ISCR Case 11-12721.h1

Case Headnote

ISCR Case No. 11-12721.h1

deniedMay 24, 2013· Hon. Rita C. O'Brien· hearing

Summary

A 54-year-old male applicant was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The judge determined that the applicant's unresolved financial obligations and failure to disclose criminal history raised significant doubts about his reliability and trustworthiness.

Regarding financial considerations, the applicant had a history of delinquencies, leading to a Chapter 7 bankruptcy in 2007 with $112,815 in liabilities, discharged in 2008. However, his student loan debts remained delinquent, totaling over $35,000 as of the Statement of Reasons. The applicant admitted these delinquencies were not due to circumstances beyond his control and failed to provide sufficient evidence of a good-faith effort to repay these loans or a consistent payment plan, despite claiming to make payments.

Under personal conduct, the applicant failed to report a 2005 arrest and summonses for criminal charges in 2005 and 2006 on his 2011 security clearance application. He acknowledged knowing about the assault charges but decided not to report them, believing he was not guilty. This omission reflected a lack of candor, contributing to the denial.

Why the Applicant Was Denied

Applicant has a history of financial problems, including a Chapter 7 bankruptcy and delinquent student loans totaling over $35,000.
Applicant failed to disclose his criminal history, including arrests and summonses, on his security clearance application, reflecting a lack of candor.
The applicant did not provide sufficient evidence of a plan to resolve his financial issues or demonstrate good-faith efforts to repay debts.

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

Key Rule Quoted

“A security clearance decision is intended only to resolve the question of whether it is clearly consistent with the national interest for an applicant to either receive or continue to have access to classified information.”
— Department of the Navy v. Egan, 484 U.S. 518 (1988)

Procedural Posture

SOR issuedFeb 4, 2013
Answer filedFeb 25, 2013
Hearing held—Applicant requested a decision without a hearing.
Decision dateMay 24, 2013Case assigned for administrative decision.

Cite For

Denial Based on Unresolved Financial Obligations Under Guideline F
Lack of Candor in Security Clearance Application Under Guideline E
Importance of Full Disclosure of Criminal History in Security Clearance Applications

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 failed to report on his 2011 security clearance application that he was arrested in 2005, and received a summons to appear on criminal charges in 2005 and 2006.	Against Applicant	Lack of Candor in InterviewFOUND DELIBERATE	Criminal Conduct	Denied	(a) deliberate omission, concealment, or falsification on a security form	—	—
2.b	Applicant knew he had been charged with assault within the seven-year period covered by the questions, but decided that he did not have to report the charges, because he believed he was not guilty of the offenses.	Against Applicant	Lack of Candor in InterviewFOUND DELIBERATE	Criminal Conduct	Denied	(a) deliberate omission, concealment, or falsification on a security form	—	—
2.c	specific text not stated in this decision	For Applicant	Unspecified Personal Conduct	—	Unknown	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant failed to report on his 2011 security clearance application that he was arrested in 2005, and received a summons to appear on criminal charges in 2005 and 2006.

Against Applicant

Lack of Candor in InterviewFOUND DELIBERATE

Criminal Conduct

Denied

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

—

2.b

Applicant knew he had been charged with assault within the seven-year period covered by the questions, but decided that he did not have to report the charges, because he believed he was not guilty of the offenses.

Against Applicant

Lack of Candor in InterviewFOUND DELIBERATE

Criminal Conduct

Denied

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

—

2.c

specific text not stated in this decision

For Applicant

Unspecified Personal Conduct

—

Unknown

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant has numerous delinquencies that led to filing a Chapter 7 bankruptcy petition in 2007, with liabilities of $112,815. It was successfully discharged in 2008. However, Applicant's student loan debts remain delinquent. As of the date of the SOR, these debts total more than $35,000. $35,000	Against Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	Applicant's history of financial delinquencies supports application of disqualifying conditions AG ¶ 19(a) (inability or unwillingness to satisfy debts) and AG ¶ 19(c) (a history of not meeting financial obligations).	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	Applicant admitted in his security interview that his delinquencies did not result from circumstances beyond his control.	Against Applicant	Unspecified Financial	Admitted	(b) unwillingness to satisfy debts regardless of ability	—	—
1.d	The record does not contain evidence of a good-faith effort to repay his loans, and Applicant's finances are not under control.	Against Applicant	Unspecified Financial	Admitted	(d) deceptive or illegal financial practices	—	—
1.e	Applicant's unresolved financial situation casts doubt on his reliability, and AG ¶ 20(a) cannot be applied.	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.f	Applicant stated that he is making payments on his student loan debts through automatic deduction from his checking account. He provided a document showing at least one payment made in December 2012.	Against Applicant	Student Loan Debt	Admitted	—	—	—
1.g	Although he stated in December 2012 and February 2013 that he had made payment arrangements, he provided no evidence of a payment plan, or a track record of making consistent payments on his student loans.	Against Applicant	Unspecified Financial	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant has numerous delinquencies that led to filing a Chapter 7 bankruptcy petition in 2007, with liabilities of $112,815. It was successfully discharged in 2008. However, Applicant's student loan debts remain delinquent. As of the date of the SOR, these debts total more than $35,000.

$35,000

Against Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

Applicant's history of financial delinquencies supports application of disqualifying conditions AG ¶ 19(a) (inability or unwillingness to satisfy debts) and AG ¶ 19(c) (a history of not meeting financial obligations).

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

Applicant admitted in his security interview that his delinquencies did not result from circumstances beyond his control.

Against Applicant

Unspecified Financial

Admitted

(b) unwillingness to satisfy debts regardless of ability

—

1.d

The record does not contain evidence of a good-faith effort to repay his loans, and Applicant's finances are not under control.

Against Applicant

Unspecified Financial

Admitted

(d) deceptive or illegal financial practices

—

1.e

Applicant's unresolved financial situation casts doubt on his reliability, and AG ¶ 20(a) cannot be applied.

Against Applicant

Unspecified Financial

Admitted

—

1.f

Applicant stated that he is making payments on his student loan debts through automatic deduction from his checking account. He provided a document showing at least one payment made in December 2012.

Against Applicant

Student Loan Debt

Admitted

—

1.g

Although he stated in December 2012 and February 2013 that he had made payment arrangements, he provided no evidence of a payment plan, or a track record of making consistent payments on his student loans.

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 ANALYSIS

FORMAL FINDINGS

CONCLUSION

FOOTNOTES