Summary
A 62-year-old program architect for a defense contractor was denied a security clearance under Guideline E (Personal Conduct) due to the misuse of a corporate credit card for personal expenses. The applicant had a history of using the card for personal charges since 2005. While charges prior to December 2007 were repaid, he incurred $36,370 in personal expenses on the card between December 2007 and July 2008.
The judge found that the applicant failed to mitigate the security concerns. Disqualifying conditions included the pattern of dishonest conduct and the intentional concealment or falsification of information. Although the applicant acknowledged his actions and attributed them to financial stress, the judge determined that he attempted to minimize the extent and frequency of his misuse during the clearance process, indicating a lack of candor.
Ultimately, the denial was based on the applicant's prolonged history of corporate credit card misuse, his lack of candor during the security clearance process, and the absence of evidence demonstrating rehabilitation or positive steps to address the underlying issues that led to his misconduct.
Why the Applicant Was Denied
- The applicant had a history of misusing his corporate credit card for personal expenses over several years.
- He attempted to minimize the extent and frequency of his misuse during the security clearance process, demonstrating a lack of candor.
- There was no evidence of rehabilitation or positive steps taken to address the underlying issues that led to his misconduct.
Conditions Referenced
- AG ¶ 16(d)appliedCredible Adverse Information
- AG ¶ 16(e)appliedPersonal Conduct Creating Vulnerability
- AG ¶ 17(c)rejectedMinor Offense or Infrequent BehaviorThe offenses were not minor and the behavior was not infrequent.
- AG ¶ 17(d)rejectedAcknowledgment and CounselingThe applicant did not provide evidence of counseling or positive steps taken to change behavior.
- AG ¶ 17(e)rejectedReduction of VulnerabilityThe applicant did not demonstrate steps taken to reduce vulnerability to exploitation.
Key Rule Quoted
“"A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence."”
Procedural Posture
- SOR issuedMar 7, 2012
- Answer filedApr 9, 2012Applicant elected to proceed without a hearing.
- Hearing held—Case decided on the written record.
- Decision dateAug 6, 2012
Cite For
- Lack of Candor in Security Clearance Process Under Guideline E
- Failure to Mitigate Personal Conduct Issues Related to Financial Misconduct
- Importance of Trust and Confidence in the Fiduciary Relationship with the Government