ISCR Case 15-06734.h1

Case Headnote

ISCR Case No. 15-06734.h1

deniedAug 21, 2017· Hon. Francisco Mendez· hearing

Summary

A 48-year-old federal contractor and former military member was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant faced allegations of dishonesty during the security clearance process and misuse of a corporate credit card.

Specifically, the applicant failed to report a DUI arrest to his Facility Security Officer and provided false information about it during the clearance process. He also misused a corporate credit card by charging personal expenses, which led to the account becoming 90-days delinquent. Furthermore, he did not report a warning received for this misuse and lied about the corporate credit card issues during his security clearance interview. While some delinquent debt was recently satisfied, the applicant's lack of candor was a significant factor.

The denial was primarily based on the applicant's repeated dishonesty, including falsifying his application and lying to investigators. His misuse of a corporate credit card for personal expenses, for which he initially blamed others, and his failure to report a DUI arrest, collectively raised serious concerns about his reliability and trustworthiness.

Why the Applicant Was Denied

The applicant engaged in dishonesty during the security clearance process, including falsifying his application and lying to investigators.
The applicant misused a corporate credit card for personal expenses and initially blamed others for his actions.
The applicant failed to report a DUI arrest, raising further concerns about his reliability and trustworthiness.

Conditions Referenced

Disqualifying

AG ¶ 16(a)appliedDeliberate Omission, Concealment, or Falsification of Relevant Facts
AG ¶ 16(b)appliedDeliberately Providing False or Misleading Information
AG ¶ 16(c)appliedCredible Adverse Information in Several Adjudicative Issue Areas

Mitigating

AG ¶ 17(a)rejectedPrompt, Good-faith Efforts to Correct the FalsificationThe applicant did not demonstrate good faith efforts to correct his dishonesty.
AG ¶ 17(b)rejectedRefusal or Failure to Cooperate Caused by Legal AdviceThe applicant's claims of legal advice were not substantiated.
AG ¶ 17(c)rejectedMinor Offense or Unlikely to RecurThe applicant's pattern of dishonesty raises significant concerns.
AG ¶ 17(d)rejectedAcknowledgment of Behavior and CounselingThe applicant did not take credible steps to address his dishonesty.
AG ¶ 17(f)rejectedUnsubstantiated Information From Questionable SourcesThe applicant's claims were contradicted by evidence.

Key Rule Quoted

“Conduct involving questionable judgment, lack of candor, dishonesty, or unwillingness to comply with rules and regulations can raise questions about an individual's reliability, trustworthiness, and ability to protect classified or sensitive information.”

Procedural Posture

SOR issuedApr 12, 2016
Answer filedMay 31, 2016Initially requested a decision based on the written record.
Hearing heldMay 9, 2017Date mutually agreed upon by the parties.
Decision dateAug 21, 2017

Cite For

Dishonesty During the Security Clearance Process Under Guideline E
Failure to Report Adverse Information as a Security Concern
Financial Misconduct Related to Personal Conduct Issues

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	The security concern raised by the DUI is Applicant’s failure to report it to his FSO when it occurred.	For Applicant	Failure to Report Required InformationFOUND DELIBERATE	Criminal Conduct	Denied	(a) deliberate omission, concealment, or falsification on a security form (b) deliberately providing false information to an investigator or official (c) credible adverse information across areas supporting a whole-person concern	—	—
1.b	Applicant misused his corporate credit card by charging personal expenses to the card.	Against Applicant	Misuse of Employer Time or ResourcesFOUND DELIBERATE	—	Denied	(a) deliberate omission, concealment, or falsification on a security form (b) deliberately providing false information to an investigator or official (c) credible adverse information across areas supporting a whole-person concern	—	—
1.c	Applicant did not report the warning he received for misuse of the corporate credit card.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Employment History	Denied	(a) deliberate omission, concealment, or falsification on a security form (b) deliberately providing false information to an investigator or official (c) credible adverse information across areas supporting a whole-person concern	—	—
1.d	Applicant lied during his security clearance interview about the misuse of the corporate credit card.	Against Applicant	Lack of Candor in InterviewFOUND DELIBERATE	—	Denied	(a) deliberate omission, concealment, or falsification on a security form (b) deliberately providing false information to an investigator or official (c) credible adverse information across areas supporting a whole-person concern	—	—
1.e	Applicant provided false information regarding his DUI arrest during the security clearance process.	Against Applicant	Lack of Candor in InterviewFOUND DELIBERATE	Criminal Conduct	Denied	(a) deliberate omission, concealment, or falsification on a security form (b) deliberately providing false information to an investigator or official (c) credible adverse information across areas supporting a whole-person concern	—	—
1.f	Applicant failed to report his DUI arrest to his facility security officer.	Against Applicant	Failure to Report Required InformationFOUND DELIBERATE	Criminal Conduct	Denied	(a) deliberate omission, concealment, or falsification on a security form (b) deliberately providing false information to an investigator or official (c) credible adverse information across areas supporting a whole-person concern	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

1.a

The security concern raised by the DUI is Applicant’s failure to report it to his FSO when it occurred.

For Applicant

Failure to Report Required InformationFOUND DELIBERATE

Criminal Conduct

Denied

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

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

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

—

1.b

Applicant misused his corporate credit card by charging personal expenses to the card.

Against Applicant

Misuse of Employer Time or ResourcesFOUND DELIBERATE

—

Denied

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

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

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

—

1.c

Applicant did not report the warning he received for misuse of the corporate credit card.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Employment History

Denied

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

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

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

—

1.d

Applicant lied during his security clearance interview about the misuse of the corporate credit card.

Against Applicant

Lack of Candor in InterviewFOUND DELIBERATE

—

Denied

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

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

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

—

1.e

Applicant provided false information regarding his DUI arrest during the security clearance process.

Against Applicant

Lack of Candor in InterviewFOUND DELIBERATE

Criminal Conduct

Denied

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

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

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

—

1.f

Applicant failed to report his DUI arrest to his facility security officer.

Against Applicant

Failure to Report Required InformationFOUND DELIBERATE

Criminal Conduct

Denied

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

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

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

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
2.a	Applicant misused his corporate credit card by charging personal expenses to the card. He did not pay the credit card bills and the account became 90-days delinquent.	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
2.b	Applicant incurred some delinquent debt, which was not satisfied until relatively recently.	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

2.a

Applicant misused his corporate credit card by charging personal expenses to the card. He did not pay the credit card bills and the account became 90-days delinquent.

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

2.b

Applicant incurred some delinquent debt, which was not satisfied until relatively recently.

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

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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

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES