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ISCR Case 19-03331 — CASE

ISCR Case 19-03331denied

Case Headnote

ISCR Case No. 19-03331

deniedJun 22, 2020· Hon. Marc E. Curry· hearing

Summary

A 44-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to approximately $24,000 in delinquent debt. The Statement of Reasons specifically cited this outstanding debt, which raised disqualifying conditions AG 19(a) and AG 19(c).

The applicant admitted to the debts but contended they were either fraudulent or incurred by his ex-wife. However, he failed to provide any evidence to substantiate these claims of fraud or to demonstrate that his ex-wife was solely responsible.

Ultimately, the judge denied the application because the applicant did not provide evidence to support his contentions regarding the debts, nor did he show any steps taken to resolve the delinquent amounts. The judge concluded that none of the mitigating conditions under Guideline F applied, emphasizing the importance of financial responsibility for national security.

Why the Applicant Was Denied

The applicant failed to provide evidence to substantiate claims of fraud regarding his debts.
He did not demonstrate any steps taken to resolve his delinquent debts.
The judge found that none of the mitigating conditions applied to his situation.

Conditions Referenced

Disqualifying

AG 19(a)raisedInability to Satisfy Debts
AG 19(c)raisedA History of Not Meeting Financial Obligations

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedFeb 5, 2019
Answer filedDec 27, 2019Applicant requested a decision without a hearing.
Hearing held—No hearing was conducted.
Decision dateJun 22, 2020

Cite For

Failure to Mitigate Financial Concerns Under Guideline F
Importance of Financial Responsibility in Security Clearance Decisions
Lack of Evidence to Support Claims of Fraud or Extenuating Circumstances

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

Standardized Decision Profile

SEAD-4 Guideline F · descriptive summary of a decided case

Posture: Decision on RecordDecided: denied

The applicant has approximately $24,000 of delinquent debt, which he contends was incurred fraudulently by his ex-wife. The judge found that the applicant failed to mitigate the security concerns related to his financial situation, resulting in a decision against the applicant.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant has approximately $24,000 of delinquent debt. $24,000	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.b	Applicant contends debts were fraudulent or incurred by his ex-wife.	Against Applicant	Unspecified Financial	Admitted	—	—	Claimed Other
1.c–1.m	11 sub-charges — specific text not stated in this decision (against the applicant).	Against Applicant			—	—	—

Descriptive standardized rendering of a decided public case (Guideline F). The verbatim source decision is shown in full below.

Full decision

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

Decision text, by section

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

DEPARTMENT OF DEFENSE

DEFENSE OFFICE OF HEARINGS AND APPEALS In the matter of: ) ) ) ISCR Case No. 19-03331 ) Applicant for Security Clearance ) Appearances For Government: David F. Hayes, Esq., Department Counsel For Applicant: Pro se 06/22/2020

STATEMENT OF CASE

Curry, Marc E., Administrative Judge: Applicant failed to mitigate the security concerns generated by his delinquent finances. Clearance is denied. Statement of the Case On February 5, 2019, the Department of Defense Consolidated Adjudications Facility (DOD CAF) issued a Statement of Reasons (SOR) to Applicant, detailing the security concerns under Guideline F, financial considerations, and explaining why it was unable to find it clearly consistent with the national security to grant security clearance eligibility. The DOD CAF took the action under Executive Order (EO) 10865, Safeguarding Classified Information within Industry (February 20, 1960), as amended; DOD Directive 5220.6, Defense Industrial Personnel Security Clearance Review Program (January 2, 1992), as amended (Directive); and the National Adjudicative Guidelines (AG) effective for any adjudication made on or after June 8, 2017. On December 27, 2019, Applicant answered the SOR, admitting all of the allegations except subparagraphs 1.dand 1.f. He requested a decision without a hearing. On March 25, 2020, Department Counsel prepared a File of Relevant Material (FORM) setting forth the Government’s argument in support of the SOR, together with supporting documentation. Applicant received a copy of the FORM on March 27, 2020, and was instructed to file any objections to this information, or to supplement the file within 30 days of receipt. Applicant did not do so, whereupon the case was assigned to me on May 22, 2020.

FINDINGS OF FACT

Applicant is a 44-year-old man with one child, age 18. He was married from 2000 to 2006. The marriage ended in divorce. (Item 1 at 15) He currently lives with his girlfriend in a legally-recognized domestic partnership. He has a high school diploma. He has been working for a defense contractor as a mechanical installer since 1998. (Item 1 at 10) Per credit reports of December 2019 and May 2019, Applicant has approximately $24,000 of delinquent debt. (Items 4 and 5) Applicant is aware of these debts, but either contends that they were fraudulent, turned over to collection agencies before he had an opportunity to satisfy them, or that his ex-wife incurred them, using credit cards that she opened in his name without his knowledge or consent. (Item 1 at 4) He provided no documented proof substantiating the basis of these contentions.

POLICIES

The U.S. Supreme Court has recognized the substantial discretion the Executive Branch has in regulating access to information pertaining to national security, emphasizing that “no one has a ‘right’ to a security clearance.” Department of the Navy v. Egan, 484 U.S. 518, 528 (1988). When evaluating an applicant’s suitability for a security clearance, the administrative judge must consider the adjudicative guidelines. In addition to brief introductory explanations for each guideline, the adjudicative guidelines list potentially disqualifying conditions and mitigating conditions, which are required to be considered in evaluating an applicant’s eligibility for access to classified information. These guidelines are not inflexible rules of law. Instead, recognizing the complexities of human behavior, these guidelines are applied in conjunction with the factors listed in the adjudicative process. The administrative judge’s overall adjudicative goal is a fair, impartial, and commonsense decision. According to AG ¶ 2(a), the entire process is a conscientious scrutiny of a number of variables known as the “whole-person concept.” The administrative judge must consider all available, reliable information about the person, past and present, favorable and unfavorable, in making a decision. The protection of the national security is the paramount consideration. AG ¶ 1(d) requires that “[a]ny doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.” In reaching this decision, I have drawn only those conclusions that are reasonable, logical, and based on the evidence contained in the record. Under Directive ¶ E3.1.14, the Government must present evidence to establish controverted facts alleged in the SOR. Under Directive ¶ E3.1.15, the applicant is responsible for presenting “witnesses and other evidence to rebut, explain, extenuate, or mitigate facts admitted by applicant or proven by Department Counsel. . . .” The applicant has the ultimate burden of persuasion to obtain a favorable security decision. Under the whole-person concept, the administrative judge must consider the totality of an applicant's conduct and all relevant circumstances in light of the nine adjudicative process factors in AG 112(d). They are as follows: (1) the nature, extent, and seriousness of the conduct; (2) the circumstances surrounding the conduct, to include knowledgeable participation; (3) the frequency and recency of the conduct; (4) the individual's age and maturity at the time of the conduct; (5) the extent to which participation is voluntary; (6) the presence or absence of rehabilitation and other permanent behavioral changes; (7) the motivation for the conduct; (8) the potential for pressure, coercion, exploitation, or duress; and (9) the likelihood of continuation or recurrence.

ANALYSIS

Guideline F: Financial Considerations The security concerns about financial considerations are set forth in AG 1118, as follows: Failure or inability to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness and ability to protect classified or sensitive information . . . . An individual who is financially overextended is at greater risk of having to engage in illegal or otherwise questionable acts to generate funds. Applicant's history of delinquent debts generates security concerns under AG 1119(a), "inability to satisfy debts," and AG 11 19(c), "a history of not meeting financial obligations." The following mitigating conditions are potentially applicable: AG 11 20(b) the conditions that resulted in the financial problem were largely beyond the person's control (e.g., loss of employment, a business downturn, unexpected medical emergency, a death, divorce or separation, clear victimization by predatory lending practices, or identity theft), and the individual acted responsibly under the circumstances; AG 11 20(c) the individual has received or is receiving financial counseling for the problem from a legitimate and credible source, such as a non-profit credit

_____________________

counseling service, and there are clear indications that the problem is being resolved or is under control; AG ¶ 20(d) the individual initiated and is adhering to a good-faith effort to repay overdue creditors or otherwise resolve debts; and AG ¶ 20(e) the individual has a reasonable basis to dispute the legitimacy of the past-due debt which is the cause of the problem and provides documented proof to substantiate the basis of the dispute or provides evidence of actions to resolve the issue. Applicant provided no evidence supporting his contention that the debts of concern to the DOD were fraudulent or incurred by his ex-wife, nor did he provide evidence of any steps that he plans to take to pay or otherwise resolve them. Under these circumstances, none of the mitigating conditions apply. I conclude that Applicant has failed to mitigate the financial considerations security concerns.

WHOLE PERSON CONCEPT

I considered the whole-person concept factors when I evaluated the disqualifying and mitigating conditions under Guideline F, and they do not warrant a favorable conclusion.

FORMAL FINDINGS

Formal findings for or against Applicant on the allegations set forth in the SOR, as required by section E3.1.25 of Enclosure 3 of the Directive, are: Paragraph 1, Guideline F: AGAINST APPLICANT Subparagraphs 1.a – 1.m: Against Applicant

CONCLUSION

In light of all of the circumstances presented by the record in this case, it is not clearly consistent with the interests of national security to grant Applicant eligibility for a security clearance. Eligibility for access to classified information is denied. Marc E. Curry Administrative Judge