ISCR Case 16-03546.h1

Case Headnote

ISCR Case No. 16-03546.h1

deniedDec 4, 2017· Hon. Carol G. Ricciardello· hearing

Summary

A 37-year-old applicant with two bachelor's degrees was denied a security clearance under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from unresolved financial issues and a failure to disclose significant debts on his September 2015 security clearance application.

Specifically, the applicant did not disclose a prior repossession or foreclosure, loan defaults, debts sent to collections, or suspended accounts. He also failed to disclose delinquent student loans and the remaining debt from a repossessed vehicle. While he denied intentionally failing to disclose wage garnishment, the judge found his financial problems to be ongoing since 2010 and that he had not acted responsibly in addressing them.

The judge concluded that the applicant deliberately failed to disclose these financial issues, undermining his credibility. He also did not demonstrate responsible behavior in addressing his financial obligations or seek financial counseling, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant failed to mitigate financial concerns under Guideline F due to ongoing delinquent debts since 2010.
The applicant deliberately failed to disclose significant financial issues on his security clearance application, undermining his credibility.
The applicant did not demonstrate responsible behavior in addressing his financial obligations or seek financial counseling.

Conditions Referenced

Disqualifying

F.1.araisedInability to Satisfy Debts
F.1.braisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
F.1.craisedA History of Not Meeting Financial Obligations
E.2.araisedDeliberate Omission of Information on Security Clearance Application

Mitigating

F.2.bappliedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlThe applicant attributed financial issues to circumstances beyond his control, such as foreclosure and separation.
F.2.crejectedThe Individual Has Received or Is Receiving Financial CounselingThe applicant has not participated in financial counseling.
F.2.drejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant has not demonstrated a good-faith effort to resolve debts.

Key Rule Quoted

“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”

Procedural Posture

SOR issuedDec 28, 2016
Answer filedJan 20, 2017
Hearing heldSep 21, 2017
Decision dateDec 4, 2017

Cite For

Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
Failure to Disclose Significant Financial Issues on Security Clearance Application Under Guideline E
Lack of Credibility in Claims of Oversight Regarding Financial Disclosures

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 failed to disclose on his September 2015 security clearance application (SCA) that in the past seven years he had any possessions or property voluntarily or involuntarily repossessed or foreclosed or that he had defaulted on any type of loan or had bills or debts turned over to a collection agency or had any account or credit card suspended, charged off, or cancelled for failing to pay as agreed.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Denied	(a) deliberate omission, concealment, or falsification on a security form (b) deliberately providing false information to an investigator or official (c) credible adverse information across areas supporting a whole-person concern	—	—
2.b	Applicant denied he intentionally failed to disclose that his wages were garnished.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Denied	(a) deliberate omission, concealment, or falsification on a security form (b) deliberately providing false information to an investigator or official (c) credible adverse information across areas supporting a whole-person concern	—	—
2.c	Applicant failed to disclose that he had delinquent student loans owed, and the delinquent debt remaining on his repossessed vehicle.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Denied	(a) deliberate omission, concealment, or falsification on a security form (b) deliberately providing false information to an investigator or official (c) credible adverse information across areas supporting a whole-person concern	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant failed to disclose on his September 2015 security clearance application (SCA) that in the past seven years he had any possessions or property voluntarily or involuntarily repossessed or foreclosed or that he had defaulted on any type of loan or had bills or debts turned over to a collection agency or had any account or credit card suspended, charged off, or cancelled for failing to pay as agreed.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Denied

(a) deliberate omission, concealment, or falsification on a security form

(b) deliberately providing false information to an investigator or official

(c) credible adverse information across areas supporting a whole-person concern

—

2.b

Applicant denied he intentionally failed to disclose that his wages were garnished.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Denied

(a) deliberate omission, concealment, or falsification on a security form

(b) deliberately providing false information to an investigator or official

(c) credible adverse information across areas supporting a whole-person concern

—

2.c

Applicant failed to disclose that he had delinquent student loans owed, and the delinquent debt remaining on his repossessed vehicle.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Denied

(a) deliberate omission, concealment, or falsification on a security form

(b) deliberately providing false information to an investigator or official

(c) credible adverse information across areas supporting a whole-person concern

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant disputed the debt for a cell phone plan ($696). $696	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	Applicant received a notice that he owed additional money ($217). $217	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	Applicant has delinquent student loans.	Against Applicant	Student Loan Debt	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.d	Applicant has additional delinquent student loans.	Against Applicant	Student Loan Debt	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.e	Applicant's car was repossessed ($3,821). $3,821	Against Applicant	Auto Loan Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.f	Applicant disputes the debt for cable service ($144). $144	For Applicant	Unspecified Financial	Denied	—	—	—
1.g	Applicant's house was foreclosed.	Against Applicant	Mortgage or Home Loan Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant disputed the debt for a cell phone plan ($696).

$696

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

Applicant received a notice that he owed additional money ($217).

$217

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

Applicant has delinquent student loans.

Against Applicant

Student Loan Debt

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.d

Applicant has additional delinquent student loans.

Against Applicant

Student Loan Debt

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.e

Applicant's car was repossessed ($3,821).

$3,821

Against Applicant

Auto Loan Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.f

Applicant disputes the debt for cable service ($144).

$144

For Applicant

Unspecified Financial

Denied

—

1.g

Applicant's house was foreclosed.

Against Applicant

Mortgage or Home Loan Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

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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