Summary
A 47-year-old computer software engineer was denied a security clearance under Guideline E (Personal Conduct) and Guideline J (Criminal Conduct) due to a felony conviction for scheme to defraud. The conviction, from 1996, stemmed from his conduct in the mid-1980s as vice president of an investment company. This company engaged in illegal sales practices, including failing to disclose commissions and providing clients with unreasonably high projections of investment worth.
Despite receiving a conditional discharge and a certificate of relief from disabilities, the judge found insufficient evidence of rehabilitation. The applicant had not made any payments toward the court-ordered restitution of over $2 million. Furthermore, the inclusion of this restitution obligation in his bankruptcy filing was seen as a lack of accountability for his criminal conduct.
The denial was based on significant concerns regarding the applicant's judgment and trustworthiness, as well as his failure to demonstrate clear rehabilitation from the felony conviction.
Why the Applicant Was Denied
- The applicant's felony conviction for scheme to defraud raised significant concerns about his judgment and trustworthiness.
- The applicant failed to demonstrate clear rehabilitation, as he had not made any payments toward the court-ordered restitution of over $2 million.
- The applicant's inclusion of the restitution obligation in his bankruptcy filing indicated a lack of accountability for his criminal conduct.
Conditions Referenced
- E2.A10.1.2.1raisedAllegations or Admission of Criminal Conduct
- E2.A10.1.2.2raisedA Single Serious Crime or Multiple Lesser Offenses
- E2.A5.1.1raisedConduct Involving Questionable Judgment, Untrustworthiness, Unreliability, Lack of Candor, Dishonesty, or Unwillingness to Comply with Rules and Regulations
Key Rule Quoted
“"[N]o one has a 'right' to a security clearance."”
Procedural Posture
- SOR issuedMar 22, 2004
- Answer filedMay 18, 2004
- Hearing heldOct 8, 2004
- Decision dateApr 27, 2005
Cite For
- Denial of Clearance Due to Felony Conviction Under Guideline J
- Insufficient Evidence of Rehabilitation Despite Post-conviction Relief Under Guideline E
- Failure to Comply with Court-ordered Restitution as a Significant Factor in Security Clearance Decisions