ISCR Case 17-01650.h1

Case Headnote

ISCR Case No. 17-01650.h1

deniedJun 7, 2018· Hon. Philip J. Katauskas· hearing

Summary

A 29-year-old defense contractor and former U.S. Navy member was denied a security clearance due to concerns under Guideline F (Financial Considerations) and Guideline J (Criminal Conduct). The Statement of Reasons alleged six delinquent debts totaling $20,776. While the applicant denied a $16,204 judgment, he admitted to five other unresolved debts totaling $4,572. The largest debt, a deficiency from a repossessed vehicle, was still reported as $8,468 past due in January 2018, despite the applicant's unsuccessful attempts to have it forgiven.

Beyond financial issues, the applicant faced multiple instances of criminal conduct. In October 2015, he was cited for expired license plates and failed to appear in court, leading to an active arrest warrant. In January 2016, he was cited for interfering with a police officer, again failed to appear, and was subsequently convicted, resulting in another arrest warrant. A third incident in February 2016 involved citations for failure to register a motor vehicle and driving on a suspended license, with another missed court date and active arrest warrant.

Although some financial concerns were mitigated, the applicant's repeated failures to appear in court for criminal charges, resulting in active arrest warrants, raised significant doubts about his judgment and reliability. These recent criminal infractions were not sufficiently mitigated by time or circumstances, ultimately leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant failed to appear for court dates, resulting in active arrest warrants.
The applicant's criminal conduct raised doubts about his judgment and reliability.
The applicant's recent criminal infractions were not sufficiently mitigated by time or circumstances.

Conditions Referenced

Disqualifying

AG ¶ 31(a)raisedPattern of Minor Offenses
AG ¶ 31(b)raisedEvidence of Criminal Conduct

Mitigating

AG ¶ 20(a)rejectedBehavior Unlikely to RecurThe applicant's recent criminal conduct does not indicate sufficient time has passed to mitigate concerns.
AG ¶ 20(b)appliedConditions Beyond ControlThe applicant's financial issues stemmed from circumstances largely beyond his control.
AG ¶ 20(d)appliedGood-faith Effort to Repay DebtsThe applicant made arrangements to repay his debts and demonstrated a declining balance.

Key Rule Quoted

“"the clearly consistent standard indicates that security clearance determinations should err, if they must, on the side of denials."”
— Department of the Navy v. Egan, 484 U.S. 518, 531 (1988)

Procedural Posture

SOR issuedNov 9, 2017
Answer filedJul 15, 2016
Hearing held—Decision based on written record without a hearing.
Decision dateJun 7, 2018

Cite For

Denial Based on Unresolved Criminal Conduct Under Guideline J
Mitigation of Financial Issues Under Guideline F
Importance of Court Compliance in Security Clearance Evaluations

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
2.a	Under Guideline F, the SOR alleges six delinquent debts totaling $20,776. $20,776	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
2.b	Applicant denies the largest debt, a judgment for $16,204, but admits the remainder of the debts. $16,204	For Applicant	Judgment Against Applicant	Denied	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
2.c	The debt is still shown as $8,468 past due on the January 2018 credit bureau report. $8,468	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
2.d	The lion’s share of the indebtedness is the deficiency from the repossession sale of the recalled car. $6,000	For Applicant	Auto Loan Debt	Denied	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
2.e	Applicant attempted to have the dealer forgive the deficiency, but he was unsuccessful.	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
2.f	Applicant has admitted five unresolved debts totaling $4,572. $4,572	For 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

2.a

Under Guideline F, the SOR alleges six delinquent debts totaling $20,776.

$20,776

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

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

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

Documented

Debt Paid in Full

2.b

Applicant denies the largest debt, a judgment for $16,204, but admits the remainder of the debts.

$16,204

For Applicant

Judgment Against Applicant

Denied

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

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

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

Documented

Debt Paid in Full

2.c

The debt is still shown as $8,468 past due on the January 2018 credit bureau report.

$8,468

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

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

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

Documented

Debt Paid in Full

2.d

The lion’s share of the indebtedness is the deficiency from the repossession sale of the recalled car.

$6,000

For Applicant

Auto Loan Debt

Denied

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

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

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

Documented

Debt Paid in Full

2.e

Applicant attempted to have the dealer forgive the deficiency, but he was unsuccessful.

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

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

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

Documented

Debt Paid in Full

2.f

Applicant has admitted five unresolved debts totaling $4,572.

$4,572

For 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	Offense	Criminal disposition	Response	Disqualifying (¶31)	Mitigating applied (¶32)	Mitigation
1.a	In October 2015 Applicant was cited for driving with expired license plates, and that he failed to appear for his court date, causing the issuance of an arrest warrant, which is still active.	Against Applicant	Traffic Offense Pattern	Conduct No Charge	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability (b) evidence of criminal conduct, regardless of charge or conviction	—	—
1.b	In January 2016 Applicant was cited for interfering with a police officer, and that he failed to appear for his court date, causing the issuance of an arrest warrant. He was convicted of this charge.	Against Applicant	Unspecified Criminal Conduct	Convicted	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability (b) evidence of criminal conduct, regardless of charge or conviction	—	—
1.c	In February 2016 Applicant was cited for failure to register a motor vehicle and driving on a suspended license, and that he failed to appear for his court date, causing the issuance of an arrest warrant, which is still active.	Against Applicant	Traffic Offense Pattern	Conduct No Charge	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability (b) evidence of criminal conduct, regardless of charge or conviction	—	—

Allegation

Finding

Offense

Criminal disposition

Response

Disqualifying (¶31)

Mitigating applied (¶32)

Mitigation

1.a

In October 2015 Applicant was cited for driving with expired license plates, and that he failed to appear for his court date, causing the issuance of an arrest warrant, which is still active.

Against Applicant

Traffic Offense Pattern

Conduct No Charge

Admitted

(a) pattern of minor offenses casting doubt on judgment/reliability

(b) evidence of criminal conduct, regardless of charge or conviction

—

1.b

In January 2016 Applicant was cited for interfering with a police officer, and that he failed to appear for his court date, causing the issuance of an arrest warrant. He was convicted of this charge.

Against Applicant

Unspecified Criminal Conduct

Convicted

Admitted

(a) pattern of minor offenses casting doubt on judgment/reliability

(b) evidence of criminal conduct, regardless of charge or conviction

—

1.c

In February 2016 Applicant was cited for failure to register a motor vehicle and driving on a suspended license, and that he failed to appear for his court date, causing the issuance of an arrest warrant, which is still active.

Against Applicant

Traffic Offense Pattern

Conduct No Charge

Admitted

(a) pattern of minor offenses casting doubt on judgment/reliability

(b) evidence of criminal conduct, regardless of charge or conviction

—

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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

PROCEDURAL MATTERS

FINDINGS OF FACT

DISCUSSION

FORMAL FINDINGS

CONCLUSION

FOOTNOTES