Is so Infrequent
AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem

Key Rule Quoted

“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”

Procedural Posture

SOR issuedDec 22, 2014
Answer filedJan 14, 2015
Hearing heldJul 27, 2016
Decision dateOct 25, 2016

Cite For

Issues of Personal Conduct and Dishonesty in Security Clearance Applications
Impact of Criminal Conduct on Security Clearance Eligibility
Financial Mismanagement as a Disqualifying Factor for Security Clearance

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
1.a	Applicant admitted breaking laws and rules related to driving and the workplace, assault and battery, stealing from his employer for personal gain, and demonstrating conduct sufficient to subject him to being permanently barred by the NCUA from ever again being employed by a federally-insured financial institution.	Against Applicant	Pattern of Dishonesty or Rule Violations	—	Admitted	(a) deliberate omission, concealment, or falsification on a security form (c) credible adverse information across areas supporting a whole-person concern	—	—
1.b	Applicant's 2013 SCA answer regarding his departure from the credit union position, while true regarding his admission of theft, is troubling.	Against Applicant	Lack of Candor in Interview	—	Admitted	(a) deliberate omission, concealment, or falsification on a security form (c) credible adverse information across areas supporting a whole-person concern	—	—
1.c–1.h	6 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)	Against Applicant		—		—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

1.a

Applicant admitted breaking laws and rules related to driving and the workplace, assault and battery, stealing from his employer for personal gain, and demonstrating conduct sufficient to subject him to being permanently barred by the NCUA from ever again being employed by a federally-insured financial institution.

Against Applicant

Pattern of Dishonesty or Rule Violations

—

Admitted

(a) deliberate omission, concealment, or falsification on a security form

(c) credible adverse information across areas supporting a whole-person concern

—

1.b

Applicant's 2013 SCA answer regarding his departure from the credit union position, while true regarding his admission of theft, is troubling.

Against Applicant

Lack of Candor in Interview

—

Admitted

(a) deliberate omission, concealment, or falsification on a security form

(c) credible adverse information across areas supporting a whole-person concern

—

1.c–1.h

6 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)

Against Applicant

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
3.a	Applicant resorted to theft in order to meet his monthly mortgage obligations. $52,000	Against Applicant	Financial Fraud or Check Kiting	Admitted	(a) inability to satisfy debts (d) deceptive or illegal financial practices	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

3.a

Applicant resorted to theft in order to meet his monthly mortgage obligations.

$52,000

Against Applicant

Financial Fraud or Check Kiting

Admitted

(a) inability to satisfy debts

(d) deceptive or illegal financial practices

—

¶	Allegation	Finding	Offense	Criminal disposition	Response	Disqualifying (¶31)	Mitigating applied (¶32)	Mitigation
2.a	In approximately 2002, Applicant was charged with Assault and Battery, for which he pled guilty and was sentenced to 90 days in jail (suspended).	Against Applicant	Assault or Battery	Convicted	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability (c) currently on parole or probation	—	—
2.a	In both 2004 and in 2005, he was charged with Driving Under Revocation/Suspension, misdemeanors in the state at issue. He pled guilty both times.	Against Applicant	Traffic Offense Pattern	Convicted	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability (c) currently on parole or probation	—	—
2.a	In about 2008, Applicant faced financial difficulties, particularly with regard to his mortgage payments. He used the company ATM machine to deposit checks made out to cash, then had cashier’s checks issued to himself. In sum, he extracted about $52,000 from the credit union, of which he was ultimately required to repay approximately $14,000.	Against Applicant	Fraud or Deception Criminal	Convicted	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability (c) currently on parole or probation	—	—

Allegation

Finding

Offense

Criminal disposition

Response

Disqualifying (¶31)

Mitigating applied (¶32)

Mitigation

2.a

In approximately 2002, Applicant was charged with Assault and Battery, for which he pled guilty and was sentenced to 90 days in jail (suspended).

Against Applicant

Assault or Battery

Convicted

Admitted

(a) pattern of minor offenses casting doubt on judgment/reliability

(c) currently on parole or probation

—

2.a

In both 2004 and in 2005, he was charged with Driving Under Revocation/Suspension, misdemeanors in the state at issue. He pled guilty both times.

Against Applicant

Traffic Offense Pattern

Convicted

Admitted

(a) pattern of minor offenses casting doubt on judgment/reliability

(c) currently on parole or probation

—

2.a

In about 2008, Applicant faced financial difficulties, particularly with regard to his mortgage payments. He used the company ATM machine to deposit checks made out to cash, then had cashier’s checks issued to himself. In sum, he extracted about $52,000 from the credit union, of which he was ultimately required to repay approximately $14,000.

Against Applicant

Fraud or Deception Criminal

Convicted

Admitted

(a) pattern of minor offenses casting doubt on judgment/reliability

(c) currently on parole or probation

—

Loading case…

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

FOOTNOTES