ISCR Case 06-17325.h1

Case Headnote

ISCR Case No. 06-17325.h1

deniedApr 7, 2009· Hon. Joan Caton Anthony· hearing

Summary

A 43-year-old certified pharmacy technician was denied eligibility for a public trust position due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant faced allegations of significant, ongoing financial delinquencies totaling over $189,000, which included 18 unresolved debts as of January 7, 2008, two judgments, a home foreclosure, and a state tax lien. In March 2003, the applicant and her husband filed for Chapter 13 bankruptcy, but it was dismissed before confirmation after only three payments.

A key issue was the applicant's response to her SF-85P security questionnaire, executed on June 12, 2005. While she reported her 2003 bankruptcy, she answered "no" to Question 22b regarding being over 180 days delinquent on any loan or financial obligation. This was deemed a deliberate falsification, as she failed to report 18 financial delinquencies that remained unresolved. The applicant attributed many of her financial problems to her husband's alcoholism, unstable work habits, and financial irresponsibility, stating he handled family finances and neglected tax filings.

Despite reporting a monthly net remainder of $1,899, the applicant had not used these resources to address her delinquent debt or sought financial counseling. The judge found that the applicant admitted to substantial financial delinquencies, deliberately falsified her security questionnaire, and failed to demonstrate good-faith efforts to resolve her financial issues, leading to the denial of her security clearance.

Why the Applicant Was Denied

The applicant admitted to substantial financial delinquencies totaling over $189,000.
The applicant's response to the security questionnaire was found to be a deliberate falsification.
The applicant failed to demonstrate any good-faith efforts to resolve her financial issues.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile the applicant's husband's alcoholism and unemployment were beyond her control, she failed to act responsibly in resolving her debts.
AG ¶ 20(c)rejectedEvidence of Counseling or Resolution of the ProblemThe applicant did not seek financial counseling or demonstrate efforts to resolve her debts.
AG ¶ 20(d)rejectedGood-faith Effort to Repay or Resolve DebtsThe applicant did not make good-faith efforts to address her financial delinquencies.

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedMay 22, 2008
Answer filedJun 20, 2008Applicant requested a decision on the record.
Hearing held—
Decision dateMar 24, 2009

Cite For

Deliberate Falsification of Financial Information Under Guideline E
Substantial Ongoing Financial Delinquencies Under Guideline F
Failure to Demonstrate Good-faith Efforts to Resolve Financial Issues

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 deliberately falsified her SF-85P by failing to report 18 financial delinquencies, which remained unresolved as of January 7, 2008.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Admitted	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant deliberately falsified her SF-85P by failing to report 18 financial delinquencies, which remained unresolved as of January 7, 2008.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Admitted

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	In March 2003, Applicant and her husband petitioned for Chapter 13 bankruptcy protection. They agreed to make payments of $400 per month to the bankruptcy trustee. They made approximately three payments before concluding they could not afford to continue. The Chapter 13 bankruptcy was dismissed before confirmation. $0	Against Applicant	Bankruptcy Filing	Admitted	—	—	—
1.b	Applicant owed approximately $189,346 in delinquent debt to 21 creditors. Twelve of the debts are delinquencies arising between 2000 and 2003. Three additional debts were placed in collection status in 2001, 2005, and 2006. Two additional debts were placed in charged-off status in 2001 and 2002. Moreover, Applicant is responsible for two judgments, entered against her in 2001 and 2002, a home foreclosure in 2002, and a state tax lien, filed in January 2006. $189,346	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.c	Applicant has a history of financial delinquencies. In March 2003, Applicant and her husband petitioned for Chapter 13 bankruptcy protection. They agreed to make payments of $400 per month to the bankruptcy trustee. They made approximately three payments before concluding they could not afford to continue. The Chapter 13 bankruptcy was dismissed before confirmation. $0	Against Applicant	Bankruptcy Filing	Admitted	—	—	—
1.d	Applicant is responsible for two judgments, entered against her in 2001 and 2002, a home foreclosure in 2002, and a state tax lien, filed in January 2006. $0	Against Applicant	Judgment Against Applicant	Admitted	—	—	—
1.e	Applicant has not received financial counseling. Even though she had a monthly net remainder, she failed to use those resources to pay her delinquent debt. $0	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.f	Applicant attributed the foreclosure and her many financial delinquencies to her husband's alcoholism, unstable work habits, and financial irresponsibility. $0	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.g	Applicant stated that her husband neglected to timely file their state and federal income taxes, which resulted in tax liens. $0	Against Applicant	Tax Filing Failure	Admitted	—	—	—
1.h	Applicant executed a SF-85P on June 12, 2005. In response to Question 22a on the SF-85P, she reported her 2003 Chapter 13 bankruptcy filing. Question 22b on the SF-85P reads: 'Are you now over 180 days delinquent on any loan or financial obligation? Include loans or obligations funded or guaranteed by the Federal Government.' Applicant answered 'no' to Question 22b. The SOR alleged that Applicant deliberately falsified the SF-85P by failing to report 18 financial delinquencies, which remained unresolved as of January 7, 2008. $0	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.i	Applicant stated she did not understand Question 22b. She stated that she thought the question referred to monthly household bills. $0	Against Applicant	Unspecified Financial	Denied with Explanation	—	—	—
1.j	Applicant reported that her net monthly income was $2,389 and her husband's net monthly income was $2,320, for a total net monthly household income of $4,709. She listed her monthly fixed expenses as follows: rent: $1,015; groceries: $643; clothing: $100; utilities: $308; car expenses: $229; medical expenses: $25; and miscellaneous expenses: $250. She reported one monthly household debt, an automobile loan of $1,000. She stated she paid $250 a month on the auto loan. She reported as assets two vehicles valued at $2,000. Her monthly remainder was $1,899. $0	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.k	Applicant's husband is an alcoholic, frequently unemployed, and irresponsible with money. Applicant has lived with this situation for many years. $0	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.l	Applicant has not made good-faith efforts to pay or resolve her delinquent debts. $0	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.m	Applicant's financial problems arose in 2000 and 2001 and have continued for the past eight years. Her husband, a carpenter, is an alcoholic and has been frequently unemployed, most recently after an injury to his hand in 2007. $0	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.n	Applicant's financial delinquencies arose in about 2000 and 2001. In 2002, her home went into foreclosure, and she continued to accumulate debt. In 2006, a tax lien was filed against her by her state of residence. As of January 7, 2008, Applicant had failed to pay or settle the delinquent debts alleged in the SOR. $0	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.o	Applicant has not pursued or received financial credit counseling. $0	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.p	Applicant's husband handled the family's finances and was responsible for paying their bills. She attributed the foreclosure and her many financial delinquencies to her husband's alcoholism, unstable work habits, and financial irresponsibility. $0	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.q	Applicant's husband neglected to timely file their state and federal income taxes, which resulted in tax liens. $0	Against Applicant	Tax Filing Failure	Admitted	—	—	—
1.r	Applicant's husband was unemployed and collecting Workman's Compensation. The injury required three surgeries. $0	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.s	Applicant's financial delinquencies began several years ago and continue unresolved at the present time, are likely to recur, and cast doubt on her current reliability, trustworthiness, and good judgment. $0	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.t	Applicant's financial problems arose in 2000 and 2001 and have continued for the past eight years. Her husband, a carpenter, is an alcoholic and has been frequently unemployed, most recently after an injury to his hand in 2007. $0	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.u	Applicant's financial delinquencies arose in about 2000 and 2001. In 2002, her home went into foreclosure, and she continued to accumulate debt. In 2006, a tax lien was filed against her by her state of residence. As of January 7, 2008, Applicant had failed to pay or settle the delinquent debts alleged in the SOR. $0	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.v	Applicant's husband is an alcoholic, frequently unemployed, and irresponsible with money. Applicant has lived with this situation for many years. $0	Against Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

In March 2003, Applicant and her husband petitioned for Chapter 13 bankruptcy protection. They agreed to make payments of $400 per month to the bankruptcy trustee. They made approximately three payments before concluding they could not afford to continue. The Chapter 13 bankruptcy was dismissed before confirmation.

Against Applicant

Bankruptcy Filing

Admitted

—

1.b

Applicant owed approximately $189,346 in delinquent debt to 21 creditors. Twelve of the debts are delinquencies arising between 2000 and 2003. Three additional debts were placed in collection status in 2001, 2005, and 2006. Two additional debts were placed in charged-off status in 2001 and 2002. Moreover, Applicant is responsible for two judgments, entered against her in 2001 and 2002, a home foreclosure in 2002, and a state tax lien, filed in January 2006.

$189,346

Against Applicant

Unspecified Financial

Admitted

—

1.c

Applicant has a history of financial delinquencies. In March 2003, Applicant and her husband petitioned for Chapter 13 bankruptcy protection. They agreed to make payments of $400 per month to the bankruptcy trustee. They made approximately three payments before concluding they could not afford to continue. The Chapter 13 bankruptcy was dismissed before confirmation.

Against Applicant

Bankruptcy Filing

Admitted

—

1.d

Applicant is responsible for two judgments, entered against her in 2001 and 2002, a home foreclosure in 2002, and a state tax lien, filed in January 2006.

Against Applicant

Judgment Against Applicant

Admitted

—

1.e

Applicant has not received financial counseling. Even though she had a monthly net remainder, she failed to use those resources to pay her delinquent debt.

Against Applicant

Unspecified Financial

Unknown

—

1.f

Applicant attributed the foreclosure and her many financial delinquencies to her husband's alcoholism, unstable work habits, and financial irresponsibility.

Against Applicant

Unspecified Financial

Admitted

—

1.g

Applicant stated that her husband neglected to timely file their state and federal income taxes, which resulted in tax liens.

Against Applicant

Tax Filing Failure

Admitted

—

1.h

Applicant executed a SF-85P on June 12, 2005. In response to Question 22a on the SF-85P, she reported her 2003 Chapter 13 bankruptcy filing. Question 22b on the SF-85P reads: 'Are you now over 180 days delinquent on any loan or financial obligation? Include loans or obligations funded or guaranteed by the Federal Government.' Applicant answered 'no' to Question 22b. The SOR alleged that Applicant deliberately falsified the SF-85P by failing to report 18 financial delinquencies, which remained unresolved as of January 7, 2008.

Against Applicant

Unspecified Financial

Admitted

—

1.i

Applicant stated she did not understand Question 22b. She stated that she thought the question referred to monthly household bills.

Against Applicant

Unspecified Financial

Denied with Explanation

—

1.j

Applicant reported that her net monthly income was $2,389 and her husband's net monthly income was $2,320, for a total net monthly household income of $4,709. She listed her monthly fixed expenses as follows: rent: $1,015; groceries: $643; clothing: $100; utilities: $308; car expenses: $229; medical expenses: $25; and miscellaneous expenses: $250. She reported one monthly household debt, an automobile loan of $1,000. She stated she paid $250 a month on the auto loan. She reported as assets two vehicles valued at $2,000. Her monthly remainder was $1,899.

Against Applicant

Unspecified Financial

Unknown

—

1.k

Applicant's husband is an alcoholic, frequently unemployed, and irresponsible with money. Applicant has lived with this situation for many years.

Against Applicant

Unspecified Financial

Admitted

—

1.l

Applicant has not made good-faith efforts to pay or resolve her delinquent debts.

Against Applicant

Unspecified Financial

Unknown

—

1.m

Applicant's financial problems arose in 2000 and 2001 and have continued for the past eight years. Her husband, a carpenter, is an alcoholic and has been frequently unemployed, most recently after an injury to his hand in 2007.

Against Applicant

Unspecified Financial

Admitted

—

1.n

Applicant's financial delinquencies arose in about 2000 and 2001. In 2002, her home went into foreclosure, and she continued to accumulate debt. In 2006, a tax lien was filed against her by her state of residence. As of January 7, 2008, Applicant had failed to pay or settle the delinquent debts alleged in the SOR.

Against Applicant

Unspecified Financial

Unknown

—

1.o

Applicant has not pursued or received financial credit counseling.

Against Applicant

Unspecified Financial

Unknown

—

1.p

Applicant's husband handled the family's finances and was responsible for paying their bills. She attributed the foreclosure and her many financial delinquencies to her husband's alcoholism, unstable work habits, and financial irresponsibility.

Against Applicant

Unspecified Financial

Admitted

—

1.q

Applicant's husband neglected to timely file their state and federal income taxes, which resulted in tax liens.

Against Applicant

Tax Filing Failure

Admitted

—

1.r

Applicant's husband was unemployed and collecting Workman's Compensation. The injury required three surgeries.

Against Applicant

Unspecified Financial

Unknown

—

1.s

Applicant's financial delinquencies began several years ago and continue unresolved at the present time, are likely to recur, and cast doubt on her current reliability, trustworthiness, and good judgment.

Against Applicant

Unspecified Financial

Unknown

—

1.t

Against Applicant

Unspecified Financial

Unknown

—

1.u

Against Applicant

Unspecified Financial

Unknown

—

1.v

Applicant's husband is an alcoholic, frequently unemployed, and irresponsible with money. Applicant has lived with this situation for many years.

Against Applicant

Unspecified Financial

Unknown

—

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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