ISCR Case 17-00264.h1

Case Headnote

ISCR Case No. 17-00264.h1

deniedNov 10, 2017· Hon. Darlene Lokey Anderson· hearing

Summary

A 38-year-old security officer with a high school diploma was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from approximately $48,354 in delinquent debts and the falsification of financial information on his security clearance application.

Specifically, the applicant submitted an Electronic Questionnaire for Investigations Processing (e-QIP) on May 1, 2015, falsely answering "NO" to questions about delinquent alimony or child support payments, defaulted loans, bills turned over to collection agencies, suspended or charged-off accounts, and wage garnishments. He failed to disclose multiple delinquent debts, including a wage garnishment in March 2016 for approximately $1,811, a 2015 state tax lien for about $9,325, and a child support debt of approximately $7,166. Other undisclosed debts included various collection accounts and charged-off accounts ranging from $122 to $13,265.

The judge found insufficient evidence of debt resolution efforts, noting that many debts lacked proof of satisfaction or payment plans. The applicant's conduct, including the significant delinquent debts and the falsification of his financial record, demonstrated unreliability, poor judgment, and a lack of candor, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant admitted to significant delinquent debts totaling approximately $48,354, indicating poor self-control and lack of judgment.
The applicant falsified financial information on his security clearance application, demonstrating a lack of candor and reliability.
There was no evidence of a track record of debt resolution or good-faith efforts to address financial obligations.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(b)raisedUnwillingness to Satisfy Debt Regardless of the Ability to Do So
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
AG ¶ 16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant Facts

Key Rule Quoted

“A person who seeks national security eligibility enters into a fiduciary relationship with the Government predicated upon trust and confidence.”

Procedural Posture

SOR issuedMar 23, 2017
Answer filedApr 18, 2017Applicant requested a decision on the written record.
Hearing held—No hearing; decision made on the written record.
Decision dateNov 10, 2017

Cite For

Denial Based on Significant Financial Obligations Under Guideline F
Falsification of Information on Security Clearance Applications Under Guideline E
Lack of Evidence for Mitigating Financial Conditions in Security Clearance Cases.

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 completed an Electronic Questionnaire for Investigations Processing (e-QIP), Standard Form 86 dated May 1, 2015. Section 26 asked about his Financial Record, specifically, whether in the past 7 years, he had been delinquent on alimony or child support payments. Applicant responded, “NO.” This was a false answer.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Denied	—	—	—
2.b	On the same questionnaire, Section 26 asked about Applicant’s Financial Record, specifically, whether in the past 7 years, he had defaulted on any type of loan; had bills or debts turned over to a collection agency; had any account or credit card suspended, charged off, or cancelled for failing to pay as agreed; or had his wages, benefits, or assets garnished; Applicant responded, “NO,” to all of these questions. These were false answers. Applicant failed to list the delinquent debts set forth in subparagraphs 1.a. through 1.m, above.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Denied	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant completed an Electronic Questionnaire for Investigations Processing (e-QIP), Standard Form 86 dated May 1, 2015. Section 26 asked about his Financial Record, specifically, whether in the past 7 years, he had been delinquent on alimony or child support payments. Applicant responded, “NO.” This was a false answer.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Denied

—

2.b

On the same questionnaire, Section 26 asked about Applicant’s Financial Record, specifically, whether in the past 7 years, he had defaulted on any type of loan; had bills or debts turned over to a collection agency; had any account or credit card suspended, charged off, or cancelled for failing to pay as agreed; or had his wages, benefits, or assets garnished; Applicant responded, “NO,” to all of these questions. These were false answers. Applicant failed to list the delinquent debts set forth in subparagraphs 1.a. through 1.m, above.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Denied

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant’s wages were garnished by a creditor in about March 2016, in the approximate amount of $1,811. There is no evidence to show that the garnishment order has been completed. Applicant submitted documents to show that payments were made through garnishment, but it is not clear whether the debt was paid in full. As of December 2016, there remained a balance due of $623.63. $1,811	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.b	In 2015, a lien was placed against his wages by a state for delinquent taxes in the approximate amount of $9,325. There is no evidence to show that the 2015 tax lien has been satisfied or is being paid through a payment plan. Applicant provided documentation to show that he paid a 2012 tax lien in the amount of $3,685.60. $9,325	Against Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.c	Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of $122. There is no evidence to show that the debt has been satisfied. $122	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.d	Applicant is indebted to a creditor for an account placed for collection in the approximate amount of $267. There is no evidence to show that the debt has been satisfied. $267	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.e	Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of $279. There is no evidence to show that the debt has been satisfied. $279	Against Applicant	Unspecified Financial	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 is indebted to a creditor for an account that was placed for collection in the approximate amount of $491. There is no evidence to show that the debt has been satisfied. $491	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.g	Applicant is indebted to the child support enforcement administration in the approximate amount of $7,166. There is no evidence to show that the debt has been satisfied. Applicant submitted documentation of child support payments up to February 2016. His child support payments since then have not been addressed. His most current credit report reflects a remaining balance of $6,427, with $5,788 past due. $7,166	Against Applicant	Child Support Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.h	Applicant is indebted to a creditor for an account placed for collection in the approximate amount of $13,265. There is no evidence to show that the debt has been satisfied. $13,265	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.i	Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of $270. There is no evidence to show that the debt has been satisfied. $270	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.j	Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of $437. There is no evidence to show that the debt has been satisfied. $437	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.k	Applicant is indebted to a creditor for an account that was charged off in the approximate amount of $4,471. There is no evidence to show that the debt has been satisfied. $4,471	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.m	Applicant is indebted to a creditor for an account that was charged off in the approximate amount of $5,301. There is no evidence to show that the debt has been satisfied. $5,301	Against Applicant	Unspecified Financial	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’s wages were garnished by a creditor in about March 2016, in the approximate amount of $1,811. There is no evidence to show that the garnishment order has been completed. Applicant submitted documents to show that payments were made through garnishment, but it is not clear whether the debt was paid in full. As of December 2016, there remained a balance due of $623.63.

$1,811

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.b

In 2015, a lien was placed against his wages by a state for delinquent taxes in the approximate amount of $9,325. There is no evidence to show that the 2015 tax lien has been satisfied or is being paid through a payment plan. Applicant provided documentation to show that he paid a 2012 tax lien in the amount of $3,685.60.

$9,325

Against Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.c

Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of $122. There is no evidence to show that the debt has been satisfied.

$122

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.d

Applicant is indebted to a creditor for an account placed for collection in the approximate amount of $267. There is no evidence to show that the debt has been satisfied.

$267

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.e

Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of $279. There is no evidence to show that the debt has been satisfied.

$279

Against Applicant

Unspecified Financial

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 is indebted to a creditor for an account that was placed for collection in the approximate amount of $491. There is no evidence to show that the debt has been satisfied.

$491

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.g

Applicant is indebted to the child support enforcement administration in the approximate amount of $7,166. There is no evidence to show that the debt has been satisfied. Applicant submitted documentation of child support payments up to February 2016. His child support payments since then have not been addressed. His most current credit report reflects a remaining balance of $6,427, with $5,788 past due.

$7,166

Against Applicant

Child Support Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.h

Applicant is indebted to a creditor for an account placed for collection in the approximate amount of $13,265. There is no evidence to show that the debt has been satisfied.

$13,265

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.i

Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of $270. There is no evidence to show that the debt has been satisfied.

$270

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.j

Applicant is indebted to a creditor for an account that was placed for collection in the approximate amount of $437. There is no evidence to show that the debt has been satisfied.

$437

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.k

Applicant is indebted to a creditor for an account that was charged off in the approximate amount of $4,471. There is no evidence to show that the debt has been satisfied.

$4,471

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.m

Applicant is indebted to a creditor for an account that was charged off in the approximate amount of $5,301. There is no evidence to show that the debt has been satisfied.

$5,301

Against Applicant

Unspecified Financial

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