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A decided public DOHA case, shown for research, not advice or a prediction.

ISCR Case No. 17-00962.a1

Appeal Board

Decided Nov 20, 2018 · Administrative Judge Charles C. Hale · Appeal

Case headnote

Summary

The applicant, representing himself, faced denial of his security clearance under Guideline F (Financial Considerations) due to a Chapter 7 bankruptcy and an outstanding federal tax lien. The appeal board upheld the denial, emphasizing the applicant's failure to provide mitigating evidence and the paramount importance of national security in clearance decisions.

Why the applicant was denied

  • The applicant filed Chapter 7 bankruptcy in 2014, which was later converted to Chapter 13 and dismissed due to non-payment.
  • The applicant has an outstanding federal tax lien of approximately $11,000, and his Offer in Compromise was rejected.
  • The applicant did not submit any additional evidence or objections to the File of Relevant Material (FORM) provided by the government.

Conditions referenced

Disqualifying

  • AG ¶ 19 Financial Considerationsraised

Mitigating

  • AG ¶ 20 Financial Considerationsrejected

Key rule quoted

Procedural posture

SOR issued
2017-04-27
Answer filed
Applicant requested a decision on the written record.
Hearing held
2018-09-06
Decision date
2018-11-20 Appeal board affirmed the denial.

Cite for

  • Importance of Providing Evidence in Financial Clearance Cases
  • Rejection of Claims Regarding Impaired Rights to Submit Mitigating Evidence
  • Emphasis on National Security in Clearance Determinations

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

Appeal at a glance

The appeal was filed by the Applicant after the Administrative Judge denied his request for a security clearance based on financial considerations under Guideline F. The Applicant argued that supporting documents were not considered, but the Board affirmed the decision, finding no harmful error in the Judge's ruling.

Descriptive structured reading of this decided, public Appeal Board decision: what the case says, not a prediction or advice.

Full decision

Open original PDF

The complete official text, footnotes and signatures included, is in the original PDF.

Decision text, by section

Synopsis

KEYWORD: Guideline F DIGEST: . If Applicant wanted the Judge to consider matters in his possession that were not contained in the FORM, it was his obligation to provide that information. To the extent that Applicant is claiming his right to submit matters in mitigation was somehow impaired, we conclude such a contention is without merit. Adverse decision affirmed. CASENO: 17-00962.a1 DATE: 11/20/2018 DATE: November 20, 2018 In Re: ---------------------- Applicant for Security Clearance ) ) ) ) ) ) ) ) ISCR Case No. 17-00962

Appearances

FOR GOVERNMENT James B. Norman, Esq., Chief Department Counsel FOR APPLICANT Pro se The Department of Defense (DoD) declined to grant Applicant a security clearance. On April 27, 2017, DoD issued a statement of reasons (SOR) advising Applicant of the basis for that decision—security concerns raised under Guideline F (Financial Considerations) of Department of Defense Directive 5220.6 (Jan. 2, 1992, as amended) (Directive). Applicant requested a decision on the written record. On September 6, 2018, after considering the record, Administrative Judge Richard A. Cefola denied Applicant’s request for a security clearance. Applicant appealed pursuant to Directive ¶¶ E3.1.28 and E3.1.30. Applicant filed Chapter 7 bankruptcy in 2014. It was later converted to a Chapter 13 bankruptcy and eventually dismissed when he could not keep up with scheduled payments due to a medical issue. He has an outstanding Federal tax lien for about $11,000. His Offer in Compromise was rejected, and he was informed that he could appeal that decision, but provided nothing further in that regard. The Judge found in favor of Applicant on a state tax lien allegation, but against him on the bankruptcy and Federal tax lien allegations. Applicant’s brief contains matters that are not contained in the record, including an IRS Installment Agreement dated August 30, 2017. We cannot consider new evidence on appeal. Directive E3.1.29. Applicant argues that the Judge’s decision was defective because supporting documents were not considered. He asserts that an investigator informed him in January 2017 that additional documents would be obtained from the IRS and notes his “Offer in Compromise” was not considered.1 His argument is not persuasive. On August 1, 2017, Department Counsel’s File of Relevant Material (FORM) was forwarded to Applicant. He received the FORM on August 7, 2017, and was given 30 days from its receipt to file objections or submit additional matters. The FORM contained 12 exhibits that represented the Government’s evidence. The FORM advised him that, if he did not file objections or submit additional matters, his case would be assigned to a Judge “for a determination based solely on this File of Relevant Material.” [Emphasis added.] FORM at 4. Applicant did not submit a response to the FORM. If Applicant wanted the Judge to consider matters in his possession that were not contained in the FORM, it was his obligation to provide that information. To the extent that Applicant is claiming his right to submit matters in mitigation was somehow impaired, we conclude such a contention is without merit. See, e.g., ISCR Case No. 08- 07664 at 2-3 (App. Bd. Dec. 29, 2009). Applicant has not established any basis for granting him relief on appeal. Applicant has failed to establish that the Judge committed any harmful error. The Judge examined the relevant evidence and articulated a satisfactory explanation for the decision. The decision is sustainable on this record. “The general standard is that a clearance may be granted only when ‘clearly consistent with the interests of the national security.’” Department of the Navy v. Egan, 484 U.S. 518, 528 (1988). See also Directive, Encl. 2, App A. ¶ 2(b): “Any doubt concerning 1 Applicant apparently means his IRS Installment Agreement when he refers to his Offer in Compromise. The first payment on his installment agreement was due in October 2017. personnel being considered for national security eligibility will be resolved in favor of the national security.”

Order

The Decision is AFFIRMED. Signed: James E. Moody James E. Moody Administrative Judge Member, Appeal Board Signed: Charles C. Hale Charles C. Hale Administrative Judge Member, Appeal Board Signed: James F. Duffy James F. Duffy Administrative Judge Member, Appeal Board