ISCR Case 10-02236.h1

Case Headnote

ISCR Case No. 10-02236.h1

deniedJun 9, 2011· Hon. Wilford H. Ross· hearing

Summary

A 44-year-old defense contractor was denied a security clearance due to significant financial issues and personal conduct concerns, specifically under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant admitted to multiple past due debts totaling approximately $22,803, including several cellular phone debts, a repossessed automobile debt of $16,066, a utility debt, and a student loan debt of $2,637. While one credit card debt of $458 was successfully paid off, the applicant stated no plans to pay the majority of the remaining debts.

Further concerns arose from the applicant's history of criminal activity, including drug charges, and dishonesty in his security clearance application regarding this history. The judge found the applicant's financial situation to be uncontrolled and his lack of candor during the application process particularly troubling.

Ultimately, the denial was based on the applicant's admitted financial irresponsibility, the provision of false information on his security clearance application regarding his criminal history, and the overall concerns these issues raised about his reliability and trustworthiness.

Why the Applicant Was Denied

The applicant admitted to approximately $22,803 in past due debts, demonstrating financial irresponsibility.
The applicant provided false information on his security clearance application regarding his criminal history, indicating a lack of candor and trustworthiness.
The applicant's financial difficulties and personal conduct raised significant concerns about his reliability and ability to safeguard classified information.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
AG ¶ 16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
AG ¶ 16(b)raisedDeliberately Providing False or Misleading Information
AG ¶ 16(c)raisedCredible Adverse Information in Several Adjudicative Areas

Mitigating

AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's financial difficulties have persisted for several years with no improvement.
AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlWhile the applicant cited personal hardships, there was no evidence of improvement in his financial situation.
AG ¶ 20(c)rejectedClear Indications That the Problem Is Being Resolved or Is Under ControlThe applicant has not made a good-faith effort to pay off his creditors.
AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant has not demonstrated a consistent track record of making payments.
AG ¶ 17(c)rejectedOffense Is Minor or Unlikely to RecurThe applicant's past conduct and financial issues are ongoing and significant.
AG ¶ 17(d)rejectedAcknowledgment of Behavior and Positive Steps TakenThe applicant did not take sufficient steps to address his financial issues or dishonesty.

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 17, 2010
Answer filedSep 9, 2010
Hearing heldJan 19, 2011
Decision dateJun 9, 2011

Cite For

Financial Irresponsibility and Its Impact on Security Clearance Eligibility
Dishonesty in Security Clearance Applications
The Importance of Candor in the Security Clearance Process

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–2.m	13 sub-charges — specific text not stated in this decision (3 against, 10 for the applicant).	Mixed		—		—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a–2.m

13 sub-charges — specific text not stated in this decision (3 against, 10 for the applicant).

Mixed

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant admits that he is indebted to a creditor on a past due debt for a cellular phone in the amount of $263. He has not paid this debt and has no plans to do so. $263	Against Applicant	Utility or Phone Debt	Admitted	—	—	—
1.b	Applicant admits that he is indebted to a creditor on a past due debt for a cellular phone in the amount of $42. He has not paid this debt and has no plans to do so. $42	Against Applicant	Utility or Phone Debt	Admitted	—	—	—
1.c	Applicant admits that he is indebted to a creditor on a past due debt for a cellular phone in the amount of $738. He has not paid this debt and has no plans to do so. $738	Against Applicant	Utility or Phone Debt	Admitted	—	—	—
1.d	Applicant admits that he is indebted for a repossessed automobile in the amount of $16,066. This occurred because the Applicant changed jobs and could no longer afford the payments. He has not paid this debt and has no plans to do so. $16,066	Against Applicant	Auto Loan Debt	Admitted	—	—	—
1.e	Applicant admits that he is indebted to a utility company on a past due debt in the amount of $162. He has not paid this debt and has no plans to do so. $162	Against Applicant	Utility or Phone Debt	Admitted	—	—	—
1.f	Applicant admits that he owes a creditor $67 on a past due debt. He does not know for sure what the debt is for, but he admits that he owes the money. He has not paid this debt and has no plans to do so. $67	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.g	Applicant admits that he is indebted to a creditor for a delinquent debt in the amount of $33. Applicant has made no payments on this debt, and there is no evidence that he will do so. $33	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.h	Applicant admits that he is indebted to a creditor for a delinquent debt in the amount of $1,480. Applicant has made no payments on this debt, and there is no evidence that he will do so. $1,480	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.i	Applicant admits that he is indebted to a creditor on a past due debt for a cellular phone in the amount of $740. He has not paid this debt and has no plans to do so. $740	Against Applicant	Utility or Phone Debt	Admitted	—	—	—
1.j	Applicant admits that he was indebted to a creditor in the amount of $458 on a past due credit card account. Applicant stated that he had successfully paid off this debt. $458	For Applicant	Credit Card Debt	Admitted	—	—	—
1.k	Applicant admits that he is indebted to a creditor on a past due debt for a student loan in the amount of $2,637. He has not made any recent payments on this debt, and has no plans to do so. $2,637	Against Applicant	Student Loan Debt	Admitted	—	—	—
1.l	Applicant admits that he owes a creditor $193 on a past due debt. He does not know for sure what the debt is for, but he admits that he owes the money. He has not paid this debt and has no plans to do so. $193	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.m	Applicant admits that he owes a creditor $382 on a past due debt. He does not know for sure what the debt is for, but he admits that he owes the money. He has not paid this debt and has no plans to do so. $382	Against Applicant	Unspecified Financial	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant admits that he is indebted to a creditor on a past due debt for a cellular phone in the amount of $263. He has not paid this debt and has no plans to do so.

$263

Against Applicant

Utility or Phone Debt

Admitted

—

1.b

Applicant admits that he is indebted to a creditor on a past due debt for a cellular phone in the amount of $42. He has not paid this debt and has no plans to do so.

$42

Against Applicant

Utility or Phone Debt

Admitted

—

1.c

Applicant admits that he is indebted to a creditor on a past due debt for a cellular phone in the amount of $738. He has not paid this debt and has no plans to do so.

$738

Against Applicant

Utility or Phone Debt

Admitted

—

1.d

Applicant admits that he is indebted for a repossessed automobile in the amount of $16,066. This occurred because the Applicant changed jobs and could no longer afford the payments. He has not paid this debt and has no plans to do so.

$16,066

Against Applicant

Auto Loan Debt

Admitted

—

1.e

Applicant admits that he is indebted to a utility company on a past due debt in the amount of $162. He has not paid this debt and has no plans to do so.

$162

Against Applicant

Utility or Phone Debt

Admitted

—

1.f

Applicant admits that he owes a creditor $67 on a past due debt. He does not know for sure what the debt is for, but he admits that he owes the money. He has not paid this debt and has no plans to do so.

$67

Against Applicant

Unspecified Financial

Admitted

—

1.g

Applicant admits that he is indebted to a creditor for a delinquent debt in the amount of $33. Applicant has made no payments on this debt, and there is no evidence that he will do so.

$33

Against Applicant

Unspecified Financial

Admitted

—

1.h

Applicant admits that he is indebted to a creditor for a delinquent debt in the amount of $1,480. Applicant has made no payments on this debt, and there is no evidence that he will do so.

$1,480

Against Applicant

Unspecified Financial

Admitted

—

1.i

Applicant admits that he is indebted to a creditor on a past due debt for a cellular phone in the amount of $740. He has not paid this debt and has no plans to do so.

$740

Against Applicant

Utility or Phone Debt

Admitted

—

1.j

Applicant admits that he was indebted to a creditor in the amount of $458 on a past due credit card account. Applicant stated that he had successfully paid off this debt.

$458

For Applicant

Credit Card Debt

Admitted

—

1.k

Applicant admits that he is indebted to a creditor on a past due debt for a student loan in the amount of $2,637. He has not made any recent payments on this debt, and has no plans to do so.

$2,637

Against Applicant

Student Loan Debt

Admitted

—

1.l

Applicant admits that he owes a creditor $193 on a past due debt. He does not know for sure what the debt is for, but he admits that he owes the money. He has not paid this debt and has no plans to do so.

$193

Against Applicant

Unspecified Financial

Admitted

—

1.m

Applicant admits that he owes a creditor $382 on a past due debt. He does not know for sure what the debt is for, but he admits that he owes the money. He has not paid this debt and has no plans to do so.

$382

Against Applicant

Unspecified Financial

Admitted

—

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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