ISCR Case 06-17878.h1

Case Headnote

ISCR Case No. 06-17878.h1

deniedMay 31, 2007· Hon. Elizabeth M. Matchinski· hearing

Summary

A 32-year-old electronics technician was denied a security clearance due to concerns under Guidelines E (Personal Conduct), F (Financial Considerations), and J (Criminal Conduct). The denial stemmed from significant delinquent debt and a lack of candor on his security clearance application.

The applicant had approximately $17,227 in delinquent debt across multiple accounts, including credit cards, personal loans, and telephone and computer services, with some debts dating back to 1998. Specific examples included a $1,475 credit card debt from 1994, a $2,455 computer debt from 2003, and a $6,460 installment loan from 2003. Additionally, the applicant had a December 1997 felony sexual assault charge that was dismissed, a May 1997 domestic violence/disorderly conduct charge, and a July 1996 Non-Judicial Punishment for assault, sodomy, and adultery, resulting in a reduction in grade, forfeiture of pay, extra duty, and restriction.

The judge found that the applicant deliberately failed to disclose his December 1997 arrest and several delinquent debts on his SF 86, and was not candid about his financial delinquencies on his October 2004 application. This deliberate falsification constituted a felony violation of 18 U.S.C. § 1001. The applicant had only recently begun to repay his debts and failed to demonstrate responsible financial management or reliability in his representations, leading to the denial of his clearance.

Why the Applicant Was Denied

Applicant incurred significant delinquent debt totaling approximately $17,227, which he only recently began to repay.
Applicant was not candid about his financial delinquencies on his October 2004 security clearance application, failing to disclose relevant debts and arrests.
The applicant has not proven that he can handle his finances responsibly or that his representations can be relied upon.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
AG ¶ 19(e)raisedConsistent Spending Beyond One’s Means
AG ¶ 31(c)raisedAllegation or Admission of Criminal Conduct

Mitigating

AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlMost debts became delinquent while the applicant was employed.
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“An individual who is financially overextended is at risk of having to engage in illegal acts to generate funds.”
— AG ¶ 18

Procedural Posture

SOR issuedDec 15, 2006
Answer filedJan 4, 2007Applicant elected for a determination on the written record.
Hearing held—No hearing; determination made on the written record.
Decision dateMay 31, 2007

Cite For

Denial of Security Clearance Due to Significant Financial Delinquencies Under Guideline F
Lack of Candor in Security Clearance Application Under Guideline E
Criminal Conduct Implications Under Guideline J

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
3.a	Applicant deliberately failed to disclose his December 1997 arrest and his delinquent debts on his SF 86.	For Applicant	Falsification Security FormFOUND DELIBERATE	Criminal Conduct	Denied	(a) deliberate omission, concealment, or falsification on a security form (c) credible adverse information across areas supporting a whole-person concern	—	—
3.b	Applicant was not candid about his financial delinquencies on his October 2004 security clearance application.	Against Applicant	Lack of Candor in InterviewFOUND DELIBERATE	Financial	Denied	(a) deliberate omission, concealment, or falsification on a security form (c) credible adverse information across areas supporting a whole-person concern	—	—
3.c	Applicant committed a felony violation of 18 U.S.C. § 1001 by deliberately falsifying his October 2004 security clearance application (SF 86).	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Denied	(a) deliberate omission, concealment, or falsification on a security form (c) credible adverse information across areas supporting a whole-person concern	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

3.a

Applicant deliberately failed to disclose his December 1997 arrest and his delinquent debts on his SF 86.

For Applicant

Falsification Security FormFOUND DELIBERATE

Criminal Conduct

Denied

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

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

—

3.b

Applicant was not candid about his financial delinquencies on his October 2004 security clearance application.

Against Applicant

Lack of Candor in InterviewFOUND DELIBERATE

Financial

Denied

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

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

—

3.c

Applicant committed a felony violation of 18 U.S.C. § 1001 by deliberately falsifying his October 2004 security clearance application (SF 86).

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Denied

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

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

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	A $50 past due balance was owed to the assignee of a telephone debt in collection since December 1998 $50	For Applicant	Utility or Phone 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.b	A credit card account opened in September 1994 was placed for collection in June 2000. As of October 2004, the debt balance was $1,475 $1,475	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.c	A $167 telephone services debt was listed as unpaid and in collection since September 2004 $167	For Applicant	Utility or Phone 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.d	A $2,455 past due balance was owed on a computer debt that had been placed for collection in about March 2003 $2,455	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	A retail charge account with a high credit of $555 was placed for collection in October 2000. That account had a past due balance of $715 as of June 2004 as reported by a successor assignee $715	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	A personal loan was listed as past due in the amount of $1,140 on a balance of $1,344 delinquent since April 2002 $1,140	Against Applicant	Personal Loan Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	A credit card debt of $2,542, originally placed for collection in 2002, was reported as 120 days or greater past due and in collection status $2,542	Against Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	A retail charge account with a high credit of $1,310 had been placed for collection in 2002 and had a past due balance of $2,165 as of October 2004 $2,165	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	A credit card account was placed for collection in 2002 with a past due balance of $560 $560	Against Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.j	A collection agency was reporting a debt balance of $6,460 on an individual installment loan debt placed in January 2003 $6,460	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

A $50 past due balance was owed to the assignee of a telephone debt in collection since December 1998

$50

For Applicant

Utility or Phone 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.b

A credit card account opened in September 1994 was placed for collection in June 2000. As of October 2004, the debt balance was $1,475

$1,475

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.c

A $167 telephone services debt was listed as unpaid and in collection since September 2004

$167

For Applicant

Utility or Phone 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.d

A $2,455 past due balance was owed on a computer debt that had been placed for collection in about March 2003

$2,455

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

A retail charge account with a high credit of $555 was placed for collection in October 2000. That account had a past due balance of $715 as of June 2004 as reported by a successor assignee

$715

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

A personal loan was listed as past due in the amount of $1,140 on a balance of $1,344 delinquent since April 2002

$1,140

Against Applicant

Personal Loan Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

A credit card debt of $2,542, originally placed for collection in 2002, was reported as 120 days or greater past due and in collection status

$2,542

Against Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

A retail charge account with a high credit of $1,310 had been placed for collection in 2002 and had a past due balance of $2,165 as of October 2004

$2,165

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i

A credit card account was placed for collection in 2002 with a past due balance of $560

$560

Against Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.j

A collection agency was reporting a debt balance of $6,460 on an individual installment loan debt placed in January 2003

$6,460

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

¶	Allegation	Finding	Offense	Criminal disposition	Response	Disqualifying (¶31)	Mitigating applied (¶32)	Mitigation
2.a	You were charged in December 1997 with felony sexual assault. The charge was dismissed.	For Applicant	Unspecified Criminal Conduct	Dismissed or Nolle Prossed	Denied	—	—	—
2.b	You were charged with domestic violence/disorderly conduct in May 1997.	For Applicant	Domestic Violence	Charged Not Convicted	Denied	—	—	—
2.c	You received Non-Judicial Punishment under Article 15 of the Uniform Code of Military Justice on or about July 2, 1996 for the offenses (1) Assault, (2) Sodomy and (3) Adultery. Your punishment was a reduction in grade, forfeiture of $250 pay, extra duty for 14 days, and restriction for 14 days.	Against Applicant	Assault or Battery	Conduct No Charge	Denied	(a) pattern of minor offenses casting doubt on judgment/reliability (c) currently on parole or probation	—	—
2.d	specific text not stated in this decision	Withdrawn	Unspecified Criminal Conduct	—	Unknown	—	—	—
2.e	You committed a felony violation of 18 U.S.C. § 1001 by deliberately omitting relevant and material information concerning your indebtedness from your SF 86.	Against Applicant	Fraud or Deception Criminal	Conduct No Charge	Denied	(c) currently on parole or probation	—	—

Allegation

Finding

Offense

Criminal disposition

Response

Disqualifying (¶31)

Mitigating applied (¶32)

Mitigation

2.a

You were charged in December 1997 with felony sexual assault. The charge was dismissed.

For Applicant

Unspecified Criminal Conduct

Dismissed or Nolle Prossed

Denied

—

2.b

You were charged with domestic violence/disorderly conduct in May 1997.

For Applicant

Domestic Violence

Charged Not Convicted

Denied

—

2.c

You received Non-Judicial Punishment under Article 15 of the Uniform Code of Military Justice on or about July 2, 1996 for the offenses (1) Assault, (2) Sodomy and (3) Adultery. Your punishment was a reduction in grade, forfeiture of $250 pay, extra duty for 14 days, and restriction for 14 days.

Against Applicant

Assault or Battery

Conduct No Charge

Denied

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

(c) currently on parole or probation

—

2.d

specific text not stated in this decision

Withdrawn

Unspecified Criminal Conduct

—

Unknown

—

2.e

You committed a felony violation of 18 U.S.C. § 1001 by deliberately omitting relevant and material information concerning your indebtedness from your SF 86.

Against Applicant

Fraud or Deception Criminal

Conduct No Charge

Denied

(c) currently on parole or probation

—

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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

SYNOPSIS

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

CONCLUSION

WHOLE PERSON ANALYSIS

FORMAL FINDINGS

DECISION

FOOTNOTES

APPEARANCES