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(assertions lack sufficient specificity to warrant discussion by the Boar\
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/TT1 1 Tf
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(See)Tj
/TT0 1 Tf
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( )Tj
EMC
(ISCR Case No. 00-0050 \(July 23, 2001\) at)Tj
-28.965 -1.125 Td
(pp. 2-3 \(discussing reasons why party must raise claims of error with s\
pecificity\). )Tj
32.854 0 Td
(To the extent the assertions)Tj
-32.854 -1.125 Td
(summarize arguments made earlier in the appeal brief, the Board need not\
discuss those arguments again.)Tj
/TT2 1 Tf
21.767 -2.125 Td
(Conclusion)Tj
/TT0 1 Tf
-21.767 -2.125 Td
(Department Counsel has failed to demonstrate error below that warrants r\
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37.098 0 Td
(Accordingly, the Board)Tj
-37.098 -1.125 Td
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/Span<>> BDC
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EMC
14.011 0 Td
(favorable security clearance decision.)Tj
-14.011 -2.125 Td
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(\(g\) the Judge erred by concluding Applicant demonstrated mitigation wh\
en Applicant does not acknowledge any)Tj
0 -1.125 TD
(wrongdoing;)Tj
0 -2.125 TD
(\(h\) the Judge erred by giving Applicant the benefit of any favorable c\
onclusions based on fact that an insurance)Tj
0 -1.125 TD
(company reimbursed the settlement sums paid)Tj
/Span<>> BDC
( )Tj
EMC
18.773 0 Td
(by Company A;)Tj
-18.773 -2.125 Td
(\(i\) the Judge erred by relying on results of an internal investigation\
of Company A because it was not based on access of)Tj
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(all relevant information, and because)Tj
/Span<>> BDC
( )Tj
EMC
15.049 0 Td
(there was no formal report made about the investigation;)Tj
-15.049 -2.125 Td
(\(j\) the Judge "completely ignored" the significance of testimony of th\
e current CEO of Company A, which showed that)Tj
T*
(Applicant failed to take various steps)Tj
/Span<>> BDC
( )Tj
EMC
15.107 0 Td
(that could have avoided the problems that led to the criminal indictment\
;)Tj
-15.107 -2.125 Td
(\(k\) the fact that the federal government resumed contracting with Comp\
any A "did not in any way rebut, refute or)Tj
T*
(mitigated \(sic\) the Government's case against)Tj
/Span<>> BDC
( )Tj
EMC
18.396 0 Td
(Applicant"; rehabilitation of company does not prove Applicant has been)Tj
-18.396 -1.125 Td
(rehabilitated;)Tj
0 -2.125 TD
(\(l\) because Applicant ran a company that engaged in criminal conduct i\
nvolving a serious breach of fiduciary duties to)Tj
0 -1.125 TD
(the federal government, affirming the)Tj
/Span<>> BDC
( )Tj
EMC
15.271 0 Td
(Administrative Judge's decision would tend to undermine public confidenc\
e in the)Tj
-15.271 -1.125 Td
(industrial security program; and)Tj
0 -2.125 TD
(\(m\) given the extremely serious nature of the allegations in this case\
, the favorable evidence of Applicant's good)Tj
0 -1.125 TD
(conduct since 1993 is insufficient to support)Tj
/Span<>> BDC
( )Tj
EMC
17.969 0 Td
(the Judge's decision under Section 6.3 of the Directive.)Tj
-17.969 -2.125 Td
(For the reasons that follow, the Board concludes most of these arguments\
lack merit, and that the arguments that have)Tj
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(merit fail to demonstrate harmful error by)Tj
/Span<>> BDC
( )Tj
EMC
16.966 0 Td
(the Judge.)Tj
-16.966 -2.125 Td
(Contrary to Department Counsel's contention, the motives or reasons why \
companies and prosecutors make decisions)Tj
T*
(about handling or resolving criminal)Tj
/Span<>> BDC
( )Tj
EMC
14.858 0 Td
(charges are not a matter of common sense, but rather one that turns on t\
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-14.858 -1.125 Td
(particular facts and circumstances of each case. )Tj
19.212 0 Td
(Accordingly, Department Counsel's)Tj
/Span<>> BDC
( )Tj
EMC
14.566 0 Td
(argument fails to demonstrate the)Tj
-33.778 -1.125 Td
(Administrative Judge's decision is arbitrary, capricious, or contrary to\
law.)Tj
0 -2.125 TD
(An Administrative Judge's credibility determinations are entitled to rec\
eive deference on appeal. )Tj
38.805 0 Td
(Directive, Additional)Tj
-38.805 -1.125 Td
(Procedural Guidance, Item E3.1.32.1. )Tj
15.356 0 Td
(Although a Judge's credibility determinations are not immune from review\
, the)Tj
-15.356 -1.125 Td
(party challenging such credibility determinations has a heavy burden of)Tj
/Span<>> BDC
( )Tj
EMC
28.88 0 Td
(persuasion on appeal. )Tj
8.886 0 Td
(Department Counsel has)Tj
-37.766 -1.125 Td
(failed to meet that heavy burden of persuasion in this case.)Tj
T*
(Department Counsel persuasively argues that the Administrative Judge err\
ed by drawing a favorable inference from the)Tj
0 -1.125 TD
(fact that an insurance company)Tj
/Span<>> BDC
( )Tj
EMC
12.689 0 Td
(reimbursed the settlement sums paid by Company A. )Tj
21.469 0 Td
(Given the record evidence in this)Tj
-34.158 -1.375 Td
(case, there is insufficient evidence to justify the favorable inference \
the)Tj
/Span<>> BDC
( )Tj
EMC
28.765 0 Td
(Judge drew from that fact.)Tj
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(However, the Judge's error on this point is harmless. )Tj
21.204 0 Td
(Reading the Judge's decision in its entirety, the Board concludes it)Tj
-21.204 -1.125 Td
(is not)Tj
/Span<>> BDC
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(likely that the Judge's favorable inference concerning the insurance com\
pany's action was pivotal or decisive to)Tj
T*
(his favorable security clearance decision. )Tj
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16.714 0 Td
(See,)Tj
/Span<>> BDC
( )Tj
EMC
(e.g.)Tj
/TT0 1 Tf
(, ISCR Case No. 00-0250 \(July 11, 2001\) at p. 6 \(discussing harmless)Tj
-16.714 -1.125 Td
(error standard\).)Tj
0 -2.125 TD
(It is not unreasonable for Department Counsel to argue that the convicti\
on of Company A has some probative value as)Tj
0 -1.125 TD
(to Applicant's culpability because he was)Tj
/Span<>> BDC
( )Tj
EMC
16.731 0 Td
(named as co-defendant in the indictment. )Tj
16.744 0 Td
(However, as discussed earlier in this)Tj
-33.475 -1.125 Td
(decision, evidence that has probative value is not necessarily sufficien\
t to)Tj
/Span<>> BDC
( )Tj
EMC
29.602 0 Td
(constitute proof of a controverted fact.)Tj
-29.602 -1.125 Td
(Furthermore, a reading of the decision shows the Administrative Judge co\
nsidered the evidence concerning Company)Tj
T*
(A's guilty plea. )Tj
6.291 0 Td
(Department Counsel's disagreement with the weight that the Judge placed \
on that evidence is not)Tj
-6.291 -1.125 Td
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/Span<>> BDC
( )Tj
EMC
17.884 0 Td
(it in an arbitrary or capricious manner.)Tj
-17.884 -2.125 Td
(The Board is not persuaded by Department Counsel's argument that the Adm\
inistrative Judge "completely ignored" the)Tj
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(significance of the testimony of the)Tj
/Span<>> BDC
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EMC
14.385 0 Td
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11.775 0 Td
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(and circumstances of an applicant's case. )Tj
16.59 0 Td
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34.599 0 Td
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-34.599 -2.125 Td
(\(a\) evaluate the possible applicability of disqualifying and mitigatin\
g conditions under the pertinent Adjudicative)Tj
0 -1.125 TD
(Guidelines according to their plain meaning;)Tj
0 -2.125 TD
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0 -1.125 TD
(Guidelines in terms of other relevant)Tj
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( )Tj
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(provisions of the Directive;)Tj
-14.94 -2.125 Td
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T*
(render an overall commonsense decision)Tj
/Span<>> BDC
( )Tj
EMC
16.522 0 Td
(based on consideration of an applicant's security eligibility under the \
whole)Tj
-16.522 -1.125 Td
(person concept; and)Tj
0 -2.125 TD
(\(d\) construe and apply provisions of the Adjudicative Guidelines in a \
manner consonant with the "clearly consistent)Tj
0 -1.125 TD
(with the national interest" standard.)Tj
0 -2.125 TD
(Accordingly, the application of Adjudicative Guidelines for or against c\
learance is not reducible to a simple formula,)Tj
0 -1.125 TD
(but rather requires an adjudicator to)Tj
/Span<>> BDC
( )Tj
EMC
14.55 0 Td
(exercise sound judgment within the parameters set by the Directive when \
deciding)Tj
-14.55 -1.125 Td
(which Adjudicative Guidelines for or against clearance are applicable to\
a)Tj
/Span<>> BDC
( )Tj
EMC
29.848 0 Td
(given case." )Tj
(ISCR Case No. 01-20906)Tj
-29.848 -1.125 Td
(\(January 10, 2003\) at pp. 6-7 \(footnotes omitted\))Tj
0 -2.125 TD
(The same reasoning is applicable to Department Counsel's argument in thi\
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32.588 0 Td
(Furthermore, Department Counsel's)Tj
-32.588 -1.125 Td
(argument runs afoul of prior Board)Tj
/Span<>> BDC
( )Tj
EMC
14.274 0 Td
(decisions which make it clear that the application )Tj
/TT1 1 Tf
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/TT0 1 Tf
2.916 0 Td
( of Adjudicative Guidelines)Tj
-37.183 -1.125 Td
(disqualifying or mitigating conditions is not solely dispositive of a ca\
se. )Tj
/TT1 1 Tf
29.052 0 Td
(See, e.g.)Tj
/TT0 1 Tf
3.332 0 Td
(, ISCR Case No. 00-0484 \(February 1,)Tj
-32.384 -1.125 Td
(2002\) at p. 6.)Tj
0 -2.375 TD
(Department Counsel also argues the Administrative Judge's application of\
Personal Conduct Mitigating Condition 7)Tj
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/Span<>> BDC
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(language is worded to overcome Personal Conduct Mitigating Condition 6, \
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-15.607 -1.125 Td
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18.333 0 Td
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EMC
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-30.469 -1.125 Td
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28.907 0 Td
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-28.907 -1.125 Td
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0 -2.125 TD
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EMC
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-17.438 -1.125 Td
(of Applicant's conduct against applicable mitigating evidence or factors\
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29.17 0 Td
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/Span<>> BDC
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(of this contention, Department)Tj
-29.17 -1.125 Td
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T*
(\(a\) the Judge ignored the significance of the conduct that led to the \
settlement of the criminal and civil cases;)Tj
T*
(\(b\) as a matter of common sense, companies do not plead guilty to felo\
nies and pay millions of dollars in exchange for)Tj
0 -1.125 TD
(dismissal of "unsubstantiated" charges,)Tj
/Span<>> BDC
( )Tj
EMC
15.897 0 Td
(and prosecutors do not require companies to plead guilty to felonies and\
pay)Tj
-15.897 -1.125 Td
(millions of dollars to obtain dismissal of "unsubstantiated" charges;)Tj
0 -2.125 TD
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t which led to the settlement to evaluate how it)Tj
0 -1.125 TD
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/Span<>> BDC
( )Tj
EMC
14.037 0 Td
(reliability, and candor rather than focusing on whether Applicant commit\
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-14.037 -1.125 Td
(specific criminal act;)Tj
0 -2.125 TD
(\(d\) the record evidence does not support the Judge's conclusion that A\
pplicant had rebutted, refuted, or mitigated the)Tj
0 -1.125 TD
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0 -2.125 TD
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ed co-defendant in the count of the)Tj
0 -1.125 TD
(indictment to which the company pleaded guilty;)Tj
0 -2.125 TD
(\(f\) the record evidence does not support the Judge's favorable credibi\
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/Span<>> BDC
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EMC
6.609 0 Td
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-6.609 -2.125 Td
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14.024 0 Td
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18.187 0 Td
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EMC
21.841 0 Td
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-31.866 -1.125 Td
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16.922 0 Td
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and)Tj
-16.922 -1.125 Td
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0 -1.375 TD
(are general or specific in nature\) in light)Tj
/Span<>> BDC
( )Tj
EMC
16.326 0 Td
(of the record evidence as a whole.)Tj
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0 -1.125 TD
(a)Tj
/Span<>> BDC
( )Tj
EMC
(Judge to reach any particular conclusion about the applicant's credibili\
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T*
(case.)Tj
0 -2.125 TD
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0 -1.125 TD
(evidence of the facts and circumstances)Tj
/Span<>> BDC
( )Tj
EMC
16.104 0 Td
(surrounding Company A's guilty plea and settlement of the civil claims c\
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-16.104 -1.125 Td
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/Span<>> BDC
( )Tj
EMC
31.461 0 Td
(in this case. )Tj
4.943 0 Td
(However, Department)Tj
-36.405 -1.125 Td
(Counsel's argument about the significance of Company A's guilty plea and\
settlement of the civil claims does not)Tj
T*
(demonstrate the Judge acted in a manner that is arbitrary, capricious, o\
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35.376 0 Td
(A reading of the decision shows)Tj
-35.376 -1.125 Td
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/Span<>> BDC
( )Tj
EMC
13.911 0 Td
(concerning Company A's guilty plea and its settlement of the civil claim\
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-13.911 -1.125 Td
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on that)Tj
/Span<>> BDC
( )Tj
EMC
32.783 0 Td
(evidence is not sufficient to)Tj
-32.783 -1.125 Td
(demonstrate the Judge weighed it in an arbitrary or capricious manner.)Tj
0 -2.125 TD
(Department Counsel also contends that the Air Force specifically found t\
he alleged misconduct of Company A was)Tj
0 -1.125 TD
(imputed to Applicant and other officers of the company. Department Couns\
el appears to be referring to an Air Force)Tj
T*
(memorandum concerning the suspension of the Company A. It is not clear w\
hether the author of that memorandum)Tj
T*
(made a specific finding of fact about Applicant and other officers of th\
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0 -1.375 TD
(the)Tj
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(conduct of Company A should be imputed to them.)Tj
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/Span<>> BDC
( )Tj
EMC
40.739 0 Td
(memorandum.)Tj
-40.739 -1.125 Td
(Considering the record evidence as a whole, the Board is not persuaded t\
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0 -1.125 TD
(point demonstrates the)Tj
/Span<>> BDC
( )Tj
EMC
9.304 0 Td
(Judge acted in an arbitrary or capricious manner with respect to weighin\
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-9.304 -1.125 Td
(memorandum.)Tj
0 -2.125 TD
(Department Counsel's various arguments, viewed in their entirety, can be\
construed as raising the issue of whether it)Tj
0 -1.125 TD
(was arbitrary or capricious for the)Tj
/Span<>> BDC
( )Tj
EMC
13.828 0 Td
(Administrative Judge to find Applicant had rebutted or refuted the alleg\
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-13.828 -1.125 Td
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12.414 0 Td
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/Span<>> BDC
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17.189 0 Td
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