ISCR Case 16-02841.h1

Case Headnote

ISCR Case No. 16-02841.h1

deniedJun 8, 2018· Hon. Noreen A. Lynch· hearing

Summary

A 46-year-old male applicant with a history of security clearances was denied a security clearance due to concerns under Guideline F (Financial Considerations) and Guideline E (Personal Conduct). The applicant admitted to approximately $129,000 in delinquent debts and acknowledged falsifying his 2014 security clearance application.

The financial concerns included a past-due mortgage account of $7,286 on a rental property, student loan accounts totaling about $47,000, a home equity loan past due by $13,693 on his primary residence, a 2015 state tax lien of $2,122, and multiple judgments from delinquent Home Owner Association fees. The applicant stated he copied and pasted from an old application, denying intent to defraud the government.

Despite some mitigating factors regarding personal conduct, the judge found the financial issues unresolved. The applicant failed to provide documentation of consistent payments or that his financial situation was under control. He also had not received financial counseling and reported living paycheck to paycheck, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant has significant delinquent debt totaling approximately $129,000, including student loans and a state tax lien.
The applicant failed to provide documentation showing that his financial situation is under control or that he is making consistent payments on his debts.
The applicant did not receive financial counseling and lives paycheck to paycheck, raising doubts about his ability to manage financial obligations.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
AG ¶ 20(c)rejectedReceived or Is Receiving Financial Counseling
AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors

Key Rule Quoted

“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”

Procedural Posture

SOR issuedOct 15, 2016
Answer filedMay 10, 2017
Hearing heldFeb 13, 2018
Decision dateJun 8, 2018

Cite For

Disqualifying Conditions Under Guideline F Due to Financial Irresponsibility
Mitigating Factors Related to Personal Conduct and Their Impact on Security Clearance Decisions
The Importance of Demonstrating Financial Stability for Security Clearance Eligibility

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	Applicant admitted that he falsified his 2014 SCA, in his answer, but in his remarks at the hearing, he was adamant that he was not trying to defraud the Government. He stated that he copied and pasted from an old SCA.	For Applicant	Falsification Security FormNOT DELIBERATESELF-CORRECTED	—	Admitted	—	(a) prompt, good-faith correction before being confronted	Credited Corrected Falsification Promptly
2.b	An omission, standing alone, does not prove falsification. An administrative judge must consider the record evidence as a whole to determine an applicant’s state of mind at the time of the omission.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATESELF-CORRECTED	—	Admitted	—	(a) prompt, good-faith correction before being confronted	Credited Corrected Falsification Promptly

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant admitted that he falsified his 2014 SCA, in his answer, but in his remarks at the hearing, he was adamant that he was not trying to defraud the Government. He stated that he copied and pasted from an old SCA.

For Applicant

Falsification Security FormNOT DELIBERATESELF-CORRECTED

—

Admitted

—

(a) prompt, good-faith correction before being confronted

Credited

Corrected Falsification Promptly

2.b

An omission, standing alone, does not prove falsification. An administrative judge must consider the record evidence as a whole to determine an applicant’s state of mind at the time of the omission.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATESELF-CORRECTED

—

Admitted

—

(a) prompt, good-faith correction before being confronted

Credited

Corrected Falsification Promptly

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	a mortgage account past due in the amount of $7,286, with a balance of $201,565, this was a rental property. $7,286	Against Applicant	Mortgage or Home Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	student loan accounts which total about $47,000. $47,000	Against Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	an amount past due in the amount of $13,693 with a balance of $31,744, this is a home equity loan on Applicant’s primary residence. $13,693	Against Applicant	Mortgage or Home Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	student loan accounts which total about $47,000. $47,000	Against Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	student loan accounts which total about $47,000. $47,000	Against Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	student loan accounts which total about $47,000. $47,000	Against Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g–1.h	2 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)	Against Applicant			—	—	—
1.i	a 2015 state tax lien in the amount of $2,122. $2,122	Against Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.j	judgments from delinquent Home Owner Association fees (HOA).	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.k	judgments from delinquent Home Owner Association fees (HOA).	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.l	judgments from delinquent Home Owner Association fees (HOA).	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.m	judgments from delinquent Home Owner Association fees (HOA).	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

a mortgage account past due in the amount of $7,286, with a balance of $201,565, this was a rental property.

$7,286

Against Applicant

Mortgage or Home Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

student loan accounts which total about $47,000.

$47,000

Against Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

an amount past due in the amount of $13,693 with a balance of $31,744, this is a home equity loan on Applicant’s primary residence.

$13,693

Against Applicant

Mortgage or Home Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

student loan accounts which total about $47,000.

$47,000

Against Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

student loan accounts which total about $47,000.

$47,000

Against Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

student loan accounts which total about $47,000.

$47,000

Against Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g–1.h

2 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)

Against Applicant

—

1.i

a 2015 state tax lien in the amount of $2,122.

$2,122

Against Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.j

judgments from delinquent Home Owner Association fees (HOA).

For Applicant

Unspecified Financial

Admitted

—

(d) good-faith effort to repay or otherwise resolve debts

Documented

Debt Paid in Full

1.k

judgments from delinquent Home Owner Association fees (HOA).

For Applicant

Unspecified Financial

Admitted

—

(d) good-faith effort to repay or otherwise resolve debts

Documented

Debt Paid in Full

1.l

judgments from delinquent Home Owner Association fees (HOA).

For Applicant

Unspecified Financial

Admitted

—

(d) good-faith effort to repay or otherwise resolve debts

Documented

Debt Paid in Full

1.m

judgments from delinquent Home Owner Association fees (HOA).

For Applicant

Unspecified Financial

Admitted

—

(d) good-faith effort to repay or otherwise resolve debts

Documented

Debt Paid in Full

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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

FOOTNOTES