ISCR Case 10-07104.h1

Case Headnote

ISCR Case No. 10-07104.h1

deniedJul 1, 2010· Hon. Paul J. Mason· hearing

Summary

A 31-year-old single mother, employed as a management analyst, was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant was alleged to have falsified three sections of her e-QIP (Sections 26(e), 26(g), and 26(h)). Additionally, she received four notices from the state department of unemployment compensation regarding overpayment of wages and benefits totaling $6,840 between July and December 2008.

Regarding financial considerations, the applicant had several outstanding debts. A judgment for $5,856 was issued against her in April 2008, which she settled for $2,500 in August 2012. A credit card account charged off at $2,128 in July 2007 was settled for $1,012 in March 2012. Another credit card account, purchased by a collection agency for $2,257 in January 2007, was satisfied with a $315 payment in January 2012. Two other accounts, purchased by collection agencies for $1,550 and $1,360 in February 2007, were settled in February 2012. The applicant disputed responsibility for a telecommunications account and denied receiving unemployment benefits during the specified period, claiming she was working for a defense contractor.

Despite settling several debts, the applicant's security clearance was denied. The decision cited her contradictory explanations for falsifying her security form and her refusal to admit to these falsifications, which raised significant unmitigated trustworthiness concerns.

Why the Applicant Was Denied

The applicant provided contradictory explanations for falsifying her security form, undermining her credibility.
The applicant's refusal to admit to the falsifications raised significant trustworthiness concerns that were not mitigated.

Conditions Referenced

Disqualifying

AG ¶ 16(a)appliedDeliberate Omission, Concealment, or Falsification of Relevant Facts
AG ¶ 16(d)appliedCredible Adverse Information Not Explicitly Covered Under Any Other Guideline

Mitigating

AG ¶ 20(b)appliedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
AG ¶ 20(d)appliedIndividual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“Conduct involving questionable judgment, lack of candor, dishonesty, or unwillingness to comply with rules and regulations can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”

Procedural Posture

SOR issuedMar 7, 2012
Answer filedApr 17, 2012Notarized
Hearing heldOct 1, 2012
Decision dateOct 16, 2012

Cite For

Contradictory Explanations for Falsifying Security Forms Under Guideline E
Settlement of Debts Under Guideline F
Trustworthiness Concerns Due to Lack of Candor

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	Falsified Section 26(e) of her e-QIP.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Denied	(a) deliberate omission, concealment, or falsification on a security form	—	—
2.b	Falsified Section 26(g) of her e-QIP.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Denied	(a) deliberate omission, concealment, or falsification on a security form	—	—
2.c	Falsified Section 26(h) of her e-QIP.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Denied	(a) deliberate omission, concealment, or falsification on a security form	—	—
2.d	Received four notices from the state department of unemployment compensation regarding overpayment of wages and benefits totaling $6,840 between July 20, 2008 and December 27, 2008.	For Applicant	Questionable Judgment General	—	Denied	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Falsified Section 26(e) of her e-QIP.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Denied

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

—

2.b

Falsified Section 26(g) of her e-QIP.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Denied

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

—

2.c

Falsified Section 26(h) of her e-QIP.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Denied

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

—

2.d

Received four notices from the state department of unemployment compensation regarding overpayment of wages and benefits totaling $6,840 between July 20, 2008 and December 27, 2008.

For Applicant

Questionable Judgment General

—

Denied

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	The creditor (installment account) received a judgment against Applicant in April 2008 for $5,856. On January 23, 2012, Applicant indicated the balance owed was $4,500. On August 29, 2012, Applicant settled the judgment for $2,500 by cashier’s check. $2,500	For Applicant	Judgment Against Applicant	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	In July 2007, the credit card account was charged off as a bad debt in the amount of $2,128. The account was settled on March 23, 2012 for $1,012. $1,012	For Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	In January 2007, this credit card account ($2,257) was purchased by a collection agency. Applicant was notified on January 24, 2012, that her payment of $315 satisfied the account in full. $315	For Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.d	In February 2007, this account ($1,550) was purchased by a collection agency. On February 29, 2012, Applicant was notified that after receiving her final payment, the account was settled.	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.e	This account is a duplicate of SOR ¶ 1.a.	For Applicant	Unspecified Financial	Unknown	—	—	—
1.f	In February 2007, this account ($1,360) was purchased by a collection agency. On February 10, 2012, Applicant was notified the account was settled on February 7, 2012.	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.g	(telecommunications account) Applicant submitted a credit report dated September 28, 2012, to support her claim that since the credit report did not list the telecommunications account, the account was not her responsibility. She also claimed that she had formally disputed the account and had it removed.	For Applicant	Unspecified Financial	Denied	—	—	—
1.h	(overpaid unemployment benefits) On April 8, 2012, in an interview with an OPM investigator, Applicant denied receiving unemployment benefits between July 2008 and December 2008 because she was working for a defense contractor.	For Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The creditor (installment account) received a judgment against Applicant in April 2008 for $5,856. On January 23, 2012, Applicant indicated the balance owed was $4,500. On August 29, 2012, Applicant settled the judgment for $2,500 by cashier’s check.

$2,500

For Applicant

Judgment Against Applicant

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

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

Documented

Debt Paid in Full

1.b

In July 2007, the credit card account was charged off as a bad debt in the amount of $2,128. The account was settled on March 23, 2012 for $1,012.

$1,012

For Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

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

Documented

Debt Paid in Full

1.c

In January 2007, this credit card account ($2,257) was purchased by a collection agency. Applicant was notified on January 24, 2012, that her payment of $315 satisfied the account in full.

$315

For Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

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

Documented

Debt Paid in Full

1.d

In February 2007, this account ($1,550) was purchased by a collection agency. On February 29, 2012, Applicant was notified that after receiving her final payment, the account was settled.

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

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

Documented

Debt Paid in Full

1.e

This account is a duplicate of SOR ¶ 1.a.

For Applicant

Unspecified Financial

Unknown

—

1.f

In February 2007, this account ($1,360) was purchased by a collection agency. On February 10, 2012, Applicant was notified the account was settled on February 7, 2012.

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

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

Documented

Debt Paid in Full

1.g

(telecommunications account) Applicant submitted a credit report dated September 28, 2012, to support her claim that since the credit report did not list the telecommunications account, the account was not her responsibility. She also claimed that she had formally disputed the account and had it removed.

For Applicant

Unspecified Financial

Denied

—

1.h

(overpaid unemployment benefits) On April 8, 2012, in an interview with an OPM investigator, Applicant denied receiving unemployment benefits between July 2008 and December 2008 because she was working for a defense contractor.

For Applicant

Unspecified Financial

Unknown

—

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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