ISCR Case 03-02221.h1

Case Headnote

ISCR Case No. 03-02221.h1

deniedSep 12, 2005· Hon. Matthew E. Malone· hearing

Summary

A 55-year-old pilot was denied a security clearance due to significant financial issues and a history of criminal conduct, falling under Guideline F (Financial Considerations) and Guideline J (Criminal Conduct). The applicant had accrued nearly $12,000 in unpaid debts over more than ten years, including a $790 civil judgment from 2001, approximately $7,700 in credit card debt, about $3,700 for overdue dental and medical bills, $685 for a delinquent telephone account, and $366 for a delinquent check cashing service. His personal financial statement also indicated a negative monthly cash flow.

Regarding criminal conduct, the applicant served 17 months in jail for drug trafficking and subsequent probation violations. This included an arrest for possession and transportation of approximately 309 kilograms of marijuana. He was also sentenced in July 1979 to three and three-quarter years in jail for theft and forgery convictions, as well as for violating probation from his drug trafficking conviction. Earlier incidents included charges for stealing his uncle's car and checks in March 1989, and a grand theft charge in 1967 for stealing wheel covers. A trespassing charge in May 1993 was dismissed.

The denial was based on the applicant's conviction for drug trafficking, which is a disqualifying factor, and his significant, unmitigated financial problems. The judge concluded that these issues raised unacceptable concerns about his judgment and reliability, posing a risk to national security.

Why the Applicant Was Denied

The applicant was convicted of drug trafficking and served 17 months in jail, which is a disqualifying factor under 10 U.S.C. § 986.
The applicant has significant financial problems, including nearly $12,000 in unpaid debts, which he failed to mitigate.
The applicant's ongoing financial difficulties and history of criminal conduct raise concerns about his judgment and reliability.

Conditions Referenced

Disqualifying

DC 1appliedCriminal Conduct
DC 2appliedCriminal Conduct
DC 1appliedFinancial Considerations
DC 3appliedFinancial Considerations

Mitigating

MC 1appliedCriminal Conduct
MC 6appliedCriminal Conduct
MC 3rejectedFinancial ConsiderationsThe applicant's financial difficulties have persisted for over ten years without resolution.

Key Rule Quoted

“A security clearance decision is intended to resolve whether it is clearly consistent with the national interest for an Applicant to either receive or continue to have access to classified information.”
— Department of the Navy v. Egan, 484 U.S. 518 (1988)

Procedural Posture

SOR issuedNov 24, 2003
Answer filed—Applicant admitted most allegations.
Hearing heldOct 6, 2004Parties appeared as scheduled.
Decision dateSep 12, 2005

Cite For

Disqualifying Conditions Under Guideline J for Criminal Conduct
Disqualifying Conditions Under Guideline F for Financial Considerations
Application of 10 U.S.C. § 986 Regarding Criminal Convictions

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

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
2.a	$790 for a civil judgment entered against him in 2001 $790	Against Applicant	Judgment Against Applicant	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
2.b	about $7,700 in unpaid credit card debt for accounts he used in trying to salvage his businesses $7,700	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
2.c	about $3,700 for four overdue dental and medical bills $3,700	Against Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
2.d	$685 for a delinquent telephone account $685	Against Applicant	Utility or Phone Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
2.e	about $3,700 for four overdue dental and medical bills $3,700	Against Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
2.f	$685 for a delinquent telephone account $685	Against Applicant	Utility or Phone Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
2.g	about $3,700 for four overdue dental and medical bills $3,700	Against Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
2.h	$366 for a delinquent check cashing service and paycheck advance loan account $366	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
2.i–2.k	3 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)	Against Applicant			—	—	—
2.l	Applicant's personal financial statement showed he had a negative monthly cash flow	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

2.a

$790 for a civil judgment entered against him in 2001

$790

Against Applicant

Judgment Against Applicant

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

2.b

about $7,700 in unpaid credit card debt for accounts he used in trying to salvage his businesses

$7,700

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

2.c

about $3,700 for four overdue dental and medical bills

$3,700

Against Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

2.d

$685 for a delinquent telephone account

$685

Against Applicant

Utility or Phone Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

2.e

about $3,700 for four overdue dental and medical bills

$3,700

Against Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

2.f

$685 for a delinquent telephone account

$685

Against Applicant

Utility or Phone Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

2.g

about $3,700 for four overdue dental and medical bills

$3,700

Against Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

2.h

$366 for a delinquent check cashing service and paycheck advance loan account

$366

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

2.i–2.k

3 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)

Against Applicant

—

2.l

Applicant's personal financial statement showed he had a negative monthly cash flow

Against Applicant

Unspecified Financial

Unknown

(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
1.a	After completing his drug and alcohol treatment, Applicant held a series of jobs as a pilot. His only other adverse contact with law enforcement occurred in May 1993, when he was charged with trespassing. This charge was made by his soon-to-be fourth ex-wife and was later dismissed as groundless. (SOR ¶ 1.a)	For Applicant	Unspecified Criminal Conduct	Dismissed or Nolle Prossed	Denied	—	—	—
1.b	This time he had stolen his uncle's car and checks. He was also charged with these same offenses in March 1989. The following October, Applicant was placed on three years probation and ordered to complete a residential drug and alcohol treatment program. (SOR ¶¶ 1.b, 1.c, and 1.d)	For Applicant	Theft or Larceny	Convicted	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability (b) evidence of criminal conduct, regardless of charge or conviction	—	—
1.c	He was soon arrested and charged with possession of marijuana for sale and transportation of marijuana. Approximately 309 kilograms of marijuana were seized during the investigation that led to his arrest. (SOR ¶¶ 1.i and 1.j)	For Applicant	Drug Related Criminal Charge	Convicted	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability (b) evidence of criminal conduct, regardless of charge or conviction	—	—
1.d	Applicant was sentenced in July 1979 to three and three-quarter years in jail for theft and forgery convictions as well as for violating the terms of his probation from his drug trafficking conviction. Applicant spent the next 17 months in jail before being paroled. (SOR ¶¶ 1.f, 1.g, and 1.h)	For Applicant	Multiple Arrests Pattern	Convicted	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability (b) evidence of criminal conduct, regardless of charge or conviction	—	—
1.e	This time he had stolen his uncle's car and checks. He was also charged with these same offenses in March 1989. The following October, Applicant was placed on three years probation and ordered to complete a residential drug and alcohol treatment program. (SOR ¶¶ 1.b, 1.c, and 1.d)	For Applicant	Theft or Larceny	Convicted	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability (b) evidence of criminal conduct, regardless of charge or conviction	—	—
1.f	Applicant was sentenced in July 1979 to three and three-quarter years in jail for theft and forgery convictions as well as for violating the terms of his probation from his drug trafficking conviction. Applicant spent the next 17 months in jail before being paroled. (SOR ¶¶ 1.f, 1.g, and 1.h)	For Applicant	Multiple Arrests Pattern	Convicted	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability (b) evidence of criminal conduct, regardless of charge or conviction	—	—
1.g	Applicant was sentenced in July 1979 to three and three-quarter years in jail for theft and forgery convictions as well as for violating the terms of his probation from his drug trafficking conviction. Applicant spent the next 17 months in jail before being paroled. (SOR ¶¶ 1.f, 1.g, and 1.h)	For Applicant	Multiple Arrests Pattern	Convicted	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability (b) evidence of criminal conduct, regardless of charge or conviction	—	—
1.h	Applicant was sentenced in July 1979 to three and three-quarter years in jail for theft and forgery convictions as well as for violating the terms of his probation from his drug trafficking conviction. Applicant spent the next 17 months in jail before being paroled. (SOR ¶¶ 1.f, 1.g, and 1.h)	For Applicant	Multiple Arrests Pattern	Convicted	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability (b) evidence of criminal conduct, regardless of charge or conviction	—	—
1.i	He was soon arrested and charged with possession of marijuana for sale and transportation of marijuana. Approximately 309 kilograms of marijuana were seized during the investigation that led to his arrest. (SOR ¶¶ 1.i and 1.j)	For Applicant	Drug Related Criminal Charge	Convicted	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability (b) evidence of criminal conduct, regardless of charge or conviction	—	—
1.j	He was soon arrested and charged with possession of marijuana for sale and transportation of marijuana. Approximately 309 kilograms of marijuana were seized during the investigation that led to his arrest. (SOR ¶¶ 1.i and 1.j)	For Applicant	Drug Related Criminal Charge	Convicted	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability (b) evidence of criminal conduct, regardless of charge or conviction	—	—
1.k	Before joining the Marines, Applicant and a friend were arrested in 1967 and charged with grand theft, a felony. They were caught stealing wheel covers from a car in a shopping center parking lot. (SOR ¶ 1.k)	For Applicant	Theft or Larceny	Conduct No Charge	Admitted	—	—	—
1.l	Applicant was sentenced in July 1979 to three and three-quarter years in jail for theft and forgery convictions as well as for violating the terms of his probation from his drug trafficking conviction. Applicant spent the next 17 months in jail before being paroled. (SOR ¶¶ 1.f, 1.g, and 1.h)	Against Applicant	Multiple Arrests Pattern	Convicted	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability (b) evidence of criminal conduct, regardless of charge or conviction	—	—

Allegation

Finding

Offense

Criminal disposition

Response

Disqualifying (¶31)

Mitigating applied (¶32)

Mitigation

1.a

After completing his drug and alcohol treatment, Applicant held a series of jobs as a pilot. His only other adverse contact with law enforcement occurred in May 1993, when he was charged with trespassing. This charge was made by his soon-to-be fourth ex-wife and was later dismissed as groundless. (SOR ¶ 1.a)

For Applicant

Unspecified Criminal Conduct

Dismissed or Nolle Prossed

Denied

—

1.b

This time he had stolen his uncle's car and checks. He was also charged with these same offenses in March 1989. The following October, Applicant was placed on three years probation and ordered to complete a residential drug and alcohol treatment program. (SOR ¶¶ 1.b, 1.c, and 1.d)

For Applicant

Theft or Larceny

Convicted

Admitted

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

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

—

1.c

He was soon arrested and charged with possession of marijuana for sale and transportation of marijuana. Approximately 309 kilograms of marijuana were seized during the investigation that led to his arrest. (SOR ¶¶ 1.i and 1.j)

For Applicant

Drug Related Criminal Charge

Convicted

Admitted

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

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

—

1.d

Applicant was sentenced in July 1979 to three and three-quarter years in jail for theft and forgery convictions as well as for violating the terms of his probation from his drug trafficking conviction. Applicant spent the next 17 months in jail before being paroled. (SOR ¶¶ 1.f, 1.g, and 1.h)

For Applicant

Multiple Arrests Pattern

Convicted

Admitted

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

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

—

1.e

For Applicant

Theft or Larceny

Convicted

Admitted

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

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

—

1.f

For Applicant

Multiple Arrests Pattern

Convicted

Admitted

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

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

—

1.g

For Applicant

Multiple Arrests Pattern

Convicted

Admitted

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

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

—

1.h

For Applicant

Multiple Arrests Pattern

Convicted

Admitted

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

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

—

1.i

For Applicant

Drug Related Criminal Charge

Convicted

Admitted

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

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

—

1.j

For Applicant

Drug Related Criminal Charge

Convicted

Admitted

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

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

—

1.k

Before joining the Marines, Applicant and a friend were arrested in 1967 and charged with grand theft, a felony. They were caught stealing wheel covers from a car in a shopping center parking lot. (SOR ¶ 1.k)

For Applicant

Theft or Larceny

Conduct No Charge

Admitted

—

1.l

Against Applicant

Multiple Arrests Pattern

Convicted

Admitted

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

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

—

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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

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES