Summary
A 46-year-old project manager for a defense contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct), Guideline F (Financial Considerations), and Guideline J (Criminal Conduct). The applicant faced allegations of falsifying material information on a background questionnaire, engaging in embezzlement, and other criminal conduct.
Specifically, the applicant had several credit card debts, ranging from $100 to $4,7612, most of which were paid in full or current. A county tax debt of $1,734 was also paid in full. However, a significant debt of $49,600 owed to an owner had only $6,000 repaid. The applicant was found to have systematically embezzled approximately $49,600 from his employer over fourteen months, and his gambling addiction contributed to financial difficulties and illegal conduct. Furthermore, he made false statements on his security questionnaire (SF86) regarding his termination.
Despite demonstrating significant rehabilitation and repayment efforts, the judge determined that the applicant's past conduct, including embezzlement, gambling addiction, and misleading statements on the SF86, raised serious doubts about his reliability and trustworthiness for a security-sensitive position. Consequently, the security clearance was denied.
Why the Applicant Was Denied
- The applicant engaged in systematic embezzlement of approximately $49,600 from his employer over fourteen months.
- The applicant's gambling addiction led to financial difficulties and illegal conduct, undermining trustworthiness.
- The applicant's false statements on the SF86 regarding his termination were deemed misleading, raising concerns about honesty.
Conditions Referenced
- F1raisedFinancial Problems
- F2raisedDeceptive Financial Practices
- F5raisedFinancial Problems Linked to Gambling
- E2raisedDeliberate Omission or Falsification
- J1raisedAllegations of Criminal Conduct
- J2raisedMultiple Offenses
- F1rejectedBehavior Was Not Recent
- F4appliedReceived Counseling
- F6appliedGood-faith Effort to Repay Debts
- E1rejectedInformation Was Unsubstantiated
- E5appliedPositive Steps to Reduce Vulnerability
- J1rejectedCriminal Behavior Was Not Recent
- J6appliedClear Evidence of Successful Rehabilitation
Key Rule Quoted
“Any doubt as to whether access to classified information is clearly consistent with national security will be resolved in favor of the national security.”
Procedural Posture
- SOR issuedJan 7, 2002
- Answer filedFeb 1, 2002Notarized response to SOR.
- Hearing heldApr 30, 2002Applicant's request for continuance was denied.
- Decision dateJun 20, 2002
Cite For
- Denial Based on Embezzlement and Gambling Addiction Under Guideline F
- False Statements on Security Clearance Application Under Guideline E
- Criminal Conduct Impacting Security Clearance Eligibility Under Guideline J