%PDF-1.6 % 1 0 obj <> endobj 2 0 obj <>stream 2021-06-24T11:04:58-04:00 2021-06-24T11:04:57-04:00 2021-06-24T11:04:58-04:00 Adobe Acrobat 17.0 application/pdf 02-23477.h1 uuid:13ce667e-d144-40c0-8ffa-f75c9197e3a4 uuid:58020c29-bb33-4f26-b946-edd4df828aa3 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 19 0 obj <>>> endobj 20 0 obj <> endobj 21 0 obj <> endobj 23 0 obj [22 0 R 22 0 R] endobj 24 0 obj [22 0 R 22 0 R] endobj 25 0 obj [22 0 R 22 0 R] endobj 26 0 obj [22 0 R 22 0 R] endobj 27 0 obj [22 0 R 22 0 R] endobj 28 0 obj [22 0 R 22 0 R] endobj 22 0 obj <><><><><><><><><><>]/P 20 0 R/Pg 13 0 R/S/Article>> endobj 13 0 obj <>/ProcSet[/PDF/Text]>>/StructParents 0/Type/Page>> endobj 29 0 obj [35 0 R] endobj 30 0 obj <>stream BT /Artifact <>BDC /TT0 1 Tf 9 0 0 9 5 779 Tm (02-23477.h1)Tj EMC /Artifact <>BDC 0 -86 TD (file:///usr.osd.mil/)Tj 7.166 0 Td (...)Tj (omputer/Desktop/DOHA%20transfer/DOHA-Kane/dodogc/doha/industrial/Archive\ d%20-%20HTML/02-23477.h1.html)Tj 49.129 0 Td ([6/24/2021 11:04:57 AM])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 624.7503 cm 0 0 m 0.75 -0.751 l 579 -0.751 l 579.749 0 l h f Q 0.933 g q 1 0 0 1 16.7499 623.9997 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 623.25 cm 0 0 m 0.75 0.75 l 0 1.5 l h f Q 0.933 g q 1 0 0 1 594.9999 623.9997 cm 0 0 m 0.75 -0.75 l 0.75 0.751 l h f Q /Article <>BDC EMC /Article <>BDC BT 0 g 12 0 0 12 16 749.25 Tm (DATE: )Tj (November 29, 2004)Tj 0 -2.75 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. 02-23477)Tj /TT1 1 Tf 14.419 -2.125 Td (DECISION OF ADMINISTRATIVE JUDGE)Tj 4.029 -2.125 Td (MICHAEL H. LEONARD)Tj 1.986 -2.125 Td (APPEARANCES)Tj ET 0.75 w q 1 0 0 1 261.2061 523.5 cm 0 0 m 89.338 0 l h S Q BT 11.25 0 0 11.25 251.0312 499.5 Tm (FOR GOVERNMENT)Tj /TT0 1 Tf -5.234 -2.2 Td (Erin C. Hogan, Deputy Chief Department Counsel)Tj /TT1 1 Tf 6.012 -2.2 Td (FOR APPLICANT)Tj /TT0 1 Tf -0.235 -2.2 Td (Richard Murray, Esq.)Tj /TT1 1 Tf 12 0 0 12 276.5312 399.75 Tm (SYNOPSIS)Tj ET q 1 0 0 1 276.5312 399 cm 0 0 m 58.688 0 l h S Q BT /TT0 1 Tf 12 0 0 12 16 374.25 Tm (Applicant has met his ultimate burden by explaining and mitigating the r\ ecord evidence presented against him)Tj 0 -1.125 TD (suggesting he was terminated in September 2000)Tj /Span<>> BDC ( )Tj EMC 19.857 0 Td (for using a company credit card for $1,000 of personal expenses and)Tj -19.857 -1.125 Td (then making a false entry in his employer's financial records that he ha\ d reimbursed the)Tj /Span<>> BDC ( )Tj EMC 35.196 0 Td (company for the expenditure.)Tj -35.196 -1.125 Td (Clearance is granted.)Tj /TT1 1 Tf 17.558 -2.125 Td (STATEMENT OF THE CASE)Tj /TT0 1 Tf -17.558 -2.125 Td (On August 26, 2003, the Defense Office of Hearings and Appeals \(DOHA\) \ issued to Applicant a Statement of Reasons)Tj 0 -1.375 TD (\(SOR\) stating the reasons why DOHA)Tj /Span<>> BDC ( )Tj EMC (proposed to deny or revoke access to classified information for Applican\ t.)Tj 0 0 0.933 rg 9.75 0 0 9.75 558.8711 270.75 Tm ( \(1\))Tj ET 0 0 0.933 RG q 1 0 0 1 558.8711 270 cm 0 0 m 13.806 0 l h S Q BT 0 g 12 0 0 12 572.6772 266.25 Tm ( The)Tj -46.39 -1.125 Td (SOR, which is in essence the administrative complaint, alleges a securit\ y)Tj /Span<>> BDC ( )Tj EMC 29.465 0 Td (concern under Guideline E for personal)Tj -29.465 -1.125 Td (conduct. The crux of the allegation is that Applicant was terminated fro\ m his employment with a defense contractor in)Tj 0 -1.125 TD (September 2000 for using a company credit card for $1,000 of personal ex\ penses and then making a false entry in his)Tj T* (employer's financial records that he had)Tj /Span<>> BDC ( )Tj EMC 16.174 0 Td (reimbursed the company for the expenditure. Applicant responded to the S\ OR)Tj -16.174 -1.125 Td (in writing, dated September 19, 2003, and he denied the SOR allegation w\ ithout)Tj /Span<>> BDC ( )Tj EMC 32.327 0 Td (explanation; he also requested a)Tj -32.327 -1.125 Td (hearing.)Tj 0 -2.125 TD (Department Counsel indicated she was ready to proceed on June 23, 2004, \ and the case was assigned to another)Tj 0 -1.125 TD (administrative judge on July 8, 2004. The case)Tj /Span<>> BDC ( )Tj EMC 18.885 0 Td (was reassigned to me July 15, 2004. With the agreement of counsel, a)Tj -18.885 -1.125 Td (notice of hearing was issued scheduling )Tj 16.163 0 Td (the hearing for August 4, 2004. Applicant)Tj /Span<>> BDC ( )Tj EMC 16.969 0 Td (appeared with counsel and the)Tj -33.131 -1.125 Td (hearing took place as scheduled. Government Exhibits 1 -5 were admitted \ and Applicant Exhibits A and B were)Tj T* (admitted.)Tj /Span<>> BDC ( )Tj EMC 3.999 0 Td (Applicant called two character witnesses, one expert witness, and testif\ ied himself. I left the record open to)Tj -3.999 -1.125 Td (allow Applicant the opportunity to submit an)Tj /Span<>> BDC ( )Tj EMC 18.248 0 Td (additional record, but I received a letter from his counsel explaining t\ he)Tj -18.248 -1.125 Td (record could not be found. I received the hearing transcript August 20, \ 2004.)Tj /TT1 1 Tf 19.406 -2.125 Td (FINDINGS OF FACT)Tj ET 0 G q 1 0 0 1 248.8721 52.5 cm 0 0 m 114.006 0 l h S Q EMC endstream endobj 31 0 obj <> endobj 32 0 obj (ϒ45UF) endobj 33 0 obj <> endobj 34 0 obj <> endobj 38 0 obj <> endobj 39 0 obj <>stream H\͊0y9? B-x=;.l@ ϙDEy*];BzSMlp[:ۚߦ52>(9aW\-X ⫨UwC7B yK_!V|;N+;9ydޯE_ bZ9dZBg响]]%|8)zf ĉp¼0)[-NxǼ3G#s!\0OnaLf-=xjSfO-=P=)s6e >stream H|y|ϼ>3$-yg&ySE MT[ŭ$͂HR*%Dl[:wKX3#VRdgp=y9|?Rre'O.Ǚ_˕땪gq454RJJӤiKCn..Gɓ |O~ ٩Ko;* r/ I PJw[|U)JbQ*O!0ԐeXd(2<23N4fW4&6y|M&) 1P5uՆjT}_Pj:YV-uZaâb i,YG<\`ivBv5j_C.SRPq#+uU|)JPJ LC!ې/8e0fT[pg ~)w8Eᔭkp*. 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First, this)Tj /Span<>> BDC ( )Tj EMC 13.972 0 Td (allegation is based primarily on Exhibits 3 and 4, the only company reco\ rds admitted)Tj -13.972 -1.125 Td (into evidence. These two documents--not subject to cross-examination--we\ re generated by the company to support its)Tj 0 -1.125 TD (decision to fire Applicant. Given these circumstance, I have given Exhib\ its 3 and 4 some weight,)Tj /Span<>> BDC ( )Tj EMC 39.017 0 Td (but not great weight.)Tj -39.017 -1.125 Td (Second, of some concern here is the absence of the pertinent company acc\ ounting or financial record showing the)Tj T* (accounting entry at)Tj /Span<>> BDC ( )Tj EMC 7.914 0 Td (issue. In other words, in deciding this case, it would be helpful to hav\ e the company record that goes)Tj -7.914 -1.125 Td (to the heart of the dispute. Third, the fact Applicant)Tj /Span<>> BDC ( )Tj EMC 20.827 0 Td (reported the credit card charges when he returned )Tj 20.045 0 Td (from his)Tj -40.872 -1.125 Td (honeymoon in November 1999 and again when he turned the books over to th\ e incoming CFO in)Tj /Span<>> BDC ( )Tj EMC 39.132 0 Td (ay 2000 undercuts the)Tj -39.132 -1.125 Td (allegation he made a false accounting entry. Those are not the actions o\ f a man intent on concealing or covering up.)Tj T* (Taken together,)Tj /Span<>> BDC ( )Tj EMC 6.525 0 Td (these matters persuade me the information suggesting he made a false acc\ ounting entry is)Tj -6.525 -1.125 Td (unsubstantiated.)Tj 0 -2.125 TD (Applicant also receives credit in mitigation for at least five other rea\ sons not specified in the formal mitigating)Tj 0 -1.125 TD (conditions. First, the nature, extent, and)Tj /Span<>> BDC ( )Tj EMC 16.108 0 Td (seriousness of the conduct involving questionable judgment are not parti\ cularly)Tj -16.108 -1.125 Td (significant. It did not involve a large sum of money. Using a company cr\ edit)Tj /Span<>> BDC ( )Tj EMC 30.826 0 Td (card for personal expenses in a closely-)Tj -30.826 -1.125 Td (held company is not uncommon, and that money was repaid. Applicant was n\ ot attempting to defraud or deceive the)Tj T* (company or evade payment, although he certainly procrastinated far too l\ ong in paying the money back. Second, the)Tj T* (conduct appears to be an isolated incident)Tj /Span<>> BDC ( )Tj EMC 16.966 0 Td (or one-time error in judgment in an otherwise successful career as a def\ ense)Tj -16.966 -1.125 Td (contractor, active duty servicemember, and air national guard member. Th\ ird, the)Tj /Span<>> BDC ( )Tj EMC 32.792 0 Td (conduct took place about four years)Tj -32.792 -1.125 Td (ago and is not recent. Fourth, the likelihood of recurrence of the condu\ ct appears to be quite remote. And fifth, I have)Tj T* (given)Tj /Span<>> BDC ( )Tj EMC (substantial weight to Applicant's favorable character evidence, especial\ ly the strong endorsement of Applicant's)Tj T* (integrity by the two-star general. Cumulatively,)Tj /Span<>> BDC ( )Tj EMC 19.273 0 Td (these five reasons mitigate Applicant's conduct involving questionable)Tj -19.273 -1.125 Td (judgment.)Tj 0 -2.125 TD (To conclude, based on the record evidence as a whole, Applicant has met \ his ultimate burden by explaining and)Tj 0 -1.125 TD (mitigating the record evidence presented)Tj /Span<>> BDC ( )Tj EMC 16.521 0 Td (against him. )Tj 5.138 0 Td (Accordingly, Guideline E is decided for Applicant. In reaching)Tj -21.659 -1.125 Td (my decision, I have considered the whole-person concept, the clearly-con\ sistent)Tj /Span<>> BDC ( )Tj EMC 32.211 0 Td (standard, and other appropriate factors)Tj -32.211 -1.125 Td (and guidelines in the Directive.)Tj /TT1 1 Tf 19.364 -2.125 Td (FORMAL FINDINGS)Tj ET 0 G q 1 0 0 1 248.374 365.25 cm 0 0 m 115.002 0 l h S Q BT /TT0 1 Tf 12 0 0 12 16 340.5 Tm (The following are my conclusions as to each allegation in the SOR:)Tj 0 -2.125 TD (SOR \266 1-Guideline E: For the Applicant)Tj T* (Subparagraph a: )Tj 6.775 0 Td (For the Applicant)Tj /TT1 1 Tf 14.908 -2.125 Td (DECISION)Tj /TT0 1 Tf -21.683 -2.125 Td (In light of all the circumstances presented by the record, it is clearly\ consistent with the national interest to grant or)Tj 0 -1.125 TD (continue a security clearance for Applicant.)Tj /Span<>> BDC ( )Tj EMC 17.686 0 Td (Clearance is granted.)Tj 2.43 -2.125 Td (Michael H. Leonard)Tj -0.251 -2.125 Td (Administrative Judge)Tj -19.865 -2.125 Td (1. )Tj (This action was taken under Executive Order 10865, dated February 20, 19\ 60, as amended, and DoD Directive)Tj T* (5220.6, dated January 2, 1992, as amended)Tj /Span<>> BDC ( )Tj EMC 17.468 0 Td (and modified \(Directive\).)Tj -17.468 -2.125 Td (2. )Tj (ISCR Case No. 96-0277 \(July 11, 1997\) at p. 2.)Tj 0 -2.125 TD (3. )Tj (ISCR Case No. 02-18663 \(March 23, 2004\) at p. 5.)Tj T* (4. )Tj (ISCR Case No. 97-0016 \(December 31, 1997\) at p. 3; Directive, Enclosur\ e 3, Item E3.1.14.)Tj ET EMC endstream endobj 49 0 obj <>/BS<>/Border[0 0 0]/PA<>/Rect[268.0 755.0 286.0 766.0]/Subtype/Link/Type/Annot>> endobj 16 0 obj <>/ProcSet[/PDF/Text]>>/StructParents 3/Type/Page>> endobj 50 0 obj [52 0 R 53 0 R 54 0 R 55 0 R 56 0 R 57 0 R 58 0 R 59 0 R 60 0 R 61 0 R] endobj 51 0 obj <>stream BT /Artifact <>BDC /TT0 1 Tf 9 0 0 9 5 779 Tm (02-23477.h1)Tj EMC /Artifact <>BDC 0 -86 TD (file:///usr.osd.mil/)Tj 7.166 0 Td (...)Tj (omputer/Desktop/DOHA%20transfer/DOHA-Kane/dodogc/doha/industrial/Archive\ d%20-%20HTML/02-23477.h1.html)Tj 49.129 0 Td ([6/24/2021 11:04:57 AM])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 0 g q 1 0 0 1 37.75 758.25 cm 0 0 m 0 2 -3 2 -3 0 c -3 -2 0 -2 0 0 c f Q 0.75 w q 1 0 0 1 37.75 758.25 cm 0 0 m 0 2 -3 2 -3 0 c -3 -2 0 -2 0 0 c h S Q BT 12 0 0 12 46 755.25 Tm (Concerning the subject of personal finance, Applicant and his spouse are\ on solid financial footing.)Tj ET q 1 0 0 1 37.75 744.75 cm 0 0 m 0 2 -3 2 -3 0 c -3 -2 0 -2 0 0 c f Q q 1 0 0 1 37.75 744.75 cm 0 0 m 0 2 -3 2 -3 0 c -3 -2 0 -2 0 0 c h S Q Q BT 0 g 12 0 0 12 46 741.75 Tm (In closely-held companies, it is not uncommon for shareholders to use th\ e company credit card for personal)Tj 0 -1.125 TD (expenses with the expectation the money)Tj /Span<>> BDC ( )Tj EMC 16.662 0 Td (will be repaid in a timely fashion, normally within 30 to 60 days.)Tj ET q 10 36 592 730 re W n q 1 0 0 1 37.75 717.75 cm 0 0 m 0 2 -3 2 -3 0 c -3 -2 0 -2 0 0 c f Q 0.75 w q 1 0 0 1 37.75 717.75 cm 0 0 m 0 2 -3 2 -3 0 c -3 -2 0 -2 0 0 c h S Q Q BT 12 0 0 12 46 714.75 Tm (Applicant did not create a false accounting entry; instead, Applicant's \ purpose in making the accounting entry was)Tj T* (part of preparing projections and)Tj /Span<>> BDC ( )Tj EMC 13.356 0 Td (budgets for management to use and to show that particular money would be\ )Tj -13.356 -1.125 Td (coming in when Applicant reimbursed the company.)Tj /TT1 1 Tf 19.267 -2.125 Td (POLICIES)Tj /TT0 1 Tf -21.767 -2.125 Td (The Directive sets forth adjudicative guidelines to consider when evalua\ ting a person's security-clearance eligibility,)Tj T* (including disqualifying conditions \(DC\))Tj /Span<>> BDC ( )Tj EMC 16.276 0 Td (and mitigating conditions \(MC\) for each applicable guideline. In addit\ ion, each)Tj -16.276 -1.125 Td (clearance decision must be a fair and impartial commonsense decision bas\ ed on)Tj /Span<>> BDC ( )Tj EMC 32.155 0 Td (the relevant and material facts and)Tj -32.155 -1.125 Td (circumstances, the whole-person concept, and the factors listed in \266 \ 6.3.1. through \266 6.3.6. of the Directive. Although the)Tj T* (presence or absence of a particular condition or factor for or against c\ learance is not outcome determinative, the)Tj T* (adjudicative guidelines should be followed)Tj /Span<>> BDC ( )Tj EMC 17.413 0 Td (whenever a case can be measured against this policy guidance.)Tj /TT1 1 Tf 1.938 -2.125 Td (BURDEN OF PROOF)Tj ET q 10 36 592 730 re W n 0.75 w q 1 0 0 1 248.21 543 cm 0 0 m 115.33 0 l h S Q Q BT /TT0 1 Tf 12 0 0 12 16 518.25 Tm (The only purpose of a security-clearance decision is to decide if it is \ clearly consistent with the national interest to grant)Tj 0 -1.375 TD (or continue a security clearance for an)Tj /Span<>> BDC ( )Tj EMC 15.52 0 Td (applicant.)Tj 0 0 0.933 rg 9.75 0 0 9.75 249.2148 506.25 Tm ( \(2\))Tj ET q 10 36 592 730 re W n 0 0 0.933 RG 0.75 w q 1 0 0 1 249.2148 505.5 cm 0 0 m 13.806 0 l h S Q Q BT 0 g 12 0 0 12 263.021 501.75 Tm ( There is no presumption in favor of granting or continuing access to)Tj -20.585 -1.375 Td (classified information.)Tj 0 0 0.933 rg 9.75 0 0 9.75 123.9707 489.75 Tm ( \(3\))Tj ET q 10 36 592 730 re W n 0 0 0.933 RG 0.75 w q 1 0 0 1 123.9707 489 cm 0 0 m 13.806 0 l h S Q Q BT 0 g 12 0 0 12 137.7769 485.25 Tm ( The government has the burden of proving controverted)Tj /Span<>> BDC ( )Tj EMC 22.91 0 Td (facts.)Tj 0 0 0.933 rg 9.75 0 0 9.75 438.3452 489.75 Tm ( \(4\))Tj ET q 10 36 592 730 re W n 0 0 0.933 RG 0.75 w q 1 0 0 1 438.3452 489 cm 0 0 m 13.806 0 l h S Q Q BT 0 g 12 0 0 12 452.1514 485.25 Tm ( The U.S. Supreme Court has)Tj -36.346 -1.375 Td (said the burden of proof )Tj 9.858 0 Td (in a security-clearance case is less than the preponderance of the evide\ nce.)Tj 0 0 0.933 rg 9.75 0 0 9.75 492.1211 473.25 Tm ( \(5\))Tj ET q 10 36 592 730 re W n 0 0 0.933 RG 0.75 w q 1 0 0 1 492.1211 472.5 cm 0 0 m 13.806 0 l h S Q Q BT 0 g 12 0 0 12 505.9272 468.75 Tm ( The DOHA)Tj -40.827 -1.375 Td (Appeal)Tj /Span<>> BDC ( )Tj EMC (Board has followed the Court's reasoning on this issue establishing a su\ bstantial-evidence standard.)Tj 0 0 0.933 rg 9.75 0 0 9.75 530.7168 456.75 Tm ( \(6\))Tj ET q 10 36 592 730 re W n 0 0 0.933 RG 0.75 w q 1 0 0 1 530.7168 456 cm 0 0 m 13.806 0 l h S Q Q BT 0 g 12 0 0 12 16 435.75 Tm ("Substantial evidence is more than a scintilla, but less than)Tj /Span<>> BDC ( )Tj EMC 23.708 0 Td (a preponderance of the evidence.")Tj 0 0 0.933 rg 9.75 0 0 9.75 463.6445 440.25 Tm ( \(7\))Tj ET q 10 36 592 730 re W n 0 0 0.933 RG 0.75 w q 1 0 0 1 463.6445 439.5 cm 0 0 m 13.806 0 l h S Q Q BT 0 g 12 0 0 12 477.4507 435.75 Tm ( Once the government)Tj -38.454 -1.125 Td (meets its burden, an applicant has the burden of presenting evidence of \ refutation, extenuation, or)Tj /Span<>> BDC ( )Tj EMC 39.265 0 Td (mitigation sufficient)Tj -39.265 -1.375 Td (to overcome the case against them.)Tj 0 0 0.933 rg 9.75 0 0 9.75 183.9355 410.25 Tm ( \(8\))Tj ET q 10 36 592 730 re W n 0 0 0.933 RG 0.75 w q 1 0 0 1 183.9355 409.5 cm 0 0 m 13.806 0 l h S Q Q BT 0 g 12 0 0 12 197.7417 405.75 Tm ( In addition, an applicant has the ultimate burden of persuasion to obta\ in a)Tj -15.145 -1.375 Td (favorable clearance)Tj /Span<>> BDC ( )Tj EMC 8.049 0 Td (decision.)Tj 0 0 0.933 rg 9.75 0 0 9.75 155.582 393.75 Tm ( \(9\))Tj ET q 10 36 592 730 re W n 0 0 0.933 RG 0.75 w q 1 0 0 1 155.582 393 cm 0 0 m 13.806 0 l h S Q Q BT 0 g 12 0 0 12 16 363.75 Tm (As noted by the Court in )Tj /TT2 1 Tf 10.11 0 Td (Egan)Tj /TT0 1 Tf (, "it should be obvious that no one has a 'right' to a security clearanc\ e," and "the clearly)Tj -10.11 -1.375 Td (consistent standard indicates that)Tj /Span<>> BDC ( )Tj EMC 13.441 0 Td (security clearance determinations should err, if they must, on the side \ of denials.")Tj 0 0 0.933 rg 9.75 0 0 9.75 568.4043 351.75 Tm ( \(10\))Tj ET q 10 36 592 730 re W n 0 0 0.933 RG 0.75 w q 1 0 0 1 568.4043 351 cm 0 0 m 18.681 0 l h S Q Q BT 0 g 12 0 0 12 16 333.75 Tm (Under )Tj /TT2 1 Tf (Egan, )Tj /TT0 1 Tf (Executive Order 10865, and the Directive, any doubt about)Tj /Span<>> BDC ( )Tj EMC 29.269 0 Td (whether an applicant should be allowed access)Tj -29.269 -1.125 Td (to classified information will be resolved in favor of protecting nation\ al security.)Tj /TT1 1 Tf 20.489 -2.125 Td (CONCLUSIONS)Tj ET q 10 36 592 730 re W n 0.75 w q 1 0 0 1 261.8652 294 cm 0 0 m 88.02 0 l h S Q Q BT /TT0 1 Tf 12 0 0 12 16 269.25 Tm (Personal conduct under Guideline E is always a security concern because \ it asks the)Tj /TT1 1 Tf 33.572 0 Td ( )Tj /TT0 1 Tf (central question if a person's past)Tj -33.572 -1.125 Td (conduct justifies confidence the person)Tj /Span<>> BDC ( )Tj EMC 15.856 0 Td (can be trusted to properly safeguard classified information. The concern\ includes)Tj -15.856 -1.125 Td (conduct involving questionable judgment, untrustworthiness, unreliabilit\ y,)Tj /Span<>> BDC ( )Tj EMC 30.079 0 Td (lack of candor, dishonesty, or unwillingness)Tj -30.079 -1.125 Td (to comply with rules and regulations that could indicate that the person\ may not properly safeguard classified)Tj 0 -1.125 TD (information.)Tj 0 -2.125 TD (Given the relatively low standard of proof--the )Tj 18.966 0 Td (substantial-evidence standard--that applies to this proceeding, the)Tj -18.966 -1.125 Td (government has established a prima-facie)Tj /Span<>> BDC ( )Tj EMC 16.854 0 Td (case under Guideline E. The government has presented sufficient evidence\ of)Tj -16.854 -1.125 Td (reliable, unfavorable information from Applicant's former employer to sh\ ow)Tj /Span<>> BDC ( )Tj EMC 30.837 0 Td (Applicant engaged in conduct )Tj 12.218 0 Td (involving)Tj -43.056 -1.375 Td (questionable judgment, and thus DC 1)Tj 0 0 0.933 rg 9.75 0 0 9.75 199.9785 150.75 Tm ( \(11\))Tj ET q 10 36 592 730 re W n 0 0 0.933 RG 0.75 w q 1 0 0 1 199.9785 150 cm 0 0 m 18.681 0 l h S Q Q BT 0 g 12 0 0 12 218.6597 146.25 Tm ( applies. In particular, the record evidence clearly shows that in 1999)Tj -16.888 -1.125 Td (Applicant used the company credit card for about $1,000 in personal expe\ nses and then was less than diligent, or lacked)Tj 0 -1.125 TD (a sense of urgency, in )Tj 8.941 0 Td (reimbursing the)Tj /Span<>> BDC ( )Tj EMC 6.554 0 Td (company. Using the company credit card for personal expenses and then)Tj -15.496 -1.125 Td (needlessly delaying reimbursing the company does indicate questionable j\ udgment.)Tj /Span<>> BDC ( )Tj EMC 33.658 0 Td (The record evidence is less than)Tj -33.658 -1.125 Td (clear, however, that Applicant made a false accounting entry to show he \ had reimbursed the company. Applicant's)Tj T* (testimony)Tj /Span<>> BDC ( )Tj EMC 4.194 0 Td (on this point, coupled with the testimony of the expert witness, shows j\ ust the opposite; namely, Applicant)Tj -4.194 -1.125 Td (did not try to defraud or deceive the company or)Tj /Span<>> BDC ( )Tj EMC 19.605 0 Td (evade payment, but instead made an accounting entry to show this)Tj -19.605 -1.125 Td (particular money would be incoming.)Tj ET EMC endstream endobj 52 0 obj <>/BS<>/Border[0 0 0]/PA<>/Rect[249.0 504.0 263.0 515.0]/Subtype/Link/Type/Annot>> endobj 53 0 obj <>/BS<>/Border[0 0 0]/PA<>/Rect[123.0 487.0 137.0 498.0]/Subtype/Link/Type/Annot>> endobj 54 0 obj <>/BS<>/Border[0 0 0]/PA<>/Rect[438.0 487.0 452.0 498.0]/Subtype/Link/Type/Annot>> endobj 55 0 obj <>/BS<>/Border[0 0 0]/PA<>/Rect[492.0 471.0 506.0 482.0]/Subtype/Link/Type/Annot>> endobj 56 0 obj <>/BS<>/Border[0 0 0]/PA<>/Rect[531.0 454.0 545.0 465.0]/Subtype/Link/Type/Annot>> endobj 57 0 obj <>/BS<>/Border[0 0 0]/PA<>/Rect[463.0 438.0 477.0 449.0]/Subtype/Link/Type/Annot>> endobj 58 0 obj <>/BS<>/Border[0 0 0]/PA<>/Rect[183.0 408.0 197.0 419.0]/Subtype/Link/Type/Annot>> endobj 59 0 obj <>/BS<>/Border[0 0 0]/PA<>/Rect[156.0 391.0 170.0 402.0]/Subtype/Link/Type/Annot>> endobj 60 0 obj <>/BS<>/Border[0 0 0]/PA<>/Rect[568.0 349.0 586.0 360.0]/Subtype/Link/Type/Annot>> endobj 61 0 obj <>/BS<>/Border[0 0 0]/PA<>/Rect[200.0 148.0 218.0 159.0]/Subtype/Link/Type/Annot>> endobj 15 0 obj <>/ProcSet[/PDF/Text]>>/StructParents 2/Type/Page>> endobj 62 0 obj <>stream BT /Artifact <>BDC /TT0 1 Tf 9 0 0 9 5 779 Tm (02-23477.h1)Tj EMC /Artifact <>BDC 0 -86 TD (file:///usr.osd.mil/)Tj 7.166 0 Td (...)Tj (omputer/Desktop/DOHA%20transfer/DOHA-Kane/dodogc/doha/industrial/Archive\ d%20-%20HTML/02-23477.h1.html)Tj 49.129 0 Td ([6/24/2021 11:04:57 AM])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 16 756 Tm (he had not repaid the money to the company. Applicant informed the incom\ ing CFO he would repay the money when he)Tj ET Q BT 0 g 12 0 0 12 16 742.5 Tm (received his state income tax refund.)Tj /Span<>> BDC ( )Tj EMC 14.911 0 Td (Although Applicant had more than sufficient funds, he elected to put off\ paying it)Tj -14.911 -1.125 Td (until receiving the refund. Applicant's state income tax return was dela\ yed in)Tj /Span<>> BDC ( )Tj EMC 30.976 0 Td (processing, and the result was Applicant)Tj -30.976 -1.125 Td (did not receive the refund check until September 2000. He deposited the \ check and waited for it to clear before writing)Tj 0 -1.125 TD (the check to the company. But before he could do so, he was fired on or \ about September 22, 2000.)Tj 0 -2.125 TD (On that day he was asked to attend a meeting at the company office. Appl\ icant left the off-site location and went to the)Tj 0 -1.125 TD (company office where he was asked to)Tj /Span<>> BDC ( )Tj EMC 15.744 0 Td (resign. The company did not offer a reason other than the state was a ri\ ght-to-)Tj -15.744 -1.125 Td (work-state and they thought it best he resign. Applicant refused and was\ fired. In)Tj /Span<>> BDC ( )Tj EMC 32.602 0 Td (the termination letter \(Exhibit 4\))Tj -32.602 -1.125 Td (signed by the CEO, the company explained Applicant's termination as foll\ ows:)Tj 0 -2.125 TD (Your employment with [the company] is terminated effective as of 5:00 p.\ m. today. You have been an "at-will")Tj 0 -1.125 TD (employee, as to which the company has been)Tj /Span<>> BDC ( )Tj EMC 18.3 0 Td (advised may be terminated at any time with or without cause. However,)Tj -18.3 -1.125 Td (the company considered several reasons for its decision. A significant r\ eason was your)Tj /Span<>> BDC ( )Tj EMC 34.934 0 Td (use of the company [credit] card)Tj -34.934 -1.125 Td (for personal expenses and your false entry into the financial records th\ at you reimbursed the company for this expense.)Tj 0 -2.125 TD (In addition, the letter informed Applicant the money he owed would be de\ ducted from his final pay. The first time any)Tj 0 -1.125 TD (shareholder of the company confronted)Tj /Span<>> BDC ( )Tj EMC 15.966 0 Td (Applicant about the credit card charges and the accounting entry was the\ day he)Tj -15.966 -1.125 Td (was fired \(Transcript at p. 130\). Thereafter, on or about October 4, 2\ 000, the)Tj /Span<>> BDC ( )Tj EMC 30.85 0 Td (company submitted an adverse information)Tj -30.85 -1.125 Td (report to government security officials indicating Applicant had been te\ rminated and the reasons therefor \(Exhibit)Tj /Span<>> BDC ( )Tj EMC 45.79 0 Td (3\).)Tj -45.79 -1.125 Td (The language used in the section six of the report is similar to the lan\ guage in the termination letter quoted above.)Tj 0 -2.125 TD (Exhibit A is a letter from an active duty Air Force officer, rank of lie\ utenant colonel, who was the branch chief)Tj 0 -1.125 TD (responsible for supervising the study Applicant)Tj /Span<>> BDC ( )Tj EMC 19.164 0 Td (was conducting. The letter is the officer's recollection of the events)Tj -19.164 -1.125 Td (surrounding the day Applicant was fired and is set forth, in relevant pa\ rt, as follows:)Tj 0 -2.125 TD ([Applicant] worked for me on a daily basis and he consistently provided \ the highest caliber of support. He was near the)Tj 0 -1.125 TD (end of a particular study when the)Tj /Span<>> BDC ( )Tj EMC 13.856 0 Td (existing funding for that task ran out. On that day, he told me that he \ had a meeting at)Tj -13.856 -1.125 Td ([the company's] office, which was located across the street from [the Ai\ r)Tj /Span<>> BDC ( )Tj EMC 29.308 0 Td (Force office] and that he would return when)Tj -29.308 -1.125 Td (the meeting was over.)Tj 0 -2.125 TD (After [Applicant] had left, [a company member], whom I knew to be a seni\ or member of [the company] came to my)Tj 0 -1.125 TD (office and told me that [Applicant] had)Tj /Span<>> BDC ( )Tj EMC 15.855 0 Td (resigned from the company.)Tj -15.855 -2.125 Td ([Applicant] returned shortly thereafter and informed me that he had been\ let go by [the company]. He said that he knew)Tj T* (the study was not yet complete and that)Tj /Span<>> BDC ( )Tj EMC 16.052 0 Td (he would be willing to make arrangements to return in his capacity as a \ National)Tj -16.052 -1.125 Td (Guard member to work until the study was completed.)Tj 0 -2.125 TD ([The company member] returned to discuss the study and asked me if I wou\ ld approve [the company] bringing)Tj 0 -1.125 TD ([Applicant] on as consultant to complete the)Tj /Span<>> BDC ( )Tj EMC 17.967 0 Td (study. I agreed with that proposal, but [the company] did not follow up \ on)Tj -17.967 -1.125 Td (that offer. Instead, they provided several less capable personnel to fin\ ish the study,)Tj /Span<>> BDC ( )Tj EMC 33.323 0 Td (resulting in a three week delay in the)Tj -33.323 -1.125 Td (final product and a less robust analysis.)Tj 0 -2.125 TD (In addition, a short time later, [the company] let go of [another compan\ y member], whose funding ran out at)Tj 0 -1.125 TD (approximately the same time.)Tj 0 -2.125 TD (Applicant believes the reason he was fired was because the funding ran o\ ut for the work he was doing, and the company)Tj 0 -1.125 TD (would have had to carry him on full)Tj /Span<>> BDC ( )Tj EMC 14.607 0 Td (salary until funding resumed several months later. He understands now th\ at, given)Tj -14.607 -1.125 Td (the applicable employment law, he could have been fired for any reason o\ r)Tj /Span<>> BDC ( )Tj EMC 30.155 0 Td (no reason, but believes the company used the)Tj -30.155 -1.125 Td (credit card incident as an excuse to fire him.)Tj 0 -2.125 TD (Applicant called an accounting and financial consultant, who has worked \ with large corporations and closely-held)Tj 0 -1.125 TD (companies, to provide expert testimony. The)Tj /Span<>> BDC ( )Tj EMC 18.106 0 Td (witness, who has 33 years of experience in accounting and financial work\ ,)Tj -18.106 -1.125 Td (provided the following opinions:)Tj ET EMC endstream endobj 14 0 obj <>/ProcSet[/PDF/Text]>>/StructParents 1/Type/Page>> endobj 63 0 obj <>stream BT /Artifact <>BDC /TT0 1 Tf 9 0 0 9 5 779 Tm (02-23477.h1)Tj EMC /Artifact <>BDC 0 -86 TD (file:///usr.osd.mil/)Tj 7.166 0 Td (...)Tj (omputer/Desktop/DOHA%20transfer/DOHA-Kane/dodogc/doha/industrial/Archive\ d%20-%20HTML/02-23477.h1.html)Tj 49.129 0 Td ([6/24/2021 11:04:57 AM])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 (After a thorough review of the record evidence, I make the following ess\ ential findings of fact:)Tj ET Q BT 0 g 12 0 0 12 16 729.75 Tm (Applicant is a 45-year-old man employed as an analyst for a defense cont\ ractor. He has worked in the defense industry)Tj 0 -1.125 TD (for many years, and has worked for his)Tj /Span<>> BDC ( )Tj EMC 15.856 0 Td (current employer since June 2001. Applicant has held a security clearanc\ e as)Tj -15.856 -1.125 Td (both servicemember and a defense contractor employee for many years with\ out an)Tj /Span<>> BDC ( )Tj EMC 33.265 0 Td (adverse incident or problem.)Tj -33.265 -2.125 Td (Applicant is married and has three children. Two of his children are you\ ng adults from his first marriage. The third child)Tj T* (is a two-year-old daughter from his)Tj /Span<>> BDC ( )Tj EMC 14.385 0 Td (current marriage.)Tj -14.385 -2.125 Td (Applicant enlisted in the U.S. Air Force in 1979 and served on active du\ ty working in missile maintenance and logistics.)Tj T* (Upon his discharge from active duty in)Tj /Span<>> BDC ( )Tj EMC 15.857 0 Td (1985, Applicant joined the Air National Guard. In July 1986, he applied \ for and)Tj -15.857 -1.125 Td (received a commission as an officer. He has since served continuously, b\ eing)Tj /Span<>> BDC ( )Tj EMC 31.157 0 Td (promoted on a regular basis, and now)Tj -31.157 -1.125 Td (serves at the rank of lieutenant colonel. He was recently selected for p\ romotion to colonel. Currently, he serves as the)Tj T* (homeland security planning officer and as inspector general for his air \ national guard command.)Tj 0 -2.125 TD (Applicant called two character witnesses who vouched for his security su\ itability. His second-level supervisor, a)Tj 0 -1.125 TD (company vice-president and member of the)Tj /Span<>> BDC ( )Tj EMC 17.604 0 Td (board of directors, described Applicant's work performance as excellent.\ In)Tj -17.604 -1.125 Td (the witness's opinion, Applicant is a professional, ethical individual w\ hom he has)Tj /Span<>> BDC ( )Tj EMC 32.786 0 Td (no hesitation in recommending for a)Tj -32.786 -1.125 Td (security clearance. The other character witness was a two-star general i\ n the Air National Guard. The major general has)Tj T* (known Applicant since 1989, and describes Applicant as one of the most t\ rustworthy and reliable officers under his)Tj T* (supervision. Indeed, the major general has)Tj /Span<>> BDC ( )Tj EMC 17.161 0 Td (singled Applicant out as an example of high integrity. Finally, Applican\ t)Tj -17.161 -1.125 Td (produced another character witness by letter \(Exhibit B\). This person \ knows Applicant)Tj /Span<>> BDC ( )Tj EMC 34.962 0 Td (in her capacity as the)Tj -34.962 -1.125 Td (headquarters staff judge advocate \(a senior military lawyer\) for the a\ ir national guard unit. She has known Applicant for)Tj T* (about eight years)Tj /Span<>> BDC ( )Tj EMC 7.081 0 Td (and believes Applicant is an officer of the highest integrity and that h\ e is an excellent candidate for a)Tj -7.081 -1.125 Td (security clearance.)Tj 0 -2.125 TD (The SOR allegation stems from Applicant's employment with a closely-held\ company engaged in defense contracting)Tj 0 -1.125 TD (work. In February 1997, Applicant)Tj /Span<>> BDC ( )Tj EMC 14.191 0 Td (accepted an offer to do modeling and simulation work for the company, an\ d was)Tj -14.191 -1.125 Td (offered an ownership stake in the company that after five years would re\ sult in)Tj /Span<>> BDC ( )Tj EMC 31.711 0 Td (his becoming a full partner. He accepted)Tj -31.711 -1.125 Td (the offer and became one of seven shareholders in the company. The compa\ ny operated rather loosely or informally)Tj T* (with the various shareholders filling the various corporate officers' ro\ les \(e.g., CEO, COO, CFO, etc.\) in addition to)Tj T* (doing the substantive work. After two years)Tj /Span<>> BDC ( )Tj EMC 17.774 0 Td (or so, Applicant was asked to assume the position of chief financial off\ icer)Tj -17.774 -1.125 Td (\(CFO\), because of dissatisfaction with the previous CFO. Applicant was\ asked since)Tj /Span<>> BDC ( )Tj EMC 34.049 0 Td (he had a business degree while the)Tj -34.049 -1.125 Td (other shareholders were engineers without any formal business education.\ Serving as CFO was an additional duty for)Tj T* (Applicant, as he was still working full time for the client doing a stud\ y on reducing fratricide or friendly-fire incidents in)Tj T* (air strikes. Coupled with his military)Tj /Span<>> BDC ( )Tj EMC 14.915 0 Td (duty with the Air National Guard, the CFO duties greatly increased Appli\ cant's)Tj -14.915 -1.125 Td (work load.)Tj 0 -2.125 TD (Applicant married his current wife on or about October 10, 1999. After t\ he wedding, the couple traveled to Hawaii for)Tj 0 -1.125 TD (their honeymoon for approximately three)Tj /Span<>> BDC ( )Tj EMC 16.745 0 Td (weeks. During the honeymoon, Applicant ran a little short of money and h\ e)Tj -16.745 -1.125 Td (used his company credit card to cover about $1,000 of personal expenses.\ After)Tj /Span<>> BDC ( )Tj EMC 32.073 0 Td (returning to work, Applicant called the)Tj -32.073 -1.125 Td (company treasurer and notified him of the expenditure. Applicant was tol\ d to pay it back when he could.)Tj 0 -2.125 TD (As CFO, Applicant was responsible for paying the company credit card bil\ l. In that position, Applicant observed that at)Tj 0 -1.125 TD (least one other shareholder used the)Tj /Span<>> BDC ( )Tj EMC 14.55 0 Td (company credit card for personal expenses and repaid the company by havi\ ng the)Tj -14.55 -1.125 Td (money taken from the person's paycheck. After returning from the)Tj /Span<>> BDC ( )Tj EMC 26.754 0 Td (honeymoon in November 1999, Applicant received)Tj -26.754 -1.125 Td (the company credit card bill with the $1,000 in charges he made in Hawai\ i. During November or December)Tj /Span<>> BDC ( )Tj EMC 43.319 0 Td (1999,)Tj -43.319 -1.125 Td (Applicant created an account, using an accounting software program, call\ ed "Money [Applicant] Owes" or "Money)Tj T* (People Owe." The idea was the)Tj /Span<>> BDC ( )Tj EMC 12.765 0 Td (account would contain entries that were a projection or budget entry for\ money that)Tj -12.765 -1.125 Td (would be incoming--essentially an account receivable for nonbusiness)Tj /Span<>> BDC ( )Tj EMC 28.325 0 Td (reasons.)Tj -28.325 -2.125 Td (In about May 2000, Applicant was feeling overwhelmed with his work respo\ nsibilities and )Tj 36.604 0 Td (his duties as CFO, along)Tj -36.604 -1.125 Td (with his national guard duties. Applicant)Tj /Span<>> BDC ( )Tj EMC 16.525 0 Td (elected to step down as CFO and, in doing so, prepared the books for tur\ nover)Tj -16.525 -1.125 Td (to the next CFO. 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