ÿWPCW VDøV3yogˆÆtN%ßIÏ™ªýk#C•}õCÊ-ÝÖÑáê5`øRÜ@åìjûAÔ‚oÙuÛ‚ß–ªì™[…È30D%ÑP[¢e÷šOˆ­Þ ŠÍ‹1ßEAud6ÿ‘ŸßÏß6V¨ëv,:®Y,ÙÂC½2:ç÷sæ¬O«MŒÓœÊo ª«‚®Ï×ÆêÑ ÌÌÿ[ (-ýŸ¾ÔçG:\.+ž¥Tü½kd “Š÷Ì#¢•Îˆ>îçO¹çxí@kVf¢a²*ÈAö»ü2¯uyPi7WÚóí9Ag#Çd;ºTYšQ*+H¨iû¦2žˆ¾p– ¶/÷"*¤Ö©5þwÇf\Lu?PAä< %”ZuoãÝ#¯ŸNÔlƒÝ/+b-í Њ*_Àíâ|gï­®&­.';¡FñÀÀQÚ1jœêV Û%Bú²€’æD³cáyK%ýôÏРX8N7ï j Î¥²ñ “¼]÷¼PØ»PÜÊPÑZOþZ#ÉìUNµ % 0: àZC ^ w© 4­ Á Ð mÒ àZé 0©C C Eì 0Dî N2 ¸4 UNì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì ì B:˜Hewlett-Packard HP LaserJet P3010 SeriesÈÈÈÈ0(ÖÃ9 Z‹6Times New Roman RegularX(üœ$¡¡ÔUSUS.,Ô8DocumentManagement::ModifiedBooleanTRUEƒ4K;E•J3|xÿU‹ÿÿÿÿ8DocumentManagement::ModifiedBooleanTRUE(Y(2u®$¤¤Ý ƒüœ!ÝÔUSUS.,ÔÝ  ÝÓ  ÓÔ€ôüòXXÔà  àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó ®Ý ƒ u®$ÝÔUSUS.,ÔÓ  ÓÔ€ôüòXXÔà  àòòÚ  Ú1Ú  ÚóóÝ  ÝÔ_ÔApplicantððs€assertions€on€this€point€were€contained€in€his€Response€to€the€File€of€Relevant€Material.€€HeÐ ° Ðprovided€no€evidence€to€corroborate€his€claim.€€It€is€Applicantððs€burden€to€produce€evidence€in€mitigation.€€DirectiveÐ tÄ Ððð€E3.1.15.€€(ÖÃ9 Z ‹6Times New Roman Regular dÝ ƒüœ!ÝÔUSUS.,ÔÝ  ÝÔ_ÔKEYWORD:€Guideline€F;€Guideline€BÐ ° ÐÌDIGEST:€Applicantððs€arguments€do€not€undermine€the€Judgeððs€conclusion€that€his€financialÐ ˆØ Ðproblems€were€generally€the€result€of€his€own€conduct€and€that€Applicant€had€the€financial€meansÐ tÄ Ðto€address€his€problems€before€resorting€to€bankruptcy.€The€Judgeððs€material€findings€of€securityÐ `° Ðconcern€are€based€upon€substantial€evidence€or€constitute€reasonable€interpretations€of€theÐ L œ Ðevidence.€Adverse€decision€affirmed.Ð 8 ˆ ÐÌÔ_ÔCASENOÔ_Ô:€15„04918.a1Ð  ` ÐÌDATE:€09/20/2017Ð è 8  ÐÌà  àà ` àà ¸ àà  àà h àà À àà  àà p àDATE:€September€20,€2017Ð À  ÐÌÌÌÒ.؉ð7r°(#°(#.ÒßA€Y) °°xdE°ogAßÐ pÀ ÐÌIn€Re:Ð k» ÐÌà  à„„„„„„„„„„„„„„„„Ìà  à€Ð / ÐÌApplicant€for€Security€ClearanceÐ W ÐÌßA€Y) °°xdE°ÞgAßÐ ß/ Ð)Ð pÀ Ð)Ð \¬ Ð)Ð H˜ Ð)Ð 4„ Ð)Ð  p Ð)Ð  \ Ð)Ð øH Ð)Ð ä4  ÐÐ Ð ! ÐÓp°œXÓÌÌÌà p àÔ_ÔISCRÔ_Ô€Case€No.€15„04918Ð 4„$ ÐÐ  p% ÐÒ.؉ð7r°°.ÒÓ °\X›XpÓÐ ¨ø% Ðò òÓ  ÓAPPEAL€BOARD€DECISIONÐ ”ä& ÐÌÌòòAPPEARANCESóóÐ X ¨) Ðó óÌÔ‡&ò[%XXÔò òFOR€GOVERNMENTó óÐ 0"€+ ÐJames€B.€Norman,€Esq.,€Chief€Department€CounselÐ #X, ÐÌò òFOR€APPLICANTó óÐ ¸$ . Ðòòò òPro€seó óóóÔ#†XçÈX%&ò[#ÔÐ %à / ÐÌÓ  Óà  àThe€Department€of€Defense€(DoD)€declined€to€grant€Applicant€a€security€clearance.€€On€AprilÐ R'¢"1 Ð29,€2016,€DoD€issued€a€statement€of€reasons€(Ô_ÔSORÔ_Ô)€advising€Applicant€of€the€basis€for€thatÐ >(Ž#2 Ðdecisionð!ðsecurity€concerns€raised€under€Guideline€F€(Financial€Considerations)€and€Guideline€BÐ *)z$3 Ð(Foreign€Influence)€of€Department€of€Defense€Directive€5220.6€(Jan.€2,€1992,€as€amended)Ð *f%4 Ð(Directive).€€Applicant€requested€a€decision€on€the€written€record.€€On€June€26,€2017,€afterÐ +R&5 Ðconsidering€the€record,€Defense€Office€of€Hearings€and€Appeals€(DOHA)€Administrative€JudgeÐ î+>'6 ÐFrancisco€Mendez€denied€Applicantððs€request€for€a€security€clearance.€€Applicant€appealed€pursuantÐ Ú,*(7 Ðto€Directive€ðððð€€E3.1.28€and€E3.1.30.Ð Æ-)8 Їà  àApplicant€raised€the€following€issues€on€appeal:€whether€the€Judgeððs€findings€of€factÐ ° Ðcontained€errors€and€whether€the€Judgeððs€adverse€decision€was€arbitrary,€capricious,€or€contrary€toÐ œì Ðlaw.€€Department€Counsel€withdrew€the€Guideline€B€allegation€in€the€File€of€Relevant€Material.€Ð ˆØ ÐTherefore,€that€Guideline€is€not€at€issue€in€this€appeal.€€Consistent€with€the€following,€we€affirm.Ð tÄ ÐÌà  àò òThe€Judgeððs€Findings€of€Factó óÐ L œ ÐÌà  àApplicant€retired€from€the€military€in€2006€after€20€years€of€service.€€After€leaving€theÐ $ t Ðmilitary€he€has€worked€as€a€Federal€contractor.€€He€has€worked€for€his€current€employer€since€earlyÐ  ` Ð2016.€€While€in€the€military,€Applicantððs€first€attempt€to€obtain€a€clearance€was€unsuccessful€due€toÐ ü L  Ðpre„service€misconduct.€€He€was€granted€a€clearance€in€1990€or€1991.€€A€few€years€later,€the€militaryÐ è 8  Ðinvestigated€Applicant€for€misconduct€during€an€overseas€tour€of€duty.€€Applicant€was€never€chargedÐ Ô$  Ðwith€wrongdoing.Ð À  ÐÌà  àApplicant€built€a€house€in€2005,€financing€the€construction€with€equity€taken€from€hisÐ ˜è  Ðexisting€home.€€After€it€was€built,€Applicant€accepted€work€overseas€and€rented€out€his€new€house.€Ð „Ô  ÐIn€2009,€Applicantððs€renter€had€to€vacate,€and€Applicant€was€not€able€to€find€another€tenant.€€HeÐ pÀ Ðcould€not€pay€the€mortgages€on€two€houses€and€sought€a€loan€modification,€but€the€lender€deniedÐ \¬ Ðthis€request.€€The€lender€foreclosed€on€the€new€house€in€2010€and€provided€Applicant€with€a€FormÐ H˜ Ð1099„C€showing€that€the€over„$500,000€debt€had€been€canceled.€€Despite€his€stated€inability€to€payÐ 4„ Ðhis€mortgages,€Applicant€took€numerous€vacations€in€Europe€and€Asia€between€2008€and€2013.Ð  p ÐÌà  àIn€2007€and€2008,€Applicant€earned€$118,000€and€$300,000€respectively.€€In€2010€he€earnedÐ øH Ð$140,000,€in€2011€$115,000,€and€in€2012€through€2014€$200,000€or€more€each€year.€€ApplicantÐ ä4 Ðcompleted€his€security€clearance€application€(Ô_ÔSCAÔ_Ô)€in€2014.€€In€that€document€he€disclosed€$50,000Ð Ð  Ðof€past„due€debt,€although€he€did€not€report€the€foreclosure€on€his€house.€€In€his€subsequentÐ ¼  Ðinterview,€he€attributed€his€financial€problems€to€the€recession,€reduction€in€pay,€reliance€on€creditÐ ¨ø Ðcards,€and€costs€of€his€wifeððs€visits€to€a€foreign€country€to€care€for€her€ailing€mother.€€He€told€theÐ ”ä Ðinterviewer€that€he€was€paying€down€debts.€€Ð €Ð ÐÌà  àIn€2015,€after€creditors€initiated€lawsuits€against€him,€Applicant€filed€for€Chapter€7Ð X ¨ Ðbankruptcy€protection.€€His€debts€included€delinquent€state€and€Federal€taxes,€unsecured€debts€ofÐ D!” Ðover€$190,000,€and€monthly€income€of€nearly€$11,000.€€After€expenses,€which€included€$3,000€aÐ 0"€  Ðmonth€for€the€care€and€feeding€of€a€horse€and€for€his€daughterððs€riding€lessons,€Applicant€had€aÐ #l! Ðnegative€remainder€of€$450.€€Ð $X" ÐÌà  àò òThe€Judgeððs€Analysisó óÐ à%0!$ ÐÌà  àThe€Judge€noted€Applicantððs€claim€that€his€problems€resulted€from€insufficient€income.€Ð ¸'#& ÐHowever,€he€cited€to€evidence€that,€during€the€years€in€question,€Applicant€received€significantÐ ¤(ô#' Ðcompensation,€his€adjusted€gross€income€from€2010€to€2014€totaling€almost€$1,000,000.€€The€JudgeÐ )à$( Ðalso€noted€that€Applicantððs€bankruptcy€petition€included€reference€to€an€unpaid€$30,000€judgmentÐ |*Ì%) Ðdating€from€2007.€€The€Judge€concluded€that€Applicantððs€purchase€of€luxury€cars,€his€expensiveÐ h+¸&* Ðvacations,€and€his€daughterððs€riding€lessons€€showed€that€he€was€living€beyond€his€means.€€He€statedÐ T,¤'+ Ðthat€Applicant€had€filed€for€bankruptcy€only€after€his€creditors€sued€him.Ð @-(, Їà  àIn€the€whole„person€analysis,€the€Judge€acknowledged€Applicantððs€military€service€and€hisÐ ° Ðsupport€to€the€U.S.€as€a€contractor.€€He€found€that€this€favorable€evidence€was€not€sufficient€toÐ œì Ðoutweigh€the€concerns€arising€from€Applicantððs€financial€difficulties.€€He€also€noted€that€ApplicantÐ ˆØ Ðhad€disclosed€only€$50,000€of€debt€in€his€Ô_ÔSCAÔ_Ô€despite€having€about€four€times€that€much,€asÐ tÄ Ðreflected€in€his€bankruptcy€filings.€€The€Judge€found€that€this€detracted€from€Applicantððs€credibility.Ð `° ÐÌà  àò òDiscussionó óÐ 8 ˆ ÐÌà  àApplicant€contends€that€the€Judge€erred€in€some€of€his€findings.€€He€argues€that€the€JudgeÐ  ` Ðdid€not€present€the€military€investigation€in€its€proper€context,€that€his€total€earnings€includedÐ ü L  Ðbenefits€paid€by€his€employer€and€did€not€reflect€his€true€economic€circumstances,׃×Ý ƒ#ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×€that€his€vacationsÐ è 8  Ðhad€been€paid€for€by€his€employer€rather€than€out€of€his€own€pocket,€that€the€$30,000€judgment€wasÐ Ô$  Ðagainst€his€wife€rather€than€himself,€etc.€€In€presenting€his€arguments€on€appeal,€Applicant€includesÐ À  Ðmatters€from€outside€the€record,€which€we€cannot€consider.€€Directive€ðð€E3.1.29.€€Ð ¬ü  ÐÌà  àWe€have€considered€Applicantððs€arguments€in€light€of€the€evidence€as€a€whole.€€ConcerningÐ „Ô  Ðthe€judgment,€the€Judge€found€that€it€was€one€of€Applicantððs€unpaid€debts.€€However,€the€bankruptcyÐ pÀ Ðfilings€state€that€it€was€a€judgment€against€his€wife.€€Despite€this,€we€find€no€reason€to€conclude€thatÐ \¬ Ðthe€Judge€would€have€rendered€a€different€decision€if€he€had€explicitly€found€that€the€judgment€wasÐ H˜ Ðagainst€Applicantððs€wife,€insofar€as€it€was€included€in€their€joint€petition€for€bankruptcy.€€ApplicantððsÐ 4„ Ðarguments€do€not€undermine€the€Judgeððs€conclusion€that€his€financial€problems€were€generally€theÐ  p Ðresult€of€his€own€conduct€and€that€Applicant€had€the€financial€means€to€address€his€problems€beforeÐ  \ Ðresorting€to€bankruptcy.€€The€Judgeððs€material€findings€of€security€concern€are€based€uponÐ øH Ðsubstantial€evidence€or€constitute€reasonable€interpretations€of€the€evidence.€€òòSee,€e.g.óó,€Ô_ÔISCRÔ_Ô€CaseÐ ä4 ÐNo.€15„01285€at€3€(App.€Bd.€Dec.€22,€2016).€Ð Ð  ÐÌà  àThe€Judge€examined€the€relevant€evidence€and€articulated€a€satisfactory€explanation€for€theÐ ¨ø Ðdecision.€€An€applicant€who€fails€to€discharge€his€or€her€legal€obligations,€such€as€paying€taxes€whenÐ ”ä Ðdue,€may€be€lacking€in€the€judgment€and€reliability€expected€of€those€with€access€to€classifiedÐ €Ð Ðinformation.€€òòSee,€e.g.óó,€Ô_ÔISCRÔ_Ô€Case€14„06808€at€2€(App.€Bd.€Nov.€23,€2016);€€òòSee€also€Cafeteria€andÐ l¼ ÐRestaurant€Workers€Union€Local€473€v.€Ô_ÔMcElroyÔ_Ôóó,€284€F.2d€173,€183€(D.C.€Cir.€1960),€òòÔ_ÔaffððdÔ_Ôóó,€367Ð X ¨ ÐU.S.€886€(1961).€€The€Judgeððs€findings€that€Applicant€had€failed€to€disclose€the€true€extent€of€hisÐ D!” Ðfinancial€problems€support€his€adverse€credibility€determination.€€We€give€deference€to€a€JudgeððsÐ 0"€  Ðcredibility€determinations.€€Directive€ðð€E3.1.32.1.€€Moreover,€the€Judgeððs€findings€about€ApplicantððsÐ #l! Ðincome€and€the€relationship€of€his€spending€choices€to€his€financial€delinquencies,€and€about€theÐ $X" Ðtiming€of€his€effort€at€tackling€his€delinquent€debts,€constitute€a€reasonable€interpretation€of€theÐ ô$D # Ðrecord.€€òòSee,€e.g.óó,€Ô_ÔISCRÔ_Ô€Case€No.€14„01243€at€3€(App.€Bd.€Jun.€18,€2015).€€Ð à%0!$ ÐÌà  àThe€decision€is€sustainable€on€this€record.€€ð ðThe€general€standard€is€that€a€clearance€may€beÐ ¸'#& Ðgranted€only€when€ððclearly€consistent€with€the€interests€of€the€national€security.ðððð€€òòDepartment€of€theÐ ¤(ô#' ÐNavy€v.€Eganóó,€484€U.S.€518,€528€(1988).€€òòSee€alsoóó€Directive,€Encl.€2,€App.€A€ðð€2(b):€€ð ðAny€doubtÐ )à$( Ðconcerning€personnel€being€considered€for€access€national€security€eligibility€will€be€resolved€inÐ ° Ðfavor€of€the€national€security.ððÐ œì ÐÌà@ââ(ìàò òOrderó óˆÐ tÄ Ðà  àÌà  àThe€Decision€is€ò òAFFIRMEDó ó.€€Ð L œ Ðà  àà ` àà ¸ àà  àà h àà À àÔ‡XçÈXXXçÈÔÌÌÌà  àà ` àà ¸ àà  àà h àà À àòòSigned:€Michael€Y.€Ô_ÔRaððananÔ_Ô€€€€€€€€óóÐ  P  Ðà  àà ` àà ¸ àà  àà h àà À àMichael€Y.€Ô_ÔRaððananÔ_ÔÐ ì <  Ðà  àà ` àà ¸ àà  àà h àà À àAdministrative€JudgeÐ Ø(  Ðà  àà ` àà ¸ àà  àà h àà À àChairperson,€Appeal€BoardÐ Ä  ÐÌÌÌà  àà ` àà ¸ àà  àà h àà À àòòSigned:€James€E.€Moody€€€€€€€€€€€€€€óóÐ tÄ Ðà  àà ` àà ¸ àà  àà h àà À àJames€E.€MoodyÐ `° Ðà  àà ` àà ¸ àà  àà h àà À àAdministrative€JudgeÐ Lœ Ðà  àà ` àà ¸ àà  àà h àà À àMember,€Appeal€BoardÐ 8ˆ ÐÌÌÌà  àà ` àà ¸ àà  àà h àà À àòòSigned:€William€S.€Fields€€€€€€€€€€€€€€Ô_ÔóóÔ_ÔÐ è8 Ðà  àà ` àà ¸ àà  àà h àà À àWilliam€S.€FieldsÐ Ô$ Ðà  àà ` àà ¸ àà  àà h àà À àAdministrative€JudgeÐ À Ðà  àà ` àà ¸ àà  àà h àà À àMember,€Appeal€Ô_ÔBoardÔ#†XçÈXXXçÈa/#ÔÔ_ÔÐ ¬ü ÐÌÌÌÌÔ_ÔÔ_ÔÔ_ÔÔ_Ô