ISCR Case 15-06927.h1

Case Headnote

ISCR Case No. 15-06927.h1

deniedOct 25, 2017· Hon. Wilford H. Ross· hearing

Summary

A 47-year-old defense contractor and Navy veteran was denied a security clearance under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from approximately $10,000 in unresolved debts and a false response on his e-QIP form regarding delinquent accounts.

On December 17, 2014, the applicant falsely answered "No" to questions on his e-QIP about bills or debts turned over to collection agencies, suspended or charged-off accounts, or debts 120 days delinquent. This response was inaccurate, as he had multiple delinquent debts in collection. During a May 5, 2015 interview with a DoD investigator, the applicant confirmed these "No" responses. While the judge found insufficient evidence to prove intentional falsification, the applicant's financial conduct raised significant concerns about his reliability and trustworthiness.

The applicant had numerous unresolved debts, including amounts of $478, $479, $347, $1,491, $146, $409, $2,788, $1,026, $615, $341, $88, $46, and $1,819. These debts, many of which showed no payment activity for several years, remained unresolved. The applicant failed to provide evidence of financial stability or rehabilitation following a period of unemployment, nor did he submit any financial information or character references to mitigate the concerns.

Why the Applicant Was Denied

The applicant had multiple unresolved debts totaling approximately $10,000, indicating financial irresponsibility.
The applicant failed to provide evidence of financial stability or rehabilitation after a period of unemployment.
The applicant did not submit any financial information or character references to mitigate concerns.

Conditions Referenced

Disqualifying

F.1.araisedInability to Satisfy Debts
F.1.braisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
F.1.craisedA History of Not Meeting Financial Obligations

Key Rule Quoted

“Failure 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 or sensitive information.”
— AG ¶ 18

Procedural Posture

SOR issuedJun 8, 2016
Answer filedJun 29, 2016Applicant requested decision on written record.
Hearing held—No hearing requested.
Decision dateOct 25, 2017

Cite For

Financial Irresponsibility as a Disqualifying Factor Under Guideline F
Insufficient Evidence to Prove Intentional Falsification Under Guideline E
Importance of Providing Evidence to Mitigate Financial 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	Applicant filled out his e-QIP on December 17, 2014. (Item 3.) Section 26 of the e-QIP concerns Applicant’s financial record. One of the subsections under that section is entitled, “Delinquency Involving Routine Accounts.” Applicant was asked whether, in the seven years preceding that date, he had bills or debts turned over to a collection agency; had any account or credit card suspended, charged off or cancelled; and whether he had been 120 days delinquent on a debt, or whether he was currently 120 days delinquent on a debt. Applicant responded, “No,” to this question. This was a false response. Applicant had delinquent debts that were in collection, as set forth under Paragraph 1, above, which fit the question.	For Applicant	Falsification Security Form	Financial	Denied	—	—	—
2.b	Applicant was interviewed by a DoD authorized investigator on May 5, 2015. During this interview, it is alleged Applicant falsified material facts by confirming his, “No,” responses as set forth under allegation 2.a, above. The investigator prepared a ROI, which was the investigator’s interpretation of what the Applicant said during the interview. As stated under footnote 1, above, Applicant did not certify the accuracy or truth of the ROI.	For Applicant	Lack of Candor in Interview	—	Denied	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant filled out his e-QIP on December 17, 2014. (Item 3.) Section 26 of the e-QIP concerns Applicant’s financial record. One of the subsections under that section is entitled, “Delinquency Involving Routine Accounts.” Applicant was asked whether, in the seven years preceding that date, he had bills or debts turned over to a collection agency; had any account or credit card suspended, charged off or cancelled; and whether he had been 120 days delinquent on a debt, or whether he was currently 120 days delinquent on a debt. Applicant responded, “No,” to this question. This was a false response. Applicant had delinquent debts that were in collection, as set forth under Paragraph 1, above, which fit the question.

For Applicant

Falsification Security Form

Financial

Denied

—

2.b

Applicant was interviewed by a DoD authorized investigator on May 5, 2015. During this interview, it is alleged Applicant falsified material facts by confirming his, “No,” responses as set forth under allegation 2.a, above. The investigator prepared a ROI, which was the investigator’s interpretation of what the Applicant said during the interview. As stated under footnote 1, above, Applicant did not certify the accuracy or truth of the ROI.

For Applicant

Lack of Candor in Interview

—

Denied

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant denied owing a creditor $478 for a charged-off account. Items 5 and 6 both show this account as delinquent, indicating no payment was made after July 2011. No further information was provided. This debt is not resolved. $478	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	Applicant denied owing a creditor $479 for a past-due account. Items 5 and 6 both show this account as delinquent, indicating no payment was made after July 2012. No further information was provided. This debt is not resolved. $479	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	Applicant denied owing a cable provider $347 for a past-due account. Item 5 shows this account as delinquent, indicating the last activity on the account was in July 2012. No further information was provided. This debt is not resolved. $347	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	Applicant denied having a charged-off account with a creditor. Items 5 and 6 both show this account, but do not indicate any past-due or charged-off amount. No further information was provided. Based on the available information, I find that the Government has not proved this allegation. It is found for Applicant.	For Applicant	Unspecified Financial	Denied	—	—	—
1.e	Applicant denied owing a creditor $1,491 for a past-due account. Item 5 shows this account as delinquent, indicating the last activity on the account was in February 2009. No further information was provided. This debt is not resolved. $1,491	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	Applicant denied owing a medical creditor $146 for a past-due account. Items 5 and 6 both show this account as delinquent since October 2012. No further information was provided. This debt is not resolved. $146	Against Applicant	Medical Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	Applicant denied owing a creditor $409 for a past-due account. Items 5 and 6 both show this account as delinquent since May 2012. No further information was provided. This debt is not resolved. $409	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	Applicant denied owing a creditor $2,788 for a past-due account. Item 5 shows this account as delinquent, indicating the last activity on the account was in November 2008. No further information was provided. This debt is not resolved. $2,788	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	Applicant denied owing a creditor $1,026 for a past-due account. Items 5 and 6 both show this account as delinquent, indicating the first delinquency was in September 2011. No further information was provided. This debt is not resolved. $1,026	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.j	Applicant denied owing a creditor $615 for a charged-off account. Items 5 and 6 both show this account as delinquent, indicating no payment was made after June 2014. No further information was provided. This debt is not resolved. $615	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.k	Applicant denied owing a creditor $341 for a past-due account. Items 5 and 6 both show this account as delinquent. No further information was provided. This debt is not resolved. $341	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.l	Applicant denied having a charged-off account with a creditor. Item 6 shows this account as charged off in the amount of $88, and that the debt was 'Transfer/Sold.' No further information was provided. I find that a debt existed with this creditor, and that it is not resolved. $88	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.m	Applicant denied owing a creditor $46 for a past-due account. Item 5 shows this account as delinquent, indicating that the last activity was in December 2009. No further information was provided. This debt is not resolved. $46	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.n	Applicant denied owing a creditor $1,819 for a past-due account. Item 5 shows this account as delinquent. No further information was provided. This debt is not resolved. $1,819	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant denied owing a creditor $478 for a charged-off account. Items 5 and 6 both show this account as delinquent, indicating no payment was made after July 2011. No further information was provided. This debt is not resolved.

$478

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

Applicant denied owing a creditor $479 for a past-due account. Items 5 and 6 both show this account as delinquent, indicating no payment was made after July 2012. No further information was provided. This debt is not resolved.

$479

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

Applicant denied owing a cable provider $347 for a past-due account. Item 5 shows this account as delinquent, indicating the last activity on the account was in July 2012. No further information was provided. This debt is not resolved.

$347

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

Applicant denied having a charged-off account with a creditor. Items 5 and 6 both show this account, but do not indicate any past-due or charged-off amount. No further information was provided. Based on the available information, I find that the Government has not proved this allegation. It is found for Applicant.

For Applicant

Unspecified Financial

Denied

—

1.e

Applicant denied owing a creditor $1,491 for a past-due account. Item 5 shows this account as delinquent, indicating the last activity on the account was in February 2009. No further information was provided. This debt is not resolved.

$1,491

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

Applicant denied owing a medical creditor $146 for a past-due account. Items 5 and 6 both show this account as delinquent since October 2012. No further information was provided. This debt is not resolved.

$146

Against Applicant

Medical Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

Applicant denied owing a creditor $409 for a past-due account. Items 5 and 6 both show this account as delinquent since May 2012. No further information was provided. This debt is not resolved.

$409

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

Applicant denied owing a creditor $2,788 for a past-due account. Item 5 shows this account as delinquent, indicating the last activity on the account was in November 2008. No further information was provided. This debt is not resolved.

$2,788

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i

Applicant denied owing a creditor $1,026 for a past-due account. Items 5 and 6 both show this account as delinquent, indicating the first delinquency was in September 2011. No further information was provided. This debt is not resolved.

$1,026

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.j

Applicant denied owing a creditor $615 for a charged-off account. Items 5 and 6 both show this account as delinquent, indicating no payment was made after June 2014. No further information was provided. This debt is not resolved.

$615

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.k

Applicant denied owing a creditor $341 for a past-due account. Items 5 and 6 both show this account as delinquent. No further information was provided. This debt is not resolved.

$341

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.l

Applicant denied having a charged-off account with a creditor. Item 6 shows this account as charged off in the amount of $88, and that the debt was 'Transfer/Sold.' No further information was provided. I find that a debt existed with this creditor, and that it is not resolved.

$88

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.m

Applicant denied owing a creditor $46 for a past-due account. Item 5 shows this account as delinquent, indicating that the last activity was in December 2009. No further information was provided. This debt is not resolved.

$46

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.n

Applicant denied owing a creditor $1,819 for a past-due account. Item 5 shows this account as delinquent. No further information was provided. This debt is not resolved.

$1,819

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

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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

FOOTNOTES