ISCR Case ISCR Case No. 06-26686

Case Headnote

ISCR Case No. ISCR Case No. 06-26686

deniedDec 13, 2007· Hon. Joseph Testan· hearing

Summary

A 54-year-old defense contractor employee was denied a security clearance due to concerns under Guideline E (Personal Conduct), Guideline F (Financial Considerations), and Guideline J (Criminal Conduct). The denial stemmed from significant financial difficulties, a history of criminal convictions, and intentional falsifications on her Security Clearance Application.

The applicant had multiple unpaid debts totaling over $17,000, including 12 medical debts, charged-off accounts with CAP 1 Bank and Citi, and collection accounts with JeffersNCP, Midland Credit, Credit Protection, Cross Check, and United Illumina. Judgments were entered against her for debts to Capital One and another creditor. Additionally, she fell behind on an AmeriCredit automobile loan, and her March 2007 financial statement showed monthly expenses exceeding income.

Crucially, the applicant intentionally provided false information on her application, denying both being more than 180 days delinquent on debts in the past seven years and being over 90 days delinquent at the time of the application. Her criminal history included convictions for Larceny in 1980 and 1985, Assault in 1984, and Issuing a Bad Check in 1985, 1992, and 1995. The judge concluded that her financial irresponsibility, intentional falsifications, and criminal record undermined her trustworthiness for classified information access, leading to the denial.

Why the Applicant Was Denied

The applicant had significant financial difficulties, including multiple unpaid debts totaling over $17,000.
The applicant intentionally falsified material facts on her Security Clearance Application, undermining her credibility.
The applicant's history of criminal convictions raised concerns about her judgment and reliability.

Conditions Referenced

Disqualifying

DC 19aappliedInability or Unwillingness to Satisfy Debts
DC 19cappliedA History of Not Meeting Financial Obligations
DC 16aappliedDeliberate Omission, Concealment, or Falsification of Relevant Facts
DC 31aappliedA Single Serious Crime or Multiple Lesser Offenses

Key Rule Quoted

“When such an individual intentionally falsifies material facts on an SCA, it is extremely difficult to conclude that he or she nevertheless possesses the good judgment, reliability and trustworthiness required of clearance holders.”

Procedural Posture

SOR issuedJul 27, 2007
Answer filedAug 21, 2007Applicant elected to have her case determined on a written record.
Hearing held—Case assigned to judge on December 5, 2007.
Decision dateDec 13, 2007

Cite For

Financial Irresponsibility as a Disqualifying Factor Under Guideline F
Intentional Falsification of Information on a Security Clearance Application as a Disqualifying Factor Under Guideline E
Criminal Convictions Impacting Security Clearance Eligibility Under Guideline J

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

¶	Allegation	Finding	Conduct	Concealed Issue	Response	Disqualifying (¶16)	Mitigating applied (¶17)	Mitigation
2.a	Applicant intentionally provided false, material information when, in response to Question 28a, she denied she had been more than 180 days delinquent on any debts during the previous seven years.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Denied	—	—	—
2.b	Applicant intentionally provided false, material information when, in response to Question 28b, she denied she was then over 90 days delinquent on any debt.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Denied	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant intentionally provided false, material information when, in response to Question 28a, she denied she had been more than 180 days delinquent on any debts during the previous seven years.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Denied

—

2.b

Applicant intentionally provided false, material information when, in response to Question 28b, she denied she was then over 90 days delinquent on any debt.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Denied

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant had 12 unpaid medical debts, totaling approximately $2,866.00, placed for collection between December 2001 and April 2007. $2,866	Against Applicant	Medical Debt	Unknown	—	—	—
1.b	Applicant is indebted to CAP 1 Bank in the approximate amount of $1,906.00 on an account that was charged off in 2002. $1,906	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.c	Applicant is indebted to JeffersNCP in the approximate amount of $3,876.00 on an account placed for collection in January 2004. $3,876	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.d	Applicant is indebted to Midland Credit in the approximate amount of $4,892.00 on an account placed for collection in February 2004. $4,892	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.e	Applicant admits she was indebted to Credit Protection in the approximate amount of $72.00 on an account placed for collection by Hollywood Video in February 2004. $72	Against Applicant	Unspecified Financial	Admitted	—	—	Claimed Debt Paid in Full
1.f	Applicant was indebted to Capital One in the approximate amount of $1,219.00 as a result of a judgment entered against her on May 17, 2004. $1,219	Against Applicant	Judgment Against Applicant	Unknown	—	—	—
1.g	Applicant denies she is indebted to Calvary Spvi LLC as a result of a judgment entered against her.	For Applicant	Unspecified Financial	Denied	—	—	—
1.h	Applicant is indebted to this creditor in the approximate amount of $325.00 on an account placed for collection by Cross Check in February 2005. $325	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.i	Applicant is indebted to this creditor in the approximate amount of $532.00 on an account placed for collection by United Illumina in May 2005. $532	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.j	Applicant is indebted to Citi in the approximate amount of $2,622.00. This debt was charged off in 2005. $2,622	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.k	Applicant is indebted to this creditor in the approximate amount of $1,100.00 on an account placed for collection by Southern Connec in December 2006. $1,100	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.l	Applicant has an automobile loan with AmeriCredit. She fell behind on her payments in early 2007.	Against Applicant	Auto Loan Debt	Unknown	—	—	—
1.m	A personal financial statement applicant prepared in March 2007 indicates her monthly expenses exceed her monthly income.	Against Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant had 12 unpaid medical debts, totaling approximately $2,866.00, placed for collection between December 2001 and April 2007.

$2,866

Against Applicant

Medical Debt

Unknown

—

1.b

Applicant is indebted to CAP 1 Bank in the approximate amount of $1,906.00 on an account that was charged off in 2002.

$1,906

Against Applicant

Unspecified Financial

Unknown

—

1.c

Applicant is indebted to JeffersNCP in the approximate amount of $3,876.00 on an account placed for collection in January 2004.

$3,876

Against Applicant

Unspecified Financial

Unknown

—

1.d

Applicant is indebted to Midland Credit in the approximate amount of $4,892.00 on an account placed for collection in February 2004.

$4,892

Against Applicant

Unspecified Financial

Unknown

—

1.e

Applicant admits she was indebted to Credit Protection in the approximate amount of $72.00 on an account placed for collection by Hollywood Video in February 2004.

$72

Against Applicant

Unspecified Financial

Admitted

—

Claimed

Debt Paid in Full

1.f

Applicant was indebted to Capital One in the approximate amount of $1,219.00 as a result of a judgment entered against her on May 17, 2004.

$1,219

Against Applicant

Judgment Against Applicant

Unknown

—

1.g

Applicant denies she is indebted to Calvary Spvi LLC as a result of a judgment entered against her.

For Applicant

Unspecified Financial

Denied

—

1.h

Applicant is indebted to this creditor in the approximate amount of $325.00 on an account placed for collection by Cross Check in February 2005.

$325

Against Applicant

Unspecified Financial

Unknown

—

1.i

Applicant is indebted to this creditor in the approximate amount of $532.00 on an account placed for collection by United Illumina in May 2005.

$532

Against Applicant

Unspecified Financial

Unknown

—

1.j

Applicant is indebted to Citi in the approximate amount of $2,622.00. This debt was charged off in 2005.

$2,622

Against Applicant

Unspecified Financial

Unknown

—

1.k

Applicant is indebted to this creditor in the approximate amount of $1,100.00 on an account placed for collection by Southern Connec in December 2006.

$1,100

Against Applicant

Unspecified Financial

Unknown

—

1.l

Applicant has an automobile loan with AmeriCredit. She fell behind on her payments in early 2007.

Against Applicant

Auto Loan Debt

Unknown

—

1.m

A personal financial statement applicant prepared in March 2007 indicates her monthly expenses exceed her monthly income.

Against Applicant

Unspecified Financial

Unknown

—

¶	Allegation	Finding	Offense	Criminal disposition	Response	Disqualifying (¶31)	Mitigating applied (¶32)	Mitigation
3.a	In 1980, applicant was convicted of Larceny.	Against Applicant	Theft or Larceny	Convicted	Unknown	—	—	—
3.b	In 1984, applicant was convicted of Assault.	Against Applicant	Assault or Battery	Convicted	Unknown	—	—	—
3.c	In 1985, applicant was convicted of Larceny, and in a separate incident, was convicted of Issuing a Bad Check.	Against Applicant	Theft or Larceny	Convicted	Unknown	—	—	—
3.d	In 1992, and again in 1995, applicant was convicted of issuing bad checks.	Against Applicant	Fraud or Deception Criminal	Convicted	Unknown	—	—	—

Allegation

Finding

Offense

Criminal disposition

Response

Disqualifying (¶31)

Mitigating applied (¶32)

Mitigation

3.a

In 1980, applicant was convicted of Larceny.

Against Applicant

Theft or Larceny

Convicted

Unknown

—

3.b

In 1984, applicant was convicted of Assault.

Against Applicant

Assault or Battery

Convicted

Unknown

—

3.c

In 1985, applicant was convicted of Larceny, and in a separate incident, was convicted of Issuing a Bad Check.

Against Applicant

Theft or Larceny

Convicted

Unknown

—

3.d

In 1992, and again in 1995, applicant was convicted of issuing bad checks.

Against Applicant

Fraud or Deception Criminal

Convicted

Unknown

—

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Case Profile

Summary

Why the Applicant Was Denied

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

CONCLUSION

FORMAL FINDINGS

DECISION