Summary
A 54-year-old defense contractor was denied retention of his security clearance due to concerns under Guideline E (Personal Conduct), Guideline F (Financial Considerations), and Guideline J (Criminal Conduct). The applicant's Statement of Reasons detailed a pattern of illegal financial activities, including writing checks on accounts with insufficient funds, kiting checks, and forging his wife's name on checks. He also embezzled funds while serving as interim treasurer for a non-profit civic organization.
The applicant repaid $13,100.00 to one couple and $29,019.13 to another. He also paid $1,380.00 to a credit card company, fully satisfying a $1,900.00 balance. Despite these repayments and receiving psychological counseling, the judge found that the applicant's actions demonstrated a consistent pattern of dishonesty and poor judgment.
The denial was based on the applicant's engagement in illegal financial practices, including embezzlement and check fraud, which raised serious questions about his judgment, reliability, and trustworthiness. His conduct was characterized by dishonesty and a lack of compliance with rules and regulations.
Why the Applicant Was Denied
- The applicant engaged in a pattern of illegal financial practices, including embezzlement and check fraud.
- His actions raised grave questions about his judgment, reliability, and trustworthiness.
- The applicant's conduct involved dishonesty and a lack of compliance with rules and regulations.
Conditions Referenced
- E2.A6.1.2.1raisedFinancial Considerations Disqualifying ConditionHistory of not meeting financial obligations.
- E2.A6.1.2.2raisedFinancial Considerations Disqualifying ConditionDeceptive or illegal financial practices such as embezzlement.
- E2.A10.1.2.1raisedCriminal Conduct Disqualifying ConditionAllegations or admissions of criminal conduct.
- E2.A5.1.2.5raisedPersonal Conduct Disqualifying ConditionPattern of dishonesty or rule violations.
- E2.A6.1.3.6appliedFinancial Considerations Mitigating ConditionThe individual initiated a good-faith effort to repay overdue creditors.
- E2.A6.1.3.4appliedFinancial Considerations Mitigating ConditionThe person has received or is receiving counseling for the problem.
Key Rule Quoted
“"A person who seeks access to classified information enters into a fiduciary relationship with the government predicated upon trust and confidence."”
Procedural Posture
- SOR issuedFeb 20, 2004
- Answer filedApr 19, 2004
- Hearing heldJul 14, 2004
- Decision dateDec 29, 2004
Cite For
- Pattern of Dishonesty Under Guideline E
- Criminal Conduct Related to Financial Issues Under Guideline J
- Financial Irresponsibility Leading to Security Concerns Under Guideline F