ISCR Case 14-00071.h1

Case Headnote

ISCR Case No. 14-00071.h1

deniedOct 28, 2014· Hon. Paul J. Mason· hearing

Summary

A 40-year-old security officer with a bachelor's degree was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from nine delinquent accounts totaling $19,395 and deliberate omissions and falsifications in his security clearance application.

Regarding financial considerations, one delinquent store credit card account, with an original amount of $2,213, was settled in July 2014 after a judgment was filed in October 2008. However, seven student loan accounts, which became delinquent in November 2010, remained unresolved. The applicant claimed to have made payments under a rehabilitation plan but provided no documentation to substantiate these claims. Additionally, a judgment filed in January 2007 by a rental management company also remained unresolved, with the applicant taking no action because it no longer appeared on his credit report.

For personal conduct, the applicant made deliberate omissions and falsifications in his July 2013 e-QIP. He falsely answered "no" to a question about adverse employment termination from January to May 2012, despite being fired for performance issues. He also failed to disclose prior employment as a security officer from December 2000 to February 2007, and its termination. During subsequent interviews, he provided incorrect employment dates, which he later attributed to oversight. The judge found these omissions and falsifications to be intentional efforts to conceal relevant information, leading to the denial of eligibility for access to classified information.

Why the Applicant Was Denied

The applicant failed to provide documentation supporting claims of making payments on delinquent student loans.
Deliberate omissions and falsifications in the e-QIP were not considered oversights but intentional efforts to conceal relevant information.
The applicant's financial situation remains unresolved with significant outstanding debts.

Conditions Referenced

Disqualifying

AG ¶ 16(a)appliedDeliberate Omission, Concealment, or Falsification of Relevant Facts
AG ¶ 16(b)appliedDeliberately Providing False or Misleading Information
AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(d)raisedInitiated a Good-faith Effort to Repay Overdue CreditorsThe applicant settled one delinquent account but has not resolved the majority of his debts.
AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant still owes significant debts, indicating ongoing financial issues.
AG ¶ 20(c)rejectedReceived Counseling for the ProblemThe applicant provided no evidence of financial counseling.

Key Rule Quoted

“Conduct involving questionable judgment, lack of candor, dishonesty, or unwillingness to comply with rules and regulations can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”

Procedural Posture

SOR issuedMay 13, 2014
Answer filedJun 30, 2014Notarized
Hearing heldSep 10, 2014
Decision dateOct 28, 2014

Cite For

Deliberate Falsification of Information Under Guideline E
Failure to Resolve Significant Financial Obligations Under Guideline F
Insufficient Evidence of Good-faith Efforts to Mitigate Security Concerns

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	On July 15, 2013, Applicant certified and signed an e-QIP. He answered “no” to question 13A asking whether his employment from January to May 2012 had ended under any of four adverse circumstances, including being fired. He was terminated from this employment for performance issues.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Employment History	Denied	(a) deliberate omission, concealment, or falsification on a security form	—	—
2.b	In response to question 13A of the same July 2013 e-QIP, Applicant was asked to list all employment, unemployment and self-employment, “beginning with the present and going back 10 years.” Applicant did not disclose his employment as a security officer from December 2000 to February 2007, and termination from the job.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Employment History	Denied	(a) deliberate omission, concealment, or falsification on a security form	—	—
2.c	During interviews on August 27 and August 30, 2013, Applicant claimed that he was employed by the SOR 2.b employer from 2000 to 2003, and that he was unemployed from July 2003-April 2005. In his answer to the SOR, he attributed the incorrect information to oversight.	Against Applicant	Lack of Candor in InterviewFOUND DELIBERATE	Employment History	Denied	(a) deliberate omission, concealment, or falsification on a security form	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

On July 15, 2013, Applicant certified and signed an e-QIP. He answered “no” to question 13A asking whether his employment from January to May 2012 had ended under any of four adverse circumstances, including being fired. He was terminated from this employment for performance issues.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Employment History

Denied

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

—

2.b

In response to question 13A of the same July 2013 e-QIP, Applicant was asked to list all employment, unemployment and self-employment, “beginning with the present and going back 10 years.” Applicant did not disclose his employment as a security officer from December 2000 to February 2007, and termination from the job.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Employment History

Denied

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

—

2.c

During interviews on August 27 and August 30, 2013, Applicant claimed that he was employed by the SOR 2.b employer from 2000 to 2003, and that he was unemployed from July 2003-April 2005. In his answer to the SOR, he attributed the incorrect information to oversight.

Against Applicant

Lack of Candor in InterviewFOUND DELIBERATE

Employment History

Denied

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

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Settled. The delinquent amount of the delinquent store credit card account was $2,213. It was transferred to a collection agency and a judgment was filed in October 2008. On June 26, 2014, Applicant and the collection agency worked out a settlement to pay $616 by June 30, 2014, and $616 by July 30, 2014. Applicant provided documentation showing that he furnished the second installment on July 23, 2014, and he was officially notified on July 31, 2014, that the account was settled. $2,213	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.b	Unresolved. These seven accounts are grouped together because they are all student loans handled by the same creditor. The accounts became delinquent in November 2010. In his June 30, 2014 answer to the SOR, Applicant indicated he worked out an agreement with the creditor to pay $116 a month and was waiting on the paperwork from the creditor to show that an agreement had been reached. He was unable to obtain the paperwork online. At the hearing, he testified that he had made seven payments under the plan, four payments of $58 and three payments of $240, toward his objective of qualifying for a loan rehabilitation program and have the derogatory student loan information deleted from his credit report. However, Applicant offered no copies of checks or receipts, bank statements, or paperwork to substantiate his claim that he had made payments under the plan.	Against Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	Unresolved. These seven accounts are grouped together because they are all student loans handled by the same creditor. The accounts became delinquent in November 2010. In his June 30, 2014 answer to the SOR, Applicant indicated he worked out an agreement with the creditor to pay $116 a month and was waiting on the paperwork from the creditor to show that an agreement had been reached. He was unable to obtain the paperwork online. At the hearing, he testified that he had made seven payments under the plan, four payments of $58 and three payments of $240, toward his objective of qualifying for a loan rehabilitation program and have the derogatory student loan information deleted from his credit report. However, Applicant offered no copies of checks or receipts, bank statements, or paperwork to substantiate his claim that he had made payments under the plan.	Against Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	Unresolved. These seven accounts are grouped together because they are all student loans handled by the same creditor. The accounts became delinquent in November 2010. In his June 30, 2014 answer to the SOR, Applicant indicated he worked out an agreement with the creditor to pay $116 a month and was waiting on the paperwork from the creditor to show that an agreement had been reached. He was unable to obtain the paperwork online. At the hearing, he testified that he had made seven payments under the plan, four payments of $58 and three payments of $240, toward his objective of qualifying for a loan rehabilitation program and have the derogatory student loan information deleted from his credit report. However, Applicant offered no copies of checks or receipts, bank statements, or paperwork to substantiate his claim that he had made payments under the plan.	Against Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	Unresolved. These seven accounts are grouped together because they are all student loans handled by the same creditor. The accounts became delinquent in November 2010. In his June 30, 2014 answer to the SOR, Applicant indicated he worked out an agreement with the creditor to pay $116 a month and was waiting on the paperwork from the creditor to show that an agreement had been reached. He was unable to obtain the paperwork online. At the hearing, he testified that he had made seven payments under the plan, four payments of $58 and three payments of $240, toward his objective of qualifying for a loan rehabilitation program and have the derogatory student loan information deleted from his credit report. However, Applicant offered no copies of checks or receipts, bank statements, or paperwork to substantiate his claim that he had made payments under the plan.	Against Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	Unresolved. This account is a judgment filed in January 2007 by a rental management company. Applicant claims he sent the management company notice that he was vacating the premises. The company indicated that judgment was filed because they did not receive notice. Applicant has not taken any action to resolve the judgment because it no longer appears on his credit report.	Against Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g–1.i	3 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)	Against Applicant			—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Settled. The delinquent amount of the delinquent store credit card account was $2,213. It was transferred to a collection agency and a judgment was filed in October 2008. On June 26, 2014, Applicant and the collection agency worked out a settlement to pay $616 by June 30, 2014, and $616 by July 30, 2014. Applicant provided documentation showing that he furnished the second installment on July 23, 2014, and he was officially notified on July 31, 2014, that the account was settled.

$2,213

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.b

Unresolved. These seven accounts are grouped together because they are all student loans handled by the same creditor. The accounts became delinquent in November 2010. In his June 30, 2014 answer to the SOR, Applicant indicated he worked out an agreement with the creditor to pay $116 a month and was waiting on the paperwork from the creditor to show that an agreement had been reached. He was unable to obtain the paperwork online. At the hearing, he testified that he had made seven payments under the plan, four payments of $58 and three payments of $240, toward his objective of qualifying for a loan rehabilitation program and have the derogatory student loan information deleted from his credit report. However, Applicant offered no copies of checks or receipts, bank statements, or paperwork to substantiate his claim that he had made payments under the plan.

Against Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

Against Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

Against Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

Against Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

Unresolved. This account is a judgment filed in January 2007 by a rental management company. Applicant claims he sent the management company notice that he was vacating the premises. The company indicated that judgment was filed because they did not receive notice. Applicant has not taken any action to resolve the judgment because it no longer appears on his credit report.

Against Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g–1.i

3 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)

Against Applicant

—

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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