ISCR Case 06-20189.h1

Case Headnote

ISCR Case No. 06-20189.h1

deniedJul 1, 2006· Hon. Erin C. Hogan· hearing

Summary

A 62-year-old resource analyst, with a history of significant health issues, was denied a security clearance based on Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from the applicant's failure to file federal income tax returns for multiple years and providing false information on his security clearance application regarding his financial delinquencies.

Specifically, the applicant answered "No" to questions about being over 90 or 180 days delinquent on any debts, despite having several collection accounts and a department store account that was 180 days delinquent, along with a credit account that was 120 days delinquent. He also admitted during an interview that he did not think he was delinquent on any debts when asked. Furthermore, the applicant did not file federal income tax returns for tax years 1999 through 2004 until late 2005 and early 2006, owing approximately $63,954 in taxes, including late fees and penalties, across those years.

The judge found that the applicant deliberately omitted significant financial delinquencies and failed to file tax returns for several years, demonstrating poor judgment. The applicant's explanation for his financial situation lacked credibility, raising concerns about his reliability and ultimately leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant deliberately omitted significant financial delinquencies from his security clearance application.
The applicant failed to file federal income tax returns for several years, demonstrating poor judgment.
The applicant's explanation for his financial situation lacked credibility, raising concerns about his reliability.

Conditions Referenced

Disqualifying

FC DC 19(a)appliedInability or Unwillingness to Satisfy Debts
FC DC 19(c)appliedA History of Not Meeting Financial Obligations
FC DC 19(f)appliedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
PC DC 16(a)appliedDeliberate Omission, Concealment, or Falsification of Relevant Facts
PC DC 16(b)appliedDeliberately Providing False or Misleading Information

Mitigating

FC MC 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile the applicant's health issues contributed to his financial difficulties, they did not excuse his failure to file taxes.
FC MC 20(d)appliedGood-faith Effort to Repay Overdue Creditors or Resolve DebtsThe applicant resolved his federal tax debt after being hired, indicating some effort to rectify his financial situation.

Key Rule Quoted

“"A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence."”

Procedural Posture

SOR issuedNov 6, 2006
Answer filedNov 29, 2006
Hearing heldDec 19, 2007
Decision dateJan 31, 2008

Cite For

Deliberate Omission of Financial Delinquencies Under Guideline E
Failure to File Federal Income Tax Returns as a Disqualifying Condition Under Guideline F
Credibility Issues Related to Financial Disclosures in Security Clearance Applications

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 answered "No" to question 38 which reads: "Your Financial Delinquencies – 180 Days. In the last 7 years, have you ever been over 180 days delinquent on any debt(s)?" He also answered "No" in response to question 39 which reads: "Your Financial Delinquencies – 90 Days. Are you currently over 90 days delinquent on any debt(s)?"	Against Applicant	Lack of Candor in InterviewFOUND DELIBERATE	Financial	Denied	—	—	—
2.b	During his April 2006, interview with the USIS investigator, Applicant admits he answered "No" when she asked him whether he was more than 90 days and 180 days delinquent on any debts. He did not think he was delinquent on any debts.	Against Applicant	Lack of Candor in InterviewFOUND DELIBERATE	Financial	Denied	—	—	—
2.c	He did not file his 1999 income tax return until April 22, 2006. He did not file his 2000, 2001, 2002, 2003 and 2004 income tax returns until December 14, 2005. For 1999, his adjusted gross income was $82,764 and his taxable income was $62,214. For 2000, his adjusted gross income was $84,626 and his taxable income was $63,722. For 2001, his adjusted gross income was $86,944 and his taxable income was $64,410. For 2002, his adjusted gross income was $97,337 and his taxable income was $69,171. For 2003, his adjusted gross income was $101,054 and his taxable income was $79,542. For 2004, his adjusted gross income was $107,178 and his taxable income was $86,514. He owed taxes for each year. The total amount of the tax debt, including late fees and penalties was approximately $63,954.	Against Applicant	Lack of Candor in InterviewFOUND DELIBERATE	Financial	Denied	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant answered "No" to question 38 which reads: "Your Financial Delinquencies – 180 Days. In the last 7 years, have you ever been over 180 days delinquent on any debt(s)?" He also answered "No" in response to question 39 which reads: "Your Financial Delinquencies – 90 Days. Are you currently over 90 days delinquent on any debt(s)?"

Against Applicant

Lack of Candor in InterviewFOUND DELIBERATE

Financial

Denied

—

2.b

During his April 2006, interview with the USIS investigator, Applicant admits he answered "No" when she asked him whether he was more than 90 days and 180 days delinquent on any debts. He did not think he was delinquent on any debts.

Against Applicant

Lack of Candor in InterviewFOUND DELIBERATE

Financial

Denied

—

2.c

He did not file his 1999 income tax return until April 22, 2006. He did not file his 2000, 2001, 2002, 2003 and 2004 income tax returns until December 14, 2005. For 1999, his adjusted gross income was $82,764 and his taxable income was $62,214. For 2000, his adjusted gross income was $84,626 and his taxable income was $63,722. For 2001, his adjusted gross income was $86,944 and his taxable income was $64,410. For 2002, his adjusted gross income was $97,337 and his taxable income was $69,171. For 2003, his adjusted gross income was $101,054 and his taxable income was $79,542. For 2004, his adjusted gross income was $107,178 and his taxable income was $86,514. He owed taxes for each year. The total amount of the tax debt, including late fees and penalties was approximately $63,954.

Against Applicant

Lack of Candor in InterviewFOUND DELIBERATE

Financial

Denied

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	a $276 medical bill turned over for collection $276	For Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	a $125 collection account $125	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	a $346 department store account that was 180 days delinquent $346	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	a $792 credit account that was 120 days delinquent $792	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	Applicant owed past due taxes for tax years 1999, 2000, 2001, 2002, 2003, and 2004 $63,954	Against Applicant	Tax Unpaid	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations (f) failure to file / fraudulent filing of tax returns or unpaid tax	—	—
1.f–1.j	5 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

a $276 medical bill turned over for collection

$276

For Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

a $125 collection account

$125

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

a $346 department store account that was 180 days delinquent

$346

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

a $792 credit account that was 120 days delinquent

$792

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

Applicant owed past due taxes for tax years 1999, 2000, 2001, 2002, 2003, and 2004

$63,954

Against Applicant

Tax Unpaid

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(f) failure to file / fraudulent filing of tax returns or unpaid tax

—

1.f–1.j

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

Against Applicant

—

Loading case…

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