ISCR Case 10-09109.h1

Case Headnote

ISCR Case No. 10-09109.h1

grantedMay 29, 2012· Hon. Martin H. Mogul· hearing

Summary

A 54-year-old defense contractor with a high school education was granted a security clearance despite concerns under Guideline F (Financial Considerations) and Guideline J (Criminal Conduct). The Statement of Reasons (SOR) detailed several allegations, including a Chapter 7 bankruptcy filing in 1997, which was discharged in 1998. The SOR also alleged an overdue mortgage account with Bank of America, though the applicant denied this, testifying that he engaged a credit counseling service in 2009 to renegotiate his home loan due to financial difficulties.

Regarding criminal conduct, the SOR cited a 1986 charge for Inflicting Corporal Injury on a Spouse/Cohabitant, which was rejected by the prosecutor. In 1993, the applicant was charged with Hit and Run property damage and Failure to report an accident, pleading Nolo Contendere to the latter and paying $136 in fines and fees. The first count was dismissed. A 2010 arrest for Loitering with intent to Commit Prostitution resulted in a Nolo Contendere plea, 36 months summary probation, 5 days community labor, an AIDS education class, and $170 in fines and restitution.

The judge found that the applicant had mitigated these concerns. His wife confirmed no violence in the alleged domestic incident, and the loitering plea was set aside and the case expunged. The applicant also demonstrated responsible financial management and significant progress in resolving his debts. Based on credible testimony and evidence of rehabilitation, the security clearance was granted.

Why the Applicant Prevailed

The applicant's wife confirmed that no violence occurred during the alleged domestic incident, supporting the applicant's claims.
The applicant's guilty plea for loitering was set aside and the case was expunged, indicating no ongoing criminal conduct.
The applicant demonstrated responsible financial management and made significant progress in resolving his debts.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
AG ¶ 31(a)raisedA Single Serious Crime or Multiple Lesser Offenses
AG ¶ 31(c)raisedAllegations or Admissions of Criminal Conduct, Regardless of Whether the Person Was Formally Charged

Mitigating

AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
AG ¶ 20(d)appliedInitiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
AG ¶ 32(a)appliedSo Much Time Has Elapsed Since the Criminal Conduct Happened That It Is Unlikely to Recur
AG ¶ 32(c)appliedEvidence That the Person Did Not Commit the Offense

Key Rule Quoted

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

Procedural Posture

SOR issuedOct 19, 2011
Answer filedNov 16, 2011
Hearing heldFeb 21, 2012Applicant requested to keep the record open until March 9, 2012.
Decision dateMay 29, 2012

Cite For

Mitigation of Criminal Conduct Under Guideline J Due to Expungement and Lack of Recidivism
Financial Rehabilitation Efforts Under Guideline F
Whole-person Concept Application 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	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
2.a	The SOR alleges that on September 15, 1997, Applicant petitioned for Chapter 7 bankruptcy in United States Bankruptcy Court. On January 7, 1998, the discharge order was issued. In his RSOR, Applicant admitted this allegation. During his testimony, Applicant confirmed that this bankruptcy occurred.	For Applicant	Bankruptcy Filing	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Claimed Chapter 7 Bankruptcy
2.b	The SOR alleges that Applicant is indebted to Bank of America (B of A) on an overdue mortgage account in the amount of at least $48,373, with a balance of in the approximate amount of at least $401,000. In his RSOR, Applicant denied this allegation. Applicant testified that he had financial difficulties in 2009, and he engaged the services of a credit counseling service (CCS) to help him renegotiate his home loan. $48,373	For Applicant	Mortgage or Home Loan Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full Documented Payment Plan with Creditor

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

2.a

The SOR alleges that on September 15, 1997, Applicant petitioned for Chapter 7 bankruptcy in United States Bankruptcy Court. On January 7, 1998, the discharge order was issued. In his RSOR, Applicant admitted this allegation. During his testimony, Applicant confirmed that this bankruptcy occurred.

For Applicant

Bankruptcy Filing

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

Claimed

Chapter 7 Bankruptcy

2.b

The SOR alleges that Applicant is indebted to Bank of America (B of A) on an overdue mortgage account in the amount of at least $48,373, with a balance of in the approximate amount of at least $401,000. In his RSOR, Applicant denied this allegation. Applicant testified that he had financial difficulties in 2009, and he engaged the services of a credit counseling service (CCS) to help him renegotiate his home loan.

$48,373

For Applicant

Mortgage or Home Loan Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

Claimed

Debt Paid in Full

Documented

Payment Plan with Creditor

¶	Allegation	Finding	Offense	Criminal disposition	Response	Disqualifying (¶31)	Mitigating applied (¶32)	Mitigation
1.a	The SOR alleges that on April 12, 1986, Applicant was charged with Inflicting Corporal Injury on a Spouse/Cohabitant. The charge was rejected by the prosecutor. In his RSOR, Applicant denied this allegation.	For Applicant	Domestic Violence	Conduct No Charge	Denied	—	—	—
1.b	The SOR alleges that on August 27, 1993, Applicant was charged with (1) Hit and Run property damage and (2) Failure to report an accident. Applicant plead Nolo Contendere to Count (2) and was ordered to pay $136 for fines and fees or serve one day in jail. Count 1 was dismissed. In his RSOR, Applicant admitted this allegation.	For Applicant	Traffic Offense Pattern	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	Claimed Passage of Time
1.c	The SOR alleges that on March 12, 2010, Applicant was arrested and charged with Loitering with intent to Commit Prostitution. Applicant plead Nolo Contendere to the charge and was sentenced to 36 months summary probation, and to perform 5 days community labor, enroll in and complete an AIDS education class, and to pay fines and restitution in the amount of $170. In his RSOR, Applicant admitted this allegation.	For Applicant	Unspecified Criminal Conduct	Convicted	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability	(c) no reliable evidence the individual committed the offense	Documented Charges Dismissed or Expunged

Allegation

Finding

Offense

Criminal disposition

Response

Disqualifying (¶31)

Mitigating applied (¶32)

Mitigation

1.a

The SOR alleges that on April 12, 1986, Applicant was charged with Inflicting Corporal Injury on a Spouse/Cohabitant. The charge was rejected by the prosecutor. In his RSOR, Applicant denied this allegation.

For Applicant

Domestic Violence

Conduct No Charge

Denied

—

1.b

The SOR alleges that on August 27, 1993, Applicant was charged with (1) Hit and Run property damage and (2) Failure to report an accident. Applicant plead Nolo Contendere to Count (2) and was ordered to pay $136 for fines and fees or serve one day in jail. Count 1 was dismissed. In his RSOR, Applicant admitted this allegation.

For Applicant

Traffic Offense Pattern

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

Claimed

Passage of Time

1.c

The SOR alleges that on March 12, 2010, Applicant was arrested and charged with Loitering with intent to Commit Prostitution. Applicant plead Nolo Contendere to the charge and was sentenced to 36 months summary probation, and to perform 5 days community labor, enroll in and complete an AIDS education class, and to pay fines and restitution in the amount of $170. In his RSOR, Applicant admitted this allegation.

For Applicant

Unspecified Criminal Conduct

Convicted

Admitted

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

(c) no reliable evidence the individual committed the offense

Documented

Charges Dismissed or Expunged

Loading case…

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