ISCR Case 04-06167.h1

Case Headnote

ISCR Case No. 04-06167.h1

deniedOct 25, 2006· Hon. Joseph Testan· hearing

Summary

A 42-year-old defense contractor was denied a security clearance due to concerns under Guidelines E (Personal Conduct), F (Financial Considerations), and J (Criminal Conduct). The applicant had a history of financial difficulties, including a Chapter 7 bankruptcy in 1998 that discharged approximately $68,343 in unsecured debts. Several other debts remained, including amounts of $132, $2,596, $377, $541, and a past-due Diners Corp. debt of approximately $2,007. While some smaller debts of $25, $265, and $203 were paid in March 2006, the applicant also misused employer-issued Diners Club and Visa credit cards, as well as a government credit card, for personal purchases, allowing these accounts to become delinquent.

Further issues arose from the applicant's past employment as a Juvenile Parole Officer in the late 1990s, where he ran a private business from the parole office and charged parolees and their parents for services that were provided free by the State. Between September 2000 and March 2001, the applicant solicited money from four individuals for a business venture, but failed to produce a promised business plan, leading to demands for repayment.

Additionally, the applicant admitted to denying a felony conviction on an August 7, 1999, Security Clearance Application. The judge determined that these factors, including a long history of not meeting financial obligations, deceptive financial practices, unresolved debts, and a felony conviction with associated dishonesty, precluded a finding that granting a security clearance was consistent with national interest. The application was therefore denied.

Why the Applicant Was Denied

Applicant has a long history of not meeting financial obligations.
Applicant engaged in deceptive financial practices and has unresolved debts.
Applicant's felony conviction and dishonesty in the Security Clearance Application raise serious concerns about his judgment and reliability.

Conditions Referenced

Disqualifying

E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
E2.A6.1.2.2raisedDeceptive Financial Practices
E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
E2.A10.1.2.2raisedA Single Serious Crime or Multiple Lesser Offenses
E2.A5.1.2.1raisedReliable, Unfavorable Information Provided by Associates, Employers, Coworkers, Neighbors, and Other Acquaintances
E2.A5.1.2.2raisedThe Deliberate Concealment of Relevant and Material Facts From Any SCA
E2.A5.1.2.5raisedA Pattern of Dishonesty or Rule Violations

Procedural Posture

SOR issuedAug 15, 2005
Answer filedSep 12, 2005Applicant elected to have case determined on written record.
Hearing held—No hearing; case determined on written record.
Decision dateOct 25, 2006

Cite For

Denial Based on a Pattern of Financial Irresponsibility Under Guideline F
Serious Concerns Regarding Judgment and Reliability Due to Felony Conviction Under Guideline J
Issues of Dishonesty and Rule Violations Impacting Trustworthiness 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
1.a	Applicant intentionally misused a Diners Club credit card issued to him by his employer by charging personal items on it and then letting the account go delinquent.	Against Applicant	Misuse of Employer Time or ResourcesFOUND DELIBERATE	—	Denied	(b) deliberately providing false information to an investigator or official (c) credible adverse information across areas supporting a whole-person concern (e) personal conduct or concealment creating vulnerability to exploitation	—	—
1.b	Applicant made unauthorized purchases with his government credit card and then let the account go delinquent.	Against Applicant	Misuse of Employer Time or ResourcesFOUND DELIBERATE	—	Denied	(b) deliberately providing false information to an investigator or official (c) credible adverse information across areas supporting a whole-person concern (e) personal conduct or concealment creating vulnerability to exploitation	—	—
1.c	Applicant misused a Visa card issued to him by his employer by purchasing personal items with it and then letting the account go delinquent.	Against Applicant	Misuse of Employer Time or ResourcesFOUND DELIBERATE	—	Denied	(b) deliberately providing false information to an investigator or official (c) credible adverse information across areas supporting a whole-person concern (e) personal conduct or concealment creating vulnerability to exploitation	—	—
2.a	In the late 1990s, applicant was employed by a State as a Juvenile Parole Officer. He abused his position by, among other things, running a private business out of the parole office, and by charging parolees under his supervision and their parents for parole services that were provided free by the State and then keeping the money for himself.	Against Applicant	Pattern of Dishonesty or Rule ViolationsFOUND DELIBERATE	—	Denied	(b) deliberately providing false information to an investigator or official (c) credible adverse information across areas supporting a whole-person concern (e) personal conduct or concealment creating vulnerability to exploitation	—	—
3.c	Between September 2000 and March 2001, applicant solicited and received money from four individuals by telling them he was opening a business. When applicant began misleading them and not producing a business plan as promised, they demanded their money back.	Against Applicant	Pattern of Dishonesty or Rule ViolationsFOUND DELIBERATE	—	Denied	(b) deliberately providing false information to an investigator or official (c) credible adverse information across areas supporting a whole-person concern (e) personal conduct or concealment creating vulnerability to exploitation	—	—
3.d	Applicant admits that on a Security Clearance Application (SCA) he executed on August 7, 1999, he denied that he had ever been charged with a felony offense.	Against Applicant	Lack of Candor in InterviewFOUND DELIBERATE	—	Denied	(b) deliberately providing false information to an investigator or official (c) credible adverse information across areas supporting a whole-person concern (e) personal conduct or concealment creating vulnerability to exploitation	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

1.a

Applicant intentionally misused a Diners Club credit card issued to him by his employer by charging personal items on it and then letting the account go delinquent.

Against Applicant

Misuse of Employer Time or ResourcesFOUND DELIBERATE

—

Denied

(b) deliberately providing false information to an investigator or official

(c) credible adverse information across areas supporting a whole-person concern

(e) personal conduct or concealment creating vulnerability to exploitation

—

1.b

Applicant made unauthorized purchases with his government credit card and then let the account go delinquent.

Against Applicant

Misuse of Employer Time or ResourcesFOUND DELIBERATE

—

Denied

(b) deliberately providing false information to an investigator or official

(c) credible adverse information across areas supporting a whole-person concern

(e) personal conduct or concealment creating vulnerability to exploitation

—

1.c

Applicant misused a Visa card issued to him by his employer by purchasing personal items with it and then letting the account go delinquent.

Against Applicant

Misuse of Employer Time or ResourcesFOUND DELIBERATE

—

Denied

(b) deliberately providing false information to an investigator or official

(c) credible adverse information across areas supporting a whole-person concern

(e) personal conduct or concealment creating vulnerability to exploitation

—

2.a

In the late 1990s, applicant was employed by a State as a Juvenile Parole Officer. He abused his position by, among other things, running a private business out of the parole office, and by charging parolees under his supervision and their parents for parole services that were provided free by the State and then keeping the money for himself.

Against Applicant

Pattern of Dishonesty or Rule ViolationsFOUND DELIBERATE

—

Denied

(b) deliberately providing false information to an investigator or official

(c) credible adverse information across areas supporting a whole-person concern

(e) personal conduct or concealment creating vulnerability to exploitation

—

3.c

Between September 2000 and March 2001, applicant solicited and received money from four individuals by telling them he was opening a business. When applicant began misleading them and not producing a business plan as promised, they demanded their money back.

Against Applicant

Pattern of Dishonesty or Rule ViolationsFOUND DELIBERATE

—

Denied

(b) deliberately providing false information to an investigator or official

(c) credible adverse information across areas supporting a whole-person concern

(e) personal conduct or concealment creating vulnerability to exploitation

—

3.d

Applicant admits that on a Security Clearance Application (SCA) he executed on August 7, 1999, he denied that he had ever been charged with a felony offense.

Against Applicant

Lack of Candor in InterviewFOUND DELIBERATE

—

Denied

(b) deliberately providing false information to an investigator or official

(c) credible adverse information across areas supporting a whole-person concern

(e) personal conduct or concealment creating vulnerability to exploitation

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant filed a Chapter 7 bankruptcy petition in 1998. His unsecured debts in the approximate amount of $68,343.00 were discharged by the bankruptcy court in May 1998. $68,343	Against Applicant	Bankruptcy Filing	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.b	Applicant has been indebted to this creditor in the approximate amount of $132.00 for at least two years. $132	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.c	Applicant has been indebted to Bank of America in the approximate amount of $2,596.00 since at least 2001. $2,596	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.d	Applicant admitted he was indebted to this creditor in the approximate amount of $377.00 and that the debt had been placed in collection. $377	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.e	Applicant is indebted to this creditor in the approximate amount of $541.00. $541	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.f	Applicant is indebted to Diners Corp. in the past-due amount of approximately $2,007.00. $2,007	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.g	Applicant paid this $25.00 debt in March 2006. $25	For Applicant	Unspecified Financial	Unknown	—	—	—
1.h	Applicant paid this $265.00 debt in March 2006. $265	For Applicant	Unspecified Financial	Unknown	—	—	—
1.i	Applicant paid this $203.00 debt in March 2006. $203	For Applicant	Unspecified Financial	Unknown	—	—	—
1.j	Applicant's AMEX debt was included in his bankruptcy petition and presumably discharged in 1998.	For Applicant	Bankruptcy Filing	Unknown	—	—	—
1.k	Applicant intentionally misused a Diners Club credit card issued to him by his employer by charging personal items on it and then letting the account go delinquent. $1,803	Against Applicant	Credit Card Debt	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.l	Applicant made unauthorized purchases with his government credit card and then let the account go delinquent.	Against Applicant	Credit Card Debt	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.m	Applicant misused a Visa card issued to him by his employer by purchasing personal items with it and then letting the account go delinquent.	Against Applicant	Credit Card Debt	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant filed a Chapter 7 bankruptcy petition in 1998. His unsecured debts in the approximate amount of $68,343.00 were discharged by the bankruptcy court in May 1998.

$68,343

Against Applicant

Bankruptcy Filing

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.b

Applicant has been indebted to this creditor in the approximate amount of $132.00 for at least two years.

$132

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.c

Applicant has been indebted to Bank of America in the approximate amount of $2,596.00 since at least 2001.

$2,596

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.d

Applicant admitted he was indebted to this creditor in the approximate amount of $377.00 and that the debt had been placed in collection.

$377

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.e

Applicant is indebted to this creditor in the approximate amount of $541.00.

$541

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.f

Applicant is indebted to Diners Corp. in the past-due amount of approximately $2,007.00.

$2,007

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.g

Applicant paid this $25.00 debt in March 2006.

$25

For Applicant

Unspecified Financial

Unknown

—

1.h

Applicant paid this $265.00 debt in March 2006.

$265

For Applicant

Unspecified Financial

Unknown

—

1.i

Applicant paid this $203.00 debt in March 2006.

$203

For Applicant

Unspecified Financial

Unknown

—

1.j

Applicant's AMEX debt was included in his bankruptcy petition and presumably discharged in 1998.

For Applicant

Bankruptcy Filing

Unknown

—

1.k

Applicant intentionally misused a Diners Club credit card issued to him by his employer by charging personal items on it and then letting the account go delinquent.

$1,803

Against Applicant

Credit Card Debt

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.l

Applicant made unauthorized purchases with his government credit card and then let the account go delinquent.

Against Applicant

Credit Card Debt

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.m

Applicant misused a Visa card issued to him by his employer by purchasing personal items with it and then letting the account go delinquent.

Against Applicant

Credit Card Debt

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

¶	Allegation	Finding	Offense	Criminal disposition	Response	Disqualifying (¶31)	Mitigating applied (¶32)	Mitigation
1.a	Applicant intentionally misused a Diners Club credit card issued to him by his employer by charging personal items on it and then letting the account go delinquent.	Against Applicant	Fraud or Deception Criminal	Convicted	Denied	(a) pattern of minor offenses casting doubt on judgment/reliability	—	—
1.b	Applicant made unauthorized purchases with his government credit card and then let the account go delinquent.	Against Applicant	Fraud or Deception Criminal	Convicted	Denied	(a) pattern of minor offenses casting doubt on judgment/reliability	—	—
1.c	In the late 1990s, applicant was employed by a State as a Juvenile Parole Officer. He abused his position by, among other things, running a private business out of the parole office, and by charging parolees under his supervision and their parents for parole services that were provided free by the State and then keeping the money for himself.	Against Applicant	Fraud or Deception Criminal	Convicted	Denied	(a) pattern of minor offenses casting doubt on judgment/reliability	—	—

Allegation

Finding

Offense

Criminal disposition

Response

Disqualifying (¶31)

Mitigating applied (¶32)

Mitigation

1.a

Applicant intentionally misused a Diners Club credit card issued to him by his employer by charging personal items on it and then letting the account go delinquent.

Against Applicant

Fraud or Deception Criminal

Convicted

Denied

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

—

1.b

Applicant made unauthorized purchases with his government credit card and then let the account go delinquent.

Against Applicant

Fraud or Deception Criminal

Convicted

Denied

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

—

1.c

Against Applicant

Fraud or Deception Criminal

Convicted

Denied

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

—

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Case Profile

Summary

Why the Applicant Was Denied

Conditions Referenced

Procedural Posture

Cite For

Full decision

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES