ISCR Case 12-01301.h1

Case Headnote

ISCR Case No. 12-01301.h1

deniedApr 30, 2014· Hon. Philip S. Howe· hearing

Summary

A visually impaired customer service representative was denied a public trust position due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant had a history of 41 delinquent debts totaling $44,704, including apartment lease judgments from 2012, a truck repossession judgment from 2006, and student loans currently being paid at $200 monthly. This extensive financial history, coupled with a previous bankruptcy, raised questions about her financial responsibility.

Further concerns arose from the applicant's failure to disclose these debts on her e-QIP, specifically regarding judgments, liens, debts turned over to collection agencies, and debts over 120 days delinquent. The applicant admitted knowledge of most of these debts for the past three to four years.

The judge determined that the applicant's failure to disclose her financial issues and her lack of meaningful efforts to resolve the debts demonstrated poor judgment and untrustworthiness. Despite the consideration of various mitigating conditions, the applicant's application was ultimately denied.

Why the Applicant Was Denied

The applicant had a history of 41 delinquent debts totaling $44,704, indicating financial irresponsibility.
The applicant failed to disclose her delinquent debts on her e-QIP, demonstrating a lack of candor and questionable judgment.
The applicant did not provide sufficient evidence of efforts to resolve her debts or mitigate her financial issues.

Conditions Referenced

Disqualifying

F.19.araisedInability or Unwillingness to Satisfy Debts
F.19.craisedA History of Not Meeting Financial Obligations
E.16.araisedDeliberate Omission, Concealment, or Falsification of Relevant Facts

Mitigating

F.20.arejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
F.20.brejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
F.20.crejectedThe Person Has Received or Is Receiving Counseling for the Problem
F.20.drejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors
F.20.erejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
E.17.arejectedThe Individual Made Prompt, Good-faith Efforts to Correct the Omission
E.17.brejectedThe Refusal or Failure to Cooperate Was Caused by Improper Advice
E.17.crejectedThe Offense Is so Minor or Unlikely to Recur
E.17.drejectedThe Individual Has Acknowledged the Behavior and Obtained Counseling
E.17.erejectedThe Individual Has Taken Positive Steps to Reduce Vulnerability

Key Rule Quoted

“A security clearance adjudication is not a proceeding aimed at collecting an applicant’s personal debts. Rather, it is a proceeding aimed at evaluating an applicant’s judgment, reliability, and trustworthiness.”
— ISCR Case No. 01-09691 at 3 (App. Bd. Mar. 27, 2003)

Procedural Posture

SOR issuedJun 25, 2013
Answer filedJul 8, 2013
Hearing heldMar 18, 2014record kept open until 04/04/2014
Decision dateApr 30, 2014

Cite For

Evaluation of Financial Irresponsibility Under Guideline F
Disclosure Obligations on E-qip Under Guideline E
Impact of Personal Conduct on Trustworthiness 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.b	Applicant failed to identify any of her SOR-listed debts in her responses to the questions in: 'Section 26. Financial Record; Delinquency Involving Enforcement: In the past seven years have you had a judgment entered against you; or had a lien placed against your property for failure to pay taxes?'	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Denied	(a) deliberate omission, concealment, or falsification on a security form	—	—
2.c	In the section pertaining to 'Delinquency Involving Routine Accounts; Have you had any debts turned over to a collection agency in the past seven years'; and 'Have you been over 120 days delinquent on any debt(s)?'; and 'Are you currently over 120 days delinquent on any debt(s)?'	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Denied	(a) deliberate omission, concealment, or falsification on a security form	—	—
2.d	Applicant admitted to knowledge of most if not all the debts for the past three-to-four years.	Against Applicant	Lack of Candor in InterviewFOUND DELIBERATE	Financial	Denied	(a) deliberate omission, concealment, or falsification on a security form	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.b

Applicant failed to identify any of her SOR-listed debts in her responses to the questions in: 'Section 26. Financial Record; Delinquency Involving Enforcement: In the past seven years have you had a judgment entered against you; or had a lien placed against your property for failure to pay taxes?'

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Denied

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

—

2.c

In the section pertaining to 'Delinquency Involving Routine Accounts; Have you had any debts turned over to a collection agency in the past seven years'; and 'Have you been over 120 days delinquent on any debt(s)?'; and 'Are you currently over 120 days delinquent on any debt(s)?'

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Denied

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

—

2.d

Applicant admitted to knowledge of most if not all the debts for the past three-to-four years.

Against Applicant

Lack of Candor in InterviewFOUND DELIBERATE

Financial

Denied

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

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	Applicant’s 37 remaining debts include apartment leases, for which she did not pay the agreed amount and she was sued, with judgments against her resulting in debts of $1,799 in 2012 $1,799	Against Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.l	Applicant’s student loans for her associates’ degree in business management are listed in the SOR in Subparagraphs 1.l to 1.o. They are being paid at the rate of $200 monthly, which is deducted automatically from Applicant’s checking account. $26,371	For Applicant	Student Loan Debt	Admitted	—	—	—
1.p	Applicant had a truck repossessed when she could not make the payments on it due to her unemployment. The truck was sold and the balance owed was reduced to a judgment of $3,867 in 2006 $3,867	Against Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

Applicant’s 37 remaining debts include apartment leases, for which she did not pay the agreed amount and she was sued, with judgments against her resulting in debts of $1,799 in 2012

$1,799

Against Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.l

Applicant’s student loans for her associates’ degree in business management are listed in the SOR in Subparagraphs 1.l to 1.o. They are being paid at the rate of $200 monthly, which is deducted automatically from Applicant’s checking account.

$26,371

For Applicant

Student Loan Debt

Admitted

—

1.p

Applicant had a truck repossessed when she could not make the payments on it due to her unemployment. The truck was sold and the balance owed was reduced to a judgment of $3,867 in 2006

$3,867

Against Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

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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

FOOTNOTES