ISCR Case 15-01165.h1

Case Headnote

ISCR Case No. 15-01165.h1

grantedAug 29, 2016· Hon. Matthew E. Malone· hearing

Summary

This case involves a 52-year-old Navy veteran who was granted a security clearance despite initial concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons cited multiple financial issues, including two dismissed Chapter 7 bankruptcy petitions in March and October 2011, and at least five past-due debts totaling $31,751. Additionally, the applicant faced allegations of intentionally falsifying his EQIP by omitting a history of arrests and convictions, which included misdemeanor battery in September 1992 and April 1996, felony burglary and criminal mischief charges in September 1992, and felony stalking and child neglect charges in March 1997 and January 2008.

The judge determined that the applicant had successfully mitigated these concerns. His financial difficulties were attributed to his ex-wife's fraudulent actions, and he has since resolved his debts and improved his financial standing. Regarding the omissions on his security clearance application, the judge concluded they were due to confusion rather than an intent to mislead, thereby negating the allegation of intentional falsification.

Ultimately, the judge found that the applicant's personal circumstances had significantly improved, demonstrating reliability and trustworthiness. Based on the resolution of his financial debts and the unintentional nature of his application omissions, the security clearance was GRANTED.

Why the Applicant Prevailed

The applicant resolved significant financial debts and demonstrated sound current finances.
The applicant's omissions in the security clearance application were found to be unintentional and not indicative of a lack of candor.
The applicant's personal circumstances have improved significantly, reflecting reliability and trustworthiness.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(a)appliedBehavior Happened Long Ago or Infrequently
AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
AG ¶ 20(c)appliedReceived Counseling or Indications of Resolution
AG ¶ 20(d)appliedGood-faith Effort to Repay or Resolve Debts

Key Rule Quoted

“A security clearance decision is intended only to resolve whether it is clearly consistent with the national interest for an applicant to either receive or continue to have access to classified information.”
— Department of the Navy v. Egan, 484 U.S. 518 (1988)

Procedural Posture

SOR issuedNov 2, 2015
Answer filed—
Hearing heldApr 26, 2016
Decision dateAug 29, 2016

Cite For

Mitigation of Financial Issues Due to Ex-spouse's Fraudulent Conduct
Unintentional Omissions in Security Clearance Applications
Whole-person Assessment in Security Clearance Decisions

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 intentionally falsified answers in his EQIP by omitting the criminal conduct specified in SOR 2.b - 2.f.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATE	Criminal Conduct	Denied	—	—	—
2.b	In September 1992, Applicant was convicted of misdemeanor battery – domestic violence.	For Applicant	Questionable Judgment General	—	Admitted	—	—	—
2.c	In September 1992, Applicant was arrested and charged with felony burglary and misdemeanor damaging property – criminal mischief.	For Applicant	Questionable Judgment General	—	Admitted	—	—	—
2.d	In April 1996, Applicant was convicted of misdemeanor battery - domestic violence.	For Applicant	Questionable Judgment General	—	Admitted	—	—	—
2.e	In March 1997, Applicant was charged with stalking – felony battery domestic, and child neglect no great bodily harm, a 3rd degree felony.	For Applicant	Questionable Judgment General	—	Admitted	—	—	—
2.f	In January 2008, Applicant was charged with aggravated stalking after an injunction, a 3rd degree felony.	For Applicant	Questionable Judgment General	—	Admitted	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant intentionally falsified answers in his EQIP by omitting the criminal conduct specified in SOR 2.b - 2.f.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATE

Criminal Conduct

Denied

—

2.b

In September 1992, Applicant was convicted of misdemeanor battery – domestic violence.

For Applicant

Questionable Judgment General

—

Admitted

—

2.c

In September 1992, Applicant was arrested and charged with felony burglary and misdemeanor damaging property – criminal mischief.

For Applicant

Questionable Judgment General

—

Admitted

—

2.d

In April 1996, Applicant was convicted of misdemeanor battery - domestic violence.

For Applicant

Questionable Judgment General

—

Admitted

—

2.e

In March 1997, Applicant was charged with stalking – felony battery domestic, and child neglect no great bodily harm, a 3rd degree felony.

For Applicant

Questionable Judgment General

—

Admitted

—

2.f

In January 2008, Applicant was charged with aggravated stalking after an injunction, a 3rd degree felony.

For Applicant

Questionable Judgment General

—

Admitted

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant filed Chapter 7 bankruptcy petitions in March 2011 and October 2011, both of which were dismissed.	For Applicant	Bankruptcy Filing	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Claimed Other
1.b	Applicant filed Chapter 7 bankruptcy petitions in March 2011 and October 2011, both of which were dismissed.	For Applicant	Bankruptcy Filing	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Claimed Other
1.c	Applicant owed at least $31,751 for five past-due or delinquent debts. $31,751	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Claimed Other
1.d	Applicant took out a loan to cover his legal fees, but did not timely repay the loan, again relying on an expected settlement from the mortgage lender.	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Claimed Other
1.e	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—
1.f	Applicant owed at least $31,751 for five past-due or delinquent debts.	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Claimed Other
1.g	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant filed Chapter 7 bankruptcy petitions in March 2011 and October 2011, both of which were dismissed.

For Applicant

Bankruptcy Filing

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

(d) good-faith effort to repay or otherwise resolve debts

Claimed

Other

1.b

Applicant filed Chapter 7 bankruptcy petitions in March 2011 and October 2011, both of which were dismissed.

For Applicant

Bankruptcy Filing

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

(d) good-faith effort to repay or otherwise resolve debts

Claimed

Other

1.c

Applicant owed at least $31,751 for five past-due or delinquent debts.

$31,751

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

(d) good-faith effort to repay or otherwise resolve debts

Claimed

Other

1.d

Applicant took out a loan to cover his legal fees, but did not timely repay the loan, again relying on an expected settlement from the mortgage lender.

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

(d) good-faith effort to repay or otherwise resolve debts

Claimed

Other

1.e

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

1.f

Applicant owed at least $31,751 for five past-due or delinquent debts.

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

(d) good-faith effort to repay or otherwise resolve debts

Claimed

Other

1.g

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

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Case Profile

Summary

Why the Applicant Prevailed

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

FORMAL FINDINGS

CONCLUSION

FOOTNOTES