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ISCR Case 14-03588.h1 — CASE

ISCR Case 14-03588.h1denied

Case Headnote

ISCR Case No. 14-03588.h1

deniedAug 24, 2015· Hon. Philip S. Howe· hearing

Summary

A 67-year-old defense contractor was denied eligibility for a public trust position due to significant financial concerns under Guideline F. The applicant faced allegations of 23 delinquent debts, totaling $23,586, and an outstanding tax lien filed by the U.S. Internal Revenue Service.

The judge determined that none of these debts had been paid or resolved. The applicant failed to provide any evidence of credit counseling or other efforts to address the outstanding financial obligations.

These unresolved financial issues raised substantial questions regarding the applicant's reliability and trustworthiness, leading to the denial of the security clearance. The decision cited disqualifying conditions F.1.a and F.1.c, emphasizing the lack of debt resolution and the absence of mitigating circumstances.

Why the Applicant Was Denied

Applicant has 23 delinquent debts totaling $23,586, which remain unpaid or unresolved.
Applicant did not provide evidence of credit counseling or any efforts to resolve his debts.
The applicant's financial issues raise questions about his reliability and trustworthiness.

Conditions Referenced

Disqualifying

F.1.araisedInability or Unwillingness to Satisfy Debts
F.1.craisedA History of Not Meeting Financial Obligations

Key Rule Quoted

“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”

Procedural Posture

SOR issuedAug 14, 2014
Answer filedSep 17, 2014Notarized version submitted on 10/11/2014
Hearing held—Applicant requested decision on written record.
Decision dateAug 6, 2015

Cite For

Failure to Provide Evidence of Debt Resolution Under Guideline F
Impact of Financial Issues on Trustworthiness Determinations
Lack of Mitigating Circumstances in Financial Considerations Cases

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

Standardized Decision Profile

SEAD-4 Guideline F · descriptive summary of a decided case

Posture: Decision on RecordDecided: denied

The judge found that the applicant had 23 delinquent debts totaling $23,586, which remained unpaid or unresolved, raising significant trustworthiness concerns under Guideline F. The applicant's failure to provide evidence of mitigating circumstances or efforts to resolve these debts led to a decision against the applicant.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	The SOR alleges 22 delinquent debts and one tax lien filed by the U.S. Internal Revenue Service (IRS) against Applicant. None of these debts are paid or resolved.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

Descriptive standardized rendering of a decided public case (Guideline F). The verbatim source decision is shown in full below.

Full decision

The complete, official text — footnotes and signatures included — is in the original PDF.

Decision text, by section

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

DEPARTMENT OF DEFENSE DEFENSE OFFICE OF HEARINGS AND APPEALS

In the matter of: ) ) ------------------------ ) ADP Case No. 14-03588 ) ) ) Applicant for Public Trust Position

For Government: Eric Borgstrom, Esquire, Department Counsel For Applicant: Pro se

08/24/2015 ______________

STATEMENT OF CASE

______________

HOWE, Philip S., Administrative Judge:

On February 14, 2013, Applicant submitted his Electronic Questionnaires for Investigations Processing (e-QIP). On August 14, 2014, the Department of Defense issued to Applicant a Statement of Reasons (SOR) detailing trustworthiness concerns under Guideline F (Financial Considerations). The action was taken under Executive Order 10865, Safeguarding Classified Information Within Industry (February 20, 1960), as amended; Department of Defense Regulation 5200.2-R, Personnel Security Program, dated January 1987, as amended (Regulation); Department of Defense Directive 5220.6, Defense Industrial Personnel Security Clearance Review Program (January 2, 1992), as amended (Directive); and the adjudicative guidelines (AG) effective within the Department of Defense on September 1, 2006. Applicant answered the SOR in writing on September 17, 2014 (Answer). Applicant had to resubmit his answer in a notarized version on October 11, 2014. Applicant requested his case be decided on the written record in lieu of a hearing.

On March 23, 2015, Department Counsel submitted the Department's written case. A complete copy of the file of relevant material (FORM), consisting of Items 1 through 81, was provided to the Applicant on April 22, 2015. He was given the opportunity to file objections and submit material in refutation, extenuation, or mitigation. Applicant received the file on May 14, 2015. Applicant did not file a Response to the FORM within the 30-day time allowed that would have expired on June 13, 2015. I received the case assignment on August 6, 2015. Based upon a review of the pleadings and exhibits, eligibility for access to sensitive information is denied.

FINDINGS OF FACT

Applicant denied the allegations in Subparagraphs 1.h, 1.k, and 1.r. He admitted all other 20 allegations. (Items 2-7)

Applicant is 67 years old, never married, and works for a defense contractor. His e-QIP states that until August 2012 he lived in various hotels. Now he lives in a rented home. He has a high school education with a diploma from 1967. (Item 4)

The SOR alleges 22 delinquent debts and one tax lien filed by the U.S. Internal Revenue Service (IRS) against Applicant. None of these debts are paid or resolved. Applicant claims the three debts he denied are paid, but he did not submit documentary proof to support his statement. The total amount of debt is $23,586. (Items 1-7)

The debts are owed to a variety of creditors, in addition to the IRS for $7,969 dating from June 2010. The earliest debt in the SOR is December 2007. The creditors include six cellular telephone companies, various debt collectors, auto loan lenders, medical debts, loan companies, five cable television service providers, two insurance companies, and two banks. (Items 1-7) Applicant did not submit any documentation that he has participated in credit counseling or budget education. He provided no evidence concerning the quality of his/her job performance. He submitted no character references or other evidence tending to establish good judgment, trustworthiness, or reliability. I was unable to evaluate his credibility, demeanor, or character in person since he elected to have his case decided without a hearing.

POLICIES

Positions designated as ADP I/II/III are classified as “sensitive positions.” (See Regulation ¶¶ C3.1.2.1.1.7 and C3.1.2.1.2.3.) “The standard that must be met for . . . assignment to sensitive duties is that, based on all available information, the person’s loyalty, reliability, and trustworthiness are such that . . . assigning the person to sensitive duties is clearly consistent with the interests of national security.” (See Regulation ¶ C6.1.1.1.) The Deputy Under Secretary of Defense (Counterintelligence and Security) Memorandum, dated November 19, 2004, indicates trustworthiness adjudications will apply to cases forwarded to DOHA by the Defense Security Service and Office of Personnel Management. Department of Defense contractor personnel are afforded the right to the procedures contained in the Directive before any final unfavorable access determination may be made. (See Regulation ¶ C8.2.1.)

When evaluating an Applicant’s suitability for a public trust position, the administrative judge must consider the disqualifying and mitigating conditions in the AG (AG ¶ 2 (a)). These guidelines are not inflexible rules of law. Instead, recognizing the complexities of human behavior, these guidelines are applied in conjunction with the factors listed in the adjudicative process. The administrative judge’s overarching adjudicative goal is a fair, impartial and commonsense decision. According to AG ¶ 2(c), the entire process is a conscientious scrutiny of a number of variables known as the “whole-person concept.” The administrative judge must consider all available, reliable information about the person, past and present, favorable and unfavorable, in making a decision.

The protection of the national security is the paramount consideration. AG ¶ 2(b) requires that “[a]ny doubt concerning personnel being considered for access to [sensitive] information will be resolved in favor of national security.” In reaching this decision, I have drawn only those conclusions that are reasonable, logical and based on the evidence contained in the record. Likewise, I have avoided drawing inferences grounded on mere speculation or conjecture.

Under Directive ¶ E3.1.14, the Government must present evidence to establish controverted facts alleged in the SOR. Under Directive ¶ E3.1.15, the Applicant is responsible for presenting “witnesses and other evidence to rebut, explain, extenuate, or mitigate facts admitted by applicant or proven by Department Counsel. . . .” The Applicant has the ultimate burden of persuasion as to obtaining a favorable trustworthiness decision.

A person who seeks access to sensitive information enters into a fiduciary relationship with the Government predicated upon trust and confidence. This relationship transcends normal duty hours and endures throughout off-duty hours. The Government reposes a high degree of trust and confidence in individuals to whom it grants access to sensitive information. Decisions include, by necessity, consideration of the possible risk the Applicant may deliberately or inadvertently fail to protect or safeguard sensitive information. Such decisions entail a certain degree of legally permissible extrapolation as to potential, rather than actual, risk of compromise of sensitive information.

Section 7 of Executive Order (EO) 10865 provides that decisions shall be “in terms of the national interest and shall in no sense be a determination as to the loyalty of the applicant concerned.” See also EO 12968, Section 3.1(b) (listing multiple prerequisites for access to classified or sensitive information).

ANALYSIS

Guideline F, Financial Considerations

The trustworthiness concern relating to the guideline for Financial Considerations is set out in AG ¶ 18:

Failure or inability to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness and ability to protect classified information. An individual who is financially overextended is at risk of having to engage in illegal acts to generate funds.

The guideline at AG ¶ 19 contains nine disqualifying conditions that could raise trustworthiness concerns. From these nine conditions, two conditions are applicable to the facts found in this case:

(a) inability or unwillingness to satisfy debts; and (c) a history of not meeting financial obligations.

From December 2007 to the present, Applicant accumulated 23 delinquent debts, totaling $23,586, which remain unpaid or unresolved.

The guideline in AG ¶ 20 contains six conditions that could mitigate trustworthiness concerns arising from financial difficulties. They are:

(a) the behavior happened so long ago, was so infrequent, or occurred under such circumstances that it is unlikely to recur and does not cast doubt on the individual's current reliability, trustworthiness, or good judgment;

(b) the conditions that resulted in the financial problem were largely beyond the person's control (e.g., loss of employment, a business downturn, unexpected medical emergency, or a death, divorce or separation), and the individual acted responsibly under the circumstances;

(c) the person has received or is receiving counseling for the problem and/or there are clear indications that the problem is being resolved or is under control;

(d) the individual initiated a good-faith effort to repay overdue creditors or otherwise resolve debts;

(e) the individual has a reasonable basis to dispute the legitimacy of the past-due debt which is the cause of the problem and provides documented proof to substantiate the basis of the dispute or provides evidence of actions to resolve the issue; and

(f) the affluence resulted from a legal source of income.

No mitigating condition applies because Applicant has not provided any explanation of how he incurred these debts and why he has not paid them. He admitted all but three of the delinquent debts and other than stating that he thought those three debts were paid, he did not provide any information to support his statements. The debts remain current and cast doubt on Applicant’s current reliability, trustworthiness, and good judgment. His finances were not beyond his control. There is no counseling shown. Applicant has not paid his debts on a good-faith basis. There are no reasons to dispute his debts. There is no affluence at issue.

WHOLE PERSON CONCEPT

Under the whole-person concept, the administrative judge must evaluate an applicant's eligibility for a trustworthiness determination by considering the totality of the applicant's conduct and all relevant circumstances. The administrative judge should consider the nine adjudicative process factors listed at AG ¶ 2(a):

(1) the nature, extent, and seriousness of the conduct; (2) the circumstances surrounding the conduct, to include knowledgeable participation; (3) the frequency and recency of the conduct; (4) the individual's age and maturity at the time of the conduct; (5) the extent to which participation is voluntary; (6) the presence or absence of rehabilitation and other permanent behavioral changes; (7) the motivation for the conduct; (8) the potential for pressure, coercion, exploitation, or duress; and (9) the likelihood of continuation or recurrence.

Under AG ¶ 2(c), the ultimate determination of whether to grant eligibility for a trustworthiness determination must be an overall commonsense judgment based upon careful consideration of the guidelines and the whole-person concept.

I considered the potentially disqualifying and mitigating conditions in light of all facts and circumstances surrounding this case. Applicant was an adult when he incurred the debts. He has not taken any action to resolve his delinquent debts. This inaction leaves him vulnerable to pressure, coercion, exploitation, or duress based on the magnitude of his financial obligation. His lack of action continues to this day, and is obviously voluntary. His inaction will continue based on his past performance. Applicant displayed a lack of good judgment incurring the debts. Next, he exhibited a continued lack of appropriate judgment by failing to make payments on any of debts during the past seven years.

Overall, the record evidence leaves me with questions or substantial doubts as to Applicant's eligibility and suitability for a trustworthiness determination. For all these reasons, I conclude Applicant did not mitigate the trustworthiness concerns arising under the guideline for Financial Considerations. I conclude the whole-person concept against Applicant.

FORMAL FINDINGS

Formal findings for or against Applicant on the allegations set forth in the SOR, as required by ¶ E3.1.25 of Enclosure 3 of the Directive, are:

Paragraph 1, Guideline F: AGAINST APPLICANT

Subparagraphs 1.a to 1.w: Against Applicant

CONCLUSION

In light of all of the circumstances presented by the record in this case, it is not clearly consistent with the interests of national security to grant Applicant eligibility for a public trust position. Eligibility for access to sensitive information is denied.

_________________ PHILIP S. HOWE Administrative Judge

FOOTNOTES

1 Department Counsel submitted eight Items in support of the SOR allegations. Item 8 is inadmissible. It will not be considered or cited as evidence in this case. It is the summary of an unsworn interview of Applicant conducted by an interviewer from the Office of Personnel Management in March and April, 2013. Applicant did not adopt it as his own statement, or otherwise certify it to be accurate. Under Directive ¶ E3.1.20, this Report of Investigation summary is inadmissible in the absence of an authenticating witness. In light of Applicant’s admissions, it is also cumulative.