ISCR Case 02-17522.h1

Case Headnote

ISCR Case No. 02-17522.h1

deniedAug 18, 2004· Hon. Michael H. Leonard· hearing

Summary

A 32-year-old defense contractor technician was denied a security clearance due to concerns under Guideline E (Personal Conduct), Guideline F (Financial Considerations), and Guideline J (Criminal Conduct). The applicant had a history of financial difficulties, including a dismissed Chapter 13 bankruptcy petition in December 2001 after failing to make required payments. This bankruptcy listed $126,130 in assets and $128,842 in liabilities.

Following the bankruptcy, the applicant faced civil judgments for unpaid homeowners' association fees (approximately $3,050, satisfied by April 2002) and an unpaid home security system account (approximately $2,940, satisfied by January 2004). Other financial issues included a resolved military-related credit card debt of about $132, a settled credit card debt of about $777, and a disputed, unpaid telephone company account of $949. Additionally, a court ordered child support payments of $644 monthly, which are now largely current.

The applicant also had a record of criminal conduct, including a May 1998 DWI/DUI charge, to which he pled guilty in November 1999. His probation was unsatisfactorily terminated in August 2000 after a violation, resulting in a guilty finding and two days of confinement. He was also cited for possessing an open alcohol container in October 1993 and charged with another DUI in early 2002, for which he was on probation at the time of the hearing. Furthermore, the applicant received a written reprimand for misusing company resources. The judge concluded that these concerns were not mitigated, leading to the denial of his security clearance.

Why the Applicant Was Denied

Applicant has a history of financial difficulties, including delinquent debts and a dismissed bankruptcy case.
Applicant has multiple criminal offenses, including alcohol-related charges and a probation violation.
Applicant misused company resources, leading to a reprimand from his employer.

Conditions Referenced

Disqualifying

DC 1appliedA History of Not Meeting Financial Obligations;
DC 2appliedA Single Serious Crime or Multiple Lesser Offenses.
DC 1appliedReliable, Unfavorable Information Provided by Associates, Employers, Coworkers, Neighbors, and Other Acquaintances;

Mitigating

MC 6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts.

Key Rule Quoted

“"It should be obvious that no one has a 'right' to a security clearance," and "the clearly consistent standard indicates that security clearance determinations should err, if they must, on the side of denials."”
— Department of Navy v. Egan, 484 U.S. 518, 531 (1988)

Procedural Posture

SOR issuedOct 23, 2003
Answer filedNov 5, 2003
Hearing heldApr 21, 2004
Decision dateAug 18, 2004

Cite For

Denial Based on Financial Irresponsibility Under Guideline F
Denial Due to a Pattern of Criminal Conduct Under Guideline J
Denial Based on Personal Conduct Issues Under Guideline E

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
3.a	Applicant misused and abused company resources for personal use, resulting in a written reprimand from his employer.	Against Applicant	Misuse of Employer Time or Resources	—	Admitted	—	—	—
3.b	specific text not stated in this decision	Against Applicant	Unspecified Personal Conduct	—	Unknown	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

3.a

Applicant misused and abused company resources for personal use, resulting in a written reprimand from his employer.

Against Applicant

Misuse of Employer Time or Resources

—

Admitted

—

3.b

specific text not stated in this decision

Against Applicant

Unspecified Personal Conduct

—

Unknown

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant is the father of an eight-year-old son. A civil complaint to determine paternity and establish support for the child was filed against Applicant in a state court. In February 1999, the court determined Applicant was the child's father and also ordered him to pay child support, including an amount for arrears. The court order also constituted a withholding order or garnishment of Applicant's wages for payment of child support. Applicant pays child support at the rate of $644 monthly and his payments are now essentially current as the total balance owed is $80.51. $80	Against Applicant	Child Support Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	In September 1999, Applicant filed a petition for bankruptcy under Chapter 13, the so-called wage earner repayment plan provision of the bankruptcy code. According to the summary of schedules, Applicant listed $126,130 in assets and $128,842 in liabilities. Unsecured debt consisted of $7,598 with the balance of $121,244 being secured claims (a lien for homeowners' association fees, a security agreement for a car, and a mortgage against a home). In March 2000, the bankruptcy court confirmed or approved the repayment plan requiring Applicant to pay $250 monthly for 52 months. Applicant was unable to make the required payments resulting in the bankruptcy court dismissing the Chapter 13 case in December 2001.	Against Applicant	Bankruptcy Filing	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	After the bankruptcy's dismissal, the homeowners' association obtained a civil judgment against Applicant for approximately $3,050. The basis for the judgment was unpaid fees. As of April 17, 2002, the judgment was satisfied. $3,050	Against Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	Applicant had a civil judgment taken against him by a security company due to an unpaid home security system account. The judgment was for about $2,940. As of January 7, 2004, the judgment was satisfied. $2,940	Against Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	Applicant had a charged off delinquent military-related credit card account in the amount of about $132. As of November 3, 2003, the account has been paid. $132	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	Applicant had a charged off credit card account in the amount of about $777. The delinquency has been resolved by settlement. $777	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	Applicant is alleged to have a charged off account with a telephone company for $949. He agrees the account is his but disputes the amount, as he contends a security deposit refund error of about $800 was incorrectly charged to the account. Because he is disputing the debt, it remains unpaid. $949	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant is the father of an eight-year-old son. A civil complaint to determine paternity and establish support for the child was filed against Applicant in a state court. In February 1999, the court determined Applicant was the child's father and also ordered him to pay child support, including an amount for arrears. The court order also constituted a withholding order or garnishment of Applicant's wages for payment of child support. Applicant pays child support at the rate of $644 monthly and his payments are now essentially current as the total balance owed is $80.51.

$80

Against Applicant

Child Support Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

In September 1999, Applicant filed a petition for bankruptcy under Chapter 13, the so-called wage earner repayment plan provision of the bankruptcy code. According to the summary of schedules, Applicant listed $126,130 in assets and $128,842 in liabilities. Unsecured debt consisted of $7,598 with the balance of $121,244 being secured claims (a lien for homeowners' association fees, a security agreement for a car, and a mortgage against a home). In March 2000, the bankruptcy court confirmed or approved the repayment plan requiring Applicant to pay $250 monthly for 52 months. Applicant was unable to make the required payments resulting in the bankruptcy court dismissing the Chapter 13 case in December 2001.

Against Applicant

Bankruptcy Filing

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

After the bankruptcy's dismissal, the homeowners' association obtained a civil judgment against Applicant for approximately $3,050. The basis for the judgment was unpaid fees. As of April 17, 2002, the judgment was satisfied.

$3,050

Against Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

Applicant had a civil judgment taken against him by a security company due to an unpaid home security system account. The judgment was for about $2,940. As of January 7, 2004, the judgment was satisfied.

$2,940

Against Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

Applicant had a charged off delinquent military-related credit card account in the amount of about $132. As of November 3, 2003, the account has been paid.

$132

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

Applicant had a charged off credit card account in the amount of about $777. The delinquency has been resolved by settlement.

$777

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

Applicant is alleged to have a charged off account with a telephone company for $949. He agrees the account is his but disputes the amount, as he contends a security deposit refund error of about $800 was incorrectly charged to the account. Because he is disputing the debt, it remains unpaid.

$949

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

¶	Allegation	Finding	Offense	Criminal disposition	Response	Disqualifying (¶31)	Mitigating applied (¶32)	Mitigation
2.a	In May 1998, Applicant was charged with driving while intoxicated/driving under the influence (DWI/DUI). Papers were filed in court in October 1998. Applicant failed to appear for trial in January 1999, a bench warrant was issued, and Applicant subsequently posted a $5,000 bond. In November 1999, Applicant pled guilty to DWI and sentencing was deferred. Applicant appeared in court in January 2000 for sentencing on the DWI. The court granted him probation before judgment, struck the guilty finding, and placed Applicant on supervised probation for two years with certain conditions. Applicant was also fined $350.00 and ordered to pay court costs of $135.00. The DUI offense was nolle prossed.	Against Applicant	DUI or DWI Criminal	Conduct No Charge	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability (b) evidence of criminal conduct, regardless of charge or conviction	—	—
2.b	In August 2000, the state court found Applicant had violated his probation due to missing a probation meeting. The court struck the probation before judgment, entered a guilty finding on the DWI, and ordered Applicant to serve two days confinement. Applicant's probation was terminated unsatisfactorily.	Against Applicant	Probation or Court Order Violation	Conduct No Charge	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability (b) evidence of criminal conduct, regardless of charge or conviction	—	—
2.c	On or about October 9, 1993, Applicant was cited for or charged with the offense of possessing an open alcohol container. He was fined $75.00.	Against Applicant	Unspecified Criminal Conduct	Conduct No Charge	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability	—	—
2.d	In early 2002, Applicant was charged with DUI in his state of residence. On or about May 15, 2002, he received probation before judgment. He was placed on probation for two years and fined approximately $300.00. At the time of the hearing and when the record closed, Applicant was still serving probation.	Against Applicant	DUI or DWI Criminal	Conduct No Charge	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability (b) evidence of criminal conduct, regardless of charge or conviction	—	—
2.e	specific text not stated in this decision	Unknown	Unspecified Criminal Conduct	—	Unknown	—	—	—

Allegation

Finding

Offense

Criminal disposition

Response

Disqualifying (¶31)

Mitigating applied (¶32)

Mitigation

2.a

In May 1998, Applicant was charged with driving while intoxicated/driving under the influence (DWI/DUI). Papers were filed in court in October 1998. Applicant failed to appear for trial in January 1999, a bench warrant was issued, and Applicant subsequently posted a $5,000 bond. In November 1999, Applicant pled guilty to DWI and sentencing was deferred. Applicant appeared in court in January 2000 for sentencing on the DWI. The court granted him probation before judgment, struck the guilty finding, and placed Applicant on supervised probation for two years with certain conditions. Applicant was also fined $350.00 and ordered to pay court costs of $135.00. The DUI offense was nolle prossed.

Against Applicant

DUI or DWI Criminal

Conduct No Charge

Admitted

(a) pattern of minor offenses casting doubt on judgment/reliability

(b) evidence of criminal conduct, regardless of charge or conviction

—

2.b

In August 2000, the state court found Applicant had violated his probation due to missing a probation meeting. The court struck the probation before judgment, entered a guilty finding on the DWI, and ordered Applicant to serve two days confinement. Applicant's probation was terminated unsatisfactorily.

Against Applicant

Probation or Court Order Violation

Conduct No Charge

Admitted

(a) pattern of minor offenses casting doubt on judgment/reliability

(b) evidence of criminal conduct, regardless of charge or conviction

—

2.c

On or about October 9, 1993, Applicant was cited for or charged with the offense of possessing an open alcohol container. He was fined $75.00.

Against Applicant

Unspecified Criminal Conduct

Conduct No Charge

Admitted

(a) pattern of minor offenses casting doubt on judgment/reliability

—

2.d

In early 2002, Applicant was charged with DUI in his state of residence. On or about May 15, 2002, he received probation before judgment. He was placed on probation for two years and fined approximately $300.00. At the time of the hearing and when the record closed, Applicant was still serving probation.

Against Applicant

DUI or DWI Criminal

Conduct No Charge

Admitted

(a) pattern of minor offenses casting doubt on judgment/reliability

(b) evidence of criminal conduct, regardless of charge or conviction

—

2.e

specific text not stated in this decision

Unknown

Unspecified Criminal Conduct

—

Unknown

—

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Case Profile

Summary

Why the Applicant Was Denied

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

SYNOPSIS

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES