ISCR Case 11-12335.h1

Case Headnote

ISCR Case No. 11-12335.h1

grantedMay 23, 2014· Hon. Wilford H. Ross· hearing

Summary

A 43-year-old single male defense contractor employee was granted a security clearance despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons detailed that the applicant admitted to soliciting prostitutes between approximately 2002 and 2005, leading to at least two police detentions for related offenses. He stated this conduct ceased in 2005.

Additionally, the applicant admitted to not timely filing federal income tax returns from 2000 through 2011 and not timely paying federal taxes from 2000 through 2006. This resulted in government tax liens totaling approximately $36,636.

The judge found that the applicant had taken significant steps to resolve these issues. He filed all past-due federal tax returns and is now current on his tax obligations. He also initiated a good-faith effort to repay overdue creditors through an accepted Offer in Compromise. The applicant demonstrated stable financial circumstances and a credible intent to maintain compliance, leading to the clearance being granted.

Why the Applicant Prevailed

The applicant filed all past-due Federal tax returns and is current on his tax obligations.
He initiated a good-faith effort to repay overdue creditors through an accepted Offer in Compromise.
The applicant demonstrated stable financial circumstances and a credible intent to maintain compliance with tax obligations.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
AG ¶ 19(g)raisedFailure to File Federal, State, or Local Income Tax Returns as Required
AG ¶ 16(e)raisedPersonal Conduct That Creates a Vulnerability to Exploitation
AG ¶ 16(g)raisedAssociation with Persons Involved in Criminal Activity

Mitigating

AG ¶ 20(a)appliedBehavior Happened so Long Ago or Was Infrequent
AG ¶ 20(c)appliedClear Indications That the Problem Is Being Resolved or Is Under Control
AG ¶ 20(d)appliedInitiated a Good-faith Effort to Repay Overdue Creditors
AG ¶ 17(c)appliedThe Offense Is so Minor or so Much Time Has Passed
AG ¶ 17(e)appliedPositive Steps Taken to Reduce Vulnerability to Exploitation
AG ¶ 17(g)appliedAssociation with Persons Involved in Criminal Activity Has Ceased

Key Rule Quoted

“A security clearance adjudication is not a proceeding aimed at collecting an applicant’s personal debts. Rather, it is a proceeding aimed at evaluating an applicant’s judgment, reliability, and trustworthiness.”
— DOHA Appeal Board

Procedural Posture

SOR issuedDec 19, 2013
Answer filedFeb 14, 2014
Hearing heldApr 22, 2014
Decision dateMay 23, 2014

Cite For

Mitigation of Financial Issues Under Guideline F Due to Proactive Measures Taken
Resolution of Personal Conduct Issues Under Guideline E After a Significant Period of Abstinence
Application of the Whole-person Concept in Security Clearance Determinations

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 admits that he used to frequent prostitutes between approximately 2002 and 2005. This conduct resulted in his being detained by the police at least twice for offenses relating to soliciting a sex act. He states that the last time he solicited a prostitute for a sex act was in 2005, and he no longer engages in such conduct.	For Applicant	Questionable Judgment General	—	Admitted	—	(c) offense is minor, long ago, infrequent, or unique circumstances (e) positive steps to reduce vulnerability to exploitation (g) association was unwitting, has ceased, or casts no doubt	Claimed Other
2.b–2.c	2 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)	For Applicant		—		—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant admits that he used to frequent prostitutes between approximately 2002 and 2005. This conduct resulted in his being detained by the police at least twice for offenses relating to soliciting a sex act. He states that the last time he solicited a prostitute for a sex act was in 2005, and he no longer engages in such conduct.

For Applicant

Questionable Judgment General

—

Admitted

—

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

(e) positive steps to reduce vulnerability to exploitation

(g) association was unwitting, has ceased, or casts no doubt

Claimed

Other

2.b–2.c

2 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)

For Applicant

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant freely admits that he did not file his Federal income tax returns in a timely manner from 2000 through 2011. He also freely admits that he did not pay his Federal taxes in a timely manner for the tax years 2000 through 2006. As a result of that failure the Government filed tax liens against Applicant in the approximate amount of $36,636. $36,636	For Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations (g) unexplained affluence	(a) behavior happened long ago / infrequent / unlikely to recur (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full Claimed Other

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant freely admits that he did not file his Federal income tax returns in a timely manner from 2000 through 2011. He also freely admits that he did not pay his Federal taxes in a timely manner for the tax years 2000 through 2006. As a result of that failure the Government filed tax liens against Applicant in the approximate amount of $36,636.

$36,636

For Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(g) unexplained affluence

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

(c) received/receiving counseling; problem being resolved

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

Documented

Debt Paid in Full

Claimed

Other

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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