%PDF-1.6 % 1 0 obj <> endobj 2 0 obj <>stream 2021-07-02T14:22:34-04:00 2021-07-02T14:22:33-04:00 2021-07-02T14:22:34-04:00 Adobe Acrobat 17.0 application/pdf 01-15837.h1 uuid:91ce1402-f5bf-4874-bdd4-9024b423f30f uuid:94972133-7691-49b4-a031-dc9f5ee5e2ed Acrobat Web Capture 15.0 endstream endobj 5 0 obj <> endobj 6 0 obj <> endobj 3 0 obj <> endobj 7 0 obj <> endobj 8 0 obj <> endobj 20 0 obj <>>> endobj 21 0 obj <> endobj 22 0 obj <> endobj 24 0 obj [23 0 R 23 0 R] endobj 25 0 obj [23 0 R 23 0 R] endobj 26 0 obj [23 0 R 23 0 R] endobj 27 0 obj [23 0 R 23 0 R] endobj 28 0 obj [23 0 R 23 0 R] endobj 29 0 obj [23 0 R 23 0 R] endobj 30 0 obj [23 0 R 23 0 R] endobj 23 0 obj <><><><><><><><><><><><>]/P 21 0 R/Pg 13 0 R/S/Article>> endobj 13 0 obj <>/ProcSet[/PDF/Text]>>/StructParents 0/Type/Page>> endobj 31 0 obj [37 0 R] endobj 32 0 obj <>stream BT /Artifact <>BDC /TT0 1 Tf 9 0 0 9 5 779 Tm (01-15837.h1)Tj EMC /Artifact <>BDC 0 -86 TD (file:///usr.osd.mil/)Tj 7.166 0 Td (...)Tj (yComputer/Desktop/DOHA%20transfer/DOHA-Kane/dodogc/doha/industrial/Archi\ ved%20-%20HTML/01-15837.h1.html)Tj 50.296 0 Td ([7/2/2021 2:22:34 PM])Tj EMC ET 1 g 10 36 591.75 729.75 re f 0.604 g q 1 0 0 1 16.0002 734.2497 cm 0 0 m 0.75 -0.75 l 579 -0.75 l 579.749 0 l h f Q 0.933 g q 1 0 0 1 16.7499 733.5 cm 0 0 m -0.75 -0.75 l 579 -0.75 l 578.25 0 l h f Q 0.604 g q 1 0 0 1 16.0002 732.7503 cm 0 0 m 0.75 0.75 l 0 1.499 l h f Q 0.933 g q 1 0 0 1 594.9999 733.5 cm 0 0 m 0.75 -0.75 l 0.75 0.75 l h f Q 0.604 g q 1 0 0 1 16.0002 618.75 cm 0 0 m 0.75 -0.75 l 579 -0.75 l 579.749 0 l h f Q 0.933 g q 1 0 0 1 16.7499 618.0003 cm 0 0 m -0.75 -0.751 l 579 -0.751 l 578.25 0 l h f Q 0.604 g q 1 0 0 1 16.0002 617.2497 cm 0 0 m 0.75 0.751 l 0 1.5 l h f Q 0.933 g q 1 0 0 1 594.9999 618.0003 cm 0 0 m 0.75 -0.751 l 0.75 0.75 l h f Q /Article <>BDC EMC /Article <>BDC BT 0 g 12 0 0 12 16 749.25 Tm (DATE: April 7, 2003)Tj 0 -3.25 TD (In Re:)Tj 0 -2.125 TD (-------------------)Tj T* (SSN: -----------)Tj T* (Applicant for Security Clearance)Tj 0 -3.25 TD (ISCR Case No. 01-15837)Tj /TT1 1 Tf 14.419 -2.125 Td (DECISION OF ADMINISTRATIVE JUDGE)Tj 5.126 -2.125 Td (JOHN G. METZ, JR.)Tj 0.889 -2.125 Td (APPEARANCES)Tj ET 0.75 w q 1 0 0 1 261.2061 517.5 cm 0 0 m 89.338 0 l h S Q BT 11.25 0 0 11.25 251.0312 493.5 Tm (FOR GOVERNMENT)Tj /TT0 1 Tf -4.984 -2.2 Td (Jonathan A. Beyer, Esquire, Department Counsel)Tj /TT1 1 Tf 5.761 -2.2 Td (FOR APPLICANT)Tj /TT0 1 Tf 0.417 -2.2 Td (Jill Davis, Esquire)Tj /TT1 1 Tf 12 0 0 12 276.5312 393.75 Tm (SYNOPSIS)Tj ET q 1 0 0 1 276.5312 393 cm 0 0 m 58.688 0 l h S Q BT /TT0 1 Tf 12 0 0 12 16 368.25 Tm (Applicant's arms-length business transaction with his past employer did \ not violate any recognized code of professional)Tj 0 -1.125 TD (responsibility, business ethics, or )Tj 13.499 0 Td (general moral code. Clearance granted.)Tj /TT1 1 Tf 4.059 -2.125 Td (STATEMENT OF THE CASE)Tj ET q 1 0 0 1 226.6914 328.5 cm 0 0 m 158.367 0 l h S Q BT /TT0 1 Tf 12 0 0 12 16 303.75 Tm (On 16 August 2002, the Defense Office of Hearings and Appeals \(DOHA\) i\ ssued a Statement of Reasons \(SOR\) to)Tj 0 -1.375 TD (Applicant, stating that DOHA could not )Tj 16.248 0 Td (make the preliminary affirmative finding)Tj 0 0 0.933 rg 9.75 0 0 9.75 407.5645 291.75 Tm ( \(1\))Tj ET 0 0 0.933 RG q 1 0 0 1 407.5645 291 cm 0 0 m 13.806 0 l h S Q BT 0 g 12 0 0 12 421.3706 287.25 Tm ( that it is clearly consistent with the)Tj -33.781 -1.125 Td (national interest to grant or continue a security clearance for Applican\ t. On 9 )Tj 30.988 0 Td (September 2002, Applicant answered the)Tj -30.988 -1.125 Td (SOR and requested a hearing. The case was originally assigned to a diffe\ rent Administrative Judge, but was )Tj 43.405 0 Td (reassigned)Tj -43.405 -1.125 Td (to me on 8 January 2003 because of case load considerations, and receive\ d by me the same day. I set the case on 15)Tj 0 -1.125 TD (January 2003 )Tj (and on 17 January )Tj (2003 I issued a notice of hearing for 7 February 2003.)Tj 0 -2.125 TD (At the hearing, the Government presented six exhibits--three admitted wi\ thout objection, one admitted over objection,)Tj 0 -1.125 TD (and two excluded as stated below--and )Tj 15.772 0 Td (no witnesses; Applicant presented no exhibits--and the testimony of two)Tj -15.772 -1.125 Td (witnesses, including himself. DOHA received the transcript on 21 Februar\ y 2003.)Tj /TT1 1 Tf 18.78 -2.125 Td (PROCEDURAL ISSUES)Tj ET 0 G q 1 0 0 1 241.3604 154.5 cm 0 0 m 129.029 0 l h S Q BT /TT0 1 Tf 12 0 0 12 16 129.75 Tm (At the hearing, I excluded Government's Exhibits 4 and 6 because they we\ re sworn statements adverse to the Applicant)Tj T* (on a controverted issue and thus )Tj 13.108 0 Td (inadmissible under the Directive, Paragraph E.3.1.22 \(18-32\). Although\ I admitted)Tj -13.108 -1.125 Td (Government's Exhibit 5 as a business record otherwise required to be )Tj 27.923 0 Td (admitted in accordance with Directive, Paragraph)Tj -27.923 -1.125 Td (E.3.1.20., I accord it less weight to the extent that it is based not on\ the direct observations of the )Tj 38.963 0 Td (investigating officers,)Tj -38.963 -1.125 Td (but the recorded statements excluded as G.E. 4 and 6.)Tj /TT1 1 Tf 19.406 -2.125 Td (FINDINGS OF FACT)Tj ET q 1 0 0 1 248.8721 49.5 cm 0 0 m 114.006 0 l h S Q EMC endstream endobj 33 0 obj <> endobj 34 0 obj (m&@Li) endobj 35 0 obj <> endobj 36 0 obj <> endobj 40 0 obj <> endobj 41 0 obj <>stream H\j@E<l`+ݫR@#V3~ih6SdZsG;XVm~f,\|_'i(ڕ?uJw醣=Y=]y],Nnk)7zoo\9=O\_\5/)]Ǧij"_kWk]X+O&ud~&?_/-y ~%f˙"Wyd@`:x8x:x8 yߑw`퍜fdz <OS)z <>GysPQQQQQQUUUUWWRRRRR %0K@@@@@`H>㒧}b{K)>stream H|y\TG5o^p rfQ,,WtͮFvƨpJ5 Fo os@<>QPgDu\5Ə&u5GWOwx!z}ڪMq*$:6%&ą? 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Each of those witnesses had a vested interest in sup\ porting the story of the company president and)Tj 0 -1.125 TD (owner, )Tj (whose goodwill they needed to stay employed. Second, the version of the \ transaction contained in G.E. 3 has)Tj T* (been rejected--implicitly or explicitly--by two )Tj 18.632 0 Td (grand juries and a state unemployment commission. Both grand juries)Tj -18.632 -1.125 Td (would have had access to more evidence than was produced at this hearing\ ; one of them )Tj 35.488 0 Td (had the president's live)Tj -35.488 -1.125 Td (testimony subject to cross-examination, something missing here. Third, A\ pplicant's version of events is more consistent)Tj T* (with the )Tj 3.5 0 Td (documentary evidence of the transaction \(the checks and sales contract\)\ than is G.E. 3. I give no weight)Tj -3.5 -1.125 Td (whatsoever to the handwritten annotations on either of )Tj 22.049 0 Td (the two checks. Were I to give them any weight, I would find)Tj -22.049 -1.125 Td (them evidence of the owner's attempt to make the record comport with his\ version of the )Tj 35.669 0 Td (transaction and not reflective)Tj -35.669 -1.125 Td (of the actual facts.)Tj 0 -2.125 TD (6. )Tj (Applicant's father owned one of the largest machine shops in the state a\ nd thought Applicant should learn the)Tj 0 -1.125 TD (business from the ground up before he ever )Tj 17.606 0 Td (tried to run a plant.)Tj -17.606 -2.125 Td (7. )Tj (Although the expert was hired in anticipation of the clearance hearing, \ I found his testimony particularly credible for)Tj T* (a number of reasons. First, the expert did not meet Applicant until the \ day of the hearing and had no knowledge of the)Tj T* (particulars of the case until Applicant's counsel retained him to review\ the record \(Tr. 189\). Second, Applicant's counsel)Tj T* (prepared the expert by having him read all the government's exhibits fir\ st before giving him the Applicant's side of the)Tj T* (case \(Tr. 240-241\). Finally, the expert had the opportunity--as did I-\ -of observing Applicant's testimony at the hearing)Tj T* (and finding it credible \(Tr. 243-250\).)Tj ET EMC endstream endobj 18 0 obj <>/ProcSet[/PDF/Text]>>/StructParents 5/Type/Page>> endobj 45 0 obj <>stream BT /Artifact <>BDC /TT0 1 Tf 9 0 0 9 5 779 Tm (01-15837.h1)Tj EMC /Artifact <>BDC 0 -86 TD (file:///usr.osd.mil/)Tj 7.166 0 Td (...)Tj (yComputer/Desktop/DOHA%20transfer/DOHA-Kane/dodogc/doha/industrial/Archi\ ved%20-%20HTML/01-15837.h1.html)Tj 50.296 0 Td ([7/2/2021 2:22:34 PM])Tj EMC ET 1 g 10 36 591.75 729.75 re f /Article <>BDC EMC /Article <>BDC q 10 36 592 730 re W n BT 0 g 12 0 0 12 16 755.25 Tm (priced alternate and saw an opportunity to help himself and )Tj 23.993 0 Td (the company. He discussed his plan with the owner who)Tj ET Q BT 0 g 12 0 0 12 16 741.75 Tm (agreed: Applicant would buy the machine and lease it to the company for \ the same monthly cost as the )Tj 41.349 0 Td (quote for the)Tj -41.349 -1.125 Td (less-satisfactory machine. Applicant would get the income from the lease\ , as well as the tax advantage of depreciating)Tj 0 -1.125 TD (the machine. The company )Tj 11.079 0 Td (would get a better piece of equipment for the same money and continue it\ s growth.)Tj -11.079 -2.125 Td (The owner changed the terms of the agreement before it could be reduced \ to writing, and Applicant preferred to sell the)Tj T* (machine outright rather than give the )Tj 15.05 0 Td (owner an option to buy. The owner readily agreed to the asking price wit\ hout)Tj -15.05 -1.125 Td (inquiring about the equipment. His retaliatory actions after discovering\ what )Tj 30.853 0 Td (Applicant paid for the machine bespeak)Tj -30.853 -1.125 Td (frustration at being outsmarted or outmanuevered in an arms-length busin\ ess transaction and having the means as a )Tj 46.292 0 Td (state)Tj -46.292 -1.125 Td (legislator to make more than a little trouble for Applicant. None of thi\ s obscures the fact that the original lease proposed)Tj T* (by Applicant was a good deal for )Tj 13.524 0 Td (the company or the fact that the sale price on what amounted to a compel\ led sale was)Tj -13.524 -1.125 Td (fair given Applicant's income and tax expectations. Applicant considers \ )Tj 28.949 0 Td (himself a straight-shooter, and I found him to be)Tj -28.949 -1.125 Td (so in his testimony. He violated no ethical standard know to me, known t\ o Department Counsel, known to the )Tj 44.16 0 Td (expert,)Tj -44.16 -1.125 Td (nor any cited to me by any of the parties or witnesses. There was nothin\ g about the transaction that was either illegal or)Tj T* (deceptive. Accordingly, I resolve )Tj 13.55 0 Td (Guideline F. for Applicant.)Tj -13.55 -2.125 Td (In a similar fashion, the government has not established its case under \ Guideline E. Applicant engaged in no unethical)Tj T* (or immoral conduct in his business )Tj 14.221 0 Td (dealings with his employer. I resolve Guideline E. for Applicant.)Tj /TT1 1 Tf 5.144 -2.125 Td (FORMAL FINDINGS)Tj ET 0.75 w q 1 0 0 1 248.374 502.5 cm 0 0 m 115.002 0 l h S Q BT /TT0 1 Tf 12 0 0 12 16 477.75 Tm (Paragraph 1. Guideline F: FOR THE APPLICANT)Tj 0 -2.125 TD (Subparagraph a: For the Applicant)Tj T* (Paragraph 2. Guideline E: FOR THE APPLICANT)Tj T* (Subparagraph a: For the Applicant)Tj /TT1 1 Tf 21.683 -2.125 Td (DECISION)Tj ET q 1 0 0 1 276.2002 375 cm 0 0 m 59.35 0 l h S Q BT /TT0 1 Tf 12 0 0 12 16 350.25 Tm (In light of all the circumstances presented by the record in this case, \ it is clearly consistent with the national interest to)Tj 0 -1.125 TD (grant or continue a security clearance for )Tj 16.63 0 Td (Applicant.)Tj /TT1 1 Tf 3.777 -2.125 Td (John G. Metz, Jr.)Tj -0.876 -2.125 Td (Administrative Judge)Tj /TT0 1 Tf -19.531 -2.125 Td (1. )Tj (Required by Executive Order 10865, as amended, and Department of Defense\ Directive 5220.6, dated January 2,)Tj T* (1992--and amended by Change 3 dated 16 )Tj 17.189 0 Td (February 1996, and by Change 4 dated 20 April 1999 \(Directive\).)Tj -17.189 -2.125 Td (2. )Tj (Applicant was employed on a contract where he was paid only if the compa\ ny made money, $1,000.00 per month)Tj T* (plus a year-end bonus of 15% of net )Tj 14.718 0 Td (income. The bonus was due in January 1998, but not paid because of the c\ ompany's)Tj -14.718 -1.125 Td (financial situation. The original check stub contains notations showing \ that )Tj 30.244 0 Td (the check was for Applicant's bonus, less)Tj -30.244 -1.125 Td (withholding. A hand-written notation on the photocopy of the check \(but\ not on the original four-corners of the check)Tj T* (and stub\) reflects "bonus check." However, there is no evidence when th\ at notation was made.)Tj 0 -2.125 TD (3. )Tj (The check stub indicates only that the check was for the machine at issu\ e. A hand-written notation on the photocopy)Tj 0 -1.125 TD (of the check \(but not on the original four-corners of the check and stu\ b\) reflects "reimbursement for CMM." However,)Tj T* (there is no evidence when that notation was made either.)Tj 0 -2.125 TD (4. )Tj (The above facts are essentially undisputed.)Tj T* (5. )Tj (The only evidence to the contrary is G.E. 3. I give this evidence less w\ eight for a number of reasons. First, the)Tj 0 -1.125 TD (evidence against Applicant consists almost )Tj 17.413 0 Td (exclusively of the hearsay statements--filtered through the investigatin\ g)Tj ET EMC endstream endobj 17 0 obj <>/ProcSet[/PDF/Text]>>/StructParents 4/Type/Page>> endobj 46 0 obj <>stream BT /Artifact <>BDC /TT0 1 Tf 9 0 0 9 5 779 Tm (01-15837.h1)Tj EMC /Artifact <>BDC 0 -86 TD (file:///usr.osd.mil/)Tj 7.166 0 Td (...)Tj (yComputer/Desktop/DOHA%20transfer/DOHA-Kane/dodogc/doha/industrial/Archi\ ved%20-%20HTML/01-15837.h1.html)Tj 50.296 0 Td ([7/2/2021 2:22:34 PM])Tj EMC ET 1 g 10 36 591.75 729.75 re f /Article <>BDC EMC /Article <>BDC q 10 36 592 730 re W n BT 0 g 12 0 0 12 16 754.5 Tm (generate funds. Unexplained affluence is )Tj 16.604 0 Td (often linked to proceeds from financially profitable criminal acts.)Tj ET Q BT 0 g 12 0 0 12 16 729 Tm (E2.A6.1.2. Conditions that could raise a security concern and may be dis\ qualifying include:)Tj 0 -2.125 TD (E2.A6.1.2.2. Deceptive or illegal financial practices such as embezzleme\ nt, employee theft, check fraud, income tax)Tj 0 -1.125 TD (evasion, expense account fraud, filing )Tj 15.411 0 Td (deceptive loan statements, and other intentional breaches of trust;)Tj -15.411 -2.125 Td (E2.A6.1.3. Conditions that could mitigate security concerns include:)Tj 0 -2.125 TD (E2.A6.1.3.1. The behavior was not recent;)Tj T* (E2.A6.1.3.2. It was an isolated incident.)Tj /TT1 1 Tf 15.002 -2.125 Td (PERSONAL CONDUCT \(GUIDELINE E\))Tj ET 0.75 w q 1 0 0 1 196.0293 587.25 cm 0 0 m 219.691 0 l h S Q BT /TT0 1 Tf 12 0 0 12 16 562.5 Tm (E2A5.1.1. )Tj (The Concern)Tj ET q 1 0 0 1 67.9961 561.75 cm 0 0 m 62.309 0 l h S Q BT 12 0 0 12 130.3047 562.5 Tm (: Conduct involving questionable judgment, untrustworthiness, unreliabil\ ity, lack of candor,)Tj -9.525 -1.125 Td (dishonesty, or unwillingness to comply )Tj 15.944 0 Td (with rules and regulations could indicate that the person may not proper\ ly)Tj -15.944 -1.125 Td (safeguard classified information. . .)Tj T* (E2. A5.1.2. Conditions that could raise a security concern and may be di\ squalifying include:)Tj T* (E2.A5.1.2.1. Reliable, unfavorable information provided by associates, e\ mployers, coworkers, neighbors, and other)Tj 0 -1.125 TD (acquaintances;)Tj 0 -2.125 TD (E2.A5.1.2.3. A pattern of dishonesty or rule violations. . .)Tj T* (E2.A5.1.3. Conditions that could mitigate security concerns include:)Tj T* (E2.A5.1.3.1. The information was unsubstantiated or not pertinent to a d\ etermination of judgment, trustworthiness, or)Tj 0 -1.125 TD (reliability;)Tj /TT1 1 Tf 20.684 -2.125 Td (Burden of Proof)Tj ET q 1 0 0 1 264.2119 354.75 cm 0 0 m 83.326 0 l h S Q BT /TT0 1 Tf 12 0 0 12 16 330 Tm (Initially, the government must prove controverted facts alleged in the S\ OR. If the government meets that burden, the)Tj T* (burden of persuasion then shifts to the )Tj 15.525 0 Td (applicant to establish his security suitability through evidence of refu\ tation,)Tj -15.525 -1.125 Td (extenuation or mitigation sufficient to demonstrate that, despite the ex\ istence of )Tj 32.157 0 Td (disqualifying conduct, it is nevertheless)Tj -32.157 -1.125 Td (clearly consistent with the national interest to grant or continue the s\ ecurity clearance.)Tj 0 -2.125 TD (A person who seeks access to classified information enters into a fiduci\ ary relationship with the government predicated)Tj 0 -1.125 TD (upon trust and confidence. Where facts )Tj 15.91 0 Td (proven by the government raise doubts about an applicant's judgment, rel\ iability)Tj -15.91 -1.125 Td (or trustworthiness, the applicant has a heavy burden of persuasion to )Tj 27.66 0 Td (demonstrate that he or she is nonetheless security)Tj -27.66 -1.125 Td (worthy. As noted by the United States Supreme Court in )Tj /TT2 1 Tf 22.858 0 Td (Department of the Navy v. Egan)Tj /TT0 1 Tf 12.886 0 Td (, 484 U.S. 518, 531 )Tj (\(1988\),)Tj -35.744 -1.125 Td ("the clearly consistent standard indicates that security-clearance deter\ minations should err, if they must, on the side of)Tj T* (denials.")Tj /TT1 1 Tf 20.489 -2.125 Td (CONCLUSIONS)Tj ET q 1 0 0 1 261.8652 170.25 cm 0 0 m 88.02 0 l h S Q BT /TT0 1 Tf 12 0 0 12 16 145.5 Tm (The government has not established its case under guideline F. To conclu\ de that it had, I would have to accept the)Tj T* (version of the transaction contained in G.E. )Tj 17.634 0 Td (3, which I do not. The facts described in G.E. 3 cannot be reconciled wi\ th)Tj -17.634 -1.125 Td (Applicant's more credible version.)Tj 0 -2.125 TD (Applicant was a professional machinist in the process of making his comp\ any into a profitable business. He had)Tj 0 -1.125 TD (succeeded, as evidenced by his bonus, and had )Tj 18.938 0 Td (every intention of making more money both for himself and the)Tj -18.938 -1.125 Td (company. He knew the company owned no capital assets and the owner was u\ nwilling to tie up )Tj 38.379 0 Td (more of his money in)Tj -38.379 -1.125 Td (capital assets for the company. He also knew the company would require t\ he use of calibrating equipment if it was to)Tj ET q 10 36 592 730 re W n BT 12 0 0 12 16 39 Tm (continue to grow. )Tj 7.276 0 Td (He found a suitable piece of equipment in good condition that would do a\ better job than the lowest-)Tj ET EMC Q endstream endobj 47 0 obj <> endobj 48 0 obj <> endobj 49 0 obj <>stream H\j0 \/J[bR[c"o?*̐3%˿Cu\7ASmlqpkTtſJq¾r:0ӳ.P[:wCy= VP`B/mz$-+K4/)O9{,Si G *VJ(δJ;OviwTx@|>o6)oٰ̢&O#S ^ E>υsf-w;YYRhSs:ΘO}jK]z/&_vᵹ@6Fc~@Y_B endstream endobj 50 0 obj <>stream H|TU}8" ν.1DMXQTh,Q bŎ^U byjހ>}oZ={̿AJ!o6xU-3VؤFD,) ?uMh&c!P8Ϗ%@8Q#jl,m``Ԭ-Io9Q~`O蘔4Kҟ4BR182$&Ldt!yi2w@5pHtaGm֣G]{%)%CS}gNEAaE(F7Q1e"K; *Ivnsxҹ4kxwO4I E1" Y5(YtײnWXr^l}?VFZԭWAF4mּEKV?oӶ]?_vU@~]uA!ѫwG5h蟇>◑F븸&OJH<%ij3fΚ='e<_pQ%K-O_rj^v 7m޲5s;wޓw>r'O>_x2^ڮ܀(3Ug8a4Lp+9AWIpsx:Iv"w(/okه{}K9!SSSoO>wf/˾׮|jrgƊsf$9ˋVnx ^9>6?[s[[C[=[uVn#k5j޳.e=lͲf!2zkk[kb5[ne3#(|r^-RKߜ9uNqq5<- uHSb _8{׫͊[)`P*~Xl沫\v}n.]f~'EF\:_(c 0qD,J,+$q|<A<˺ /58XE2p8c88Sxdcz!pp~D @*b0C31`G F`8~(D&c Fj9i6!1 R[J4~ß(L* i>-Ri1ɅJPIJ%xWrJVjZCki @i^"%P"m-2iҴvPr䆛Eȝv.*Oh2=E{i'ȠJTABUɓx۸CL:BGtNi&ɗP6st.`}Bը:]ܣx#oͼr&ow.{xg~>#|q>'!O:g |/eW!l7&|=c S~_r,_yT<'r_P!uXQG1u=m/[P'mW2&;[D<\/kFQ|Aijq(p$ELi2N%O @)e,el"D씃rR.My(/i(ME*Db@)ӝtg}Kw+Zѩ1Q0*I4TBO=FAEh"E$LSSJ3\P/+ZQzޫ>Â]c͆ӱe9gLpV9sr.y8/%Mn_q7M\ȝ隸 ܅\pQ..rs@`.!\Kqiw] .e+Ujw \+qeUW\kqmu$pcnM7ܒ[f6ܖq{w.5Mw^ܛp_yo;ăMI2fI1 xa= Ov9iHuv9⮳gh3  |ȀȤ;YsYdAVdCvs9D9_CNBnA^!?W((((G AIBiAYC򨀊ʨꨁڨhFh&hfhhVh6"m ]5tǷa:Nb'z7/?B.袺(tq:sP Cuyvh{6צ"0#00c00aGHD,LDDc&c bcf:1 1Y<"H$$c>R K a9V`%Va5`-a=6`#6a3`+aYkavbv+{qP<۸ŝqW9q#j"Vĉx1+u`6Mfbmfav]fc۩vn.k思agYvc;>!_<xxxxxT;|4ߚ9l憹in9f抹j~s܏D?O)_/ _oos|4 ܍&w }?Mj:w."y*"Jh5. x<ڃV]=Qi4>ʀ}cL}X1l5o?:Yq'#8&O 8)&Niu xGQD%W?|%_i]ӆGoOi /# 6?\ME@c`ԫ4|#r95iCK5q<}0I9P6 ql S[Yp dWFíOy<:5^_Ll9StAn@{ƚ*RjVrS=si*R9~V$h%HCIg9a~ĞJCG[R@ӡj`ǁKDRxbX]F4f`X;i(Xp"M.fx(xpFFy.夸L`JZيf>voDdş!&ނ>nQ;.^Ky-9'OEd_r\ER3h(?5#j!Z.ZGl)"}t#ಂ!^y:,E,sZ<ňP8:DpQ,EN}}q@|/!Ί/.'$g"m[$-& Q#+`YJ:v v.A *[mTg/ooȔZ,}Am!%h)c7 Ѥ!ED/+%k8yM6 趞bdazZ mDW\$'cV7[7nΥ}07!8[C"'ȡ m5D:Ȇ"vYN@~H C ' Ȟ3f9iW;u9LQJOH^/{%rEkqT+rpB]@cђ KE*Ew>ZdGvRfvUq7-؉S@.9!B/&qTr1a*+`32j3nӝgg8~\uyb)K@yVU'L-5nF>lhZjJrR-v@~1}"#=;WHݻm"SKjFP)1 Ӟgdv쮑)ɚK׌N]kiEnȯ9uf y]@ U j.#wauss)=b0$#Rn,"ҕ(('2u;- *i]ÓlpN^f>B9e [a,ͱvCZcrous(yzgNwc; :Eo&ǽsEѬϷB3~S~az<\/KE,tnBwY-*O+}U^#gPq)::{F.WS؇|ŵ{fk}IIn iƐ^=*R`%w-IC+נ[F2 g`c1nctB3vkƇ>O>jŇ'K+X6D+.9p$t G$/lP `>*tc'3 6w8,7gS*F]QYLe%y zZOztM߽DFPB_Ј0We?_4ͭ|G/yٟH2xFq5c3=|;\` D8 ن@# %R["JMh"Q|kWiLOUQ+mT72MAHػfn{1oYG 5/U6kHvh5 nvn`BЀiMSHmuU]HOEW(:궁ztt!JLY?RQ?^Qq Wq#,F|&AVQ[xe~a-P4-` thSmMM\V8W ~g;WzfPq%!2yE![btv f6m㈫M+ LH|6r`3kpObnQ'P ze*ꤟ]PǡѨW5śgj~j3U=wIT,P3uۋ Fmm%M:C;]8jw6zl`hö Kp/Rnlَ_To[Q7/қpOA)?}?Gcկ_ u'9|YyGS_AO w&~HXýȽHv>#ە@^b򾐛Ӊ1pUxRr?/5Ba1.U*Pl H0 1uR¹"RG٨+r'ܾ/$AIKXO.IK%O ^ V^0=(uuH]hk=8B\Z{/zǼ .o@i|0 X{1A3avcvJ²Lj L̺cQa)rWNj紎Q3zC;beV `w^͉&yAϟ)[Y={,fv{XY`6qxfJ d\Uԏ8 cUvؠ1dvڂJP<"Q[1" X"9O.f1`+ >k>hy#߲7=CwgEd{intg1j1Bv4y<oG|GL >O^Olmxlt{66/csiCyCl6TˌwiĄNX#JcT$V&K *{خt!(F&X$w;#W3%ڲQZ_#ˢS>)G zА]Mw;o?rI.b;v`_BP![iKvKcmQʢj)KhdNC[Z *mҴuic=;˽};=)˞&&)T$͒e~+m/B f - =vY)K)(n,+6)qէLɂ̫(Fi/ddK.ʃ-(Pt:P*M P6w`QJi6& FɣVwl3 8JEӫ{޻1.κZVL#WZMW0O52Am(-6!խ D@TiE#(*5)4_^%Vjrln-K>7?z̧vdFܿܜн`>lb{3Dyk}%3}\m-AIl콁p;4rh墥ߒa2cNaظ0&#D3V8tT8VKd,DvӉ{Ϭq0 Tꡡ_AwK?aD>qNx2XjCoEoc^KEUGB`VpBB&ф.gY U|Vo{{jÒD6BZnHKձ. ]Lć_dd{t#'V@NrNJMσ3 x1"Y/.Z8 Oh|xj_ap֭NŸ)RiMuk\ѕ3Q"28_zZZ[g@`LV~H:fT6;?_Xb)6*Б*07<}sVU`Jh|t,cWFc֣SP|tkgm Q$O>j'ϴx 5]sK6ӾSnLjG}ĶN.V3k>?NR|)CXvh89y;9>ɽ L7ZZaP\´q8n$b$m|*g):Hayg EP(Յ|>aoO%q܎Xf]!2QcsNx|/M8#hNt$6ʕx8qxyVNG)pX),‡>KS _m$, ?Qrnu:1b}Y۴z$|@h4Pg2U6#/]`֠M94A#?R/Ҡq_V !IX1-ݯg6GL eM}N\zn.oaqB摒m{wٱ}ۉϱϱc;rk$$!-$֎ni!FYK-Y JQWX2 Vt@cM*ӤI[NTh.޻Kݽz߻y~yR^qL յ&z^o~2xgV#`e5\0>_u`%zUCy )_\pK` ZQ2 \ צ] SQT1Hf[xO'5р]X#CFƪogor^0E% Ӡ >DH Qjlt$ |T!WڪZ{uPo! 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It rented the building it occupied, as well as \ all its )Tj 30.076 0 Td (manufacturing equipment, from the owner. It)Tj ET Q BT 0 g 12 0 0 12 16 741.75 Tm (was losing money, and had been losing money for some time.)Tj 0 -2.125 TD (Applicant was reluctant to go to work for this company, but finally agre\ ed to become the general manager; his)Tj 0 -1.125 TD (compensation package provided he would be )Tj 18.272 0 Td (paid a bonus in any month when the company made money, with a year-)Tj -18.272 -1.125 Td (end bonus of 15% based on net profits.)Tj 0 -2.125 TD (When Applicant went to work for the company, he discovered--contrary to \ the owner's claims--that the company)Tj 0 -1.125 TD (essentially did not have any contracts for )Tj 16.634 0 Td (machine parts, and had fallen off the list of approved vendors for those\ )Tj -16.634 -1.125 Td (defense-contract buyers who had previously provided the company with wor\ k. )Tj 31.686 0 Td (Nevertheless, Applicant turned the)Tj -31.686 -1.125 Td (company around to where it was making money, and at the end of 1997, the\ company owed Applicant $24,000.00 in)Tj T* (bonus )Tj (money.)Tj 0 -2.125 TD (Applicant wanted to invest the bonus in a way that would provide tax ben\ efits to him. At the same time the company's)Tj 0 -1.125 TD (business was growing and they need )Tj (specialized equipment to calibrate the machine products they made so the\ y could)Tj T* (be certified for sale to the defense-contract buyers. Those certificatio\ ns were )Tj 30.875 0 Td (available on a piece rate \(prohibitively)Tj -30.875 -1.125 Td (expensive\) or by leasing a less satisfactory piece of equipment for $50\ 0.00 per month, the lowest rate Applicant was)Tj T* (able )Tj 1.916 0 Td (to find. )Tj (However, Applicant found a more comprehensive piece of equipment that ha\ d been surplussed by another)Tj -1.916 -1.125 Td (manufacturing company. Because of )Tj 14.911 0 Td (Applicant's expertise in manufacturing, he knew the equipment had been w\ ell-)Tj -14.911 -1.125 Td (maintained and properly packaged for storage. He also knew the asking pr\ ice )Tj 31.127 0 Td (\($10,000.00\) was a below-market bargain.)Tj -31.127 -2.125 Td (He approached the owner of his company about buying the equipment himsel\ f and leasing it to the company \(for)Tj T* ($500.00 per month\). Given his past dealings with the owner, he had no r\ eason to believe the owner wanted to buy the)Tj T* (equipment himself or have the company buy it. The owner was originally a\ greeable to )Tj 34.739 0 Td (Applicant's proposal and paid)Tj -34.739 -1.125 Td (Applicant his bonus so he could buy the equipment. However, when Applica\ nt went to formalize the lease, the owner)Tj T* (wanted a )Tj 3.832 0 Td (provision that would give him the right to purchase the machine from App\ licant at any time during the lease.)Tj -3.832 -1.125 Td (Applicant was unwilling to give up his )Tj 15.749 0 Td (contemplated tax benefits of owning the equipment, but offered to sell t\ he)Tj -15.749 -1.125 Td (equipment for a price he thought would provide a reasonable profit on hi\ s purchase, )Tj 33.795 0 Td (given that he would lose the)Tj -33.795 -1.125 Td (income-producing potential of the machine. The owner quickly agreed to A\ pplicant's asking price of $24,000.00. He)Tj T* (never asked )Tj (Applicant what Applicant had paid for the machine. Not until the owner l\ earned that Applicant paid)Tj T* ($10,000.00 for the machine did the owner become )Tj 20.383 0 Td (incensed, demanding "refund" of the excess "reimbursement." He)Tj -20.383 -1.125 Td (retaliated as described above. He did not, however, pursue any civil act\ ion against Applicant. )Tj 37.543 0 Td (The company never made)Tj -37.543 -1.125 Td (money again, and is now out of business \(Tr. 253\).)Tj 0 -2.125 TD (Applicant's expert witness testified credibly that Applicant had violate\ d no business ethics or moral code in his)Tj 0 -1.125 TD (transaction with the owner of the company and )Tj 19.05 0 Td (that Applicant had engaged in an arms-length transaction by selling a)Tj -19.05 -1.125 Td (capital asset to the company for a fair price given his acquisition cost\ s and his prospective )Tj 36.267 0 Td (loss of income from the lease)Tj -36.267 -1.375 Td (of the machine to the company \(Tr. 183-251\).)Tj 0 0 0.933 rg 9.75 0 0 9.75 235.5977 264.75 Tm ( \(7\))Tj ET 0 0 0.933 RG 0.75 w q 1 0 0 1 235.5977 264 cm 0 0 m 13.806 0 l h S Q BT 0 g 12 0 0 12 249.4038 260.25 Tm ( The government produced no code of professional responsibility,)Tj -19.45 -1.125 Td (business ethics, )Tj (or general moral code violated by Applicant's conduct.)Tj /TT1 1 Tf 0 -2.125 TD (POLICIES)Tj ET 0 G q 1 0 0 1 16 220.5 cm 0 0 m 57.352 0 l h S Q BT /TT0 1 Tf 12 0 0 12 16 195.75 Tm (Enclosure 2 of the Directive sets forth adjudicative guidelines to be co\ nsidered in evaluating an individual's security)Tj 0 -1.125 TD (eligibility. The Administrative Judge must )Tj 17.22 0 Td (take into account the conditions raising or mitigating security concerns\ in)Tj -17.22 -1.125 Td (each area applicable to the facts and circumstances presented. )Tj 24.932 0 Td (Each adjudicative )Tj 7.385 0 Td (decision must also assess the factors)Tj -32.317 -1.125 Td (listed in Section 6.3. and in Enclosure \(2\) of the Directive. Although\ the presence or absence of a particular condition)Tj T* (for )Tj (or against clearance is not determinative, the specific adjudicative gui\ delines should be followed whenever a case)Tj T* (can be measured against this policy guidance, )Tj 18.549 0 Td (as the guidelines reflect consideration of those factors of seriousness,\ )Tj -18.549 -1.125 Td (recency, motivation, )Tj /TT2 1 Tf 8.441 0 Td (etc)Tj /TT0 1 Tf 1.166 0 Td (.)Tj -9.607 -2.125 Td (Considering the evidence as a whole, the following adjudication policy f\ actors are most pertinent to this case:)Tj /TT1 1 Tf 12.891 -2.125 Td (FINANCIAL CONSIDERATIONS \(GUIDELINE F\))Tj ET q 1 0 0 1 170.6904 63 cm 0 0 m 270.369 0 l h S Q q 10 36 592 730 re W n BT /TT0 1 Tf 12 0 0 12 16 38.25 Tm (E2.A6.1.1. The Concern: An individual who is financially overextended is\ at risk of having to engage in illegal acts to)Tj ET EMC Q endstream endobj 53 0 obj <>/BS<>/Border[0 0 0]/PA<>/Rect[235.0 262.0 249.0 273.0]/Subtype/Link/Type/Annot>> endobj 15 0 obj <>/ProcSet[/PDF/Text]>>/StructParents 2/Type/Page>> endobj 54 0 obj [56 0 R] endobj 55 0 obj <>stream BT /Artifact <>BDC /TT0 1 Tf 9 0 0 9 5 779 Tm (01-15837.h1)Tj EMC /Artifact <>BDC 0 -86 TD (file:///usr.osd.mil/)Tj 7.166 0 Td (...)Tj (yComputer/Desktop/DOHA%20transfer/DOHA-Kane/dodogc/doha/industrial/Archi\ ved%20-%20HTML/01-15837.h1.html)Tj 50.296 0 Td ([7/2/2021 2:22:34 PM])Tj EMC ET 1 g 10 36 591.75 729.75 re f /Article <>BDC EMC /Article <>BDC q 10 36 592 730 re W n BT 0 g 12 0 0 12 16 755.25 Tm (\(DSS\)\(G.E. 2\):)Tj ET Q BT 0 g 12 0 0 12 16 729.75 Tm (I was employed by [named] Manufacturing, [city, state], from March 96 to\ May 98, as General Manager. The owner of)Tj 0 -1.125 TD (the company was [name]. The events )Tj 15.133 0 Td (that occurred that led to my termination are as follows.)Tj -15.133 -2.125 Td (I purchased a Coordinate Measuring Machine \(CMM\) with my own money wit\ h the sole intent of leasing it to [named])Tj T* (Manufacturing. I purchased the machine )Tj 16.438 0 Td (from [another company] for $10,0000. After I had purchased the machine I\ )Tj -16.438 -1.125 Td (was discussing the terms of the lease with [the owner] with the intent t\ o get the )Tj 31.881 0 Td (terms and conditions in a written)Tj -31.881 -1.125 Td (agreement. [The owner] wanted to add a caveat to our previous verbal agr\ eement. The caveat being that he would have)Tj T* (right to )Tj 3.167 0 Td (purchase the machine at any time. I responded that if he was interested \ in owning the machine then he could)Tj -3.167 -1.125 Td (purchase it at that time. He had [company )Tj 16.966 0 Td (employee] write a check to me for $24,000.)Tj -16.966 -2.125 Td (Weeks later, after the machine had been delivered to [the company], and \ a separate office space had been remodeled to)Tj T* (accommodate the machine, [the owner] )Tj 16.048 0 Td (became enraged when he discovered that I had profited from the sale. He)Tj -16.048 -1.125 Td (demanded that I return the profits to him. I refused his demand and he t\ erminated my )Tj 34.295 0 Td (employment.)Tj -34.295 -2.125 Td (When I purchased the machine from [another company], I purchased the mac\ hine "as is" and knew that it was in good)Tj T* (shape and had been properly )Tj 11.69 0 Td (disassembled, packaged, and protected. It did need certification and ins\ pection after it was)Tj -11.69 -1.125 Td (reassembled at [the company]. An employee later told me that it took )Tj 27.963 0 Td (about $100 to repair a feedback mechanism to get)Tj -27.963 -1.125 Td (the machine back into working condition. I never misrepresented the cond\ ition or the age of the machine to )Tj 43.181 0 Td ([the owner])Tj -43.181 -1.125 Td (or any other employees of [the company].)Tj 0 -2.125 TD ([The owner] filed theft charges against me with the [city] Police Depart\ ment alleging that I stole moneys. The case was)Tj 0 -1.125 TD (forwarded to the [named] County )Tj 13.635 0 Td (District Attorneys Office, [city, state]. A grand jury heard the case an\ d "No Billed" the)Tj -13.635 -1.125 Td (case. [The owner] appealed the decision, because he was not available to\ )Tj 29.376 0 Td (give his testimony. An appeal was granted )Tj 17.218 0 Td (and)Tj -46.594 -1.125 Td (a new grand jury was convened and heard. The case and the second grand j\ ury was again "No Billed".)Tj 0 -2.125 TD (In addition to the above circumstance, [the owner] initially denied my c\ laim for unemployment compensation. I)Tj 0 -1.125 TD (appealed the denial and there was a tribunal )Tj 17.77 0 Td (hearing convened between an attorney of fact for the State of Texas)Tj -17.77 -1.125 Td (Employment Commission, [the owner] and myself. The outcome of the hearin\ g was that the )Tj 37.103 0 Td ([state] Employment)Tj -37.103 -1.125 Td (Commission ruled in my favor for unemployment compensation.)Tj 0 -2.125 TD (I have never hid the circumstances concerning my termination from [the c\ ompany] from any employers or on my)Tj 0 -1.125 TD (security questionnaire. My current employer )Tj 18.05 0 Td (and supervisors are aware of the circumstances. [The owner] called [my)Tj -18.05 -1.125 Td (current company], Government Affairs Office after I began my employment \ and made )Tj 34.903 0 Td (allegations about the)Tj -34.903 -1.125 Td (circumstances concerning my dismissal from [the company]. I believe he w\ as trying to cause problems for me, I don't)Tj T* (know what was said )Tj (but I believe the intent was to cause problems for me.)Tj 0 -2.125 TD (To the best of my knowledge there have not been any other actions or civ\ il matters concerning my dismissal from [the)Tj 0 -1.125 TD (company]. The situation with my )Tj 13.553 0 Td (termination from [the company] does not in anyway make me susceptible to\ blackmail)Tj -13.553 -1.125 Td (or coercion concerning classified information.)Tj 0 -2.125 TD (On 28 September 1998, Applicant executed a Security Clearance Applicatio\ n \(SCA\)\(SF 86\)\(G.E. 1\) on which he)Tj 0 -1.125 TD (truthfully disclosed the circumstances of his )Tj 17.885 0 Td (termination from the manufacturing company.)Tj -17.885 -2.125 Td (Applicant--a 54-year-old employee of a defense contractor--seeks reinsta\ tement of the access to classified information)Tj 0 -1.375 TD (that he previously had with this )Tj 12.832 0 Td (employer. He is a machinist by rearing, a businessman by education \(Tr.\ 161-164\).)Tj 0 0 0.933 rg 9.75 0 0 9.75 567.8711 150.75 Tm ( \(6\))Tj ET 0 0 0.933 RG 0.75 w q 1 0 0 1 567.8711 150 cm 0 0 m 13.806 0 l h S Q BT 0 g 12 0 0 12 16 120.75 Tm (Before Applicant went to work for the company that is the focus of the S\ OR, he was employed to manage a company)Tj 0 -1.125 TD (coming out of bankruptcy. Applicant had )Tj 16.746 0 Td (been employed by the company owners when the bankruptcy judge would not)Tj -16.746 -1.125 Td (let them come out of bankruptcy unless the company was being run as effi\ ciently )Tj 32.713 0 Td (as possible. Applicant turned the)Tj -32.713 -1.125 Td (company around to the point where it was making a profit.)Tj 0 -2.125 TD (The owner of Applicant's learned of his success and wanted to hire Appli\ cant to perform similar work for his company.)Tj 0 -1.125 TD (The owner was a prominent state )Tj 13.496 0 Td (legislator whose nominal job was running his manufacturing company. The \ company)Tj ET EMC endstream endobj 56 0 obj <>/BS<>/Border[0 0 0]/PA<>/Rect[567.0 148.0 581.0 159.0]/Subtype/Link/Type/Annot>> endobj 14 0 obj <>/ProcSet[/PDF/Text]>>/StructParents 1/Type/Page>> endobj 57 0 obj [59 0 R 60 0 R 61 0 R 62 0 R] endobj 58 0 obj <>stream BT /Artifact <>BDC /TT0 1 Tf 9 0 0 9 5 779 Tm (01-15837.h1)Tj EMC /Artifact <>BDC 0 -86 TD (file:///usr.osd.mil/)Tj 7.166 0 Td (...)Tj (yComputer/Desktop/DOHA%20transfer/DOHA-Kane/dodogc/doha/industrial/Archi\ ved%20-%20HTML/01-15837.h1.html)Tj 50.296 0 Td ([7/2/2021 2:22:34 PM])Tj EMC ET 1 g 10 36 591.75 729.75 re f /Article <>BDC EMC /Article <>BDC q 10 36 592 730 re W n BT 0 g 12 0 0 12 16 754.5 Tm (On 13 March 1998, Applicant entered into a proposed purchase contract fo\ r a piece of specialized equipment that would)Tj ET Q BT 0 g 12 0 0 12 16 741 Tm (allow Applicant's company to perform )Tj 15.648 0 Td (required calibration on its machine products. The machine cost $10,000.0\ 0; the)Tj -15.648 -1.125 Td (proposed date of sale was 17 March 1998 \(G.E. 5\). On 16 March 1998, )Tj 28.715 0 Td (Applicant was paid his company bonus for)Tj -28.715 -1.375 Td (1997, $24,000.00 less withholding \(G.E. 5\).)Tj 0 0 0.933 rg 9.75 0 0 9.75 226.9902 715.5 Tm ( \(2\))Tj ET 0 0 0.933 RG 0.75 w q 1 0 0 1 226.9902 714.75 cm 0 0 m 13.806 0 l h S Q BT 0 g 12 0 0 12 240.7964 711 Tm ( On 17 March 2003, Applicant purchased the machine. The same day,)Tj -18.733 -1.375 Td (Applicant's company gave him a check for $24,000.00 for purchase of the \ machine \(G.E. 5\).)Tj 0 0 0.933 rg 9.75 0 0 9.75 459.6836 699 Tm ( \(3\))Tj ET q 1 0 0 1 459.6836 698.25 cm 0 0 m 13.806 0 l h S Q BT 0 g 12 0 0 12 473.4897 694.5 Tm ( On or about 19 May)Tj -38.124 -1.125 Td (1998, the company president confronted )Tj 16.384 0 Td (Applicant about the president's recent discovery that Applicant had paid\ )Tj -16.384 -1.125 Td ($10,000.00 for the machine, not $24,000.00. The president demanded Appli\ cant refund )Tj 35.186 0 Td (the $14,000.00 difference.)Tj -35.186 -1.125 Td (Applicant refused and was fired. He later won his case for unemployment \ compensation before the state unemployment)Tj 0 -1.125 TD (commission. )Tj 5.333 0 Td (However, he only collected one employment check as he was quickly hired \ by his current defense)Tj -5.333 -1.125 Td (employer.)Tj 0 -2.125 TD (The company president accused Applicant of theft. The case was investiga\ ted \(G.E. 3\) and brought before a grand jury.)Tj 0 -1.125 TD (Applicant testified before the grand )Tj 14.467 0 Td (jury, which refused to indict him. The company president did not testify\ at the first)Tj -14.467 -1.125 Td (grand jury. He managed to get the prosecutors to reopen the case to perm\ it )Tj 30.073 0 Td (him to testify. He testified at the second)Tj -30.073 -1.375 Td (grand jury proceeding, Applicant did not. However, the grand jury still \ refused to indict Applicant.)Tj 0 0 0.933 rg 9.75 0 0 9.75 490.5449 562.5 Tm ( \(4\))Tj ET q 1 0 0 1 490.5449 561.75 cm 0 0 m 13.806 0 l h S Q BT 0 g 12 0 0 12 16 532.5 Tm (This case hinges on the factual determination whether the $24,000.00 pay\ ment to Applicant was reimbursement for the)Tj T* (putative price of the machine \(with )Tj 14.272 0 Td (Applicant owing a fiduciary duty to the company to seek reimbursement on\ ly for the)Tj -14.272 -1.125 Td (amount he actually paid\) or an arms-length transaction between Applican\ t )Tj 29.878 0 Td (and his employer in which Applicant sold the)Tj -29.878 -1.125 Td (machine \(which he owned\) to the company for a fair price. I find Appli\ cant sold the machine he had purchased)Tj 0 -1.375 TD (legitimately to his company at a fair price.)Tj 0 0 0.933 rg 9.75 0 0 9.75 219.2617 480 Tm ( \(5\))Tj ET q 1 0 0 1 219.2617 479.25 cm 0 0 m 13.806 0 l h S Q BT 0 g 12 0 0 12 16 450 Tm (Applicant denied the allegations of the SOR. The SOR alleges a single in\ cident as cognizable under both Guidelines F)Tj 0 -1.125 TD (and E:)Tj 0 -2.125 TD (You engaged in deceptive financial practices by knowingly representing t\ o your employer, [named], that the coordinate)Tj 0 -1.125 TD (measuring machine you purchased for )Tj 15.522 0 Td (the company was in good working condition and cost $24,000.00 when in fa\ ct)Tj -15.522 -1.125 Td (the machine did not work and cost $10,000.00. You did not pay back the )Tj 29.355 0 Td ($14,000.00 difference in price and you were)Tj -29.355 -1.125 Td (subsequently terminated from your)Tj 0 -2.125 TD (employment.)Tj T* (Applicant vehemently denied the allegation in his answer:)Tj T* (I informed [named company owner] that I had found a Shieffeld Coordinate\ Measuring Machine and that I would like to)Tj 0 -1.125 TD (purchase the machine and lease it to )Tj 14.688 0 Td (his company [named] Manufacturing Corp. This arrangement would give [the\ )Tj -14.688 -1.125 Td (company] the utility of the machine without the burden of cash outlay fo\ r capital )Tj 32.546 0 Td (equipment and provide a tax deferment)Tj -32.546 -1.125 Td (for myself. [Named company owner] was agreeable.)Tj 0 -2.125 TD (After purchasing the coordinate measuring machine with my own money and \ making arrangements to have the machine)Tj 0 -1.125 TD (delivered to [named] Corporation, I )Tj 14.495 0 Td (approached [Named company owner] to formalize a lease agreement. It was \ at this)Tj -14.495 -1.125 Td (time that [named company owner] informed me he wanted to add a caveat )Tj 29.96 0 Td (too our previous agreement. The caveat)Tj -29.96 -1.125 Td (would allow [named company owner] to exercise an option to purchase the \ machine at any time during the lease. I)Tj T* (informed him that the purpose of the lease was to provide me a tax defer\ ment, and that the caveat was not in my best)Tj T* (interest and if his intent was to own the )Tj 15.969 0 Td (machine, I would sell it for $24,000.00, a fair market value. He did not\ hesitate)Tj -15.969 -1.125 Td (in accepting my offer. He had a [named] Corporate check for $24,000.00 i\ ssued )Tj 32.211 0 Td (to [me] to purchase the coordinate)Tj -32.211 -1.125 Td (machine. Two different [named] County Grand Juries found no probable cau\ se that deceptive financial practices were)Tj T* (committed by me. . .)Tj 0 -2.125 TD (Although [named company owner] and I had a business dispute which eventu\ ally was resolved in my favor, my)Tj 0 -1.125 TD (judgment has been reviewed by two properly )Tj 18.3 0 Td (empaneled grand juries and no )Tj 12.523 0 Td (dishonesty, lack of candor, or deceptive)Tj -30.824 -1.125 Td (financial practices were found on my behalf.)Tj 0 -2.125 TD (Applicant's Answer is completely consistent with his 19 July 2000 sworn \ statement to the Defense Security Service)Tj ET EMC endstream endobj 59 0 obj <>/BS<>/Border[0 0 0]/PA<>/Rect[227.0 713.0 241.0 724.0]/Subtype/Link/Type/Annot>> endobj 60 0 obj <>/BS<>/Border[0 0 0]/PA<>/Rect[459.0 696.0 473.0 707.0]/Subtype/Link/Type/Annot>> endobj 61 0 obj <>/BS<>/Border[0 0 0]/PA<>/Rect[490.0 560.0 504.0 571.0]/Subtype/Link/Type/Annot>> endobj 62 0 obj <>/BS<>/Border[0 0 0]/PA<>/Rect[219.0 477.0 233.0 488.0]/Subtype/Link/Type/Annot>> endobj 12 0 obj <> endobj 63 0 obj <> endobj 9 0 obj <> endobj 10 0 obj <> endobj 11 0 obj <> endobj 72 0 obj (file:///usr.osd.mil/Home/OSD/OGC/JosephLM/_MyComputer/Desktop/DOHA%20transfer/DOHA-Kane/dodogc/doha/industrial/Archived%20-%20HTML/01-15837.h1.html) endobj 71 0 obj <> endobj 73 0 obj <> endobj 64 0 obj [18 0 R/XYZ 0 270.0 null] endobj 65 0 obj [18 0 R/XYZ 0 231.0 null] endobj 66 0 obj [18 0 R/XYZ 0 152.0 null] endobj 67 0 obj [18 0 R/XYZ 0 99.0 null] endobj 68 0 obj [18 0 R/XYZ 0 74.0 null] endobj 69 0 obj [19 0 R/XYZ 0 618.0 null] endobj 70 0 obj [19 0 R/XYZ 0 579.0 null] endobj 4 0 obj <> endobj xref 0 74 0000000000 65535 f 0000000016 00000 n 0000000141 00000 n 0000003658 00000 n 0000161013 00000 n 0000003536 00000 n 0000003591 00000 n 0000003752 00000 n 0000003779 00000 n 0000160031 00000 n 0000160255 00000 n 0000160297 00000 n 0000159841 00000 n 0000004718 00000 n 0000151647 00000 n 0000144651 00000 n 0000137237 00000 n 0000107700 00000 n 0000102121 00000 n 0000098968 00000 n 0000003882 00000 n 0000003928 00000 n 0000003977 00000 n 0000004291 00000 n 0000004067 00000 n 0000004099 00000 n 0000004131 00000 n 0000004163 00000 n 0000004195 00000 n 0000004227 00000 n 0000004259 00000 n 0000004932 00000 n 0000004957 00000 n 0000009631 00000 n 0000009680 00000 n 0000009715 00000 n 0000010223 00000 n 0000098644 00000 n 0000045570 00000 n 0000045837 00000 n 0000010676 00000 n 0000010949 00000 n 0000011443 00000 n 0000046448 00000 n 0000099157 00000 n 0000102321 00000 n 0000107911 00000 n 0000113148 00000 n 0000113553 00000 n 0000113829 00000 n 0000114216 00000 n 0000137462 00000 n 0000137487 00000 n 0000144327 00000 n 0000144854 00000 n 0000144879 00000 n 0000151323 00000 n 0000151850 00000 n 0000151896 00000 n 0000158545 00000 n 0000158869 00000 n 0000159193 00000 n 0000159517 00000 n 0000159926 00000 n 0000160721 00000 n 0000160763 00000 n 0000160805 00000 n 0000160847 00000 n 0000160888 00000 n 0000160929 00000 n 0000160971 00000 n 0000160505 00000 n 0000160339 00000 n 0000160668 00000 n trailer <]>> startxref 161186 %%EOF