A Rare Appeals Case Involving Unexplained Affluence

Most cases that result in a security clearance denial under the financial considerations involve delinquent debt or taxes. But concerns under financial considerations can also be caused by an unexplained influx of money. Once such case recently popped up in an appeal to the Defense Office of Hearing and Appeals. Here are the highlights:

Unbeknownst to the applicant, his wife, who was a bookkeeper for a real estate firm, had embezzled more than $500,000 from her employer over the course of 8 years, putting it in bank accounts that she opened jointly in their names without the applicant’s knowledge. This criminal activity was eventually discovered, and she was subsequently fired, arrested, and charged by the police. The applicant was questioned about his involvement in the complex scheme and claimed to have no knowledge about it because she handled all their finances. There was no lavish spending or big vacations to trigger any suspicions on his part. He did not become aware of her activity until she was indicted. She pled guilty and was sentenced to 20 years in prison, of which 12 were suspended. She is currently still in jail.

Although the applicant was not criminally charged, the firm his wife had stolen the money from filed a civil suit and judgment for 600K in reparations. In 2021, he agreed to settle the claim for $275,000 and ended up selling inherited property to come up with the money to pay it off. The judge in this case noted the applicant was not the instigator in this situation, and even so, he made the efforts to resolve the civil suit and repaid the debt. Clearance eligibility granted!