ISCR Case 09-01670.h1

Case Headnote

ISCR Case No. 09-01670.h1

grantedFeb 18, 2011· Hon. Wilford H. Ross· hearing

Summary

A 47-year-old defense contractor was granted a security clearance despite past financial issues and a criminal conviction for theft. The government raised concerns under Guideline E (Personal Conduct), Guideline F (Financial Considerations), and Guideline J (Criminal Conduct).

Regarding financial matters, the applicant was indebted to a bank for $1,082, for which he established a four-month payment plan and made the first payment. He had a state tax lien, which was reduced from $1,408 to $140.31, and he was working with a tax preparer to resolve it. He successfully completed a payment arrangement for a $901 debt to another creditor. A $19,797 debt for a repossessed automobile from 2004 or 2005 was attributed to a layoff. He also addressed a $45 debt to the Automobile Club and resolved a $100 bank service fee. A federal tax lien of $7,624 was expected to be substantially paid off by a 2009 tax refund. He denied knowledge of a $99 medical debt and a $6,990 homeowner’s association fee for a timeshare owned by his ex-wife, for which he remained obligated. The judge found that many of these financial difficulties stemmed from a divorce and job loss, circumstances beyond his control, and noted his significant efforts to resolve debts.

Concerning criminal conduct, the applicant was arrested in July 2005 for stealing printer cartridges from his employer at the request of a friend. He admitted the conduct was foolish, expressed remorse, and has had no contact with the individual since his arrest. The judge determined that the applicant demonstrated significant rehabilitation since his criminal conduct and has not reoffended. Based on these factors, the applicant was granted eligibility for access to classified information.

Why the Applicant Prevailed

The applicant's financial difficulties were largely due to a divorce and job loss, which were beyond his control.
He has made significant efforts to resolve his debts and has a stable financial situation.
The applicant demonstrated remorse for his past criminal conduct and has not reoffended since fulfilling his sentence.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 31(a)raisedA Single Serious Crime or Multiple Lesser Offenses

Mitigating

AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
AG ¶ 20(d)appliedEvidence of Good-faith Effort to Repay Overdue Creditors or Resolve Debts
AG ¶ 32(a)appliedTime Elapsed Since the Criminal Behavior
AG ¶ 32(d)appliedEvidence of Successful Rehabilitation
AG ¶ 17(c)appliedBehavior Unlikely to Recur
AG ¶ 17(d)appliedAcknowledgment of Behavior and Positive Steps Taken

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedMay 19, 2010
Answer filedJun 4, 2010
Hearing heldDec 22, 2010
Decision dateFeb 18, 2011

Cite For

Mitigation of Financial Difficulties Due to Circumstances Beyond Control
Successful Rehabilitation After Criminal Conduct
Whole-person Assessment in Security Clearance Decisions

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
3.a	The Government alleges in Paragraph 3 that the criminal conduct also amounted as conduct that showed questionable judgment, dishonesty, or unwillingness to comply with rules and regulations.	For Applicant	Questionable Judgment General	—	Denied	—	(c) offense is minor, long ago, infrequent, or unique circumstances (d) acknowledged the behavior; counseling/positive steps taken	Claimed Acknowledgment and Remorse Claimed Rehabilitation Evidence

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

3.a

The Government alleges in Paragraph 3 that the criminal conduct also amounted as conduct that showed questionable judgment, dishonesty, or unwillingness to comply with rules and regulations.

For Applicant

Questionable Judgment General

—

Denied

—

(c) offense is minor, long ago, infrequent, or unique circumstances

(d) acknowledged the behavior; counseling/positive steps taken

Claimed

Acknowledgment and Remorse

Claimed

Rehabilitation Evidence

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant is indebted to a bank for $1,082. He has made a payment arrangement with this bank whereby he will pay this debt off in four months via direct withdrawal. The first payment has been made. This debt is in relation to the automobile described in 1.d., below. $1,082	For Applicant	Auto Loan Debt	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Claimed Debt Paid in Full
1.b	Applicant admits that he had a tax lien with his state taxing authority. His state tax liability has been reduced $1,408 to $140.31. Applicant has always kept his state taxing authority informed of his status. He is working with his tax preparer to resolve any lingering issues. $140	For Applicant	Tax Unpaid	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Claimed Debt Paid in Full
1.c	Applicant admits he was indebted to a creditor for $901. Applicant made a payment arrangement with this creditor which he successfully completed, pursuant to a letter from the creditor. $901	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full
1.d	Applicant admits that he is indebted to a creditor for $19,797 for a repossessed automobile. This automobile was returned to the bank in 2004 or 2005 because Applicant could no longer afford the payments due to his layoff. Applicant’s credible testimony was that he owed approximately $20,000 on this vehicle when it was returned. $19,797	For Applicant	Auto Loan Debt	Admitted	—	—	Claimed Other
1.e	The SOR alleges that Applicant owed $7,624 to the Federal Government for back taxes. Applicant states that this lien should be substantially paid off because of the refund he is due to receive for tax year 2009. $7,624	For Applicant	Tax Unpaid	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Claimed Debt Paid in Full
1.f	Applicant denied owing the Automobile Club $60 for a past due account. After the hearing, Applicant found out he owed $45 on his ex-wife’s account. He paid this debt. $45	For Applicant	Unspecified Financial	Denied with Explanation	—	—	Documented Debt Paid in Full
1.g	Applicant denied any knowledge of this medical debt in the amount of $99. Because of his medical condition, Applicant has a lot of medical bills, but indicates that he pays them consistently and conscientiously. $99	Unknown	Medical Debt	Denied	—	—	Claimed Other
1.h	Applicant denied owing a bank $100 for service fees. He submitted a statement from the creditor indicating that the account was 'satisfied in full.' $100	For Applicant	Unspecified Financial	Denied	—	—	Documented Debt Paid in Full
1.i	Applicant denied owing $6,990 for homeowner’s association fees on a time share. Applicant testified that this time share is owned by his ex-wife. He quit-claimed the property to her as a result of their divorce, but he was still obligated on the debt. $6,990	Unknown	Unspecified Financial	Denied	—	—	Claimed Other

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant is indebted to a bank for $1,082. He has made a payment arrangement with this bank whereby he will pay this debt off in four months via direct withdrawal. The first payment has been made. This debt is in relation to the automobile described in 1.d., below.

$1,082

For Applicant

Auto Loan Debt

Admitted

—

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

Claimed

Debt Paid in Full

1.b

Applicant admits that he had a tax lien with his state taxing authority. His state tax liability has been reduced $1,408 to $140.31. Applicant has always kept his state taxing authority informed of his status. He is working with his tax preparer to resolve any lingering issues.

$140

For Applicant

Tax Unpaid

Admitted

—

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

Claimed

Debt Paid in Full

1.c

Applicant admits he was indebted to a creditor for $901. Applicant made a payment arrangement with this creditor which he successfully completed, pursuant to a letter from the creditor.

$901

For Applicant

Unspecified Financial

Admitted

—

Documented

Debt Paid in Full

1.d

Applicant admits that he is indebted to a creditor for $19,797 for a repossessed automobile. This automobile was returned to the bank in 2004 or 2005 because Applicant could no longer afford the payments due to his layoff. Applicant’s credible testimony was that he owed approximately $20,000 on this vehicle when it was returned.

$19,797

For Applicant

Auto Loan Debt

Admitted

—

Claimed

Other

1.e

The SOR alleges that Applicant owed $7,624 to the Federal Government for back taxes. Applicant states that this lien should be substantially paid off because of the refund he is due to receive for tax year 2009.

$7,624

For Applicant

Tax Unpaid

Admitted

—

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

Claimed

Debt Paid in Full

1.f

Applicant denied owing the Automobile Club $60 for a past due account. After the hearing, Applicant found out he owed $45 on his ex-wife’s account. He paid this debt.

$45

For Applicant

Unspecified Financial

Denied with Explanation

—

Documented

Debt Paid in Full

1.g

Applicant denied any knowledge of this medical debt in the amount of $99. Because of his medical condition, Applicant has a lot of medical bills, but indicates that he pays them consistently and conscientiously.

$99

Unknown

Medical Debt

Denied

—

Claimed

Other

1.h

Applicant denied owing a bank $100 for service fees. He submitted a statement from the creditor indicating that the account was 'satisfied in full.'

$100

For Applicant

Unspecified Financial

Denied

—

Documented

Debt Paid in Full

1.i

Applicant denied owing $6,990 for homeowner’s association fees on a time share. Applicant testified that this time share is owned by his ex-wife. He quit-claimed the property to her as a result of their divorce, but he was still obligated on the debt.

$6,990

Unknown

Unspecified Financial

Denied

—

Claimed

Other

¶	Allegation	Finding	Offense	Criminal disposition	Response	Disqualifying (¶31)	Mitigating applied (¶32)	Mitigation
2.a	Applicant was arrested in July 2005 for stealing printer cartridges from his then employer. According to the Applicant, a then friend who was pastor of Applicant’s church asked him to steal the cartridges so they could be used by the church. Applicant freely admits that his conduct was foolish and he will never do anything like that again. He has had no contact with this person since his arrest.	For Applicant	Theft or Larceny	Convicted	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability	(a) so much time has passed, or unusual circumstances, that it is unlikely to recur (d) evidence of successful rehabilitation (time, restitution, employment, etc.)	Credited Explanation of Omission Credible Credited No Subsequent Offenses

Allegation

Finding

Offense

Criminal disposition

Response

Disqualifying (¶31)

Mitigating applied (¶32)

Mitigation

2.a

Applicant was arrested in July 2005 for stealing printer cartridges from his then employer. According to the Applicant, a then friend who was pastor of Applicant’s church asked him to steal the cartridges so they could be used by the church. Applicant freely admits that his conduct was foolish and he will never do anything like that again. He has had no contact with this person since his arrest.

For Applicant

Theft or Larceny

Convicted

Admitted

(a) pattern of minor offenses casting doubt on judgment/reliability

(a) so much time has passed, or unusual circumstances, that it is unlikely to recur

(d) evidence of successful rehabilitation (time, restitution, employment, etc.)

Credited

Explanation of Omission Credible

Credited

No Subsequent Offenses

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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