ISCR Case 09-07005.h1

Case Headnote

ISCR Case No. 09-07005.h1

grantedApr 15, 2011· Hon. Paul J. Mason· hearing

Summary

A 50-year-old senior engineer and veteran with 20 years of military service was granted a security clearance despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant faced allegations of falsifying information on his October 7, 2008 e-QIP by answering "no" to questions regarding delinquencies over 180 days and current delinquencies over 90 days.

His financial issues, totaling approximately $76,850 in delinquent debts, stemmed from his father-in-law's death and a significant reduction in his wife's income. These debts included a credit card from 2005 that became delinquent in 2007, another credit card delinquent in January 2008, a mobile home loan from 2002, a 60-day past due account with a discount hardware store, and a military credit card debt of $5,987 transferred for collection in August 2006.

The judge found that the applicant did not deliberately falsify information. The clearance was granted because the applicant settled three of his six delinquent debts, demonstrated plans to resolve the remaining accounts, and showed good faith efforts to manage his financial obligations, becoming more involved in family finances. His financial difficulties were largely attributed to circumstances beyond his control.

Why the Applicant Prevailed

The applicant settled three of six delinquent debts and has plans to resolve the remaining debts.
The applicant's financial difficulties were largely due to circumstances beyond his control, including a significant reduction in his wife's income.
The applicant demonstrated good faith efforts to manage his financial obligations and became more involved in family finances.

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)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good Judgment
AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control, and the Person Acted Responsibly Under the Circumstances
AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“The administrative judge's ultimate goal is to reach a fair and impartial decision that is based on common sense.”

Procedural Posture

SOR issuedFeb 23, 2010
Answer filedMar 29, 2010
Hearing heldJul 14, 2010
Decision dateApr 15, 2011

Cite For

Mitigation of Financial Issues Under Guideline F Due to Unforeseen Circumstances
Non-deliberate Omission of Financial Information on E-qip Under Guideline E
Good Faith Efforts to Resolve Delinquent Debts as a Mitigating Factor

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 falsified material facts in two locations of an e-QIP on October 7, 2008. Under ¶ 2.a, he answered “no” to Section 28a. (In the last 7 years, have you ever been over 180 days delinquent on any debt(s)?)	For Applicant	Falsification Security FormNOT DELIBERATE	Financial	Admitted	—	—	—
2.b	Under ¶ 2.b, he also answered “no” to Section 28b. (Are you currently over 90 days delinquent on any debt(s)?)	For Applicant	Falsification Security FormNOT DELIBERATE	Financial	Admitted	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant falsified material facts in two locations of an e-QIP on October 7, 2008. Under ¶ 2.a, he answered “no” to Section 28a. (In the last 7 years, have you ever been over 180 days delinquent on any debt(s)?)

For Applicant

Falsification Security FormNOT DELIBERATE

Financial

Admitted

—

2.b

Under ¶ 2.b, he also answered “no” to Section 28b. (Are you currently over 90 days delinquent on any debt(s)?)

For Applicant

Falsification Security FormNOT DELIBERATE

Financial

Admitted

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	In 2005, Applicant and his wife obtained a credit card that became delinquent in 2007. $3,803	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	The next account, is a credit card creditor, whose account became delinquent in January 2008. $1,152	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	In 2002, Applicant purchased a mobile home for approximately $60,000, with financing of $53,000 that was financed by the credit union lender. $33,440	For Applicant	Personal Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.d	Applicant purchased his home in 2005 for approximately $350,000. $32,291	For Applicant	Mortgage or Home Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	Applicant was 60 days past due on an account to a discount hardware store. $974	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.f	The SOR at ¶ 1.f alleges Applicant owes $5,987 for a military credit card transferred for collection in August 2006. $5,987	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

In 2005, Applicant and his wife obtained a credit card that became delinquent in 2007.

$3,803

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

Documented

Debt Paid in Full

1.b

The next account, is a credit card creditor, whose account became delinquent in January 2008.

$1,152

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

Documented

Debt Paid in Full

1.c

In 2002, Applicant purchased a mobile home for approximately $60,000, with financing of $53,000 that was financed by the credit union lender.

$33,440

For Applicant

Personal Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

Documented

Payment Plan with Creditor

1.d

Applicant purchased his home in 2005 for approximately $350,000.

$32,291

For Applicant

Mortgage or Home Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

Applicant was 60 days past due on an account to a discount hardware store.

$974

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

Documented

Debt Paid in Full

1.f

The SOR at ¶ 1.f alleges Applicant owes $5,987 for a military credit card transferred for collection in August 2006.

$5,987

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

Documented

Payment Plan with Creditor

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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

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES