ISCR Case 10-02333.h1

Case Headnote

ISCR Case No. 10-02333.h1

deniedFeb 29, 2012· Hon. Francisco Mendez· hearing

Summary

A 51-year-old male applicant with military service was denied a security clearance due to concerns under Guidelines E (Personal Conduct), F (Financial Considerations), and J (Criminal Conduct). The denial stemmed from a long history of criminal behavior, including the theft of government funds and a conviction for soliciting a prostitute. The applicant also failed to demonstrate financial stability following a Chapter 7 bankruptcy discharge in October 2010.

Specifically, the applicant omitted his conviction for soliciting a prostitute and a subsequent probation violation from his security clearance application. He further misled a government investigator by claiming ignorance regarding the probation violation's cause. These omissions and misrepresentations raised concerns about his candor and vulnerability to coercion.

Additionally, the applicant's financial situation remained unstable, with past-due student loans and a negative net monthly income at the time of his bankruptcy. The judge concluded that the applicant failed to demonstrate the necessary reliability and trustworthiness for a security clearance, particularly due to his dishonesty during the application process and ongoing financial issues.

Why the Applicant Was Denied

The applicant has a long history of criminal conduct, including theft of government money and solicitation of prostitution.
He failed to disclose significant criminal convictions on his security clearance application, demonstrating a lack of candor.
The applicant's financial situation remains unstable, with past-due debts and no evidence of responsible financial management post-bankruptcy.

Conditions Referenced

Disqualifying

J 31(a)appliedCriminal Conduct - a Single Serious Crime or Multiple Lesser Offenses
J 31(c)appliedCriminal Conduct - Allegation or Admission of Criminal Conduct
J 31(e)appliedCriminal Conduct - Violation of Parole or Probation
E 16(a)appliedPersonal Conduct - Deliberate Omission, Concealment, or Falsification of Relevant Facts
E 16(b)appliedPersonal Conduct - Deliberately Providing False or Misleading Information
F 19(a)appliedFinancial Considerations - Inability or Unwillingness to Satisfy Debts
F 19(b)appliedFinancial Considerations - a History of Not Meeting Financial Obligations
F 19(d)appliedFinancial Considerations - Deceptive or Illegal Financial Practices

Key Rule Quoted

“Criminal activity creates doubt about a person's judgment, reliability and trustworthiness.”
— AG ¶ 30

Procedural Posture

SOR issuedMar 11, 2011
Answer filedJul 20, 2011Applicant admitted all allegations.
Hearing held—Decision made based on administrative record.
Decision dateFeb 29, 2012

Cite For

Failure to Mitigate Criminal Conduct Due to Ongoing Dishonesty
Impact of Financial Instability on Security Clearance Eligibility
Importance of Full Disclosure in Security Clearance Applications

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
2.a	Applicant omitted from his SCA his conviction for soliciting a prostitute.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Criminal Conduct	Admitted	(a) deliberate omission, concealment, or falsification on a security form (b) deliberately providing false information to an investigator or official (e) personal conduct or concealment creating vulnerability to exploitation	—	—
2.b	Applicant omitted from his SCA his probation violation.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Criminal Conduct	Admitted	(a) deliberate omission, concealment, or falsification on a security form (b) deliberately providing false information to an investigator or official (e) personal conduct or concealment creating vulnerability to exploitation	—	—
2.c	Applicant misled a Government investigator by claiming he was unaware that the prostitution conviction led to the probation violation.	Against Applicant	Lack of Candor in InterviewFOUND DELIBERATE	Criminal Conduct	Admitted	(a) deliberate omission, concealment, or falsification on a security form (b) deliberately providing false information to an investigator or official (e) personal conduct or concealment creating vulnerability to exploitation	—	—
2.d	Applicant's attempts to keep this information hidden left him vulnerable to coercion.	Against Applicant	Concealment Creating Coercion VulnerabilityFOUND DELIBERATE	—	Admitted	(a) deliberate omission, concealment, or falsification on a security form (b) deliberately providing false information to an investigator or official (e) personal conduct or concealment creating vulnerability to exploitation	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant omitted from his SCA his conviction for soliciting a prostitute.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Criminal Conduct

Admitted

(a) deliberate omission, concealment, or falsification on a security form

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

(e) personal conduct or concealment creating vulnerability to exploitation

—

2.b

Applicant omitted from his SCA his probation violation.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Criminal Conduct

Admitted

(a) deliberate omission, concealment, or falsification on a security form

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

(e) personal conduct or concealment creating vulnerability to exploitation

—

2.c

Applicant misled a Government investigator by claiming he was unaware that the prostitution conviction led to the probation violation.

Against Applicant

Lack of Candor in InterviewFOUND DELIBERATE

Criminal Conduct

Admitted

(a) deliberate omission, concealment, or falsification on a security form

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

(e) personal conduct or concealment creating vulnerability to exploitation

—

2.d

Applicant's attempts to keep this information hidden left him vulnerable to coercion.

Against Applicant

Concealment Creating Coercion VulnerabilityFOUND DELIBERATE

—

Admitted

(a) deliberate omission, concealment, or falsification on a security form

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

(e) personal conduct or concealment creating vulnerability to exploitation

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
3.a	Applicant has a long track record of criminal conduct, to include stealing Government money and falsifying his security clearance application. He recently had his debts discharged through bankruptcy, but failed to demonstrate that his financial situation is under control.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (d) deceptive or illegal financial practices (e) consistent spending beyond one’s means / irresponsible spending	—	—
3.b	Applicant is currently past-due on his student loans.	Against Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (e) consistent spending beyond one’s means / irresponsible spending	—	—
3.c	Applicant and his wife had over $16,000 in credit card debt, and had a negative $445 net monthly income. The bankruptcy court granted a Chapter 7 discharge in October 2010. $16,000	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (e) consistent spending beyond one’s means / irresponsible spending	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

3.a

Applicant has a long track record of criminal conduct, to include stealing Government money and falsifying his security clearance application. He recently had his debts discharged through bankruptcy, but failed to demonstrate that his financial situation is under control.

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(d) deceptive or illegal financial practices

(e) consistent spending beyond one’s means / irresponsible spending

—

3.b

Applicant is currently past-due on his student loans.

Against Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(e) consistent spending beyond one’s means / irresponsible spending

—

3.c

Applicant and his wife had over $16,000 in credit card debt, and had a negative $445 net monthly income. The bankruptcy court granted a Chapter 7 discharge in October 2010.

$16,000

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(e) consistent spending beyond one’s means / irresponsible spending

—

¶	Allegation	Finding	Offense	Criminal disposition	Response	Disqualifying (¶31)	Mitigating applied (¶32)	Mitigation
1.a	Applicant has a long track record of criminal conduct, to include stealing Government money and falsifying his security clearance application.	Against Applicant	Fraud or Deception Criminal	Convicted	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability (c) currently on parole or probation (e) discharge or dismissal from the Armed Forces under less than honorable conditions	—	—
1.b	Applicant was arrested in 2008 for soliciting a prostitute.	Against Applicant	Unspecified Criminal Conduct	Convicted	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability (c) currently on parole or probation (e) discharge or dismissal from the Armed Forces under less than honorable conditions	—	—
1.c	Applicant's arrest and conviction for soliciting a prostitute was a violation of the terms of his probation.	Against Applicant	Probation or Court Order Violation	Convicted	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability (c) currently on parole or probation (e) discharge or dismissal from the Armed Forces under less than honorable conditions	—	—

Allegation

Finding

Offense

Criminal disposition

Response

Disqualifying (¶31)

Mitigating applied (¶32)

Mitigation

1.a

Applicant has a long track record of criminal conduct, to include stealing Government money and falsifying his security clearance application.

Against Applicant

Fraud or Deception Criminal

Convicted

Admitted

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

(c) currently on parole or probation

(e) discharge or dismissal from the Armed Forces under less than honorable conditions

—

1.b

Applicant was arrested in 2008 for soliciting a prostitute.

Against Applicant

Unspecified Criminal Conduct

Convicted

Admitted

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

(c) currently on parole or probation

(e) discharge or dismissal from the Armed Forces under less than honorable conditions

—

1.c

Applicant's arrest and conviction for soliciting a prostitute was a violation of the terms of his probation.

Against Applicant

Probation or Court Order Violation

Convicted

Admitted

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

(c) currently on parole or probation

(e) discharge or dismissal from the Armed Forces under less than honorable conditions

—

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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

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES