ISCR Case 16-03407.h1

Case Headnote

ISCR Case No. 16-03407.h1

grantedJul 9, 2018· Hon. Stephanie C. Hess· hearing

Summary

A 45-year-old veteran and telecommunications engineer was granted a security clearance despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons (SOR) alleged financial difficulties and intentional falsification of his security clearance application. Specifically, the applicant failed to disclose a 2010 non-judicial punishment for violating Article 92 (failure to obey a general order, sexual harassment), a 2009 bankruptcy, and several delinquent accounts.

The financial concerns included a $15,592 deficiency balance from a repossessed car and multiple credit card debts. The applicant entered repayment agreements for several debts, including a $977 credit card debt in April 2016, an $855 credit card debt in November 2016, and a $561 debt in November 2016, all of which have been paid in full. He also entered repayment agreements for debts of $966, $540, $435, $243 (paid in full), and $122 (paid in full).

The judge determined that the applicant's financial issues were largely beyond his control and that he acted responsibly to address them, including entering repayment plans and participating in financial counseling. Furthermore, the omissions on his security clearance application were found to be unintentional, not indicative of a lack of candor. The applicant's military service and character references also supported his trustworthiness. Consequently, eligibility for access to classified information was granted.

Why the Applicant Prevailed

The applicant acted responsibly to address his financial difficulties, including entering repayment plans and participating in financial counseling.
The applicant's omissions on his security clearance application were deemed unintentional and not indicative of a lack of candor.
The applicant's military service and character references supported his trustworthiness and reliability.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
AG ¶ 16(a)raisedDeliberate Omission, Concealment, or Falsification

Mitigating

AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors
AG ¶ 20(c)appliedReceived Financial Counseling
AG ¶ 17(c)appliedMinor Offense or Unlikely to Recur

Key Rule Quoted

“Eligibility for a security clearance is predicated upon the applicant’s meeting the criteria contained in the AG.”

Procedural Posture

SOR issuedFeb 10, 2017
Answer filedMar 7, 2017
Hearing heldNov 30, 2017
Decision dateJul 9, 2018

Cite For

Mitigation of Financial Difficulties Under Guideline F Due to Circumstances Beyond Control
Unintentional Omissions on Security Clearance Applications
Evaluation of Personal Conduct in Light of Military Service and Character References

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 received a non-judicial punishment in 2010 for violating Article 92, failure to obey a general order, sexual harassment.	For Applicant	Questionable Judgment GeneralNOT DELIBERATE	—	Admitted	—	(c) offense is minor, long ago, infrequent, or unique circumstances	—
2.b	Applicant intentionally falsified his security clearance application by failing to disclose the non-judicial punishment, the 2009 bankruptcy, and his delinquent accounts.	For Applicant	Lack of Candor in InterviewNOT DELIBERATE	—	Denied	—	(c) offense is minor, long ago, infrequent, or unique circumstances	—
2.c–2.d	2 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant		—		—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant received a non-judicial punishment in 2010 for violating Article 92, failure to obey a general order, sexual harassment.

For Applicant

Questionable Judgment GeneralNOT DELIBERATE

—

Admitted

—

(c) offense is minor, long ago, infrequent, or unique circumstances

—

2.b

Applicant intentionally falsified his security clearance application by failing to disclose the non-judicial punishment, the 2009 bankruptcy, and his delinquent accounts.

For Applicant

Lack of Candor in InterviewNOT DELIBERATE

—

Denied

—

(c) offense is minor, long ago, infrequent, or unique circumstances

—

2.c–2.d

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

For Applicant

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant experienced financial difficulties due to circumstances largely beyond his control, but mitigated the concern by acting responsibly. His omissions on his security clearance application were unintentional. Eligibility for access to classified information is granted.	For Applicant	Bankruptcy Filing	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts (e) reasonable, documented basis to dispute the debt	Claimed Chapter 7 Bankruptcy Documented Debt Paid in Full Documented Financial Counseling Documented Payment Plan with Creditor
1.b	The $15,592 debt alleged in SOR ¶ 1.b is the deficiency balance due on the repossessed car. $15,592	For Applicant	Auto Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.d	Applicant entered a repayment agreement of $79 a month with the creditor of the $977 credit-card debt alleged in SOR ¶ 1.d in April 2016, and the debt has been paid in full. $977	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.f	Applicant entered a repayment agreement of $150 a month with the creditor of the $855 credit-card debt alleged in SOR ¶ 1.f in November 2016, and the debt has been paid in full. $855	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.g	He entered a repayment agreement of $77 a month with the creditor of the $561 debt alleged in SOR ¶ 1.g in November 2016, and the debt has been paid in full. $561	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.e	Applicant entered the following repayment agreements: SOR ¶ 1.e – $966 – $83 a month. $966	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.h	Applicant entered the following repayment agreements: SOR ¶ 1.h – $540 – $55 a month. $540	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.i	Applicant entered the following repayment agreements: SOR ¶ 1.i – $435 – $50 a month. $435	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.j	Applicant entered the following repayment agreements: SOR ¶ 1.j – $243 – $50 a month, paid in full. $243	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.o	Applicant entered the following repayment agreements: SOR ¶ 1.o – $122 – $68 a month, paid in full. $122	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(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

Applicant experienced financial difficulties due to circumstances largely beyond his control, but mitigated the concern by acting responsibly. His omissions on his security clearance application were unintentional. Eligibility for access to classified information is granted.

For Applicant

Bankruptcy Filing

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

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

(e) reasonable, documented basis to dispute the debt

Claimed

Chapter 7 Bankruptcy

Documented

Debt Paid in Full

Documented

Financial Counseling

Documented

Payment Plan with Creditor

1.b

The $15,592 debt alleged in SOR ¶ 1.b is the deficiency balance due on the repossessed car.

$15,592

For Applicant

Auto Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Payment Plan with Creditor

1.d

Applicant entered a repayment agreement of $79 a month with the creditor of the $977 credit-card debt alleged in SOR ¶ 1.d in April 2016, and the debt has been paid in full.

$977

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.f

Applicant entered a repayment agreement of $150 a month with the creditor of the $855 credit-card debt alleged in SOR ¶ 1.f in November 2016, and the debt has been paid in full.

$855

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.g

He entered a repayment agreement of $77 a month with the creditor of the $561 debt alleged in SOR ¶ 1.g in November 2016, and the debt has been paid in full.

$561

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.e

Applicant entered the following repayment agreements: SOR ¶ 1.e – $966 – $83 a month.

$966

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Payment Plan with Creditor

1.h

Applicant entered the following repayment agreements: SOR ¶ 1.h – $540 – $55 a month.

$540

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Payment Plan with Creditor

1.i

Applicant entered the following repayment agreements: SOR ¶ 1.i – $435 – $50 a month.

$435

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Payment Plan with Creditor

1.j

Applicant entered the following repayment agreements: SOR ¶ 1.j – $243 – $50 a month, paid in full.

$243

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.o

Applicant entered the following repayment agreements: SOR ¶ 1.o – $122 – $68 a month, paid in full.

$122

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

Loading case…

Case Profile

Summary

Why the Applicant Prevailed

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