ISCR Case 08-04492.h1

Case Headnote

ISCR Case No. 08-04492.h1

deniedMar 23, 2010· Hon. Michael H. Leonard· hearing

Summary

A 32-year-old engineer was denied a security clearance due to concerns under multiple guidelines, including Personal Conduct, Financial Considerations, Alcohol Consumption, Drug Involvement, and Criminal Conduct. The denial stemmed from a history of drug abuse, significant financial difficulties, and the deliberate falsification of her security clearance application.

Specifically, the applicant had a history of heavy cocaine use from 2003 to 2005, including an arrest for unlawful possession of a controlled substance in 2004. She also had multiple alcohol-related offenses, including two DUI arrests in 2006. Her financial issues included filing for Chapter 7 bankruptcy in 2004 and Chapter 13 bankruptcy in 2005, which was discharged in 2008. Additionally, she had eight delinquent debts from returned checks and a history of not meeting financial obligations.

Despite evidence of rehabilitation, including a stable financial situation with approximately $4,000 in cash and a 401(k), and positive endorsements, the judge found the applicant's failure to disclose past drug and alcohol-related offenses on her application to be a critical security concern. This deliberate omission, alongside her past drug abuse and financial problems, led to the denial of her security clearance.

Why the Applicant Was Denied

The applicant had a history of drug abuse, including heavy cocaine use from 2003 to 2005.
She experienced significant financial problems, including two bankruptcy cases and delinquent debts.
The applicant falsified her security clearance application by failing to disclose drug and alcohol-related offenses.

Conditions Referenced

Disqualifying

E2.A5.1raisedPersonal ConductThe applicant's falsification of her security clearance application raised concerns about her reliability and trustworthiness.
G2.A2.1raisedAlcohol ConsumptionThe applicant's history of alcohol-related offenses raised security concerns.
H2.A2.1raisedDrug InvolvementThe applicant's history of drug abuse raised security concerns.
J2.A1.1raisedCriminal ConductThe applicant's arrests for drug and alcohol-related offenses raised security concerns.
F2.A1.1raisedFinancial ConsiderationsThe applicant's financial problems, including bankruptcies and delinquent debts, raised security concerns.

Mitigating

F3.A1.1appliedFinancial ConsiderationsThe applicant's financial issues were largely tied to her past drug abuse and have since been resolved.
H3.A1.1appliedDrug InvolvementThe applicant demonstrated rehabilitation from her drug abuse.
G3.A1.1appliedAlcohol ConsumptionThe applicant showed evidence of rehabilitation from her alcohol-related offenses.

Key Rule Quoted

“The clearly consistent standard indicates that security clearance determinations should err, if they must, on the side of denials.”
— Department of Navy v. Egan, 484 U.S. 518, 528 (1988)

Procedural Posture

SOR issuedFeb 27, 2009
Answer filedMar 1, 2009
Hearing heldOct 27, 2009
Decision dateMar 23, 2010

Cite For

Disqualifying Conditions Related to Personal Conduct Under Guideline E
Impact of Falsification on Security Clearance Eligibility
Mitigating Factors for Financial Considerations Under Guideline F

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
5.a	specific text not stated in this decision	For Applicant	Unspecified Personal Conduct	—	Unknown	—	—	—
5.b	The falsification allegation in SOR ¶ 5.b alleges Applicant deliberately failed to disclose the May 2006 DUI charge and the drug charge, both of which ended in dismissal.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Criminal Conduct	Denied	(b) deliberately providing false information to an investigator or official	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

5.a

specific text not stated in this decision

For Applicant

Unspecified Personal Conduct

—

Unknown

—

5.b

The falsification allegation in SOR ¶ 5.b alleges Applicant deliberately failed to disclose the May 2006 DUI charge and the drug charge, both of which ended in dismissal.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Criminal Conduct

Denied

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

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
4.a	Applicant filed a Chapter 7 bankruptcy case in January 2004, which was discharged in May 2004.	For Applicant	Bankruptcy Filing	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
4.b	Applicant filed a Chapter 13 bankruptcy case in 2005 and completed the repayment plan ahead of schedule, receiving a discharge in July 2008.	For Applicant	Bankruptcy Filing	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
4.c	Applicant has eight delinquent debts based on returned checks, ranging from $54 to $64.	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Debt Disputed with Creditor
4.d	Applicant has a history of not meeting financial obligations, including NSF checks.	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Financial Counseling
4.e	Applicant's financial problems were exacerbated by her drug abuse and low income.	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Financial Event Outside Control
4.f	Applicant has about $4,000 in cash and a 401(k) retirement account, indicating improved financial stability.	For Applicant	Unspecified Financial	Admitted	—	(c) received/receiving counseling; problem being resolved	Documented Rehabilitation Evidence
4.g	Applicant denies any recent collection activity, with the last occurring before the Chapter 13 bankruptcy case.	For Applicant	Unspecified Financial	Admitted	—	—	Claimed Other
4.h	Applicant is formally disputing the delinquent debts through a major credit bureau.	For Applicant	Unspecified Financial	Admitted	—	(e) reasonable, documented basis to dispute the debt	Documented Debt Disputed with Creditor
4.i	Applicant's financial situation is stable, with no recent collection activity.	For Applicant	Unspecified Financial	Admitted	—	(c) received/receiving counseling; problem being resolved	Documented Rehabilitation Evidence
4.j	Applicant has made a remarkable turnaround, including earning a degree and obtaining stable employment.	For Applicant	Unspecified Financial	Admitted	—	(c) received/receiving counseling; problem being resolved	Documented Rehabilitation Evidence
4.k	Applicant has received positive endorsements from her supervisor and community involvement.	For Applicant	Unspecified Financial	Admitted	—	(g) arrangements made with the tax authority; in compliance	Documented Character Letters

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

4.a

Applicant filed a Chapter 7 bankruptcy case in January 2004, which was discharged in May 2004.

For Applicant

Bankruptcy Filing

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(d) good-faith effort to repay or otherwise resolve debts

Documented

Debt Paid in Full

4.b

Applicant filed a Chapter 13 bankruptcy case in 2005 and completed the repayment plan ahead of schedule, receiving a discharge in July 2008.

For Applicant

Bankruptcy Filing

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(d) good-faith effort to repay or otherwise resolve debts

Documented

Debt Paid in Full

4.c

Applicant has eight delinquent debts based on returned checks, ranging from $54 to $64.

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Claimed

Debt Disputed with Creditor

4.d

Applicant has a history of not meeting financial obligations, including NSF checks.

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Claimed

Financial Counseling

4.e

Applicant's financial problems were exacerbated by her drug abuse and low income.

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Claimed

Financial Event Outside Control

4.f

Applicant has about $4,000 in cash and a 401(k) retirement account, indicating improved financial stability.

For Applicant

Unspecified Financial

Admitted

—

(c) received/receiving counseling; problem being resolved

Documented

Rehabilitation Evidence

4.g

Applicant denies any recent collection activity, with the last occurring before the Chapter 13 bankruptcy case.

For Applicant

Unspecified Financial

Admitted

—

Claimed

Other

4.h

Applicant is formally disputing the delinquent debts through a major credit bureau.

For Applicant

Unspecified Financial

Admitted

—

(e) reasonable, documented basis to dispute the debt

Documented

Debt Disputed with Creditor

4.i

Applicant's financial situation is stable, with no recent collection activity.

For Applicant

Unspecified Financial

Admitted

—

(c) received/receiving counseling; problem being resolved

Documented

Rehabilitation Evidence

4.j

Applicant has made a remarkable turnaround, including earning a degree and obtaining stable employment.

For Applicant

Unspecified Financial

Admitted

—

(c) received/receiving counseling; problem being resolved

Documented

Rehabilitation Evidence

4.k

Applicant has received positive endorsements from her supervisor and community involvement.

For Applicant

Unspecified Financial

Admitted

—

(g) arrangements made with the tax authority; in compliance

Documented

Character Letters

¶	Allegation	Finding	Incident	Response	Disqualifying (¶22)	Mitigating applied (¶23)	Mitigation
1.a	The applicant was arrested for driving under the influence of alcohol (DUI) in May 2006.	For Applicant	DUI or DWI Alcohol	Admitted	—	—	—
1.b	The applicant was arrested for a second DUI in August 2006.	For Applicant	DUI or DWI Alcohol	Admitted	—	—	—
1.c	The applicant has a history of alcohol-related offenses.	For Applicant	Unspecified Alcohol Incident	Admitted	—	—	—

Allegation

Finding

Incident

Response

Disqualifying (¶22)

Mitigating applied (¶23)

Mitigation

1.a

The applicant was arrested for driving under the influence of alcohol (DUI) in May 2006.

For Applicant

DUI or DWI Alcohol

Admitted

—

1.b

The applicant was arrested for a second DUI in August 2006.

For Applicant

DUI or DWI Alcohol

Admitted

—

1.c

The applicant has a history of alcohol-related offenses.

For Applicant

Unspecified Alcohol Incident

Admitted

—

¶	Allegation	Finding	Substance / event	Use level	Response	Disqualifying (¶25)	Mitigating applied (¶26)	Mitigation
2.a	The applicant has a history of drug abuse, specifically heavy cocaine use from 2003 to 2005.	Against Applicant	Cocaine	Regular	Admitted	—	—	—
2.b	The applicant was arrested and charged with unlawful possession of a controlled substance in 2004.	Against Applicant	Drug Distribution or Dealing	Not Applicable	Admitted	—	—	—
2.c	The applicant completed a 30-day inpatient program in November 2003 but relapsed shortly thereafter.	Against Applicant	Treatment Failure	Not Applicable	Admitted	—	—	—
2.d	The applicant relapsed again in early 2005 when she smoked crack cocaine.	Against Applicant	Cocaine	Experimental	Admitted	—	—	—

Allegation

Finding

Substance / event

Use level

Response

Disqualifying (¶25)

Mitigating applied (¶26)

Mitigation

2.a

The applicant has a history of drug abuse, specifically heavy cocaine use from 2003 to 2005.

Against Applicant

Cocaine

Regular

Admitted

—

2.b

The applicant was arrested and charged with unlawful possession of a controlled substance in 2004.

Against Applicant

Drug Distribution or Dealing

Not Applicable

Admitted

—

2.c

The applicant completed a 30-day inpatient program in November 2003 but relapsed shortly thereafter.

Against Applicant

Treatment Failure

Not Applicable

Admitted

—

2.d

The applicant relapsed again in early 2005 when she smoked crack cocaine.

Against Applicant

Cocaine

Experimental

Admitted

—

¶	Allegation	Finding	Offense	Criminal disposition	Response	Disqualifying (¶31)	Mitigating applied (¶32)	Mitigation
3.a	The applicant was arrested and charged for a drug-related offense in 2004, two alcohol-related offenses in 2006, and a bad-check offense in 2006.	Against Applicant	Drug Related Criminal Charge	Conduct No Charge	Denied	—	—	—
3.b	The applicant was arrested for driving under the influence of alcohol (DUI) in May 2006 and again in August 2006.	Against Applicant	DUI or DWI Criminal	Conduct No Charge	Denied	—	—	—

Allegation

Finding

Offense

Criminal disposition

Response

Disqualifying (¶31)

Mitigating applied (¶32)

Mitigation

3.a

The applicant was arrested and charged for a drug-related offense in 2004, two alcohol-related offenses in 2006, and a bad-check offense in 2006.

Against Applicant

Drug Related Criminal Charge

Conduct No Charge

Denied

—

3.b

The applicant was arrested for driving under the influence of alcohol (DUI) in May 2006 and again in August 2006.

Against Applicant

DUI or DWI Criminal

Conduct No Charge

Denied

—

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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

FORMAL FINDINGS

CONCLUSION

FOOTNOTES