Summary
A 71-year-old entrepreneur and former company owner was denied a security clearance under Guideline E (Personal Conduct) and Guideline J (Criminal Conduct). The denial stemmed from his felony conviction for orchestrating a criminal conspiracy involving bid rigging and price fixing against the government. The Statement of Reasons specifically alleged that the applicant, as a felon, exploited his position of trust to commit a crime against the government.
Disqualifying conditions under Guideline E, specifically AG ¶ 31(b) and AG ¶ 16(e), were raised due to the applicant's past actions. While mitigating conditions AG ¶ 32(a) and AG ¶ 32(d) were considered, they were ultimately insufficient to overcome the security concerns.
The denial was based on several factors: the applicant's status as a convicted felon who orchestrated a criminal conspiracy against the government, the significant financial gain and abuse of trust involved in his criminal behavior, and his perceived minimization of involvement in the conspiracy, which led to a lack of credibility regarding his claims of rehabilitation. Despite some evidence of rehabilitation, the judge concluded that the applicant's past criminal conduct continued to raise serious doubts about his reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant was a convicted felon who orchestrated a criminal conspiracy against the government.
- His criminal behavior involved significant financial gain and abuse of a position of trust.
- The applicant minimized his involvement in the conspiracy and lacked credibility in his claims of rehabilitation.
Conditions Referenced
- AG ¶ 31(b)raisedCriminal Conduct
- AG ¶ 16(e)raisedPersonal Conduct
- AG ¶ 32(a)appliedTime Elapsed Since Criminal BehaviorThe applicant's criminal behavior occurred 15 years ago, but this was insufficient to mitigate concerns.
- AG ¶ 32(d)appliedEvidence of Successful RehabilitationThe applicant presented some evidence of rehabilitation, but it was not sufficient to mitigate the concerns.
Key Rule Quoted
“Eligibility for access to classified information may be granted "only upon a finding that it is clearly consistent with the national interest to do so."”
Procedural Posture
- SOR issuedMar 21, 2016
- Answer filedApr 15, 2016
- Hearing heldJan 11, 2017Originally scheduled for a different judge.
- Decision dateAug 25, 2017
Cite For
- Disqualifying Conditions Under Guideline J for Criminal Conduct
- Disqualifying Conditions Under Guideline E for Personal Conduct
- Insufficient Evidence of Rehabilitation Despite Time Elapsed Since Criminal Behavior