ISCR Case 14-05937.h1

Case Headnote

ISCR Case No. 14-05937.h1

deniedJun 7, 2017· Hon. Shari Dam· hearing

Summary

A 63-year-old naturalized U.S. citizen, originally from Egypt, was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant had a history of employment-related misconduct, including multiple terminations and repeated falsifications on security clearance applications. Additionally, the applicant had several delinquent debts.

Specific employment issues included a 2007 termination for viewing pornography on a government computer and a 2010 termination from another company for repeatedly violating policies, following multiple written counselings regarding chain of command, workplace conduct, and personal interactions. On security clearance applications in 2012 and 2014, the applicant misrepresented the reasons for these terminations and failed to disclose other unfavorable employment separations. While a 2008 application did disclose one involuntary termination, it omitted another from 2004.

Financially, the applicant had numerous debts, including a $6,013 judgment from 2013 and a $4,990 charged-off account on which he was making $100 monthly payments. Other debts were resolved, such as a $12,837 mortgage balance made current in 2014, a $5,609 charged-off account settled for $1,002 in 2016, a $5,371 charged-off account cancelled in 2015, a $2,945 collections account paid in 2015, and a $1,237 collections account settled for $692 in 2016. The judge found the applicant's explanations for his financial issues and employment terminations not credible, leading to the denial of eligibility for access to classified information.

Why the Applicant Was Denied

The applicant had numerous unresolved debts totaling $44,742, with some debts dating back to 2009.
The applicant's explanations for his financial issues and employment terminations were deemed not credible.
The applicant falsified information on multiple security clearance applications regarding his employment history.

Conditions Referenced

Disqualifying

F1raisedFinancial Considerations
E2raisedPersonal Conduct

Mitigating

F3rejectedFinancial ConsiderationsThe applicant's financial problems were attributed to past business failures and medical issues, but he did not provide sufficient evidence of resolution for all debts.
E2rejectedPersonal ConductThe applicant's claims of misunderstanding regarding his employment terminations were not credible.

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 issuedMay 24, 2016
Answer filedAug 3, 2016
Hearing heldJan 11, 2017
Decision dateJun 7, 2017

Cite For

Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
Credibility Issues in Personal Conduct Under Guideline E
Importance of Full Disclosure in Security Clearance Applications

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	In April 2007, Applicant was terminated by Company 2, by mutual agreement, for viewing pornography on a Government computer.	Against Applicant	Rules Violation at Workplace	—	Admitted	—	—	—
2.b	In May 2009, Applicant received a written and verbal counseling memo regarding his non-compliance with Company 3’s policies and procedures, including cell phone protocols.	Against Applicant	Rules Violation at Workplace	—	Denied	—	—	—
2.c	In June 2009, Applicant received a written counseling memo from Company 3, regarding compliance with policies and procedures related to following the chain of command, and discussion of workplace issues with the military.	Against Applicant	Rules Violation at Workplace	—	Admitted	—	—	—
2.d	In October 2009, Applicant received written counseling from Company 3, regarding non-compliance with four issues: following the chain of command; absence from the workplace during assigned work hours; conducting personal business during work hours; and proper procedures for lunch breaks.	Against Applicant	Rules Violation at Workplace	—	Admitted	—	—	—
2.e	In December 2009, Company 3 issued another written counseling memo to Applicant for violating company policies and procedures. The memo specifically addressed the following problems: personal or private communication with certain people, physical contact with certain people; availability during assigned hours; maintenance of a positive attitude; and scheduling coordination.	Against Applicant	Rules Violation at Workplace	—	Admitted	—	—	—
2.f	In January 2010, Company 3 terminated Applicant for repeatedly violating company policies and procedures, without eligibility for rehire.	Against Applicant	Rules Violation at Workplace	—	Denied	—	—	—
2.g	In April 2014, Applicant completed his third SCA. In response to Section 13A: Employment Activities, Applicant answered no to questions inquiring whether, within the past seven years, he had been fired; quit a job after being told he would be fired; left a job by mutual agreement following notice of unsatisfactory performance; received a warning, been reprimanded, suspended or disciplined for misconduct, such as a violation of security policy.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Employment History	Denied	(a) deliberate omission, concealment, or falsification on a security form	—	—
2.h	In response to Section 13A: Employment Activities on the April 2014 SCA, Applicant answered that the reason he left his position with Company 3 was “End of Contract.”	Against Applicant	Falsification Security FormFOUND DELIBERATE	Employment History	Denied	(a) deliberate omission, concealment, or falsification on a security form	—	—
2.i	In response to Section 13A: Employment Activities on the April 2014 SCA, Applicant failed to disclose that in December 2004, he was counseled and received an unfavorable termination from Company 1.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Employment History	Denied	(a) deliberate omission, concealment, or falsification on a security form	—	—
2.j	In response to Section 13A: Employment Activities on the April 2014 SCA, Applicant indicated that the reason he left his position with Company 2 was “Waiting for Order.” He did not disclose that he had been involuntarily terminated for viewing pornography.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Employment History	Denied	(a) deliberate omission, concealment, or falsification on a security form	—	—
2.k	In July 2012, Applicant completed a second SCA. In response to Section 13A: Employment Activities, Applicant answered that the reason he left his position with Company 3 was “End of Contract.”	Against Applicant	Falsification Security FormFOUND DELIBERATE	Employment History	Denied	(a) deliberate omission, concealment, or falsification on a security form	—	—
2.l	In response to Section 13A: Employment Activities on his July 2012 SCA, Applicant answered no to questions inquiring whether, within the past seven years, he had been fired; quit a job after being told he would be fired; left a job by mutual agreement following notice of unsatisfactory performance; received a warning, been reprimanded, suspended or disciplined for misconduct, such as a violation of security policy.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Employment History	Denied	(a) deliberate omission, concealment, or falsification on a security form	—	—
2.m	In June 2008, Applicant completed his first SCA. In response to Section 22: Your Employment Record, Applicant answered “yes” to a question inquiring whether he had been fired, quit, or left a job for other reasons. Applicant disclosed that, in April 2007, he was involuntarily terminated from Company 2 under unfavorable circumstances. However, he did not disclose the 2004 termination from Company 1 in this 2008 SCA.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Employment History	Denied	(a) deliberate omission, concealment, or falsification on a security form	—	—
2.o	In response to Section 13A: Employment Activities on the July 2012 SCA, Applicant stated that the reason he left his position with Company 2 was “Waiting for Order.” He did not disclose that he had been terminated for viewing pornography.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Employment History	Denied	(a) deliberate omission, concealment, or falsification on a security form	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

In April 2007, Applicant was terminated by Company 2, by mutual agreement, for viewing pornography on a Government computer.

Against Applicant

Rules Violation at Workplace

—

Admitted

—

2.b

In May 2009, Applicant received a written and verbal counseling memo regarding his non-compliance with Company 3’s policies and procedures, including cell phone protocols.

Against Applicant

Rules Violation at Workplace

—

Denied

—

2.c

In June 2009, Applicant received a written counseling memo from Company 3, regarding compliance with policies and procedures related to following the chain of command, and discussion of workplace issues with the military.

Against Applicant

Rules Violation at Workplace

—

Admitted

—

2.d

In October 2009, Applicant received written counseling from Company 3, regarding non-compliance with four issues: following the chain of command; absence from the workplace during assigned work hours; conducting personal business during work hours; and proper procedures for lunch breaks.

Against Applicant

Rules Violation at Workplace

—

Admitted

—

2.e

In December 2009, Company 3 issued another written counseling memo to Applicant for violating company policies and procedures. The memo specifically addressed the following problems: personal or private communication with certain people, physical contact with certain people; availability during assigned hours; maintenance of a positive attitude; and scheduling coordination.

Against Applicant

Rules Violation at Workplace

—

Admitted

—

2.f

In January 2010, Company 3 terminated Applicant for repeatedly violating company policies and procedures, without eligibility for rehire.

Against Applicant

Rules Violation at Workplace

—

Denied

—

2.g

In April 2014, Applicant completed his third SCA. In response to Section 13A: Employment Activities, Applicant answered no to questions inquiring whether, within the past seven years, he had been fired; quit a job after being told he would be fired; left a job by mutual agreement following notice of unsatisfactory performance; received a warning, been reprimanded, suspended or disciplined for misconduct, such as a violation of security policy.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Employment History

Denied

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

—

2.h

In response to Section 13A: Employment Activities on the April 2014 SCA, Applicant answered that the reason he left his position with Company 3 was “End of Contract.”

Against Applicant

Falsification Security FormFOUND DELIBERATE

Employment History

Denied

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

—

2.i

In response to Section 13A: Employment Activities on the April 2014 SCA, Applicant failed to disclose that in December 2004, he was counseled and received an unfavorable termination from Company 1.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Employment History

Denied

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

—

2.j

In response to Section 13A: Employment Activities on the April 2014 SCA, Applicant indicated that the reason he left his position with Company 2 was “Waiting for Order.” He did not disclose that he had been involuntarily terminated for viewing pornography.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Employment History

Denied

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

—

2.k

In July 2012, Applicant completed a second SCA. In response to Section 13A: Employment Activities, Applicant answered that the reason he left his position with Company 3 was “End of Contract.”

Against Applicant

Falsification Security FormFOUND DELIBERATE

Employment History

Denied

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

—

2.l

In response to Section 13A: Employment Activities on his July 2012 SCA, Applicant answered no to questions inquiring whether, within the past seven years, he had been fired; quit a job after being told he would be fired; left a job by mutual agreement following notice of unsatisfactory performance; received a warning, been reprimanded, suspended or disciplined for misconduct, such as a violation of security policy.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Employment History

Denied

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

—

2.m

In June 2008, Applicant completed his first SCA. In response to Section 22: Your Employment Record, Applicant answered “yes” to a question inquiring whether he had been fired, quit, or left a job for other reasons. Applicant disclosed that, in April 2007, he was involuntarily terminated from Company 2 under unfavorable circumstances. However, he did not disclose the 2004 termination from Company 1 in this 2008 SCA.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Employment History

Denied

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

—

2.o

In response to Section 13A: Employment Activities on the July 2012 SCA, Applicant stated that the reason he left his position with Company 2 was “Waiting for Order.” He did not disclose that he had been terminated for viewing pornography.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Employment History

Denied

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

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	The $6,013 judgment was filed in 2013. $6,013	Against Applicant	Judgment Against Applicant	Admitted	—	—	—
1.b	The $12,837 formerly delinquent mortgage balance has been current since 2014. $12,837	For Applicant	Mortgage or Home Loan Debt	Admitted	—	—	—
1.c	The $5,609 charged-off account was settled for $1,002 in June 2016 and paid in full that month. $5,609	For Applicant	Unspecified Financial	Admitted	—	—	—
1.d	The $5,371 charged-off account was cancelled in 2015. $5,371	For Applicant	Unspecified Financial	Admitted	—	—	—
1.e	Applicant said he is making monthly payments of $100 on the $4,990 charged-off account owed to a retail store. $4,990	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.f	Applicant paid the $2,945 collections account on February 19, 2015. $2,945	For Applicant	Unspecified Financial	Admitted	—	—	—
1.g	The $1,237 collections account from 2012 was settled for $692 and paid in October and November 2016. $1,237	For Applicant	Unspecified Financial	Admitted	—	—	—
1.h	Applicant stated that this $5,590 debt is a duplicate of the debt alleged in SOR ¶ 1.e, on which he is making payments. $5,590	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.i	The $150 medical debt was for an emergency medical visit from seven or eight years ago. $150	For Applicant	Medical Debt	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The $6,013 judgment was filed in 2013.

$6,013

Against Applicant

Judgment Against Applicant

Admitted

—

1.b

The $12,837 formerly delinquent mortgage balance has been current since 2014.

$12,837

For Applicant

Mortgage or Home Loan Debt

Admitted

—

1.c

The $5,609 charged-off account was settled for $1,002 in June 2016 and paid in full that month.

$5,609

For Applicant

Unspecified Financial

Admitted

—

1.d

The $5,371 charged-off account was cancelled in 2015.

$5,371

For Applicant

Unspecified Financial

Admitted

—

1.e

Applicant said he is making monthly payments of $100 on the $4,990 charged-off account owed to a retail store.

$4,990

Against Applicant

Unspecified Financial

Admitted

—

1.f

Applicant paid the $2,945 collections account on February 19, 2015.

$2,945

For Applicant

Unspecified Financial

Admitted

—

1.g

The $1,237 collections account from 2012 was settled for $692 and paid in October and November 2016.

$1,237

For Applicant

Unspecified Financial

Admitted

—

1.h

Applicant stated that this $5,590 debt is a duplicate of the debt alleged in SOR ¶ 1.e, on which he is making payments.

$5,590

Against Applicant

Unspecified Financial

Admitted

—

1.i

The $150 medical debt was for an emergency medical visit from seven or eight years ago.

$150

For Applicant

Medical Debt

Admitted

—

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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

PROCEDURAL RULINGS

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES