ISCR Case 08-00660.h1

Case Headnote

ISCR Case No. 08-00660.h1

grantedDec 11, 2008· Hon. Martin H. Mogul· hearing

Summary

A 48-year-old unmarried mother of four was granted a security clearance despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The case involved a 1997 fraud charge related to public assistance, a 2004 child support liability, and multiple overdue debts. The government also alleged that the applicant failed to disclose several debts on her May 9, 2007, security clearance application.

The applicant demonstrated significant efforts to resolve her financial issues. She provided evidence that many of the cited overdue debts, ranging from $62 to $12,222, had been paid. For other debts, such as a $2,460 towing and storage fee and a $21,116 vehicle loan where her ex-boyfriend was responsible for payments, she was actively attempting to negotiate or pursue legal action. One $68 debt remained unpaid, but the judge found this was not due to the applicant's wrongful action.

The judge found the applicant's testimony credible, concluding that she did not knowingly provide false information on her security clearance application. Her current financial situation showed no overdue debts, and she had support from her fiancé. Based on her good-faith efforts to resolve debts and lack of intent to conceal information, the security clearance was granted.

Why the Applicant Prevailed

The applicant demonstrated a good-faith effort to resolve overdue debts, with many debts paid or in the process of resolution.
The applicant's testimony was credible, indicating no intent to conceal financial issues on her security clearance application.
The applicant's current financial situation showed no overdue debts, and she had support from her fiancé.

Conditions Referenced

Disqualifying

F.1.araisedFinancial Considerations: Inability to Satisfy Debts
F.1.craisedFinancial Considerations: History of Not Meeting Financial Obligations
E.2.araisedPersonal Conduct: Fraud to Obtain Public Assistance
E.2.braisedPersonal Conduct: Child Support Liability
E.2.craisedPersonal Conduct: Failure to Disclose Debts on SCA

Mitigating

F.1.dappliedFinancial Considerations: Good-faith Effort to Repay Debts
E.2.aappliedPersonal Conduct: Lack of Intent to Conceal Information
E.2.bappliedPersonal Conduct: Fulfillment of Legal Obligations

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedJul 3, 2008
Answer filedJul 11, 2008
Hearing heldOct 22, 2008in Las Vegas, Nevada
Decision dateDec 11, 2008

Cite For

Good-faith Efforts to Resolve Financial Issues Under Guideline F
Credibility of Applicant's Testimony Regarding Financial Disclosures
Mitigation of Personal Conduct Issues Due to Lack of Intent to Conceal Information

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	In 1997, Applicant was charged with fraud to obtain over $400, perjury, and grand theft over $400, for her failure to inform her social worker that she had become married.	For Applicant	Questionable Judgment GeneralNOT DELIBERATE	—	Denied	—	—	—
2.b	In 2004, Applicant was sued and found liable for unpaid child support.	For Applicant	Questionable Judgment General	—	Denied	—	—	—
2.c	Applicant executed a signed SCA on May 9, 2007. Question 28.a. asks, “In the last 7 years, have you been over 180 days delinquent on any debt(s)?” Question 28.b. asks, “Are you currently over 90 days delinquent on any debt(s)?” Applicant answered “No” to both of these questions, and she listed no debts. The Government alleges that Applicant should have included the debts listed as 1.a. through 1.n., discussed above in the SOR.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATE	Financial	Denied	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

In 1997, Applicant was charged with fraud to obtain over $400, perjury, and grand theft over $400, for her failure to inform her social worker that she had become married.

For Applicant

Questionable Judgment GeneralNOT DELIBERATE

—

Denied

—

2.b

In 2004, Applicant was sued and found liable for unpaid child support.

For Applicant

Questionable Judgment General

—

Denied

—

2.c

Applicant executed a signed SCA on May 9, 2007. Question 28.a. asks, “In the last 7 years, have you been over 180 days delinquent on any debt(s)?” Question 28.b. asks, “Are you currently over 90 days delinquent on any debt(s)?” Applicant answered “No” to both of these questions, and she listed no debts. The Government alleges that Applicant should have included the debts listed as 1.a. through 1.n., discussed above in the SOR.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATE

Financial

Denied

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	This overdue debt to Creditor 1 is cited in the SOR in the amount of $201. Applicant testified that this debt has been paid, and Exhibit E confirms that this debt has been paid. The most current credit report (cr) also confirms that this debt has been paid (Exhibit 8). $201	For Applicant	Unspecified Financial	Admitted	—	—	—
1.b	This overdue debt to Creditor 2 is cited in the SOR in the amount of $62. Applicant testified that this debt has been paid, and the most current cr also confirms that this debt has been paid (Exhibit 8). $62	For Applicant	Unspecified Financial	Admitted	—	—	—
1.c	This overdue debt to Creditor 3 is cited in the SOR in the amount of $770. Applicant testified that this debt has been paid, although she had no documentation to prove it. While it is not clear, it appears that Exhibit 8 also shows that this debt has been resolved. $770	For Applicant	Unspecified Financial	Admitted	—	—	—
1.d	This overdue debt to Creditor 4 is cited in the SOR in the amount of $68. Applicant testified that she has contacted the collection agency for this debt, but they did not have a record of her owing this debt. She indicated that she was planning to pay the debt, but has been unable to do so. I conclude that this debt has not been paid in full, but not as a result of Applicant’s wrongful action. $68	For Applicant	Unspecified Financial	Denied	—	—	—
1.e	This overdue debt to Creditor 5 is cited in the SOR in the amount of $233 for a medical bill. In her RSOR, Applicant stated that she had paid this bill, and she was waiting for a proof of payment to be sent to her. Exhibit 8 shows that a payment of $233 was made for a medical bill, so it appears that this debt has been resolved. $233	For Applicant	Medical Debt	Admitted	—	—	—
1.f	This overdue debt to Creditor 6 is cited in the SOR in the amount of $12,222 for a judgement for child support. In her RSOR and during her testimony, Applicant reiterated that this debt has been paid. Her attachment to the RSOR, and Exhibit 8 confirm that this debt has been paid. $12,222	For Applicant	Child Support Debt	Admitted	—	—	—
1.g	This overdue debt to Creditor 7 is cited in the SOR in the amount of $427. In her RSOR and during her testimony, Applicant reiterated that this debt has been paid. Her attachment to the RSOR, and Exhibit 8 confirm that this debt has been paid. $427	For Applicant	Unspecified Financial	Admitted	—	—	—
1.h	This overdue debt to Creditor 8 is cited in the SOR in the amount of $164. In her RSOR and during her testimony, Applicant reiterated that this debt has been paid. Her post hearing submission confirms that this debt has been paid (Exhibit L). $164	For Applicant	Unspecified Financial	Admitted	—	—	—
1.i	This overdue debt to Creditor 9 is cited in the SOR in the amount of $2,460. This debt arose, because a vehicle owned by Applicant was towed and stored. She did not remember that the vehicle had been towed, and the fee for the towing and storage continued to grow. Applicant estimated the value of this old vehicle at either $600 or $700. She has contacted this creditor, but thus far they refuse to negotiate a more reasonable amount for settlement, even though the creditor has retained the vehicle. She indicated that she will attempt to renegotiate the debt again so that she may resolve the debt. $2,460	Against Applicant	Auto Loan Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.j	This overdue debt to Creditor 10 is cited in the SOR in the amount of $491. In her RSOR and during her testimony, Applicant reiterated that this debt has been paid. However, no documentation was introduced to confirm that this debt has been paid. $491	For Applicant	Unspecified Financial	Admitted	—	—	—
1.k	This overdue debt to Creditor 11 is cited in the SOR in the amount of $713. In her RSOR and during her testimony, Applicant reiterated that this debt has been paid. Her attachment to the RSOR, and Exhibit B confirm that this debt has been paid. $713	For Applicant	Unspecified Financial	Admitted	—	—	—
1.l	This overdue debt to Creditor 12 is cited in the SOR in the amount of $21,116. In her RSOR and during the hearing, Applicant testified that this debt is for a vehicle that is in the possession of her ex-boyfriend. While they were together, she and this boyfriend had made an agreement that he would use the vehicle that had been purchased in her name, as long as he made the payments on the vehicle. After they separated, he stopped making the required monthly payments, but he refused to return the vehicle to her, and as far as she is aware, the vehicle is still in his possession. While she is still legally responsible for the payments of this debt, she has contacted both the creditor and the police to attempt to explain and resolve this debt. She testified that she was informed by the creditor that they would attempt to work out a payment plan with her ex-boyfriend, but apparently they did not do so. Applicant indicated in her RSOR that she intended to file a civil suit against her ex-boyfriend to recover the amount owed for this debt. $21,116	Against Applicant	Auto Loan Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.m	This overdue debt to Creditor 13 is cited in the SOR in the amount of $200. In her RSOR and during her testimony, Applicant reiterated that this debt has been paid. No documentation was introduced to confirm that this debt has been paid. However, since this debt is not included in the most current cr, it may have been resolved (Exhibit 8). $200	For Applicant	Unspecified Financial	Admitted	—	—	—
1.n	This overdue debt to Creditor 14 is cited in the SOR in the amount of $373. In her RSOR and during her testimony, Applicant reiterated that this debt has been paid. Exhibits I and 8 confirm that this debt has been paid. $373	For Applicant	Unspecified Financial	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

This overdue debt to Creditor 1 is cited in the SOR in the amount of $201. Applicant testified that this debt has been paid, and Exhibit E confirms that this debt has been paid. The most current credit report (cr) also confirms that this debt has been paid (Exhibit 8).

$201

For Applicant

Unspecified Financial

Admitted

—

1.b

This overdue debt to Creditor 2 is cited in the SOR in the amount of $62. Applicant testified that this debt has been paid, and the most current cr also confirms that this debt has been paid (Exhibit 8).

$62

For Applicant

Unspecified Financial

Admitted

—

1.c

This overdue debt to Creditor 3 is cited in the SOR in the amount of $770. Applicant testified that this debt has been paid, although she had no documentation to prove it. While it is not clear, it appears that Exhibit 8 also shows that this debt has been resolved.

$770

For Applicant

Unspecified Financial

Admitted

—

1.d

This overdue debt to Creditor 4 is cited in the SOR in the amount of $68. Applicant testified that she has contacted the collection agency for this debt, but they did not have a record of her owing this debt. She indicated that she was planning to pay the debt, but has been unable to do so. I conclude that this debt has not been paid in full, but not as a result of Applicant’s wrongful action.

$68

For Applicant

Unspecified Financial

Denied

—

1.e

This overdue debt to Creditor 5 is cited in the SOR in the amount of $233 for a medical bill. In her RSOR, Applicant stated that she had paid this bill, and she was waiting for a proof of payment to be sent to her. Exhibit 8 shows that a payment of $233 was made for a medical bill, so it appears that this debt has been resolved.

$233

For Applicant

Medical Debt

Admitted

—

1.f

This overdue debt to Creditor 6 is cited in the SOR in the amount of $12,222 for a judgement for child support. In her RSOR and during her testimony, Applicant reiterated that this debt has been paid. Her attachment to the RSOR, and Exhibit 8 confirm that this debt has been paid.

$12,222

For Applicant

Child Support Debt

Admitted

—

1.g

This overdue debt to Creditor 7 is cited in the SOR in the amount of $427. In her RSOR and during her testimony, Applicant reiterated that this debt has been paid. Her attachment to the RSOR, and Exhibit 8 confirm that this debt has been paid.

$427

For Applicant

Unspecified Financial

Admitted

—

1.h

This overdue debt to Creditor 8 is cited in the SOR in the amount of $164. In her RSOR and during her testimony, Applicant reiterated that this debt has been paid. Her post hearing submission confirms that this debt has been paid (Exhibit L).

$164

For Applicant

Unspecified Financial

Admitted

—

1.i

This overdue debt to Creditor 9 is cited in the SOR in the amount of $2,460. This debt arose, because a vehicle owned by Applicant was towed and stored. She did not remember that the vehicle had been towed, and the fee for the towing and storage continued to grow. Applicant estimated the value of this old vehicle at either $600 or $700. She has contacted this creditor, but thus far they refuse to negotiate a more reasonable amount for settlement, even though the creditor has retained the vehicle. She indicated that she will attempt to renegotiate the debt again so that she may resolve the debt.

$2,460

Against Applicant

Auto Loan Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.j

This overdue debt to Creditor 10 is cited in the SOR in the amount of $491. In her RSOR and during her testimony, Applicant reiterated that this debt has been paid. However, no documentation was introduced to confirm that this debt has been paid.

$491

For Applicant

Unspecified Financial

Admitted

—

1.k

This overdue debt to Creditor 11 is cited in the SOR in the amount of $713. In her RSOR and during her testimony, Applicant reiterated that this debt has been paid. Her attachment to the RSOR, and Exhibit B confirm that this debt has been paid.

$713

For Applicant

Unspecified Financial

Admitted

—

1.l

This overdue debt to Creditor 12 is cited in the SOR in the amount of $21,116. In her RSOR and during the hearing, Applicant testified that this debt is for a vehicle that is in the possession of her ex-boyfriend. While they were together, she and this boyfriend had made an agreement that he would use the vehicle that had been purchased in her name, as long as he made the payments on the vehicle. After they separated, he stopped making the required monthly payments, but he refused to return the vehicle to her, and as far as she is aware, the vehicle is still in his possession. While she is still legally responsible for the payments of this debt, she has contacted both the creditor and the police to attempt to explain and resolve this debt. She testified that she was informed by the creditor that they would attempt to work out a payment plan with her ex-boyfriend, but apparently they did not do so. Applicant indicated in her RSOR that she intended to file a civil suit against her ex-boyfriend to recover the amount owed for this debt.

$21,116

Against Applicant

Auto Loan Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.m

This overdue debt to Creditor 13 is cited in the SOR in the amount of $200. In her RSOR and during her testimony, Applicant reiterated that this debt has been paid. No documentation was introduced to confirm that this debt has been paid. However, since this debt is not included in the most current cr, it may have been resolved (Exhibit 8).

$200

For Applicant

Unspecified Financial

Admitted

—

1.n

This overdue debt to Creditor 14 is cited in the SOR in the amount of $373. In her RSOR and during her testimony, Applicant reiterated that this debt has been paid. Exhibits I and 8 confirm that this debt has been paid.

$373

For Applicant

Unspecified Financial

Admitted

—

Loading case…

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

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION