Security Clearances

my felony was signing power of attorney for my boss on condominum riders and for a supplement for his line of credit for a multi-million dollar development project he was working on. He was out of the country on vacation and I signed for him for his closing, which was “routine” per his lawyers and was time-sensitive… he later went into foreclosure, when they did forensic accouting. They discovered he materially misrepresented his assets to obtain the loan. Not only that, he and the lawyers he worked with misrepresented some of his finances on multiple other projects, I was a junior project manager for 4 of the 20 projects that also went into foreclosure that he falsified loan documents on to fund the projects, as they never sold during the housing crisis in 2008, he later dissolved his company. I went back home. and went to work back in IT. two years later I receive a summons on my door.

The feds claimed I “should have known better” than to sign power of attorney, I should have known that he was fraudulently acquiring funds from the bank, I won’t name here, because the Vice President was his buddy and received kick backs and that I, at 22, and one of many other people on his staff, kept quiet because he was paying our salaries. So I was willfully blind, and on top of that liable because signing power of attorney you are taking responsibility even though you are acting in a person stead,

My response: I signed where they told me to sign. My boss was facing 20 years, and took a plea deal and cooperated to get it knocked down to 13, side note: while we were out on bond… he did it again, and got arrested, and got another 3 years added to his sentence. he trumped up my involvement, they later realized he wasn’t being truthful, and they dropped 9 of the 11 charges, but the US attorney didn’t want to completely absolve my “behavior” as the stance on financial crimes has been seen as weak.

it was a lot of money, my boss was about 12 million dollars, they held me responsible for 2.8 million and i got 2 years ( I plead before trial, with no plea deal and no reduction of sentence because I didn’t cooperate). The lawyers got 2 years each as well knocked down from 5 for cooperating. None of his rich business partners, who definitely should have known, were charged, They were mad at me for not pleading and testifying against others who were unindicted, but I can’t lie or account for something I had no knowledge.

Morale of the story don’t blindly trust your boss or lawyers, no matter how rich and connected they are, have full knowledge of everything you are involved in that you will be held liable, seek 3rd party council, and don’t do power of attorneys.

I lost a decade of my life to this situation. so when you get an indictment saying you worked in concert to defraud banks and you have no idea what they are talking about it can be true. Not everybody is sketchy.

The funny think is when I offered to do a polygraph, stating I had no active knowledge at the time of the events, they said they weren’t admissible in court.

I’m also an open book. I went into elaborate detail about the charges, co-defendants etc. I shouldn’t have to answer Jill in accounting about something that has no pertinence to her.

Case in point, my friend’s wife kicked him out the house. he is homeless, I let him stay with me. So I reported it to my supervised release officer. the first thing I was asked, do they know you are a felon? Its ridiculous.

that’s the point I’m making. “you are no longer that person”… naivety @ 22 is to be expected. I was trying to impress my multi-millionaire bosses by basically tap dancing for them and running through walls to support their business. which ironically, is actually what is expected of you. I’m just super careful now and ask a million questions for anything I have to take liability.

the 18 months I was in prison I’ve seen crooks, out right scheming people, and I am nothing like that. so to come home and have people second guess me, when it was truly an honest mistake, is unacceptable. I’m remorseful for being negligent and naive about people and their motivations.

Its actually funny. When I first got there, people told me to fake having an alcohol problem to get my sentence cut in half with the drug and substance abuse program. I could have been out in 9 months… I didn’t and just did the time.

I just thought about what that would have done in terms of the clearance process. I would have had some explaining to do.

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@CrazyForts I didn’t see a question. I’m an open book. I moved out of state and left my adult children with their dad. Provided incorrect information on the Financial Aid application. I helped my kids with the applications but used their dad’s information. I thought because I was in another state my information wasn’t needed. To my surprise, because I was the custodial parent in the divorce they needed my financial information. So their aid was recalculated and I’m paying restitution now.

sounds like an honest mistake. glad it was only a misdemeanor, hope all goes well.

This is an eye opener on both accounts. Wow. I totally see at 22 wanting to impress the boss. Why not, he is impressive, a millionaire (or so everyone thinks). I too would want the boss to mentor me and teach me the ways of finance at that level…except reality and the facebook page rarely live up to the hype. I can absolutely see being told “I am giving you power of attorney to sign for me,” and never knowing you are liable for the transaction. I would think the liability transfers back to the person granting the power of attorney. After all I see cars sold by POA all the time. If fraud is committed…it should be on the fraudster not the person doing their job. Miscalculating who has primary custody on financial AID? I would not think that either. Yet here we are. For both, living your life proving you are not that guy/gal is the best defense. I would also seek to have it expunged just for personal satisfaction even though it likely requires reporting for clearance sake.

Hello,

When I was 19, I got arrested and was charged with “False Insurance Claim” which is a “Felony” in my state. I was placed in Pretrial- Diversion later the charge was dismissed(Nolle Pros). The record was also expunged. Since then, I have earned my Bachelor Degree, married and have a son, I even obtained “Secret Clearance” for my current Law Enforcement Federal Job. I am about start the BI for another job that requires “Top Secret Clearance”. Do you think I will have a chance although this incident happened more than 10 years ago?

Sounds like it shouldn’t be an issue. You’re a LEO now with the Fed so your current job is aware what happened right? Just go for it. It’s all documented so no need to sweat your present job would be jeopardized. Ten years out with no other derogatory info/ behavior, current LEO, should be ok imo. Good luck

I am not worry about my present job. I had disclosed everything to them. I was worried that I may not be able to get the Top Secret Clearance.

I would not worry about it. Once it is outside 10 years…it is likely mitigated. However, because it was a felony…I would speak to it. Period. Look at it as “heading em off at the pass.” It just makes for a better process revealing things such as this. Some here advise against it. I always lean towards more open discussion and disclosure.

So you think I should have have no suitability issue? Have you heard of anyone receiving a TS for the like of FBI, ATF, HSI or DEA with a felony arrest?

Felony’s make a lot of people run away. But if they take time to read the situation, charges, and real world impact, they are smart enough to know what should be weighed, and what is dismissed. I believe it is possible. Maybe not probable…never guaranteed. But if it is explainable, it is understandable. In an economy as we currently have, cleared bodies are required. I believe the worker is in the catbird seat and if they eliminate all the good but slightly flawed (all of us) candidates, nobody is left.

Yes, you are right. Although It was not a crime that I committed myself. Because I gave my information to someone who actually committed the crime. I feel like it’s a long shot for me. I will not hang my hat on getting this TS for this job man. I am kind of frustrated.

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I did not read all of the answers but wanted to let you know that a felony does not automatically deny you. There are a lot of factors that go into the investigation, such as nature of crime, age/maturity at the time, potential for blackmail or coercion, likelihood of repeating offense, etc.

I appreciate it. Let’s see what happen.

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Thank you so much for your input.

Hi Amber. Just got turned down because of my credit. They have implemented a fast track approval process. That means they specifically look at your criminal and credit check. Since it’s accelerated they don’t give you a chance to mitigate the problem. Sucks big time…