ISCR Case 11-09818.h1

Case Headnote

ISCR Case No. 11-09818.h1

grantedSep 25, 2013· Hon. Philip S. Howe· hearing

Summary

A 55-year-old defense contractor was granted a security clearance despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons cited delinquent debts totaling $23,226 and a failure to file state tax returns. Specifically, the applicant owed $11,321 for a city tax debt, on which he has paid $100 monthly since January 2013, and $1,218 and $837 for unfiled state tax returns. Another state tax debt of $546 was resolved with a $545 payment.

Additionally, the applicant had a $7,374 credit card debt, settled for $4,300 in June 2013, and a $919 department store account, settled for $643.49 in November 2012. A separate $1,011 department store account was resolved with a $3,500 payment in September 2008. The applicant's failure to disclose these financial difficulties in his e-QIP was found to be inadvertent, not deliberate falsification.

The judge determined that the applicant took responsible actions to resolve his debts, including making installment payments and settling accounts. His credible testimony regarding confusion about tax obligations and good-faith efforts to address financial issues led to the favorable outcome, and his security clearance was granted.

Why the Applicant Prevailed

The applicant demonstrated a good-faith effort to resolve his delinquent debts, including making installment payments on tax debts.
The applicant's failure to disclose financial difficulties was found to be inadvertent and not a deliberate falsification.
The applicant's credible testimony regarding his confusion about tax obligations contributed to the favorable outcome.

Conditions Referenced

Disqualifying

F.1.araisedInability or Unwillingness to Satisfy Debts
F.1.craisedA History of Not Meeting Financial Obligations
F.1.graisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required

Mitigating

F.2.aappliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
F.2.bappliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
F.2.cappliedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
F.2.dappliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedDec 12, 2012
Answer filed01/2013undated Answer received in January 2013
Hearing heldJun 25, 2013
Decision dateSep 25, 2013

Cite For

Mitigation of Financial Considerations Under Guideline F Due to Good-faith Efforts to Resolve Debts
Inadvertent Omission of Financial Issues in Security Clearance Applications
Consideration of the Whole-person Concept in Security Clearance Determinations

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’s failure to disclose his financial difficulties in Section 26 of his e-QIP was inadvertent and not deliberate falsification.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATE	Financial	Denied	—	(a) prompt, good-faith correction before being confronted	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant’s failure to disclose his financial difficulties in Section 26 of his e-QIP was inadvertent and not deliberate falsification.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATE

Financial

Denied

—

(a) prompt, good-faith correction before being confronted

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant owes $11,321 on a tax debt owed to Applicant’s home town. The city obtained a judgment against Applicant for that amount. Applicant contacted the city attorney’s office and arranged an installment payment agreement. He pays $100 monthly on the tax debt and has done so since January 2013. $11,321	For Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations (g) unexplained affluence	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	Applicant owes $1,218 on a state tax debt for years he did not file tax returns. $1,218	For Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations (g) unexplained affluence	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	Applicant owes $546 on a state tax debt for years he did not file tax returns. Applicant paid $545 to his home state treasurer to resolve the debt alleged in Subparagraph 1.c for $546. $546	For Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations (g) unexplained affluence	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.d	Applicant owes $837 on a state tax debt for years he did not file tax returns. $837	For Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations (g) unexplained affluence	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.e	Applicant owes $7,374 on a credit card debt dating from 2008. Applicant settled this account for $4,300 in June 2013, paying from his savings account. This debt is resolved. $7,374	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.f	Applicant owes $919 on a department store credit account. This account was settled for $643.49 on November 12, 2012. This debt is resolved. $919	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.g	Applicant owes $1,011 on a department store credit card account. This debt is resolved. It was paid in the amount of $3,500 on September 24, 2008. $1,011	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant owes $11,321 on a tax debt owed to Applicant’s home town. The city obtained a judgment against Applicant for that amount. Applicant contacted the city attorney’s office and arranged an installment payment agreement. He pays $100 monthly on the tax debt and has done so since January 2013.

$11,321

For Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(g) unexplained affluence

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

Documented

Debt Paid in Full

1.b

Applicant owes $1,218 on a state tax debt for years he did not file tax returns.

$1,218

For Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(g) unexplained affluence

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

Documented

Debt Paid in Full

1.c

Applicant owes $546 on a state tax debt for years he did not file tax returns. Applicant paid $545 to his home state treasurer to resolve the debt alleged in Subparagraph 1.c for $546.

$546

For Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(g) unexplained affluence

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

Documented

Debt Paid in Full

1.d

Applicant owes $837 on a state tax debt for years he did not file tax returns.

$837

For Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(g) unexplained affluence

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

Documented

Debt Paid in Full

1.e

Applicant owes $7,374 on a credit card debt dating from 2008. Applicant settled this account for $4,300 in June 2013, paying from his savings account. This debt is resolved.

$7,374

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.f

Applicant owes $919 on a department store credit account. This account was settled for $643.49 on November 12, 2012. This debt is resolved.

$919

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.g

Applicant owes $1,011 on a department store credit card account. This debt is resolved. It was paid in the amount of $3,500 on September 24, 2008.

$1,011

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

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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