CASE · Clearance Adjudication Search EngineCASE

Loading case…

ISCR Case 20-02429 — CASE

ISCR Case 20-02429denied

Case Headnote

ISCR Case No. 20-02429

deniedSep 14, 2021· Hon. Gregg A. Cervi· hearing

Summary

A 51-year-old systems administrator was denied a security clearance under Guideline F (Financial Considerations) due to an outstanding past-due mortgage. The Statement of Reasons specifically cited a past-due mortgage account of approximately $79,930, with a total balance due of $56,682. This raised disqualifying conditions under Adjudicative Guidelines Paragraphs 19(a) and 19(c).

The applicant admitted to the past-due mortgage of approximately $79,930. However, the denial was based on the applicant's failure to provide sufficient evidence to demonstrate financial responsibility or to resolve the debt.

The Adjudicator determined that the mortgage delinquencies were longstanding and remained a current concern, leading to the denial of the security clearance.

Why the Applicant Was Denied

The applicant admitted to having a past-due mortgage of approximately $79,930.
The applicant did not provide sufficient evidence to demonstrate financial responsibility or resolve the debt.
The applicant's mortgage delinquencies have been longstanding and remain a current concern.

Conditions Referenced

Disqualifying

AG ¶ 19(a)appliedInability to Satisfy Debts
AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations

Key Rule Quoted

“Eligibility for access to classified information is denied.”

Procedural Posture

SOR issuedJan 6, 2021
Answer filedFeb 3, 2021Applicant requested a decision based on the written record.
Hearing held—Decision issued without a hearing.
Decision dateSep 14, 2021

Cite For

Denial Based on Financial Considerations Under Guideline F
Insufficient Evidence to Mitigate Financial Issues
Longstanding Mortgage Delinquencies as a Security Concern

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 judge found that the applicant has a past-due mortgage account totaling approximately $79,930, which was admitted by the applicant. The judge ruled against the applicant, citing a history of not meeting financial obligations as a disqualifying condition.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant has a past-due mortgage account in the approximate amount of $79,930, with a total balance due of $56,682. $79,930	Against Applicant	Mortgage or Home Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Other

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

• ii Ii . -~!ij--.- - .. -,~~,,... - --:re_·.- -~ . . , ______________ ______________ • DEPARTMENT OF DEFENSE DEFENSE OFFICE OF HEARINGS AND APPEALS In the matter of: ) ) ) ISCR Case No. 20-02429 ) Applicant for Security Clearance ) Appearances For Government: Andrea M. Corrales, Esq., Department Counsel For Applicant: Pro se 09/14/2021

STATEMENT OF CASE

CERVI, Gregg A., Administrative Judge This case involves security concerns raised under Guideline F (Financial Considerations). Eligibility for access to classified information is denied. Statement of the Case Applicant submitted a security clearance application (SCA) on January 13, 2020. On January 6, 2021, the Defense Counterintelligence and Security Agency Consolidated Adjudications Facility (DCSA CAF) sent him a Statement of Reasons (SOR) alleging security concerns under Guideline F. The DCSA CAF acted under Executive Order (Exec. Or.) 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 adjudicative guidelines (AG) effective June 8, 2017. Applicant answered the SOR on February 3, 2021 (Ans.), and requested a decision based on the written record without a hearing. The Government’s written brief with supporting documents, known as the file of relevant material (FORM), was submitted by Department Counsel on March 16, 2021. A complete copy of the FORM was provided to

Applicant, who was afforded an opportunity to file objections and submit material to refute, rebut, or mitigate the security concerns. Applicant received the FORM on March 24, 2021, but did not submit a reply. The case was assigned to me on August 17, 2021. Government Exhibits (GE) 1 through 5 are admitted into evidence without objection.

FINDINGS OF FACT

Applicant is a 51-year-old systems administrator associate, employed by a government contractor since August 2019. He was previously employed full-time for the National Guard from 2005 to 2019. He was awarded an associate’s degree in 2005 and a bachelor’s degree in 2017. He served in the U.S. Navy from 1988 to 1994, and the Navy Reserve from 2006 to 2008 when he was honorably discharged. He married in 1994 and has four children. Applicant was last granted a secret security clearance in 2007. The SOR alleges under Guideline F that Applicant has a past-due mortgage account in the approximate amount of $79,930, with a total balance due of $56,682. Applicant admitted the SOR allegation, with an explanation, and the debt is supported by credit bureau reports in the record. Applicant’s credit report shows that delinquencies on the mortgage first occurred in July 2017. In his February 2021 Answer to the SOR, Applicant stated that in 2016 and 2017, he attempted to refinance the mortgage or get a loan modification on several occasions, but was always denied. He stated that the family rented another home, moved out of the house but left some personal belongings in the house. He intends to sell the home when he finishes moving out. Since submitting his Answer to the SOR, no further information has been provided despite being prodded to provide updated information by Department Counsel in her FORM.

POLICIES

“[N]o one has a ‘right’ to a security clearance.” Department of the Navy v. Egan, 484 U.S. 518, 528 (1988). As Commander in Chief, the President has the authority to “control access to information bearing on national security and to determine whether an individual is sufficiently trustworthy to have access to such information.” Id. at 527. The President has authorized the Secretary of Defense or his designee to grant applicants eligibility for access to classified information “only upon a finding that it is clearly consistent with the national interest to do so.” Exec. Or. 10865 § 2. National security eligibility is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines. These guidelines are not inflexible rules of law. Instead, recognizing the complexities of human behavior, an administrative judge applies these guidelines in conjunction with an evaluation of the whole person. An administrative judge’s overarching adjudicative goal is a fair, impartial, and commonsense decision. An administrative judge must consider a person’s stability, trustworthiness, reliability, discretion, character, honesty, and judgment. AG ¶ 1(b).

The Government reposes a high degree of trust and confidence in persons with access to classified information. This relationship transcends normal duty hours and endures throughout off-duty hours. Decisions include, by necessity, consideration of the possible risk that the applicant may deliberately or inadvertently fail to safeguard classified information. Such decisions entail a certain degree of legally permissible extrapolation about potential, rather than actual, risk of compromise of classified information. Clearance decisions must be made “in terms of the national interest and shall in no sense be a determination as to the loyalty of the applicant concerned.” Exec. Or. 10865 § 7. Thus, a decision to deny a security clearance is merely an indication the applicant has not met the strict guidelines the President and the Secretary of Defense have established for issuing a clearance. Initially, the Government must establish, by substantial evidence, conditions in the personal or professional history of the applicant that may disqualify the applicant from being eligible for access to classified information. The Government has the burden of establishing controverted facts alleged in the SOR. Egan, 484 U.S. at 531. “Substantial evidence” is “more than a scintilla but less than a preponderance.” See v. Washington Metro. Area Transit Auth., 36 F.3d 375, 380 (4th Cir. 1994). The guidelines presume a nexus or rational connection between proven conduct under any of the criteria listed therein and an applicant’s security suitability. See, e.g., ISCR Case No. 12-01295 at 3 (App. Bd. Jan. 20, 2015). Once the Government establishes a disqualifying condition by substantial evidence, the burden shifts to the applicant to rebut, explain, extenuate, or mitigate the facts. Directive ¶ E3.1.15. An applicant has the burden of proving a mitigating condition, and the burden of disproving it never shifts to the Government. See, e.g., ISCR Case No. 02-31154 at 5 (App. Bd. Sep. 22, 2005). An applicant “has the ultimate burden of demonstrating that it is clearly consistent with the national interest to grant or continue his security clearance.” ISCR Case No. 01- 20700 at 3 (App. Bd. Dec. 19, 2002). “[S]ecurity clearance determinations should err, if they must, on the side of denials.” Egan, 484 U.S. at 531; see, AG ¶ 1(d).

ANALYSIS

Guideline F: Financial Considerations The security concern under this guideline is set out in AG ¶ 18: Failure 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. . . .

The relevant disqualifying conditions under AG ¶ 19 include: (a) inability to satisfy debts; and (c) a history of not meeting financial obligations. Applicant’s admission and documentary evidence in the record are sufficient to establish disqualifying conditions AG ¶¶ 19(a) and (c). The following mitigating conditions under AG ¶ 20 are potentially relevant: (a) the behavior happened so long ago, was so infrequent, or occurred under such circumstances that it is unlikely to recur and does not cast doubt on the individual's current reliability, trustworthiness, or good judgment; (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; and (d) the individual initiated and is adhering to a good-faith effort to repay overdue creditors or otherwise resolve debts. Applicant has not clearly addressed the reasons for the debt, or why he has not done more to resolve it since the debt first arose. Applicant’s credit report shows that delinquencies on the mortgage first occurred in July 2017. There is a paucity of persuasive evidence regarding the mortgage, Applicant’s financial history, and his current financial status. Applicant choose to have a decision issued on the record, but has done little to provide mitigating information for my consideration. In addition, Applicant has a long employment history that belies his inability or unwillingness to pay his mortgage obligation. There is insufficient evidence in the record of action taken to resolve the debt. Additionally, there is no evidence of financial counseling or satisfactory evidence of Applicant’s current financial status. Applicant’s mortgage delinquencies have been longstanding and remain a current concern. I am not persuaded that Applicant has a handle on this debt, has taken sufficient action to resolve it, or has shown financial responsibility over the years. As a result and without more documentary evidence, I remain doubtful about Applicant’s current reliability, trustworthiness, and good judgment. None of the mitigating conditions fully apply.

WHOLE PERSON CONCEPT

The ultimate determination of whether to grant national security eligibility must be an overall commonsense judgment based upon careful consideration of the guidelines

_______________________ and the whole-person concept. Under the whole-person concept, the administrative judge must evaluate an applicant’s eligibility for a security clearance by considering the totality of the applicant’s conduct and all relevant circumstances. AG ¶¶ 2(a), 2(c), and 2(d). The administrative judge should consider the nine adjudicative process factors listed at AG ¶ 2(d). I considered all of the potentially disqualifying and mitigating conditions in light of the facts and circumstances surrounding this case. I have incorporated my findings of fact and comments under Guideline F in my whole-person analysis. I also considered Applicant’s military service. However, Applicant has not provided sufficient evidence to show the resolution of the SOR debt and his overall financial responsibility.

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 Against Applicant Subparagraph 1.a:

CONCLUSION

I conclude that it is not clearly consistent with the national security interest of the United States to grant or continue Applicant’s eligibility for access to classified information. Applicant’s security clearance is denied. Gregg A. Cervi Administrative Judge