ISCR Case No. 03-16865.h1

ÿWPC( l‹ â ÐK äE Ï¡ld{©s ¦ Ë€2¢…ìóký¹|b¥v¾«9ƒØÚ[U½BQ9¥Lr°}þ‰²3¹8eVÖ+3\…ž8¬Yä²U0ÏK1<ùgÄÐ @ /Ìñlì"k+ÕÀ ž®Õ p @ …"Ñß ª«"M•p!BùÏX¸\šxú +‹š°¿ÉkÙDAüAÈÖ© Û-îð)‹“LÕWìÞë 4‘ ó c wüm˜îêÞ æñ¦`]éæÂf,ë. ;Cç"!ÿr Ø (^ù…ð ÊÞ"᜿¬Dÿ© a=Òñ ó¶Þ ·-ÇVjªÀ¢&ÀyÁ"e•Á òA œ† œ+ þ\´ïxàìÝ° …˜{n®ŽR… /hÿëZÁu’¥·©O ±î ÕRr"2Ás&ùGs<~Èå'§‚rå²É= Ã{a^eV†/< ^u °+*A·à à ٦°˜h¡ÏNSÚ (^éŽlž ºÒ¯â÷avH Ú‚r,¼ Œ'#,ÁZ_8 ˜Ç OʈÉó9?ZëÑqéõ x"þÐ+ ¤î'† 4Þtµ¢ƒÜÅœÏ6ê¯M>Ào쎒Jf ¬ØSym<1Íä—Ÿ êÜvŲL¸ýô$B \ # Á U#NÉ % 0 F Þc E A b C ê G 0 b1 ^ “ w Ÿ £ · Æ m È U @ß ß ß U * U >I 0 ©‡ 0 DE ‰ N ž i ¨ 0 y 0 DŠ ÿÎ B >Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í Í B ˜IBM Infoprint 1125, ä, , , , , ä0(Ö Ã 9 Z ‹ 6Times New Roman Regular X ( iñ$¡¡Ó ÓÔ USUS., Ô ÔÝ ƒ ̽% ÝÓ ÓÔ USUS., ÔÚ Ú1Ú Ú.Ý ÝÔ_ ÔExec.€Or. €10865,€ò òSafeguarding€Classified€Information€within€Industryó ó€(Feb.€20,€1960),€as€amended€and€modified. ù à Ý ƒ qÿ) ÝÓ ÓÔ USUS., ÔÝ ÝÔ_ ÔÔ € n X X Ôò òà@ ¢ ¢ ì àFOR€OFFICIAL€USE€ONLYˆÐ ° ÐÔ € , £Ñ , n Ôà@ i i ì àWhen€Ô_ ÔunredactedÔ_ Ô€this€document€contains€informationˆÐ N ž Ðà@ ^ ^ ì àEXEMPT€FROM€MANDATORY€DISCLOSURE€under€the€Ô_ ÔFOIAÔ_ ÔˆÐ Ä Ðà@ < < !ì àExemption€6€appliesó ó (: 3qÿ$©©Ý ƒ iñ! ÝÓ ÓÔ USUS., ÔÝ ÝüšÖ4 ê:i ¢Ø +00 3|x ÿU ‹ÿÀÀÀ(Ö Ã 9 Z ‹ (Times New Roman Times ô \ ` ‹ &Times New Roman (Y( 3¡¡$¤ ¤Ý ƒ iñ! ÝÓ ÓÔ USUS., ÔÝ ÝÔ € ô ´ ò X X Ôà àò òÚ Ú0Ú Úó ó Ñ Ñ ( #Ã$ ò òÚ Ú0Ú Úó ó Ñ Ñ _ Ñ ÑÑ T RXì 3Ø' LetterXì 3Ø' Letterhead 3Ø' Letter`lœd X X X X X¬††XzXzXzXzX> 3Ø' LetterT Ñ (: 3̽$¥¥Ý ƒ iñ! ÝÓ ÓÔ USUS., ÔÝ ÝÚ Ú0Ú Ú. ( &Ó$‘‘ò òÚ Ú1Ú Úó ó õÝ ƒ ̽% ÝÓ ÓÔ USUS., ÔÚ Ú2Ú Ú.Ý ÝÔ_ ÔDepartment€of€Defense€Directive€5220.6,€ò òDefense€Industrial€Personnel€Security€Clearance€Review€Programó ó€(Jan.€2,€1992),€as€amended€and€modified.: web3dhrz16 0 €€ €d ÿÿÿd dÝ ƒ iñ! ÝÓ ÓÔ USUS., ÔÝ ÝÔ_ ÔÑ T @RY, 3Ø' LetterheadXà 3Ø' Letter 3Ø' Letterÿ 3Ø' T ÑÑ @ h ° ÑÑ € ÑÑ 8À ´ ò ò dÄdÈ8ÑÑ @ ÑÑ À P¸ ÑÑ À P¸ ÑÑ À 0h ÑÖ À ÿÿ ÖKEYWORD:€Financial;€Personal€Conduct;€Criminal€ConductÐ ÐDIGEST:€While€Applicant€provided€evidence€to€show€that€he€had€paid€several€of€his€outstanding€debts, €he€failed€to€mitigate€a€history€of€financial€delinquency.€Ð ìì ÐHe€deliberately€omitted€relevant€and€material€facts€regarding€his€past€criminal€conduct€from€his€security€clearance€application€and€offered€no€credibleÐ Ø Ø Ðexplanation€for€his€omissions.€ €Clearance€is€denied.Ð Ä Ä ÐÔ_ ÔCASENOÔ_ Ô:€03"16865.h1Ð ° ° ÐDATE:€10/21/2005Ð œ œ Ðà @ àà @` àà @¸ àà @ àà @h àà @À àà @ àà @p àDATE:€ €October€21,€2005Ð ˆ ˆ ÐÔ_ ÔÔ_ Ôß A€ [ ) ° ° x dExÜ 2AßÐ t t ÐIn€Re:Ð d d ÐÌà @ à""""""""""""""""""""Ìà @ àÔ_ ÔSSNÔ_ Ô:€"""""""""""Ð ( ( ÐÌApplicant€for€Security€ClearanceÐ ÐÌß A€ [ ) ° ° x dEx@ 2AßÐ Ø Ø Ð‡Ô_ ÔISCRÔ_ Ô€Case€No.€03"16865Ð ÐÐ ìì ÐÓ @ ° \ X ›X p ÓÌò òÓ ÓDECISION€OF€ADMINISTRATIVE€JUDGEÐ ìì ÐJOAN€Ô_ ÔCATONÔ_ Ô€ANTHONYÐ Ø Ø ÐÌÌò òAPPEARANCESó óÐ œ œ Ðó óÌÔ € & რ% X X Ôò òFOR€GOVERNMENTó óÐ t t ÐJulie€Edmunds,€Esq.,€Department€CounselÐ L L ÐFrancisco€Mendez,€Esq.,€Department€CounselÐ $ $ ÐÌò òFOR€APPLICANTó óÐ Ô Ô Ðò òò òPro€Seó óó óÔ € X ëäX % & რÔÐ ¬ ¬ ÐÌÌÑ C 0h ÑÑ C Ñò òò òSYNOPSISÐ Z Z ÐÓ ÓÌó óó óÓ Óà @ àWhile€Applicant€provided€evidence€to€show€that€he€had€paid€several€of€his€outstanding€debts,€he€failed€to€mitigate€a€history€of€financial€delinquency.€€HeÐ 2 2 Ðdeliberately€omitted€relevant€and€material€facts€regarding€his€past€criminal€conduct€from€his€security€clearance€application€and€offered€no€credible€explanationÐ Ðfor€his€omissions.€€Clearance€is€denied.Ð ÐÌÌÌÌò òò òÔ ‡ X ëäX X X ëä Ôà@ U U ,~ àSTATEMENT€OF€THE€CASEó óó óˆÐ ¦ ¦ ÐÌà @ àThe€Defense€Office€of€Hearings€and€Appeals€(DOHA)€declined€to€grant€or€continue€a€security€clearance€for€Applicant.€ €On€January€14,€2005,€under€theÐ ~ ~ Ðapplicable€Executive€Order× ƒ Ý ×Ý ƒ &Ó Ýò òÚ Ú1Ú Úó óÝ Ý× Ý ×€and€Department€of€Defense€Directive,× ƒ Ý ×Ý ƒ &Ó Ýò òÚ Ú2Ú Úó óÝ Ý× Ý ×€DOHA€issued€a€Statement€of€Reasons€(SOR),€detailing€the€basis€for€its€decisionð! ðsecurityÐ j j Ðconcerns€raised€under€Guideline€F€(Financial€Considerations),€Guideline€E€(Personal€Conduct),€and€Guideline€J€(Criminal€Conduct) €of€the€Directive.€€ApplicantÐ V V Ðanswered€the€SOR€in€writing€on€February€2,€2005,€and€elected€to€have€a€hearing€before€an€administrative€judge.€€The€case€was€assigned€to€me€July€7,€2005.€€OnÐ B B ÐSeptember€12,€2005,€I€convened€a€hearing€to€consider€whether€it€is€clearly€consistent€with€the€national€interest€to€grant€or€continue€a€security€clearance€forÐ . . ÐApplicant.€€The€Government€submitted€four€documents€for€identification€and€admission€to€the€record.€ €The€Governmentð ðs€documents€were€identified€asÐ ÐExhibits€(Ex.)€1€through€4€and€admitted€into€evidence€without€objection.€€Applicant€submitted€five€documents€for€identification€and€admission€to€the€record.€Ð ÐHis€documents€were€identified€as€Exhibits€(Ex.)€A€through€E€and€were€admitted€into€evidence€without€objection.€€On€September€21,€2005,€DOHA€received€theÐ ò ò ! Ðtranscript€(Tr.)€of€the€proceeding.Ð Þ Þ " ÐÌÌò òò òà@ w w ,~ àRULINGS€ON€PROCEDUREó óó óˆÐ ¢!¢!% ÐÌà @ àApplicant€was€not€notified€at€least€15€days€in€advance€of€the€time€and€place€of€his€hearing,€as€required€by€ð ð€E€3.1.8.€of€Enclosure€3€of€DoD€Directive€5220.6.€Ð z#z#' ÐHe€was€offered€an€opportunity€to€reschedule€his€hearing€so€that€he€would€have€a€minimum€of€15€days€to€prepare€in€advance€for€his€hearing.€€Upon€dueÐ f$f$( Ðconsideration, €Applicant€elected€to€waive€the€15€day€notice€provision€of€the€Directive€and€to€proceed€with€his€hearing.€€He€acknowledged€that€he€understoodÐ R%R%) Ðthat€if€he€was€not€the€prevailing€party€and€was€not€granted€a€clearance, €he€would€not€be€able€to€claim€on€appeal€that€he€had€received€insufficient€notice€ofÐ >&>&* Ðhearing€under€the€regulation.Ð *'*'+ ÐÌÌÓ Óò òò òFINDINGS€OF€FACTó óó óÐ î)î). ÐÓ ÓÌà @ àThe€SOR€contains€eight€allegations€of€disqualifying€conduct€under€Guideline€F,€Financial€Considerations,€one€allegation€of€disqualifying€conduct€underÐ Æ+Æ+0 ÐGuideline€E,€Personal€Conduct, €and€two€allegations€of€disqualifying€conduct€under€Guideline€J,€Criminal€Conduct.€€In€his€answer€to€the€SOR,€ApplicantÐ ²,²,1 Ðadmitted€six€allegations.€He€admitted€a€seventh€allegation€but€stated€it€repeated€a€Ñ C P¸ ÑÑ C Ñdebt€he€had€previously€admitted.€ €He€denied€four€allegations.€€His€admissionsÐ ž-ž-2 Ðare€incorporated€as€findings€of€fact.Ð Š.Š.3 ÐÌà @ àApplicant€is€ò òó ó30€years€old.€€He€graduated€from€college€in€May€1997€with€a€bachelor€of€science€degree€in€accounting.€ €Since€April€1998€he€has€been€employed€asÐ b0b05 Ða€financial€analyst€by€a€federal€contractor.€€(Ex.€1.)€€Applicant€needs€a€security€clearance€to€do€his€present€job.€(Tr.€39.)Ð N1N16 ÐÐ :2:27 Ðà @ àApplicant€has€never€been€married.€ €He€has€a€15"year"old€son€and€a€six"year"old€son€from€previous€relationships.€€He€has€had€custody€of€the€older€son€for€periodsÐ Ðof€time€in€the€past.€€He€now€lives€with€a€fiancee€who€is€pregnant€with€his€child.€€(Tr.€65"66.)Ð ìì ÐÌà @ àApplicantð ðs€job€pays€him€approximately€$72,000€annually.€€His€fiancee€earns€between€$70,000€and€$80,000€annually.€€(Tr.€47.)€€Applicant€pays€a€total€ofÐ Ä Ä Ðapproximately€$700€each€month€in€child€support€to€the€mothers€of€his€two€sons€€ (Tr.€46"47.).Ð ° ° ÐÌà @ àApplicant€was€arrested€on€October€8,€1996€and€charged€with€(1)€Credit€Card€Theft,€(2)€Financial€Card€Fraud,€and€(3)€Possession€of€Stolen€Goods.€€He€pledÐ ˆ ˆ Ðguilty€to€the€count€of€Possession€of€Stolen€Goods€and€was€sentenced€to€45€days€confinement.€He€was€placed€on€36€months€probation€and€ordered€to€payÐ t t Ðapproximately€$295€in€court€costs€and€restitution.€€Counts€(1)€and€(2)€were€dismissed€€(Ex.€4.)€ €Ð ` ` ÐÌÒ e ° Òà @½ àAs€of€May€16,€2005,€Applicant€owed€approximately€$29,389€in€delinquent€federal€education€loans€which€had€been€placed€for€collection€in€July€2003€€(€Ex.€E;Ð 8 8 ÐTr.€44.).€ €In€May€2005,€he€entered€an€agreement€to€pay€$575.55€per€month€for€six€months€to€reduce€his€federal€education€loan€debt.€€He€also€agreed€to€provideÐ $ $ Ðthe€Department€of€Education€(DOE) €with€current€financial€information€at€the€end€of€the€six€month€period€and€to€pay€adjusted€installment€amounts€based€onÐ ÐDOEð ðs€analysis€of€his€financial€situation.€€(Ex.€E,€at€8.)Ð ü ü ÐÔ #† X ëäX X X ëäD #ÔÔ ‡ X ëäX X X ëä ÔÌà @½ àApplicant€has€a€history€of€financial€delinquencies€dating€to€November€1998.€€He€owed€a€debt€to€a€creditor€for€approximately€$2,846,€which€was€charged€off€as€aÐ Ô Ô Ðbad€debt€in€November€1998.€€As€of€October€2004,€the€debt€had€not€been€paid,€nor€had€two€unsatisfied€judgments,€one€entered€against€him€in€July€2000€and€theÐ À À Ðother€entered€against€him€in€April€2002.Ð ¬ ¬ ÐÌà @½ àApplicant€also€owed€a€debt€placed€for€collection€in€August€2003€which€had€not€been€paid€as€of€October€2004.€€Applicantð ðs€personal€financial€statement,Ð " " Ðexecuted€in€April€2003,€indicated€he€lacked€sufficient€funds€after€paying€his€monthly€expenses€to€pay€his€delinquent€debts.€€Applicant€has€€not€sought€financialÐ p p Ðcounseling€for€his€financial€difficulties.€€(Tr.€66.)Ð \ \ ÐÌà @½ àAt€his€hearing,€Applicant€presented€evidence€purporting€to€show€he€had€presented€a€payment€check€of€$493.72€to€a€utility€company€in€full€payment€of€a€debt€heÐ 4 4 Ðhad€denied€he€owed€in€his€answer€to€the€SOR.€€(Ex.€B.)€ €He€showed€he€had€made€partial€payments€on€a€debt€to€a€creditor€€(Ex.€D.),€and€he€provided€evidenceÐ Ðthat€he€had€satisfied€one€of€the€judgments€entered€against€him.€€(Ex.€C.)€€He€stated€that€a€debt€of€$2,846.00€to€Creditor€A,€alleged€in€ð ð€1.b. €of€the€SOR,€was€theÐ Ðsame€debt,€alleged€in€ð ð€1.c.,€for€which€a€judgment€of€$3,630€had€been€entered€against€him€by€Creditor€B€in€July€2000.€€Applicant€failed€to€provide€credibleÐ ø ø Ðevidence€to€substantiate€his€claim.€€(Tr. €54"55.)€Ð ä ä ÐÌÑ C P¸ ÑÑ C Ñà @½ àApplicant€completed€and€signed€a€security€clearance€application€(SF"86)€on€October€16,€2001.€€Question€26€on€the€SF"86€asks,€in€pertinent€part:€ð ðIn€the€last€7Ð ¼ ¼ Ðyears€have€you€been€arrested€for,€charged€with,€or€convicted€of€any€offense(s)€not€listed€in€[your€responses€to€questions]€21,€22,€23,€24,€or€25?ð ð€€ApplicantÐ ¨ ¨ Ðanswered€ð ðnoð ð€to€Question€26,€and€did€not€list€his€arrest€on€October€8,€1996€for€possession€of€stolen€goods.€€In€a€signed,€sworn€statement,€dated€April€25,€2003,Ð ” ” Ðgiven€to€a€special€agent€of€the€Defense€Security€Service, €Applicant€stated€he€did€not€list€the€offense€because€he€thought€applicants€were€not€required€to€listÐ € € Ðcrimes€that€occurred€more€than€six€or€seven€years€before€the€SF"86€was€completed.€(Ex.€2,€at€4;€ò ò€See€ó óalso€Applicantð ðs€Ex.€A).€ €Applicantð ðs€arrest€occurred€fiveÐ l l ! Ðyears€before€he€completed€and€signed€his€SF"86.€€In€his€answer€to€the€SOR,€Applicant€claimed€he€misunderstood€Question€26€and€thus€did€not€answer€itÐ X X " Ðtruthfully.€Ð D D # ÐÌà @½ àApplicant€signed€and€dated€the€following€certification€after€he€completed€his€SF"86:€Ð " "% ÐÌà @½ àà8 @ àMy€statements€on€this€form,€and€any€attachments€to€it,€are€true,€complete, €and€correct€to€the€best€of€my€knowledge€and€belief€and€are€made€in€good€faith.€€IÐ ô#ô#' Ðunderstand€that€a€knowing€and€willful€false€statement€on€this€form€can€be€punished€by€fine€or€imprisonment€or€both€€(See€section€1001€of€title€18,€United€StatesÐ à$à$( ÐCode.)Ð Ì%Ì%) ÐÌÌÓ Óò òò òPOLICIESó óó óÐ ( (, ÐÓ ÓÌÔ #† X ëäX X X ëäV #ÔÔ ‡ X ëäX X X ëä Ôà @½ àð ð[No€one€has€a€ð ðrightð ð€to€a€security€clearance.ð ð€ €ò òDepartment€of€the€Navy€v.€Eganó ó,€484€U.S.€518,€528€(1988).€€As€Commander€in€Chief,€the€President€has€ð ðtheÐ h*h*. Ðauthority€to€.€.€. €control€access€to€information€bearing€on€national€security€and€to€determine€whether€an€individual€is€sufficiently€trustworthy€to€occupy€a€positionÐ T+T+/ Ð.€.€.€that€will€give€that€person€access€to€such€information.ð ð€€ò òId.ó ó€at€527.€ €The€President€has€restricted€eligibility€for€access€to€classified€information€to€UnitedÐ @,@,0 ÐStates€citizens€ð ðwhose€personal€and€professional€history€affirmatively€indicates€loyalty€to€the€United€States,€strength€of€character,€trustworthiness,€honesty,Ð ,-,-1 Ðreliability,€discretion,€and€sound€judgment,€as€well€as€freedom€from€conflicting€allegiances€and€potential€for€coercion,€and€willingness€and€ability€to€abide€byÐ . .2 Ðregulations€governing€the€use,€handling,€and€protection€of€classified€information.ð ð€€Exec.€Or. €12968,€ò òAccess€to€Classified€Informationó ó€ð ð€3.1(b)€(Aug.€4,€1995).€Ð / /3 ÐEligibility€for€a€security€clearance€is€predicated€upon€the€applicant€meeting€the€security€guidelines€contained€in€the€Directive.Ð ð/ð/4 ÐÌà @½ àEnclosure€2€of€the€Directive€sets€forth€personal€security€guidelines,€as€well€as€the€disqualifying€conditions€(DC)€and€mitigating€conditions€(MC)€under€eachÐ È1È16 Ðguideline.€€In€evaluating€the€security€worthiness€of€an€applicant, €the€administrative€judge€must€also€assess€the€adjudicative€process€factors€listed€in€ð ð€6.3€of€theÐ ÐDirective.€€The€decision€to€deny€an€individual€a€security€clearance€is€not€necessarily€a€determination€as€to€the€loyalty€of€the€applicant.€€ò òSeeó ó€Exec.€Or. €10865€ð ð€7.€Ð ìì ÐIt€is€merely€an€indication€that€the€applicant€has€not€met€the€strict€guidelines€the€President€and€the€Secretary€of€Defense€have€established€for€issuing€a€clearance.Ð Ø Ø ÐÌÓ `@I [ X ` ¸ h À p È x Ð (#€ %Ø'0*ˆ,à.81 3è5 ° \ X ›X `Óà @ àInitially,€the€Government€must€establish,€by€substantial€evidence,€conditions€in€the€personal€or€professional€history€of€the€applicant€that€disqualify,€or€mayÐ ° ° Ðdisqualify, €the€applicant€from€being€eligible€for€access€to€classified€information.€€ò òSee€Eganó ó,€484€U.S. €at€531.€Ô #† X ëäX X X ëä .#ÔÔ ‡ X ëäX X X ëä Ô€Ô #† X ëäX X X ëäÞ7#ÔÔ ‡ X ëäX X X ëä ÔThe€Directive€presumes€a€nexus€or€rationalÐ œ œ Ðconnection€between€proven€conduct€under€any€of€the€disqualifying€conditions€listed€in€the€guidelines€and€an€applicantð ðs€security€suitability.€€ò òSee€ó óÔ_ ÔISCRÔ_ Ô€Case€No.Ð ˆ ˆ Ð95"0611€at€2€(App.€Bd. €May€2,€1996).Ô #† X ëäX X X ëä!8#ÔÔ ‡ X ëäX X X ëä Ô€€Ô #† X ëäX X X ëä¤9#ÔÔ ‡ X ëäX X X ëä ÔÐ t t ÐÌà @ àOnce€the€Government€establishes€a€disqualifying€condition€by€substantial€evidence, €the€burden€shifts€to€the€applicant€to€rebut,€explain,€extenuate,€or€mitigateÐ L L Ðthe€facts.€€Ô_ ÔISCRÔ_ Ô€Case€No.€01"20700€at€3€(App.€Bd.€Dec.€19,€2002);€ò òsee€ó óDirective€ð ð€E3.1.15.€€An€applicant€ð ðhas€the€ultimate€burden€of€demonstrating€that€it€isÐ 8 8 Ðclearly€consistent€with€the€national€interest€to€grant€or€continue€his€security€clearance.ð ð€€Ô_ ÔISCRÔ_ Ô€Case€No.€01-20700€at€3.Ð $ $ ÐÌÌÓ Óò òò òCONCLUSIONSó óó óÐ è è ÐÓ ÓÌÔ #† X ëäX X X ëäè9#Ôò òÔ ‡ X ëäX X X ëä ÔGuiÔ #† X ëäX X X ëäÙ<೦#ÔÔ ‡ X ëäX X X ëä Ôò òó ódeline€Fð! ðFinancial€Considerationsó óÐ À À ÐÌà @ àÔ #† X ëäX X X ëä =#ÔÔ ‡ X ëäX X X ëä ÔThe€Governmentð ðs€concern€under€Guideline€F,€Financial€Considerations,€is€that€individuals€who€are€financially€overextended€and€unable€or€unwilling€to€payÐ ˜ ˜ Ðtheir€just€debts€may€try€to€generate€funds€by€engaging€in€illegal€acts.€€Applicant€has€a€history€of€not€meeting€his€financial€obligations,€and€his€financial€historyÐ " " Ðsuggests€an€inability€or€unwillingness€to€satisfy€his€debts, €conditions€which€raise€security€concerns€under€subparagraphs€E2.A6.1.2.1.€and€E2.A6.1.2.3.€ofÐ p p ÐGuideline€F.Ô #† X ëäX X X ëä¯=#ÔÔ ‡ X ëäX X X ëä Ô€€DOHAð ðs€Appeal€Board€has€concluded€that€ð ð[a] €person€who€is€unwilling€to€fulfill€his€legal€obligations€does€not€demonstrate€the€high€degree€ofÐ \ \ Ðgood€judgment€and€reliability€required€of€persons€granted€access€to€classified€information.ð ð€€Ô_ ÔISCRÔ_ Ô€Case€No.€98"0810€at€4€€(App.€Bd. €June€8,€2000).Ô #† X ëäX X X ëä @#ÔÔ ‡ X ëäX X X ëä ÔÐ H H ÐÌÔ #† X ëäX X X ëä¶A#ÔÔ ‡ X ëäX X X ëä Ôà @ àIn€the€SOR,€DOHA€alleged€in€ð ð€1.a. €that€Applicant€was€arrested€and€charged€with€(1)€Financial€Card€Theft,€(2)€Financial€Card€Fraud,€and€(3)€Possession€ofÐ ÐStolen€Goods,€that€he€pled€guilty€to€the€Possession€of€Stolen€Goods€charge,€was€sentenced€to€45€days€confinement, €placed€on€36€months€probation€and€orderedÐ Ðto€pay€court€costs€and€restitution€of€approximately€$295.€€DOHA€also€alleged€in€the€SOR€that€Applicant€owed€a€creditor€approximately€$2,846€on€an€accountÐ ø ø Ðcharged€off€as€a€bad€debt€in€November€1998€and€the€debt€had€not€been€satisfied€as€of€October€2004€(ð ð€1.b);€that€Applicant€owed€two€creditors€approximatelyÐ ä ä Ð$27,000€on€three€accounts€placed€for€collection€in€July€and€August, €2003€and€the€accounts€had€not€been€paid€as€of€October€2004€(ð ðð ð€1.e,€1.f.,€and€1.Ô_ Ôg.);€thatÔ_ ÔÐ Ð Ð ÐApplicant€had€two€judgments€entered€against€him€by€creditors€in€July€2000€and€April€2002€on€accounts€totaling€approximately€ $9,300€and€the€judgments€hadÐ ¼ ¼ Ðnot€been€satisfied€as€of€October€2004€(ð ðð ð€1.c€and€1.Ô_ Ôd.);€andÔ_ Ô€that€Applicantð ðs€personal€financial€statement,€dated€April€25,€2003,€indicted€he€lacked€sufficientÐ ¨ ¨ Ðresources€to€satisfy€his€delinquent€accounts€(ð ð€1.Ô_ Ôh.)Ô_ Ô€€An€applicant€who€is€financially€overextended€is€at€risk€of€having€to€engage€in€illegal€acts€to€generate€funds.€Ð ” ” ÐDirective€ð ð€E2.A6.1.1.Ð € € ÐÔ #† X ëäX X X ëä B#ÔÔ ‡ X ëäX X X ëä ÔÌÔ #† X ëäX X X ëä‹H#ÔÔ ‡ X ëäX X X ëä Ôà @ àThe€record€shows€Applicant€took€action€after€receiving€the€SOR€and€attempted€to€resolve€some€of€his€financial€delinquencies. €€Working€with€oneð ðs€creditors€toÐ X X " Ðpay€and€settle€long"standing€debts€is€commendable.€€However,€Applicantð ðs€last"minute€actions€are€not€a€substitute€ð ðfor€evidence€of€a€demonstrated€track€recordÐ D D # Ðof€financial€reform, €a€track€record€that€is€necessary€to€satisfy€Applicantð ðs€burden€of€persuasion€that€it€is€clearly€consistent€with€the€national€interest€to€grant€orÐ 0!0!$ Ðcontinue€access€to€classified€information.ð ð€€Ô_ ÔISCRÔ_ Ô€Case€No.€98"0445€at€3€(App.€Bd. €April€2,€1999.)€€Ð " "% Ðà @ àWhile€Applicant€initially€denied€owing€the€creditor€of€the€debt€identified€at€1.g.€of€the€SOR,€€he€presented€evidence€that€he€had€paid€it.€€I€conclude€thatÐ # #& ÐApplicantð ðs€denial€of€the€debt€was€not€credible. €€While€Applicant€stated€that€a€debt€of€$2,846.00€to€Creditor€A,€alleged€in€ð ð€1.b.€of€the€SOR,€was€the€same€debtÐ ô#ô#' Ðalleged€in€ð ð€1.c.,€for€which€a€judgment€of€$3,630€had€been€entered€against€him€by€Creditor€B, €he€did€not€provide€credible€evidence€supporting€his€claim.Ð à$à$( ÐÌÔ #† X ëäX X X ëäÎH#ÔÔ ‡ X ëäX X X ëä Ôà @ àThe€Government€has€established,€through€Applicantð ðs€admissions€and€the€record€evidence, €a€ò òprima€facieó ó€case€that€Applicant€is€financially€overextended.€Ð ¸&¸&* ÐApplicant€provided€no€persuasive€evidence€to€rebut€the€financial€concerns€specified€in€the€SOR€and€identified€as€disqualifying€conditions€under€ð ðð ð€E2.A6.1.2.1.Ð ¤'¤'+ Ðand€E2.A6.1.2.3.€of€Guideline€F.Ð ( (, ÐÌà @ àWe€turn€to€a€review€of€the€several€conditions€that€could€mitigate€the€security€concerns€raised€by€Applicantð ðs€financial€delinquencies.€€Applicantð ðs€acknowledgedÐ h*h*. Ðdelinquencies€date€to€at€least€1998.€€His€financial€delinquencies€involve€long"standing€debts,€and€his€inability€or€unwillingness€to€pay€them€is€recent.€€Thus,Ð T+T+/ Ðneither€mitigating€condition€E2.A.6.1.3.1.€nor€mitigating€condition€E2.A6.1.3.2.€applies.Ð @,@,0 ÐÌà @ àThe€record€shows€Applicant€has€been€Ô #† X ëäX X X ëä N#ÔÔ ‡ X ëäX X X ëä Ôsingle€and€steadily€employed€since€1998.€€He€has€not€sought€financial€counseling€and€has€not€presented€clear€indicationsÐ . .2 Ðthat€his€financial€problems€are€being€resolved€or€are€more€than€temporarily€under€control.€€He€has€not€demonstrated€that€his€financial€delinquencies€were€largelyÐ / /3 Ðbeyond€his€control.€€Therefore,€mitigating€conditions€E2.A6.1.3.3.€and€E2.A6.1.3.4.€are€inapplicable, €and€the€Guideline€F€allegations€in€the€SOR€are€concludedÐ ð/ð/4 Ðagainst€the€Applicant.Ð Ü0Ü05 ÐÐ È1È16 Їò òGuideline€E€"€Personal€ConductÐ Ðó óÔ #† X ëäX X X ëä R#ÔÔ ‡ X ëäX X X ëä ÔÌà @ àIn€the€SOR,€DOHA€alleged€Applicant€raised€concerns€under€Guideline€E,€Personal€Conduct,€when€he€failed€to€list€his€October€8,€1996€arrest€in€his€answer€toÐ Ø Ø ÐQuestion€26€on€his€SF"86€(ð ð€2.Ô_ Ôa.)Ô_ Ô€€€Guideline€E€conduct,€which€involves€questionable€judgment,€untrustworthiness,€unreliability,€lack€of€candor,€dishonesty,€orÐ Ä Ä Ðunwillingness€to€comply€with€rules€and€regulations, €could€indicate€an€applicant€may€not€properly€safeguard€classified€information.€€Directive€ð ð€E2.A5.1.1.Ð ° ° ÐÌà @ àWith€respect€to€the€Guideline€E€conduct€alleged€in€the€SOR,€the€Government€has€established€its€case.€€The€Government€established, €and€Applicant€failed€toÐ ˆ ˆ Ðpersuasively€rebut,€the€allegation€he€had€omitted,€concealed€and€falsified€relevant€and€material€facts€from€his€personnel€security€questionnaire.€€ð ð€E2.A5.1.2.2.€Ð t t ÐHis€concealment€of€information€he€considered€embarrassing€or€professionally€damaging€could€make€him€vulnerable€to€coercion€and€blackmail.€€ð ðE2.A5.1.2.4.€Ð ` ` ÐHis€conduct€raises€additional€concerns€under€E2.A5.1.2.5.€because€it€suggests€a€pattern€of€dishonesty€or€rule€violation.€€Applicantð ðs€reticence€to€reveal€the€truthÐ L L Ðabout€his€conduct€suggests€that,€under€some€circumstances, €he€may€put€his€interests€before€those€of€the€Government.€€Ð 8 8 ÐÌà @ àMitigating€condition€E2.A5.1.3.1€does€not€apply€to€the€facts€of€this€case.€€The€information€Applicant€withheld€is€pertinent€to€a€determination€of€his€judgment,Ð Ðtrustworthiness,€and€reliability.€€Only€one€other€mitigating€condition€under€Guideline€E€might€be€applicable€to€the€instant€case.€€The€security€concern€raised€byÐ ü ü ÐApplicantð ðs€disqualifying€conduct€could€be€mitigated€if€the€falsification€was€an€isolated€incident,€was€not€recent,€and€if€the€Applicant€subsequently€provided€theÐ è è Ðcorrect€information€voluntarily.€€ð ðE.2.A.5.1.3.2.€ €Applicant€acknowledged€the€correct€information€when€confronted€by€an€investigator€of€the€Defense€SecurityÐ Ô Ô ÐService€in€November€2003.€€However,€in€his€signed,€sworn€statement€and€in€his€Ex.€A, €Applicant€attempted€to€minimize€his€falsification€by€stating€he€thought€itÐ À À Ðhad€occurred€more€than€six€or€seven€years€before€he€completed€his€SF"86,€when,€in€fact,€it€had€occurred€five€years€before€he€completed€his€SF"86.€Ð ¬ ¬ ÐAdditionally, €he€claimed€he€did€not€understand€the€question.€€Applicant€is€college"educated€and€earns€his€living€as€a€financial€analyst,€a€profession€requiringÐ ˜ ˜ Ðresponsibility€as€a€fiduciary€and€the€accurate€use€of€numbers€and€language.€ €While€his€falsification€of€his€SF"86€occurred€in€2001,€Applicantð ðs€subsequentÐ " " Ðexplanations€for€failing€to€answer€Question€26€accurately€and€fully€suggest€on"going€lack€of€candor.€€His€disqualifying€personal€conduct€is€recent€and€notÐ p p Ðisolated.€€Accordingly,€the€allegation€in€subparagraph€2.a.€of€the€SOR€is€concluded€against€the€Applicant.Ð \ \ ÐÌò òGuideline€J€"€Criminal€Conductó óÐ 4 4 ÐÔ #† X ëäX X X ëäÊT#Ôò òò òÓ Óó óÔ ‡ X ëäX X X ëä Ôó óÌÓ Óà @ àIn€the€SOR, €DOHA€alleged€Applicant€knowingly€and€willfully€falsified€his€answer€to€Question€26€on€his€security€clearance€application€in€violation€of€18€U.S.C.Ð Ðð ð€1001€and€that€this€act€constituted€felonious€criminal€conduct.€€(ð ðð ð€3.a. €and€3.Ô_ Ôb.)Ô_ Ô€€It€is€a€criminal€offense€to€knowingly€and€willfully€make€any€materially€false,Ð ø ø Ðfictitious€or€fraudulent€statement€or€representation€in€any€matter€within€the€jurisdiction€of€the€executive€branch€of€the€Government€of€the€United€States.€€18Ð ä ä ÐU.S.C.€ð ð€1001.€€Security€clearances€are€within€the€jurisdiction€of€the€executive€branch.€ €ò òSeeó ó€ò òEganó ó,€484€U.S.€at€527.Ð Ð Ð ÐÌà @ àA€person€seeking€access€to€classified€information€enters€into€a€fiduciary€relationship€with€the€Government€based€upon€trust€and€confidence.€€Where€the€factsÐ ¨ ¨ Ðproven€by€the€Government€or€admitted€by€the€applicant€raise€doubts€about€the€applicantð ðs€judgment,€reliability€or€trustworthiness,€the€applicant€has€a€heavyÐ ” ” Ðburden€of€persuasion€to€demonstrate€that€he€or€she€is€nevertheless€security€worthy.€€Ð € € ÐÔ #† X ëäX X X ëäßa#ÔÔ ‡ X ëäX X X ëä ÔÌà @ àA€history€or€pattern€of€criminal€activity€raises€doubts€about€a€personð ðs€judgment,€reliability,€and€trustworthiness.€(ð ð€E2.A10.1.1)€€Disqualifying€conditionsÐ X X " Ðinclude€allegations€or€admissions€of€criminal€conduct,€regardless€of€whether€the€person€was€formally€charged€€(ð ð€E2.A10.1.2.1.),€and€a€single€serious€crime€orÐ D D # Ðmultiple€lesser€offenses€€(ð ð€E2.A10.1.2.2.).€ €Applicantð ðs€conduct€raises€security€concerns€underð ð€E2.A10.1.2.1.€and€ð ð€E2.A10.1.2.2.€of€Guideline€J.Ð 0!0!$ ÐÌà @ àÔ #† X ëäX X X ëäùf#ÔÔ ‡ X ëäX X X ëä ÔApplicant€denied€the€criminal€conduct€alleged€by€the€Government€in€ð ðð ð€3.a.€and€3.b.€of€the€SOR,€but€offered€no€credible€explanations€in€support€of€his€denials. # #& ÐApplicant€failed€to€report€his€1996€arrest€and€charges€of€financial€card€theft,€financial€card€fraud,€and€possession€of€stolen€goods,€criminal€conduct€that€occurredÐ ô#ô#' €Ô #† X ëäX X X ëäwi#ÔÔ ‡ X ëäX X X ëä ÔÐ Ðfive€years€before€he€completed€his€SF"86€in€2001.€€As€a€result€of€his€guilty€plea€to€possession€of€stolen€goods€in€1996,€Applicant€was€sentenced€to€45€daysÐ à$à$( Ðconfinement€and€36€months€of€probation.€ €While€the€conduct€that€gave€rise€to€his€arrest€occurred€in€1996€and€was€not€recent,€his€falsification€took€place€in€2001Ð Ì%Ì%) Ðand€was€recent.€€Together,€the€two€acts€are€not€isolated€and€demonstrate€a€pattern€of€criminal€conduct.€€Thus, €mitigating€conditions€ð ðð ð€E2.A10.1.3.1.€andÐ ¸&¸&* ÐE2.A10.1.3.2€of€Guideline€J€do€not€apply€in€this€case.Ð ¤'¤'+ ÐÌÔ #† X ëäX X X ëä_j#ÔÔ ‡ X ëäX X X ëä Ôà @ àI€conclude€Applicant€deliberately€falsified€his€security€clearance€application€by€omitting€relevant€and€material€information€and€then€certifying€his€statements€onÐ |)|)- Ðhis€SF"86€as€true, €complete,€and€correct€to€the€best€of€his€knowledge€and€belief€and€made€in€good€faith.€€After€weighing€the€disqualifying€and€mitigatingÐ h*h*. Ðconditions€of€Guideline€J€and€after€evaluating€Applicantð ðs€conduct€in€light€of€the€whole€person€concept€identified€at€ð ð€E2.2€of€Enclosure€2€of€the€Directive,€IÐ T+T+/ Ðconclude€the€Guideline€J€allegations€of€the€SOR€against€the€Applicant.€€Ð @,@,0 ÐÌÌà@ à à /~ àÔ #† X ëäX X X ëäÕm#Ôò òò òÔ ‡ X ëäX X X ëä Ôò òò òó óó óFORMAL€FINDINGSˆÐ / /3 ÐÌó óó óÔ #† X ëäX X X ëä¹p#ÔÔ ‡ X ëäX X X ëä Ôà @ àThe€following€are€my€conclusions€as€to€each€allegation€in€the€SOR:Ð Ü0Ü05 ÐÐ È1È16 Ðà @ àParagraph€1.:€Guideline€F:€AGAINST€APPLICANTÐ ÐÌà @ àà @` àSubparagraph€1.a.:€Against€ApplicantÐ Ø Ø Ðà @ àà @` àSubparagraph€1.b.:€Against€ApplicantÐ Ä Ä Ðà @ àà @` àSubparagraph€1.c.:€Against€ApplicantÐ ° ° Ðà @ àà @` àSubparagraph€1.d.:€Against€ApplicantÐ œ œ Ðà @ àà @` àSubparagraph€1.e.:€Against€ApplicantÐ ˆ ˆ Ðà @ àà @` àSubparagraph€1.f.:€Against€ApplicantÐ t t Ðà @ àà @` àSubparagraph€1.g.: €Against€ApplicantÐ ` ` Ðà @ àà @` àSubparagraph€1.h.:€Against€ApplicantÐ L L ÐÌà @ àParagraph€2.:€Guideline€E:€AGAINST€APPLICANTÐ $ $ ÐÌà @ àà @` àSubparagraph€2.a.:€Against€ApplicantÐ ü ü Ðà @ àà @` àÌà @ àà @` àÔ #† X ëäX X X ëä3q#ÔÔ ‡ X ëäX X X ëä ÔÌà @ àParagraph€3.:€Guideline€J:€AGAINST€APPLICANTÐ À À ÐÌà @ àà @` àSubparagraph€3.a.: €Against€ApplicantÐ ˜ ˜ Ðà @ àà @` àSubparagraph€3.b.:€Against€Applicant€Ð " " ÐÌà @ àà @` àÌÔ #† X ëäX X X ëä”u#ÔÔ ‡ X ëäX X X ëä Ôò òò òÓ ÓDECISIONó óó óÐ H H ÐÓ w ÓÌà @ àIn€light€of€all€of€the€circumstances€presented€by€the€record€in€this€case,€it€is€not€clearly€consistent€with€the€national€interest€to€grant€or€continue€a€securityÐ Ðclearance€for€Applicant.€€Clearance€is€denied.Ð ÐÌÌÓ Óò òó óÌJoan€Ô_ ÔCatonÔ_ Ô€AnthonyÐ ¼ ¼ ÐAdministrative€JudgeÐ ¨ ¨ ÐÔ #† X ëäX X X ëäâv#ÔÔ ‡ X ëäX X X ëä ÔÌò òò òÔ #† X ëäX X X ëäõx#Ôó óó ó

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