ISCR Case 08-04677.h1

Case Headnote

ISCR Case No. 08-04677.h1

deniedJan 26, 2009· Hon. Paul J. Mason· hearing

Summary

A truck driver, married with two adult children, was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from the applicant's failure to disclose significant financial delinquencies and a vehicle repossession on an Electronic Questionnaires for Investigations Processing (e-QIP) form submitted on August 28, 2007.

Specifically, the applicant answered "No" to questions regarding property repossession and being over 90 or 180 days delinquent on debts, despite having an automobile repossessed and numerous outstanding debts. These undisclosed debts included amounts ranging from $14.00 to $25,034.00, with a total of 18 debts amounting to $39,966.00. While some debts were disputed or resolved, many remained outstanding.

The judge determined that the applicant's deliberate failure to disclose this information undermined her credibility. Furthermore, the applicant had not demonstrated sufficient efforts to resolve her financial issues, lacked financial counseling, and had not established a reliable debt management plan. Consequently, the security clearance was denied.

Why the Applicant Was Denied

The applicant falsified material facts on her security clearance application regarding financial delinquencies and repossession.
The applicant's financial issues were significant, with a total of 18 debts amounting to $39,966, and she had not demonstrated sufficient efforts to resolve them.
The applicant lacked financial counseling and had not established a reliable plan to manage her debts.

Conditions Referenced

Disqualifying

F.3raisedInability or Unwillingness to Satisfy Debts
E.2raisedFalsification of Material Facts

Mitigating

F.2rejectedThe Conditions That Resulted in the Financial Difficulties Were Largely Beyond the Applicant's ControlThe judge found that the applicant's financial issues were not adequately mitigated by her circumstances.
E.2rejectedThe Applicant's Conduct Was Not Deliberate or IntentionalThe judge determined that the applicant's omissions were not made with intent to deceive.

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 issuedAug 5, 2008
Answer filedAug 29, 2008
Hearing heldOct 29, 2008
Decision dateJan 26, 2009

Cite For

Falsification of Information on Security Clearance Applications Under Guideline E
Financial Irresponsibility and Its Impact on Security Clearance Eligibility Under Guideline F
The Importance of Demonstrating Credible Efforts to Resolve Financial Issues in Security Clearance Cases.

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	You falsified material facts on an Electronic Questionnaires for Investigations processing (e-QIP) executed by you on August 28, 2007, on which you were required to reply to the following question, Section 27: Your Financial record b. In the last 7 years, have you had your wages garnished or had any property repossessed for any reason? You answered “No” to that question; whereas in truth, you deliberately failed to disclose the repossession of your automobile as set forth in subparagraph 1.I, of the Statement of Reasons.	For Applicant	Falsification Security FormNOT DELIBERATE	—	Denied	—	—	—
2.b	You falsified material facts on an Electronic Questionnaires for Investigations Processing (e-Qip), executed by you on August 28, 2007, on which you were required to reply to the following questions, “Section 28: Your Financial Delinquencies a. In the last 7 years, have you been over 180 days delinquent on any debt(s)? [and] b. Are you currently over 90 days delinquent on any debt(s)?” You answered “No” to both of those questions; whereas in truth, you deliberately failed to disclose the debts set forth in subparagraphs 1.a, 1.b, 1.d, 1.f, 1.g, 1.I, 1.j, 1.k, 1.l, 1.m, 1.n, 1.p, 1.q, and 1.r of the SOR.	For Applicant	Falsification Security FormNOT DELIBERATE	—	Denied	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

You falsified material facts on an Electronic Questionnaires for Investigations processing (e-QIP) executed by you on August 28, 2007, on which you were required to reply to the following question, Section 27: Your Financial record b. In the last 7 years, have you had your wages garnished or had any property repossessed for any reason? You answered “No” to that question; whereas in truth, you deliberately failed to disclose the repossession of your automobile as set forth in subparagraph 1.I, of the Statement of Reasons.

For Applicant

Falsification Security FormNOT DELIBERATE

—

Denied

—

2.b

You falsified material facts on an Electronic Questionnaires for Investigations Processing (e-Qip), executed by you on August 28, 2007, on which you were required to reply to the following questions, “Section 28: Your Financial Delinquencies a. In the last 7 years, have you been over 180 days delinquent on any debt(s)? [and] b. Are you currently over 90 days delinquent on any debt(s)?” You answered “No” to both of those questions; whereas in truth, you deliberately failed to disclose the debts set forth in subparagraphs 1.a, 1.b, 1.d, 1.f, 1.g, 1.I, 1.j, 1.k, 1.l, 1.m, 1.n, 1.p, 1.q, and 1.r of the SOR.

For Applicant

Falsification Security FormNOT DELIBERATE

—

Denied

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	$14.00. The last activity reported by the credit agency on this debt was October 2005. $14	For Applicant	Unspecified Financial	Denied	—	—	—
1.b	$126.00. The last activity on this debt was May 2002. $126	For Applicant	Unspecified Financial	Admitted	—	—	—
1.c	$1,451.00. Applicant denies she owes the delinquent account. The last activity on the debt is November 2001. $1,451	Against Applicant	Unspecified Financial	Denied	—	—	—
1.d	$1,164.00. Applicant denies she owes the debt. The last activity on this account was in July 2002. $1,164	Against Applicant	Unspecified Financial	Denied	—	—	—
1.e	$147.00. GE 4 indicates that this debt and the one identified in 1.f. are the same. $147	For Applicant	Unspecified Financial	Admitted	—	—	—
1.f	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—
1.g	$1,168.00. Applicant denies she owes this account. $1,168	For Applicant	Unspecified Financial	Denied	—	—	—
1.h	$4,303.00. The last activity on the account is June 2001. $4,303	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.i	$25,034.00. The last activity on this account is January 2002. $25,034	Against Applicant	Unspecified Financial	Denied	—	—	—
1.j	$143.00. The last activity on this debt was May 2001. $143	For Applicant	Unspecified Financial	Admitted	—	—	—
1.k	$131.00. The last activity on this account was October 2005. $131	For Applicant	Unspecified Financial	Denied	—	—	—
1.l	$381.00. GE 4 reflects this is the same account as SOR 1.p. $381	For Applicant	Unspecified Financial	Denied	—	—	—
1.m	$1,389.00. The last activity on this account was September 2001. $1,389	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.n	$1,643.00. The last activity on this account was June 2002. $1,643	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.o	$47.00. Though GE 4 reflects the last activity on the account was September 2007, Applicant paid the account off in October 2005. $47	For Applicant	Unspecified Financial	Admitted	—	—	—
1.p	$278.00. See SOR 1.l. this account is resolved in Applicant’s favor. (low confidence) $278	For Applicant	Unspecified Financial	Unknown	—	—	—
1.q	$159.00. The last activity on the account was in November 2004. $159	Against Applicant	Unspecified Financial	Denied	—	—	—
1.r	$2,275.00. See SOR 1.n. This account is resolved against Applicant. (low confidence) $2,275	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.s	specific text not stated in this decision	Unknown	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

$14.00. The last activity reported by the credit agency on this debt was October 2005.

$14

For Applicant

Unspecified Financial

Denied

—

1.b

$126.00. The last activity on this debt was May 2002.

$126

For Applicant

Unspecified Financial

Admitted

—

1.c

$1,451.00. Applicant denies she owes the delinquent account. The last activity on the debt is November 2001.

$1,451

Against Applicant

Unspecified Financial

Denied

—

1.d

$1,164.00. Applicant denies she owes the debt. The last activity on this account was in July 2002.

$1,164

Against Applicant

Unspecified Financial

Denied

—

1.e

$147.00. GE 4 indicates that this debt and the one identified in 1.f. are the same.

$147

For Applicant

Unspecified Financial

Admitted

—

1.f

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

1.g

$1,168.00. Applicant denies she owes this account.

$1,168

For Applicant

Unspecified Financial

Denied

—

1.h

$4,303.00. The last activity on the account is June 2001.

$4,303

Against Applicant

Unspecified Financial

Admitted

—

1.i

$25,034.00. The last activity on this account is January 2002.

$25,034

Against Applicant

Unspecified Financial

Denied

—

1.j

$143.00. The last activity on this debt was May 2001.

$143

For Applicant

Unspecified Financial

Admitted

—

1.k

$131.00. The last activity on this account was October 2005.

$131

For Applicant

Unspecified Financial

Denied

—

1.l

$381.00. GE 4 reflects this is the same account as SOR 1.p.

$381

For Applicant

Unspecified Financial

Denied

—

1.m

$1,389.00. The last activity on this account was September 2001.

$1,389

Against Applicant

Unspecified Financial

Admitted

—

1.n

$1,643.00. The last activity on this account was June 2002.

$1,643

Against Applicant

Unspecified Financial

Admitted

—

1.o

$47.00. Though GE 4 reflects the last activity on the account was September 2007, Applicant paid the account off in October 2005.

$47

For Applicant

Unspecified Financial

Admitted

—

1.p

$278.00. See SOR 1.l. this account is resolved in Applicant’s favor. (low confidence)

$278

For Applicant

Unspecified Financial

Unknown

—

1.q

$159.00. The last activity on the account was in November 2004.

$159

Against Applicant

Unspecified Financial

Denied

—

1.r

$2,275.00. See SOR 1.n. This account is resolved against Applicant. (low confidence)

$2,275

Against Applicant

Unspecified Financial

Unknown

—

1.s

specific text not stated in this decision

Unknown

Unspecified Financial

Unknown

—

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

FORMAL FINDINGS

CONCLUSION

FOOTNOTES