ISCR Case 21-02079

Case Headnote

ISCR Case No. 21-02079

deniedJul 13, 2023· Hon. Ross D. Hyams· hearing

Summary

A 53-year-old cyber systems engineer was denied a security clearance due to concerns under Guideline F (Financial Considerations) and Guideline E (Personal Conduct). The applicant faced allegations of unresolved financial delinquencies totaling approximately $19,000 and falsification on security clearance applications.

Specifically, the applicant failed to report delinquent debts on both his June 2017 and May 2020 security clearance applications. The financial issues included a $12,346 charged-off account for a motorcycle, a $985 charged-off credit card, a $2,096 outstanding mortgage balance, a $171 utility bill in collection, and four separate medical accounts in collection, each for $530. While one $2,452 charged-off credit card was paid in September 2021, the applicant provided no documentation of action taken on the other debts.

The administrative judge found that the applicant admitted to multiple financial delinquencies but did not provide sufficient evidence of resolution or mitigation. The failure to report these debts on his applications was considered a deliberate omission, impacting his reliability and trustworthiness. The applicant also did not provide documentation of his current financial situation or demonstrate a good-faith effort to resolve his outstanding debts, leading to the denial of his eligibility for access to classified information.

Why the Applicant Was Denied

The applicant admitted to multiple financial delinquencies totaling approximately $19,000 without providing sufficient evidence of resolution or mitigation.
The applicant's failure to report delinquent debts on his security clearance applications was deemed a deliberate omission, raising concerns about his reliability and trustworthiness.
The applicant did not provide documentation of his current financial situation or evidence of a good-faith effort to resolve his debts.

Conditions Referenced

Disqualifying

AG ¶ 19(a)appliedInability to Satisfy Debts
AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
AG ¶ 16(a)appliedDeliberate Omission, Concealment, or Falsification

Mitigating

AG ¶ 20(b)rejectedConditions Beyond the Person's ControlWhile the applicant's wife's illness impacted his finances, he failed to demonstrate responsible actions under the circumstances.
AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant's recent payment of one debt did not constitute a good-faith effort to resolve his financial issues.
AG ¶ 20(e)rejectedDispute Legitimacy of DebtsThe applicant did not provide sufficient documentation to substantiate disputes regarding his debts.

Key Rule Quoted

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

Procedural Posture

SOR issuedOct 18, 2021
Answer filedFeb 28, 2022
Hearing held—Decision based on written record.
Decision dateJul 13, 2023

Cite For

Failure to Mitigate Financial Considerations Under Guideline F
Deliberate Omission of Financial Information on Security Clearance Applications Under Guideline E
Insufficient Evidence of Good-faith Efforts to Resolve Debts

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	SOR ¶ 2.a alleges that Applicant falsified his May 2020 SCA by failing to report any of his delinquent debts in 'Section 26 – Financial Record – Delinquency Involving Routine Accounts'.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Denied	—	—	—
2.b	SOR ¶ 2.b alleges that Applicant falsified his June 2017 SCA by failing to report any of his delinquent debts in 'Section 26 – Financial Record – Delinquency Involving Routine Accounts'.	For Applicant	Falsification Security Form	Financial	Denied	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

SOR ¶ 2.a alleges that Applicant falsified his May 2020 SCA by failing to report any of his delinquent debts in 'Section 26 – Financial Record – Delinquency Involving Routine Accounts'.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Denied

—

2.b

SOR ¶ 2.b alleges that Applicant falsified his June 2017 SCA by failing to report any of his delinquent debts in 'Section 26 – Financial Record – Delinquency Involving Routine Accounts'.

For Applicant

Falsification Security Form

Financial

Denied

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	SOR ¶ 1.a is an account that was charged off in May 2017 for $12,346. Applicant reported that this account was used to purchase a motorcycle. He stated that when he had financial difficulties, he was unable to afford the payments. He claimed that the account had been charged off before he could resume payments. He did not provide any documentation showing that he has taken any action on this debt. $12,346	Against Applicant	Auto Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	SOR ¶ 1.b is a credit card that was charged off in August 2016 for $2,452. Applicant provided a receipt with his answer showing that this account was paid in September 2021. This debt is resolved. $2,452	For Applicant	Credit Card Debt	Admitted	—	—	—
1.c	SOR ¶ 1.c is a credit card that was charged off in July 2016 for $985. In his Answer, Applicant claimed that he was working to resolve this debt by the end of 2021. He did not provide any documentation showing that he has taken any action on this debt, and it remains unresolved. $985	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	SOR ¶ 1.d is a medical account in collection totaling $530. Applicant claimed that Medicare was supposed to pay this, and that it went to collection before he could resolve it. He did not provide any documentation showing that he has taken any action on this debt, and it remains unresolved. $530	Against Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	SOR ¶ 1.e is a utility account that has been placed for collection for $171. The date of last activity on this account was February 2017. Applicant claimed that this was a cable bill, and when he moved, the new company was supposed to pay the transfer fees. He did not provide any documentation showing that he has taken any action on this debt, and it remains unresolved. $171	Against Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	SOR ¶ 1.f is a medical account in collection totaling $530. Applicant claimed that Medicare was supposed to pay this, and that it went to collection before he could resolve it. He did not provide any documentation showing that he has taken any action on this debt, and it remains unresolved. $530	Against Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	SOR ¶ 1.g is a medical account in collection totaling $530. Applicant claimed that Medicare was supposed to pay this, and that it went to collection before he could resolve it. He did not provide any documentation showing that he has taken any action on this debt, and it remains unresolved. $530	Against Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	SOR ¶ 1.h is a medical account in collection totaling $530. Applicant claimed that Medicare was supposed to pay this, and that it went to collection before he could resolve it. He did not provide any documentation showing that he has taken any action on this debt, and it remains unresolved. $530	Against Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	SOR ¶ 1.i is a mortgage account from 2017 with an outstanding balance of $2,096. Applicant claimed that he was not aware that there was a remaining balance on this account. He did not provide any documentation showing that he has taken any action on this debt, and it remains unresolved. $2,096	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

SOR ¶ 1.a is an account that was charged off in May 2017 for $12,346. Applicant reported that this account was used to purchase a motorcycle. He stated that when he had financial difficulties, he was unable to afford the payments. He claimed that the account had been charged off before he could resume payments. He did not provide any documentation showing that he has taken any action on this debt.

$12,346

Against Applicant

Auto Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

SOR ¶ 1.b is a credit card that was charged off in August 2016 for $2,452. Applicant provided a receipt with his answer showing that this account was paid in September 2021. This debt is resolved.

$2,452

For Applicant

Credit Card Debt

Admitted

—

1.c

SOR ¶ 1.c is a credit card that was charged off in July 2016 for $985. In his Answer, Applicant claimed that he was working to resolve this debt by the end of 2021. He did not provide any documentation showing that he has taken any action on this debt, and it remains unresolved.

$985

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

SOR ¶ 1.d is a medical account in collection totaling $530. Applicant claimed that Medicare was supposed to pay this, and that it went to collection before he could resolve it. He did not provide any documentation showing that he has taken any action on this debt, and it remains unresolved.

$530

Against Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

SOR ¶ 1.e is a utility account that has been placed for collection for $171. The date of last activity on this account was February 2017. Applicant claimed that this was a cable bill, and when he moved, the new company was supposed to pay the transfer fees. He did not provide any documentation showing that he has taken any action on this debt, and it remains unresolved.

$171

Against Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

SOR ¶ 1.f is a medical account in collection totaling $530. Applicant claimed that Medicare was supposed to pay this, and that it went to collection before he could resolve it. He did not provide any documentation showing that he has taken any action on this debt, and it remains unresolved.

$530

Against Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

SOR ¶ 1.g is a medical account in collection totaling $530. Applicant claimed that Medicare was supposed to pay this, and that it went to collection before he could resolve it. He did not provide any documentation showing that he has taken any action on this debt, and it remains unresolved.

$530

Against Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

SOR ¶ 1.h is a medical account in collection totaling $530. Applicant claimed that Medicare was supposed to pay this, and that it went to collection before he could resolve it. He did not provide any documentation showing that he has taken any action on this debt, and it remains unresolved.

$530

Against Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i

SOR ¶ 1.i is a mortgage account from 2017 with an outstanding balance of $2,096. Applicant claimed that he was not aware that there was a remaining balance on this account. He did not provide any documentation showing that he has taken any action on this debt, and it remains unresolved.

$2,096

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Loading case…

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

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION