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ISCR Case 14-00427.h1 — CASE

ISCR Case 14-00427.h1denied

Case Headnote

ISCR Case No. 14-00427.h1

deniedMar 11, 2015· Hon. Richard A. Cefola· hearing

Summary

A 40-year-old defense contractor employee was denied a security clearance due to concerns under Guidelines E (Personal Conduct), F (Financial Considerations), and J (Criminal Conduct). The denial stemmed from significant financial debts, falsification of his e-QIP, and multiple criminal convictions.

The applicant admitted to owing over $29,000 to eight creditors, with some debts past due. He also admitted to knowingly falsifying his August 2013 e-QIP by denying any financial delinquencies within the preceding seven years. Additionally, the applicant had a criminal record including an arrest for selling marijuana in May 1989, and two convictions for Driving Under the Influence of Alcohol or Drugs in October 2006 and November 2011. He was also on probation for criminal offenses.

The judge determined that the applicant failed to mitigate the security concerns related to his financial irresponsibility, dishonesty, and ongoing criminal conduct, leading to the denial of his security clearance.

Why the Applicant Was Denied

Applicant admitted to significant financial debts exceeding $29,000, which were past due.
Applicant knowingly falsified his e-QIP by denying any financial delinquencies.
Applicant has multiple criminal convictions, including two DUIs, and is currently on probation.

Conditions Referenced

Disqualifying

F.19.araisedInability or Unwillingness to Satisfy Debts
F.19.craisedA History of Not Meeting Financial Obligations
E.16.araisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
J.31.araisedA Single Serious Crime or Multiple Lesser Offenses
J.31.draisedIndividual Is Currently on Parole or Probation

Key Rule Quoted

“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”

Procedural Posture

SOR issuedApr 8, 2014
Answer filedJul 15, 2014
Hearing held—Applicant represented himself (pro se) and did not respond to the FORM.
Decision dateMar 11, 2015

Cite For

Failure to Mitigate Financial Obligations Under Guideline F
Falsification of Security Clearance Application Under Guideline E
Impact of Criminal Conduct on Security Clearance Eligibility Under Guideline J

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

Standardized Decision Profile

SEAD-4 Guideline E (Personal Conduct) · descriptive summary of a decided case

Posture: Decision on RecordDecided: denied

The judge found against the applicant on the personal conduct allegation, determining that he knowingly falsified his e-QIP by denying any financial delinquencies. This conduct raised significant concerns regarding his reliability and trustworthiness, leading to the denial of his security clearance.

¶	Allegation	Finding	Conduct	Concealed Issue	Response	Disqualifying (¶16)	Mitigating applied (¶17)	Mitigation
2.a	Applicant admits that he falsified his August 2013 e-QIP when he answered "No" to "Section 26: Financial Record: Delinquency Involving Routine Accounts," thereby denying any delinquencies "in the past seven (7) years. I find this to be a knowing and wilful falsification.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Admitted	—	—	—

Descriptive standardized rendering of a decided public case (Guideline E). The verbatim source decision is shown in full below.

Standardized Decision Profile

SEAD-4 Guideline F · descriptive summary of a decided case

Posture: Decision on RecordDecided: denied

The judge found significant financial concerns under Guideline F, noting that the applicant admitted to being indebted to eight creditors for over $29,000, with no evidence of efforts to address these debts. Consequently, the judge ruled against the applicant on all financial allegations, concluding that the applicant failed to mitigate the security concerns related to his financial situation.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant admits that he is indebted to eight creditors in an amount totaling in excess of $29,000. $29,000	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b–1.f	5 sub-charges — specific text not stated in this decision (against the applicant).	Against Applicant			—	—	—
1.g	Applicant avers that he believes he “paid” this past-due debt to Creditor G for $223, “2 months ago,” in May of 2014. $223	Against Applicant	Unspecified Financial	Denied with Explanation	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h–1.i	2 sub-charges — specific text not stated in this decision (against the applicant).	Against Applicant			—	—	—

Descriptive standardized rendering of a decided public case (Guideline F). The verbatim source decision is shown in full below.

Standardized Decision Profile

SEAD-4 Guideline J (Criminal Conduct) · descriptive summary of a decided case

Posture: Decision on RecordDecided: denied

The judge found against the applicant on all allegations under Guideline J, citing two DUI convictions and a prior drug-related charge. The applicant's criminal conduct raised significant concerns regarding his judgment and reliability, leading to the denial of his security clearance.

¶	Allegation	Finding	Offense	Criminal disposition	Response	Disqualifying (¶31)	Mitigating applied (¶32)	Mitigation
3.a	In May of 1989, Applicant was arrested for and charged with one count of Selling Marijuana.	Against Applicant	Drug Related Criminal Charge	Conduct No Charge	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability	—	—
3.b	In October of 2006, Applicant was arrested for, and subsequently pled guilty to, one count of Driving Under the Influence of Alcohol or Drugs.	Against Applicant	DUI or DWI Criminal	Convicted	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability (d) violation of parole/probation or failure to complete a court program	—	—
3.c	In November of 2011, Applicant was again arrested for, and subsequently pled guilty to, one count of Driving Under the Influence of Alcohol or Drugs.	Against Applicant	DUI or DWI Criminal	Convicted	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability (d) violation of parole/probation or failure to complete a court program	—	—

Descriptive standardized rendering of a decided public case (Guideline J). The verbatim source decision is shown in full below.

Full decision

The complete, official text — footnotes and signatures included — is in the original PDF.

Decision text, by section

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

DEPARTMENT OF DEFENSE DEFENSE OFFICE OF HEARINGS AND APPEALS

In the matter of: ) ) ) ISCR Case No. 14-00427 ) ) Applicant for Security Clearance )

For Government: Braden M. Murphy, Esquire, Department Counsel For Applicant: Pro se

March 11, 2015

______________

STATEMENT OF CASE

______________

CEFOLA, Richard A., Administrative Judge:

Applicant submitted his Electronic Questionnaires for Investigations Processing (e-QIP) on August 27th, 2013. On April 8, 2014, the Department of Defense (DOD) issued a Statement of Reasons (SOR) detailing the security concerns under Guidelines F, E and J for Applicant. The action was taken under Executive Order 10865, Safeguarding Classified Information within Industry (February 20, 1960), as amended; Department of Defense Directive 5220.6, Defense Industrial Personnel Security Clearance Review Program (January 2, 1992), as amended (Directive); and the adjudicative guidelines (AG), effective within the Department of Defense after September 1, 2006.

Applicant answered the SOR in writing on July 15, 2014, and requested an Administrative Determination by an administrative judge. Department Counsel issued a File of Relevant Material (FORM) on September 11, 2014. Applicant did not respond to the FORM. The case was assigned to me on February 10, 2015. Based upon a review of the pleadings and exhibits, eligibility for access to classified information is denied.

FINDINGS OF FACT

In his Answer to the SOR, dated July 15, 2014, Applicant admitted the factual allegations in all the Subparagraphs of the SOR, with explanations.

Applicant is a 40 year old employee of a defense contractor. (Item 4 at pages 5 and 12.)

Guideline F - Financial Considerations

1.a.~1.f, 1.h. and 1.i. Applicant admits hat he is indebted to eight creditors in an amount totaling in excess of $29,000. As he has offered nothing further in this regard, I find that these are past due.

1.g. Applicant avers that he believes he “paid” this past-due debt to Creditor G for $223, “2 months ago,” in May of 2014. (Answer at page 2.) However, as he has offered nothing further in this regard, I also find that this debt is past due.

Guideline E - Personal Conduct

2.a. Applicant admits that he falsified his August 2013 e-QIP when he answered “No” to “Section 26: Financial Record: Delinquency Involving Routine Accounts,” thereby denying any delinquencies “in the past seven (7) years. I find this to be a knowing and wilful falsification.

Guideline J - Criminal Conduct

3.a. In May of 1989, Applicant was arrested for and charged with one count of Selling Marijuana. (Item 6 at page 2.)

3.b. In October of 2006, Applicant was arrested for, and subsequently pled guilty to, one count of Driving Under the Influence of Alcohol or Drugs. (Item 6 at page 2, and Item 7 at page 2.) As a result, he was fined $4,500 and placed on probation for five years. (Id.)

3.c. In November of 2011, Applicant was again arrested for, and subsequently pled guilty to, one count of Driving Under the Influence of Alcohol or Drugs. (Item 6 at page 2, and Item 7 at page 2.) As a result of this second conviction, he was fined $5,000, sentenced to 15 days in jail, and placed on probation for five years. (Id.) Applicant is still on probation as a result of this conviction.

POLICIES

When evaluating an applicant’s suitability for a security clearance, the administrative judge must consider the adjudicative guidelines (AG). In addition to brief introductory explanations for each guideline, the adjudicative guidelines list potentially disqualifying conditions and mitigating conditions, which are useful in evaluating an applicant’s eligibility for access to classified information. These guidelines are not inflexible rules of law. Instead, recognizing the complexities of human behavior, these guidelines are applied in conjunction with the factors listed in the adjudicative process. The administrative judge’s over-arching adjudicative goal is a fair, impartial and commonsense decision. According to AG Paragraph 2(c), the entire process is a conscientious scrutiny of a number of variables known as the “whole-person concept.” The administrative judge must consider all available, reliable information about the person, past and present, favorable and unfavorable, in making a decision.

The protection of the national security is the paramount consideration. Paragraph 2(b) requires that “[a]ny doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.” In reaching this decision, I have drawn only those conclusions that are reasonable, logical and based on the evidence contained in the record. Likewise, I have avoided drawing inferences grounded on mere speculation or conjecture.

Under Directive Paragraph E3.1.14, the Government must present evidence to establish controverted facts alleged in the SOR. Under Directive Paragraph E3.1.15, the applicant is responsible for presenting “witnesses and other evidence to rebut, explain, extenuate, or mitigate facts admitted by applicant or proven by Department Counsel. . . .” The applicant has the ultimate burden of persuasion as to obtaining a favorable security decision.

A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence. This relationship transcends normal duty hours and endures throughout off-duty hours. The Government reposes a high degree of trust and confidence in individuals to whom it grants access to classified information. Decisions include, by necessity, consideration of the possible risk the Applicant may deliberately or inadvertently fail to protect or safeguard classified information. Such decisions entail a certain degree of legally permissible extrapolation as to potential, rather than actual, risk of compromise of classified information.

Section 7 of Executive Order 10865 provides that decisions shall be “in terms of the national interest and shall in no sense be a determination as to the loyalty of the applicant concerned.” See also EO 12968, Section 3.1(b) (listing multiple prerequisites for access to classified or sensitive information).

ANALYSIS

Guideline F - Financial Considerations

The security concern relating to the guideline for Financial Considerations is set out in Paragraph 18:

Failure or inability to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness and ability to protect classified information. An individual who is financially overextended is at risk of having to engage in illegal acts to generate funds.

The guideline notes several conditions that could raise security concerns. Under Subparagraph 19(a), an “inability or unwillingness to satisfy debts@ is potentially disqualifying. Similarly under Subparagraph 19(c), “a history of not meeting financial obligations@ may raise security concerns. Applicant has significant past due debts that he has yet to address. The evidence is sufficient to raise these potentially disqualifying conditions, requiring a closer examination.

The guideline also includes examples of conditions that could mitigate security concerns arising from financial difficulties. Subparagraph 20(d) applies where the evidence shows “the individual initiated a good-faith effort to repay overdue creditors or otherwise resolve debts.@ Applicant has failed to submit any documentation showing that he has made a good-faith effort to address his significant past-due debts. I can find no other countervailing Mitigating Condition that is applicable here. Financial Considerations are found against the Applicant.

Guideline E - Personal Conduct

The security concern relating to the guideline for Personal Conduct is set out in Paragraph 15: “Conduct involving questionable judgment, lack of candor, dishonesty, or unwillingness to comply with rules and regulations can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”

The following Disqualifying Condition under Subparagraph 16(a) applies. It provides that the “deliberate omission, concealment, or falsification of relevant facts from any personnel security questionnaire . . . or similar form used to conduct investigations . . .” may be disqualifying. I can find no countervailing Mitigating Condition here, as the Applicant could have easily answered his e-QIP honestly, which he certified as “true, complete, and correct.” Personal Conduct is found against the Applicant.

Guideline J - Criminal Conduct

Paragraph 30 of the adjudicative guidelines sets out the security concern relating to Criminal Conduct:

Criminal activity creates doubt about a person's judgment, reliability, and trustworthiness. By its very nature, it calls into question a person's ability or willingness to comply with laws, rules and regulations.

The adjudicative guidelines set out certain conditions that could raise security concerns. Paragraph 31(a) provides that “a single serious crime or multiple lesser offenses,” may raise security concerns. He has two convictions within the last ten years. Paragraph 31(d) provides that where an “individual is currently on parole or probation,@ may also raise security concerns. Applicant is still on probation as a result of his most recent conviction. I find no mitigating condition that is applicable here. Criminal Conduct is found against the Applicant.

WHOLE PERSON CONCEPT

Under the whole-person concept, the Administrative Judge must evaluate an Applicant’s eligibility for a security clearance by considering the totality of the Applicant’s conduct and all the circumstances. Under AG Paragraph 2(c), the ultimate determination of whether to grant eligibility for a security clearance must be an overall commonsense judgment based upon careful consideration of the guidelines and the whole-person concept.

The Administrative Judge should also consider the nine adjudicative process factors listed at AG Paragraph 2(a):

(1) the nature, extent, and seriousness of the conduct; (2) the circumstances surrounding the conduct, to include knowledgeable participation; (3) the frequency and recency of the conduct; (4) the individual’s age and maturity at the time of the conduct; (5) the extent to which participation is voluntary; (6) the presence or absence of rehabilitation and other permanent behavioral changes; (7) the motivation for the conduct; (8) the potential for pressure, coercion, exploitation, or duress; and (9) the likelihood of continuation or recurrence.

I considered all of the evidence, including the potentially disqualifying and mitigating conditions surrounding this case. The record evidence leaves me with questions or doubts as to Applicant’s eligibility and suitability for a security clearance. For these reasons, I conclude Applicant has not mitigated the security concerns arising from his Financial Considerations, Personal Conduct and Criminal Conduct.

FORMAL FINDINGS

Formal findings for or against Applicant on the allegations set forth in the SOR, as required by section E3.1.25 of Enclosure 3 of the Directive, are:

Paragraph 1, Guideline F: AGAINST APPLICANT

Subparagraphs 1.a.~1.i. Against Applicant

Paragraph 2, Guideline E: AGAINST APPLICANT

Subparagraphs 2.a: Against Applicant

Paragraph 3, Guideline J: AGAINST APPLICANT

Subparagraphs 3.a.~3.c. Against Applicant

CONCLUSION

In light of all of the circumstances presented by the record in this case, it is not clearly consistent with the national interest to grant Applicant eligibility for a security clearance. Eligibility for access to classified information is denied.

Richard A. Cefola Administrative Judge