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ISCR Case 15-00185.h1 — CASE

ISCR Case 15-00185.h1denied

Case Headnote

ISCR Case No. 15-00185.h1

deniedNov 2, 2016· Hon. Shari Dam· hearing

Summary

A 60-year-old applicant was denied a security clearance under Guideline F, Financial Considerations, due to a history of unresolved financial difficulties. The Statement of Reasons cited the applicant's failure to provide evidence of resolving any of 14 delinquent debts, which totaled $36,047 and included unpaid state and federal taxes.

Disqualifying conditions under Guideline F were raised, specifically concerning an inability or unwillingness to satisfy debts and a history of not meeting financial obligations. The applicant did not demonstrate that these financial problems were under control or had been mitigated.

Ultimately, the denial was based on the lack of evidence that any of the 14 delinquent debts had been resolved. Furthermore, there was no indication of the applicant seeking financial counseling or demonstrating responsible conduct to address the outstanding financial obligations.

Why the Applicant Was Denied

The applicant did not provide evidence of resolving any of the 14 alleged delinquent debts.
There was no evidence of financial counseling or responsible conduct regarding the debts.
The applicant's financial problems were not shown to be under control or mitigated.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)raisedA 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.”
— AG ¶ 18

Procedural Posture

SOR issuedNov 27, 2015
Answer filedDec 23, 2015
Hearing held—Decided on the written record without a hearing.
Decision dateNov 2, 2016

Cite For

Denial of Security Clearance Due to Unresolved Financial Obligations
Failure to Mitigate Financial Concerns Under Guideline F
Lack of Evidence for Rehabilitation or Responsible Financial Conduct

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 multiple delinquent debts totaling $36,047, including unpaid state and federal taxes, which raised significant security concerns under Guideline F. The applicant failed to provide evidence of resolution for any of the debts, leading to a denial of eligibility for a security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant failed to provide evidence of the resolution of any of the 14 alleged delinquent debts, including unpaid state and Federal taxes. $36,047	Against Applicant	Tax Unpaid	Unknown	(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: ) ) ) ISCR Case No. 15-00185 ) ) Applicant for Security Clearance

For Government: David F. Hayes, Esq., Department Counsel For Applicant: Pro se

11/02/2016 ______________

STATEMENT OF CASE

______________

DAM, Shari, Administrative Judge:

Applicant failed to provide evidence of the resolution of any of the 14 alleged delinquent debts, including unpaid state and Federal taxes. Resulting security concerns were not mitigated. Based upon a review of the pleadings and exhibits, eligibility for access to classified information is denied.

On June 14, 2012, Applicant submitted a security clearance application (SCA). On November 27, 2015, the Department of Defense (DOD) issued Applicant a Statement of Reasons (SOR), detailing security concerns under Guideline F, Financial Considerations. The action was taken under Executive Order 10865, Safeguarding Classified Information within Industry (February 20, 1960), as amended; DOD Directive 5220.6, Defense Industrial Personnel Security Clearance Review Program (January 2, 1992), as amended (Directive); and the Adjudicative Guidelines for Determining Eligibility for Access to Classified Information (AG), effective within the DOD after September 1, 2006. Applicant answered the SOR on December 23, 2015 (Answer), and requested that his case be decided by an administrative judge on the written record without a hearing. (Item 1.) On January 30, 2016, Department Counsel submitted the Government’s written case. A complete copy of the File of Relevant Material (FORM), containing six Items, was mailed to Applicant on February 3, 2016, and received by him on February 9, 2016. The FORM notified Applicant that he had an opportunity to file objections and submit material in refutation, extenuation, or mitigation within 30 days of receipt of the FORM. He did not submit any additional information or objections to the Government’s Items; hence, Items 1 through 6 are admitted into evidence. DOHA assigned the case to me on August 22, 2016.

FINDINGS OF FACT

Applicant is 60 years old and divorced from his wife since 2010. He has three children. He has worked for his current employer since November 2011. He also has a cleaning business. (Item 2.) He was unemployed for a year after his divorce. He stated he earns $965 a month, from which he pays $250 in child support. He said he is “doing the best that [he] can.” (Answer.)

Based on credit bureau reports (CBRs) from June 2012, December 2014, and February 2015, the SOR alleged 14 debts, including unpaid state taxes for 2010 and unpaid Federal taxes for 2011. The allegations totaled $36,047 of debt that became delinquent between 2006 and 2012. (Items 4, 5, and 6.) Applicant provided no evidence that he has addressed any of the allegations, including the taxes.

POLICIES

When evaluating an applicant’s suitability for a security clearance, the administrative judge must consider the adjudicative guidelines. In addition to brief introductory explanations for each guideline, the adjudicative guidelines (AG) list potentially disqualifying conditions and mitigating conditions, which are to be used in evaluating an applicant’s eligibility for access to classified information.

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 AG ¶ 2 describing 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 applicable guidelines in the context 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 classified information will be resolved in favor of the 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.

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

A person applying for access to classified information seeks to enter 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 classified information. Decisions include, by necessity, consideration of the possible risk the applicant may deliberately or inadvertently fail to protect or safeguard classified information. Such decisions entail a certain degree of legally permissible extrapolation as to potential, rather than actual, risk of compromise of classified information.

ANALYSIS

Guideline F, Financial Considerations

The security concerns relating to the guideline for financial considerations are set out in AG ¶ 18, which reads in pertinent part:

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.

This concern is broader than the possibility that an individual might knowingly compromise classified information in order to raise money. It encompasses concerns about an individual’s self-control, judgment, and other qualities essential to protecting classified information. An individual who is financially irresponsible may also be irresponsible, unconcerned, or negligent in handling and safeguarding classified information.1 AG ¶ 19 describes two conditions that could raise security concerns and may be disqualifying in this case:

(a) inability or unwillingness to satisfy debts; and

Applicant has a history of delinquent debt. From 2006 to 2012, he accumulated 14 delinquent accounts, including unpaid taxes, totaling $36,047. This pattern of delinquent debt and inability or unwillingness to pay lawful debts raise security concerns under the above disqualifying conditions, and shift the burden to Applicant to rebut, extenuate, or mitigate those concerns.

The guideline includes five conditions in AG ¶ 20 that could mitigate security concerns arising from Applicant’s financial difficulties:

(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; and

(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.

Applicant failed to produce sufficient evidence that he addressed any of the delinquent accounts alleged. He offered no evidence from which to establish a track record of debt resolution. He provided minimal evidence that the delinquencies were caused by conditions beyond his control, viz., his divorce, or that he acted responsibly under those circumstances. He presented no evidence of financial counseling. There are no clear indications that his financial problems are being resolved in good faith, or are under control. He did not present documentation that he formally disputed any of the SOR-listed debts or that they have been resolved in his favor. Accordingly, the record is insufficient to establish mitigation under any of the above conditions.

WHOLE PERSON CONCEPT

Under the whole-person concept, the administrative judge must evaluate an applicant’s eligibility for a security clearance 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.

According to AG ¶ 2(c), the ultimate determination of whether to grant eligibility for a security clearance 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 pertinent facts and circumstances surrounding this case. Applicant is a mature adult, who is responsible for his choices and conduct that underlie the security concerns expressed in the SOR. The SOR-listed delinquent debts arose between 2006 and 2012, and remain unresolved, despite employment by a government contractor since 2011. He provided no evidence of rehabilitation, stable financial judgment, or responsible conduct. The potential for pressure, coercion, and duress from his financial situation remains undiminished. Overall, the record evidence leaves me with doubt as to Applicant’s judgment, reliability, and present eligibility and suitability for a security clearance. He did not meet his burden to mitigate the security concerns arising from financial considerations.

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 through 1.n: Against Applicant

CONCLUSION

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

SHARI DAM Administrative Judge

FOOTNOTES

1 See ISCR Case No. 11-05365 at 3 (App.Bd. May 1, 2012).