ISCR Case 97-0005.h1

Case Headnote

ISCR Case No. 97-0005.h1

deniedJul 8, 1997· Hon. Kathryn Moen Braeman· hearing

Summary

A 52-year-old temporary agency employee was denied a security clearance due to significant financial issues and a history of serious criminal conduct, falling under Guideline F (Financial Considerations) and Guideline J (Criminal Conduct).

The applicant's criminal history included an arrest in 1979 for possessing a controlled substance, which resulted in a misdemeanor plea for marijuana possession, one year of probation, and a dismissal with adjudication withheld. More significantly, in 1985, he was arrested, indicted, and subsequently pled guilty to continuing criminal enterprise and income tax evasion. This stemmed from his involvement in selling 50 kilos of cocaine between 1980 and 1985, earning approximately $35,000 weekly. He was sentenced to 16 years in prison, serving ten, and was released in December 1994, completing six years of probation by June 2001.

Financially, the applicant owed the IRS at least $73,303 from a September 1993 tax lien and an additional $200,000 for tax years 1983 and 1985. The judge determined that the felony conviction and substantial tax debt presented unmitigated security concerns, despite the applicant's claims of probation compliance and lack of independent evidence of rehabilitation.

Why the Applicant Was Denied

The applicant has a felony conviction for continuing criminal enterprise and income tax evasion, which raises significant security concerns.
The applicant owes at least $73,303 to the IRS, indicating financial irresponsibility and a history of not meeting financial obligations.
The applicant did not provide independent evidence of rehabilitation or good character despite his claims of compliance with probation.

Conditions Referenced

Disqualifying

J1raisedCriminal Conduct, Regardless of Whether the Person Was Formally Charged
J2raisedA Single Serious Crime or Multiple Lesser Offenses
F1raisedA History of Not Meeting Financial Obligations
F2raisedDeceptive or Illegal Financial Practices Such as Income Tax Evasion
F3raisedInability or Unwillingness to Satisfy Debts
F5raisedFinancial Problems That Are Linked to Gambling, Drug Abuse, Alcoholism, or Other Issues of Security Concern

Key Rule Quoted

“A history or pattern of criminal activity creates doubt about a person's judgment, reliability and trustworthiness.”

Procedural Posture

SOR issuedJan 14, 1997
Answer filedJan 23, 1997
Hearing held—
Decision dateJul 8, 1997

Cite For

Disqualifying Conditions Related to Criminal Conduct Under Guideline J
Disqualifying Conditions Related to Financial Issues Under Guideline F
The Necessity of Independent Evidence of Rehabilitation for Mitigating Security Concerns.

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	Applicant owes the IRS at least $73,303 for a tax lien from September 1993. $73,303	Against Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations (e) consistent spending beyond one’s means / irresponsible spending	—	—
2.a	Applicant is indebted to IRS in the amount of $200,000 for tax years 1983 and 1985. $200,000	Against Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations (e) consistent spending beyond one’s means / irresponsible spending	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

2.a

Applicant owes the IRS at least $73,303 for a tax lien from September 1993.

$73,303

Against Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

(e) consistent spending beyond one’s means / irresponsible spending

—

2.a

Applicant is indebted to IRS in the amount of $200,000 for tax years 1983 and 1985.

$200,000

Against Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

(e) consistent spending beyond one’s means / irresponsible spending

—

¶	Allegation	Finding	Offense	Criminal disposition	Response	Disqualifying (¶31)	Mitigating applied (¶32)	Mitigation
1.a	Applicant was first arrested on September 20, 1979, for knowingly or intentionally possessing a controlled substance, cocaine. After pleading guilty to a charge of possession of marijuana, a misdemeanor, he was placed on probation for one year and ordered to pay costs. On February 18, 1981, he was released from probation, and the case was dismissed as adjudication of guilt had been withheld.	For Applicant	Drug Related Criminal Charge	Convicted	Admitted	—	(a) so much time has passed, or unusual circumstances, that it is unlikely to recur	—
1.b	He was arrested again on December 20, 1985. He was indicted and charged with selling cocaine and cocaine conspiracy as well as continuing criminal enterprise and income tax evasion. Applicant explained that a former friend and business associate had disclosed his drug involvement and earnings from drug sales in return for a more lenient sentence. From 1980 to 1985 Applicant had sold 50 kilos of cocaine and made about $35,000 a week. After he pled guilty to continuing criminal enterprise and income tax evasion, the plea agreement stipulation required him to surrender all personal property. He was sentenced to 16 years in prison and served ten. He was released in December 1994 and was then to serve six years on probation until June 22, 2001. He has abided by all the conditions of his probation.	Against 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	—	—

Allegation

Finding

Offense

Criminal disposition

Response

Disqualifying (¶31)

Mitigating applied (¶32)

Mitigation

1.a

Applicant was first arrested on September 20, 1979, for knowingly or intentionally possessing a controlled substance, cocaine. After pleading guilty to a charge of possession of marijuana, a misdemeanor, he was placed on probation for one year and ordered to pay costs. On February 18, 1981, he was released from probation, and the case was dismissed as adjudication of guilt had been withheld.

For Applicant

Drug Related Criminal Charge

Convicted

Admitted

—

(a) so much time has passed, or unusual circumstances, that it is unlikely to recur

—

1.b

He was arrested again on December 20, 1985. He was indicted and charged with selling cocaine and cocaine conspiracy as well as continuing criminal enterprise and income tax evasion. Applicant explained that a former friend and business associate had disclosed his drug involvement and earnings from drug sales in return for a more lenient sentence. From 1980 to 1985 Applicant had sold 50 kilos of cocaine and made about $35,000 a week. After he pled guilty to continuing criminal enterprise and income tax evasion, the plea agreement stipulation required him to surrender all personal property. He was sentenced to 16 years in prison and served ten. He was released in December 1994 and was then to serve six years on probation until June 22, 2001. He has abided by all the conditions of his probation.

Against 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

—

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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