Summary
A 49-year-old consultant was denied a security clearance under Guideline F (Financial Considerations) and Guideline J (Criminal Conduct). The denial stemmed from significant criminal conduct and ongoing financial issues. Specifically, the applicant embezzled $241,000 from a former employer to fund a chronic shopping problem, leading to a federal conviction for wire fraud and a sentence of a year and a day in prison. Additionally, she had a prior misdemeanor conviction for shoplifting a minor amount.
The Statement of Reasons highlighted a history of not meeting financial obligations, deceptive or illegal financial practices including embezzlement, and an inability or unwillingness to satisfy debts. These actions raised disqualifying conditions related to both financial irresponsibility and criminal conduct.
While the applicant claimed rehabilitation and therapy, the judge found these efforts insufficient to mitigate the serious concerns about her judgment and trustworthiness. Her financial problems were directly linked to her criminal behavior, demonstrating a pattern of irresponsibility, and her history of compulsive behavior and ongoing financial issues remained unresolved. Consequently, the security clearance was denied.
Why the Applicant Was Denied
- The applicant engaged in criminal conduct, including embezzlement and wire fraud, which raised serious concerns about her judgment and trustworthiness.
- The applicant's financial problems were linked to her criminal behavior, demonstrating a pattern of irresponsibility.
- The applicant's claims of rehabilitation were insufficient to mitigate the disqualifying conditions, as her history of compulsive behavior and ongoing financial issues remained unresolved.
Conditions Referenced
- E2.A10.1.2.1raisedAllegations or Admissions of Criminal Conduct
- E2.A10.1.2.2raisedA Single Serious Crime or Multiple Lesser Offenses
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.2raisedDeceptive or Illegal Financial Practices Such as Embezzlement
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A6.1.2.5raisedFinancial Problems That Are Linked to Other Issues of Security Concern
- E2.A10.1.3.6rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsWhile the applicant was repaying debts, the overall financial situation remained precarious and linked to her criminal conduct.
Key Rule Quoted
“"Compulsive behavior that affects one's financial condition, work performance or relationships with others often prompts denial of security clearance because of the intractable nature of the underlying problem."”
Procedural Posture
- SOR issuedFeb 13, 2003
- Answer filedMar 7, 2003Applicant requested a hearing.
- Hearing heldMay 9, 2003Hearing reconvened on July 3, 2003.
- Decision dateSep 3, 2003
Cite For
- Denial of Clearance Due to Embezzlement and Wire Fraud Under Guideline J
- Financial Irresponsibility Linked to Criminal Conduct Under Guideline F
- Insufficient Evidence of Rehabilitation in the Context of Ongoing Mental Health Issues and Compulsive Behavior.