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

ISCR Case No. 17-04235.a1

Appeal Board

Decided Oct 2, 2018 · Administrative Judge Michael Y. Ra'anan · Appeal

Case headnote

Summary

The applicant, a federal contractor and military veteran, faced security clearance denial under Guideline F due to financial issues, including late tax filings and a charged-off auto loan. The appeal board affirmed the denial, finding no harmful error in the judge's decision, which emphasized the applicant's insufficient evidence of financial stability and control over her debts.

Why the applicant was denied

  • The applicant failed to file tax returns for 2011 and 2012 in a timely manner, with significant delays.
  • The applicant made only one payment on a charged-off auto loan, failing to demonstrate a consistent payment history.
  • The applicant did not provide adequate explanations for her financial issues or show that they were under control.

Conditions referenced

Disqualifying

  • AG ¶ 19 Financial Considerationsraised

Mitigating

  • AG ¶ 20 Financial Considerationsrejected

Key rule quoted

Procedural posture

SOR issued
2018-02-08
Answer filed
Hearing held
2018-07-02 Applicant requested a decision on the written record.
Decision date
2018-10-02

Cite for

  • Affirmation of Adverse Decisions Based on Financial Considerations Under Guideline F
  • Insufficient Evidence of Financial Stability as a Basis for Security Clearance Denial
  • The Importance of Timely Tax Filings in Security Clearance Evaluations

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 involved a denial of a security clearance based on financial considerations under Guideline F. The applicant argued that the Judge's decision was arbitrary and capricious. The Board affirmed the Judge's decision, finding no harmful error in the weighing of evidence.

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

Full decision

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

Decision text, by section

Synopsis

KEYWORD: Guideline F DIGEST: Applicant’s arguments amount to a disagreement with the Judge’s weighing of the evidence and are not sufficient to show the Judge weighed the evidence in a manner that was arbitrary, capricious, or contrary to law. Adverse decision affirmed. CASENO: 17-04235.a1 DATE: 10/02/2018 DATE: October 2, 2018 In Re: --------------------------- Applicant for Security Clearance ) ) ) ) ) ) ) ) ISCR Case No. 17-04235

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 February 8, 2018, 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 July 2, 2018, after considering the record, Administrative Judge Robert J. Kilmartin denied Applicant’s request for a security clearance. Applicant appealed pursuant to Directive ¶¶ E3.1.28 and E3.1.30. Applicant raised the following issue on appeal: whether the Judge’s adverse decision was arbitrary, capricious, or contrary to law. Consistent with the following, we affirm. The Judge’s Findings of Fact Applicant is an employee of a Federal contractor. She honorably served in the military and reported being granted security clearances in 1984 and 2000. In her 2015 security clearance application (SCA), Applicant disclosed her failure to file her Federal and state income tax returns for 2011 and 2012. She attributed those failures to being distracted by work instability and misplacing her W2s. Her 2011 Federal and state tax returns were submitted in September 2017. Her 2012 Federal tax return was submitted in September 2014.1 Her IRS tax transcripts for 2011 and 2012 show she owes no balance. A credit report reflects that Applicant has a charged-off auto loan that has been delinquent since 2015.2 She entered into an agreement with the creditor to make monthly payments of $350 on this debt and provided proof she made one payment. She attended a financial course at her church. The Judge’s Analysis Applicant filed her 2011 Federal income tax return about five years late, while her 2012 Federal income tax return was filed about one year late. She has not provide an adequate explanation for those delays. By making only one payment on the delinquent debt, she failed to establish a track record of consistent payments. She has not shown that her financial problems are under control or occurred under circumstances unlikely to recur.

Discussion

In her appeal brief, Applicant makes arguments based on matters that are not in the record. We cannot consider new evidence on appeal. Directive ¶ E3.1.29. Applicant also contends that the Judge failed to apply properly the adjudicative guidelines, including the whole-person concept. She notes that she disclosed her financial problems, attended 1 The Judge made no finding of fact about Applicant filing her 2012 state income tax return. 2 The SOR alleges the auto loan was charged off in the approximate amount of $2,300. financial counseling, filed the tax returns in question, and made a good-faith effort to resolve the delinquent loan. Her arguments amount to a disagreement with the Judge’s weighing of the evidence and are not sufficient to show the Judge weighed the evidence in a manner that was arbitrary, capricious, or contrary to law. See, e.g., ISCR Case No. 14-06440 at 4 (App. Bd. Jan. 8., 2016). Applicant has not identified any harmful error in the Judge’s decision. 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 personnel being considered for national security eligibility will be resolved in favor of the national security.”

Order

The Decision is AFFIRMED. Signed: Michael Ra’anan Michael Ra’anan Administrative Judge Chairperson, 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