ISCR Case 09-01765.h1

Case Headnote

ISCR Case No. 09-01765.h1

deniedJun 10, 2010· Hon. Arthur E. Marshall, Jr.· hearing

Summary

A 49-year-old program manager for a defense contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from significant unresolved debts and the applicant's failure to disclose these delinquent debts and judgments on his security clearance application.

Specific financial issues included an August 2008 judgment for $763, settled for $812.26 in April 2010, and a June 2007 judgment for $12,615, which was settled for $11,500 by April 2010. Other debts included an October 2007 judgment for $563 that was paid, a mortgage past due by approximately $11,000 with an unclear status, and a 2006 judgment for $9,282.97 on a charged-off account. Additionally, a charged-off account for approximately $7,095 was settled in 2005, and a collection account for about $74 was paid. Other collection accounts and debts had insufficient evidence of resolution or were subject to settlement offers.

Ultimately, the judge found that the applicant failed to provide sufficient evidence of a comprehensive plan to resolve his financial issues and did not demonstrate a consistent history of managing his financial obligations. The omissions in his application further raised concerns about his personal conduct and reliability, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant failed to provide sufficient evidence of a comprehensive plan to resolve his financial issues.
The applicant's omissions in his security clearance application raised concerns about his personal conduct and reliability.
Despite some debts being settled, the applicant did not demonstrate a consistent history of managing his financial obligations.

Conditions Referenced

Disqualifying

F3raisedInability to Satisfy Debts
E2raisedDeliberate Omission of Information

Mitigating

F2rejectedThe Conditions That Led to the Financial Difficulties Were Temporary and Have Been ResolvedThe judge found that while some debts were settled, the overall financial management was still concerning.
F3rejectedThe Applicant Has Made Efforts to Resolve DebtsThe judge noted that efforts were insufficient to mitigate the concerns raised.

Key Rule Quoted

“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
— AG ¶ 2(b)

Procedural Posture

SOR issuedSep 4, 2009
Answer filedOct 9, 2009
Hearing heldFeb 22, 2010Postponed due to inclement weather.
Decision dateJun 10, 2010

Cite For

Denial Based on Unresolved Financial Obligations Under Guideline F
Impact of Omissions in Security Clearance Applications Under Guideline E
Insufficient Evidence of Financial Management Plans Leading to Security Clearance Denial.

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	Concerns were potentially raised when Applicant failed to identify his delinquent debts and judgments on his security clearance application.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Admitted	(a) deliberate omission, concealment, or falsification on a security form	—	—
2.b	Concerns were potentially raised when Applicant failed to identify his delinquent debts and judgments on his security clearance application.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Admitted	(a) deliberate omission, concealment, or falsification on a security form	—	—
2.c	Concerns were potentially raised when Applicant failed to identify his delinquent debts and judgments on his security clearance application.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Admitted	(a) deliberate omission, concealment, or falsification on a security form	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Concerns were potentially raised when Applicant failed to identify his delinquent debts and judgments on his security clearance application.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Admitted

(a) deliberate omission, concealment, or falsification on a security form

—

2.b

Concerns were potentially raised when Applicant failed to identify his delinquent debts and judgments on his security clearance application.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Admitted

(a) deliberate omission, concealment, or falsification on a security form

—

2.c

Concerns were potentially raised when Applicant failed to identify his delinquent debts and judgments on his security clearance application.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Admitted

(a) deliberate omission, concealment, or falsification on a security form

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	August 2008 Judgment for $763. Settled. Applicant settled the judgment balance of $1,015.32 for $812.26 on or about April 8, 2010. $763	For Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	June 2007 Judgment for $12,615. Settled. Applicant negotiated a settlement for this debt, now with a balance of $16,050.18, by which payment of $11,500 before April 30, 2010, would satisfy this debt. $12,615	For Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	October 2007 Judgment for $563. Paid. This judgment was filed in county court in October 2007. $563	For Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	Mortgage Past Due approximately $11,000. Status unclear. Applicant provided evidence that in August and September 2009, he was working with this creditor regarding a repayment plan. $11,000	Against Applicant	Mortgage or Home Loan Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	Debt for $73 and 1.i for $119. Insufficient evidence. Applicant provided evidence that his electronic payment for $80 was processed by this creditor on April 13, 2010. $73	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i–1.m	5 sub-charges — specific text not stated in this decision (1 against, 4 for the applicant).	Mixed			—	—	—
1.n	Charged-off Account for approximately $6,060. Insufficient evidence. A judgment in the amount of $9,282.97 was ultimately entered against Applicant in 2006 for this debt. $6,060	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.o	Charged-off Account for approximately $7,095. Settled. This account was settled for an undisclosed amount in 2005. $7,095	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.p–1.q	2 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant			—	—	—
1.r	Collection Account for approximately $74. Paid. Applicant showed evidence of a United States Postal Service money order in the amount of $74.50 payable to this creditor. $74	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.s	Collection Account for approximately $541. Insufficient evidence. Applicant provided evidence of a settlement offer to resolve this matter on payment of $162.95. $541	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.t	Collection Account for approximately $1,114. Settled. Applicant provided evidence of a February 2010 offer to settle this balance for a 70% savings by payment of $334.44 in the form of a business check mailed on April 10, 2010. $1,114	For Applicant	Unspecified Financial	Admitted	(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

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

August 2008 Judgment for $763. Settled. Applicant settled the judgment balance of $1,015.32 for $812.26 on or about April 8, 2010.

$763

For Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

June 2007 Judgment for $12,615. Settled. Applicant negotiated a settlement for this debt, now with a balance of $16,050.18, by which payment of $11,500 before April 30, 2010, would satisfy this debt.

$12,615

For Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

October 2007 Judgment for $563. Paid. This judgment was filed in county court in October 2007.

$563

For Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

Mortgage Past Due approximately $11,000. Status unclear. Applicant provided evidence that in August and September 2009, he was working with this creditor regarding a repayment plan.

$11,000

Against Applicant

Mortgage or Home Loan Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

Debt for $73 and 1.i for $119. Insufficient evidence. Applicant provided evidence that his electronic payment for $80 was processed by this creditor on April 13, 2010.

$73

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i–1.m

5 sub-charges — specific text not stated in this decision (1 against, 4 for the applicant).

Mixed

—

1.n

Charged-off Account for approximately $6,060. Insufficient evidence. A judgment in the amount of $9,282.97 was ultimately entered against Applicant in 2006 for this debt.

$6,060

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.o

Charged-off Account for approximately $7,095. Settled. This account was settled for an undisclosed amount in 2005.

$7,095

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.p–1.q

2 sub-charges — specific text not stated in this decision (for the applicant).

For Applicant

—

1.r

Collection Account for approximately $74. Paid. Applicant showed evidence of a United States Postal Service money order in the amount of $74.50 payable to this creditor.

$74

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.s

Collection Account for approximately $541. Insufficient evidence. Applicant provided evidence of a settlement offer to resolve this matter on payment of $162.95.

$541

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.t

Collection Account for approximately $1,114. Settled. Applicant provided evidence of a February 2010 offer to settle this balance for a 70% savings by payment of $334.44 in the form of a business check mailed on April 10, 2010.

$1,114

For Applicant

Unspecified Financial

Admitted

(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