ISCR Case 08-07680.h1

Case Headnote

ISCR Case No. 08-07680.h1

grantedAug 9, 2010· Hon. Robert Robinson Gales· hearing

Summary

This case concerns a 54-year-old naturalized U.S. citizen and network engineer seeking to retain his security clearance, which was challenged under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons alleged that the applicant initially provided false information regarding his gambling activities, later modifying his response when presented with CTRC reports. Additionally, it was noted that the applicant filed for Chapter 7 bankruptcy in October 1997, with unsecured debts discharged in January 1998. This financial distress, including $40,000 in credit card debt, was attributed to his girlfriend's severe gambling addiction, which the applicant attempted to manage.

The judge found that the applicant's financial difficulties stemmed primarily from his girlfriend's gambling addiction, not his own, and that his gambling activities were limited. Mitigating conditions were applied, recognizing that the applicant had since resolved his financial difficulties and demonstrated responsible financial behavior.

The applicant's current financial situation was found to be stable, characterized by significant savings and good credit. Consequently, the judge determined that the applicant's financial issues had improved significantly, and he had demonstrated responsible behavior. The security clearance was GRANTED.

Why the Applicant Prevailed

The applicant's financial issues were primarily due to his girlfriend's gambling addiction, which he attempted to control.
The applicant has since resolved his financial difficulties and demonstrated responsible financial behavior.
The applicant's current financial situation is stable, with significant savings and good credit.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
AG ¶ 19(i)appliedCompulsive or Addictive GamblingThe gambling issues were primarily related to the applicant's girlfriend's behavior.

Mitigating

AG ¶ 20(a)appliedBehavior Happened Long Ago or Infrequently
AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
AG ¶ 20(d)appliedGood-faith Effort to Resolve Debts

Key Rule Quoted

“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
— Department of the Navy v. Egan, 484 U.S. 518, 528 (1988)

Procedural Posture

SOR issuedSep 23, 2009
Answer filedOct 19, 2009
Hearing heldApr 22, 2010
Decision dateAug 9, 2010

Cite For

Mitigation of Financial Issues Due to a Partner's Gambling Addiction
Resolution of Financial Difficulties Leading to Bankruptcy
Consideration of Personal Conduct in Relation to Financial Stability

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 initially denied that he gambles, but when shown the CTRC reports, he modified his response. The Government contends his initial response constituted providing false information during the security clearance process.	For Applicant	Lack of Candor in InterviewNOT DELIBERATE	—	Denied	—	(a) prompt, good-faith correction before being confronted	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

1.a

Applicant initially denied that he gambles, but when shown the CTRC reports, he modified his response. The Government contends his initial response constituted providing false information during the security clearance process.

For Applicant

Lack of Candor in InterviewNOT DELIBERATE

—

Denied

—

(a) prompt, good-faith correction before being confronted

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
2.a	Applicant filed for bankruptcy in October 1997, and his unsecured debts were discharged under Chapter 7 of the U.S. Bankruptcy Code in January 1998.	For Applicant	Bankruptcy Filing	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly	—
2.b	Applicant had credit card debt rising to $40,000, and accounts became delinquent due to his girlfriend's gambling activities. $40,000	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly	—
2.c	Applicant's gambling activities were limited, and he did not have a gambling problem; his girlfriend had a serious gambling problem that affected their finances.	For Applicant	Gambling Losses	Admitted	(i) concealing gambling losses or problems	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

2.a

Applicant filed for bankruptcy in October 1997, and his unsecured debts were discharged under Chapter 7 of the U.S. Bankruptcy Code in January 1998.

For Applicant

Bankruptcy Filing

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

(b) conditions largely beyond the person’s control; acted responsibly

—

2.b

Applicant had credit card debt rising to $40,000, and accounts became delinquent due to his girlfriend's gambling activities.

$40,000

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

(b) conditions largely beyond the person’s control; acted responsibly

—

2.c

Applicant's gambling activities were limited, and he did not have a gambling problem; his girlfriend had a serious gambling problem that affected their finances.

For Applicant

Gambling Losses

Admitted

(i) concealing gambling losses or problems

(a) behavior happened long ago / infrequent / unlikely to recur

(b) conditions largely beyond the person’s control; acted responsibly

—

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Case Profile

Summary

Why the Applicant Prevailed

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