ISCR Case 12-05607.h1

Case Headnote

ISCR Case No. 12-05607.h1

deniedJun 27, 2014· Hon. Wilford H. Ross· hearing

Summary

A 44-year-old married defense contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from significant unresolved debts totaling approximately $54,735 and false statements made during the clearance process.

The applicant's financial issues included multiple judgments, past-due credit card bills, medical debts, and repossessed automobile debts. While some smaller debts were reportedly paid, many larger obligations remained unresolved, and the applicant often denied knowledge of or responsibility for these debts. The judge found that the applicant's financial problems were longstanding and not mitigated by evidence of responsible behavior or good faith efforts to resolve them.

Additionally, the applicant made false statements on a Government questionnaire in January 2012, denying judgments, bills turned over to collection agencies, and suspended or charged-off accounts. Although the applicant claimed to have "overlooked" these questions, the judge determined that the falsifications were intentional due to insufficient evidence of innocent error. Consequently, the applicant was deemed ineligible for a security clearance.

Why the Applicant Was Denied

The applicant has unresolved debts totaling over $54,000, indicating financial irresponsibility.
The applicant made false statements on his security clearance application regarding his financial history, which were deemed intentional rather than accidental.
The applicant failed to provide evidence of good character or responsible financial management.

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

Mitigating

AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's financial issues have persisted since at least 2002.
AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not provide sufficient evidence to support claims of financial difficulties due to unemployment.
AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not demonstrate efforts to resolve the majority of his debts.

Key Rule Quoted

“"Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security."”

Procedural Posture

SOR issuedSep 17, 2013
Answer filedOct 9, 2013
Hearing held—Applicant requested a decision without a hearing.
Decision dateJun 27, 2014

Cite For

Denial Based on Unresolved Financial Obligations Under Guideline F
Intentional Falsification of Information Under Guideline E
Lack of Evidence for Mitigating Financial Conditions

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 filled out a Government questionnaire in January 2012 in which he stated that he had not had any judgments entered against him, that he had not had bills turned over to a collection agency, and that he had not had any account or credit card suspended, charged off, or cancelled for failing to pay as agreed.	Against Applicant	Lack of Candor in InterviewFOUND DELIBERATE	Criminal Conduct	Denied	—	—	—
2.b	Applicant states that he did not intend to mislead the Government in regards to his answers on the questionnaire. He states in his Answer that he 'overlooked' the questions about his financial situation, including the judgments, automobile repossessions and bad debts.	Against Applicant	Lack of Candor in InterviewFOUND DELIBERATE	Criminal Conduct	Denied	—	—	—
2.c	Applicant has simply not presented enough evidence to show that the alleged falsifications were the result of innocent error. Therefore, under the circumstances, I find that they were intentional.	Against Applicant	Lack of Candor in InterviewFOUND DELIBERATE	Criminal Conduct	Denied	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant filled out a Government questionnaire in January 2012 in which he stated that he had not had any judgments entered against him, that he had not had bills turned over to a collection agency, and that he had not had any account or credit card suspended, charged off, or cancelled for failing to pay as agreed.

Against Applicant

Lack of Candor in InterviewFOUND DELIBERATE

Criminal Conduct

Denied

—

2.b

Applicant states that he did not intend to mislead the Government in regards to his answers on the questionnaire. He states in his Answer that he 'overlooked' the questions about his financial situation, including the judgments, automobile repossessions and bad debts.

Against Applicant

Lack of Candor in InterviewFOUND DELIBERATE

Criminal Conduct

Denied

—

2.c

Applicant has simply not presented enough evidence to show that the alleged falsifications were the result of innocent error. Therefore, under the circumstances, I find that they were intentional.

Against Applicant

Lack of Candor in InterviewFOUND DELIBERATE

Criminal Conduct

Denied

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant denies that he is indebted to a creditor for a judgment in the amount of $4,402. He admitted that this judgment was not paid in his interrogatory response. $4,402	Against Applicant	Unspecified Financial	Denied	—	—	—
1.b	Applicant admits that he is indebted to a creditor for a judgment in the amount of $678. He states in his Answer, 'Could pay when I was unemployed because of contract ending. Just fell behind.' $678	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.c	Applicant denies that he is indebted to a creditor for a judgment in the amount of $997. He states that this debt is paid in his Answer and in his interrogatory. $997	Against Applicant	Unspecified Financial	Denied	—	—	—
1.d	Applicant admits that he was indebted to a creditor for a medical bill in the amount of $19. Applicant states in his Answer that this debt was paid. $19	For Applicant	Medical Debt	Admitted	—	—	—
1.e	Applicant admits that he was indebted to a creditor for a different medical bill in the amount of $19. Applicant states in his Answer that this debt was paid. $19	For Applicant	Medical Debt	Admitted	—	—	—
1.f	Applicant denies that he is indebted to a creditor for a mobile phone bill in the amount of $1,660. However, he stated in his interrogatory that this debt is not paid. $1,660	Against Applicant	Unspecified Financial	Denied	—	—	—
1.g	Applicant denies that he is indebted to a creditor for a medical bill in the amount of $218. He states in his Answer, 'I don’t know what this is. I have two different types of medical coverage.' $218	Against Applicant	Unspecified Financial	Denied	—	—	—
1.h	Applicant denies that he is indebted to a creditor for a medical bill in the amount of $312. He states in his Answer, 'Don’t know what this is from.' $312	Against Applicant	Unspecified Financial	Denied	—	—	—
1.i	Applicant denies that he is indebted to a creditor on a past-due mobile phone bill in the amount of $598. He states in his Answer, 'I have no knowledge of what this is.' $598	Against Applicant	Unspecified Financial	Denied	—	—	—
1.j	Applicant did not admit or deny that he is indebted to a creditor on a past-due medical debt in the amount of $389. He stated that this debt is not paid in his interrogatory. $389	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.k	Applicant denies that he is indebted to a creditor on a past-due debt in the amount of $3,890. He states in his Answer, 'I don’t know what this is.' $3,890	Against Applicant	Unspecified Financial	Denied	—	—	—
1.l	Applicant denies that he is indebted to a creditor on a past-due credit card bill in the amount of $1,400. He states in his Answer, 'My account was paid off. Re-opened and up to date.' $1,400	Against Applicant	Unspecified Financial	Denied	—	—	—
1.m	Applicant denies that he is indebted to a creditor on a past-due debt in the amount of $4,889. He states in his Answer, 'Have no knowledge of what this is.' $4,889	Against Applicant	Unspecified Financial	Denied	—	—	—
1.n	Applicant denies that he is indebted to a creditor on a past-due credit card debt in the amount of $2,887. He states in his Answer, 'Have no knowledge of what this is.' $2,887	Against Applicant	Unspecified Financial	Denied	—	—	—
1.o	Applicant admits that he is indebted to a creditor on a past-due debt in the amount of $570. $570	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.p	Applicant admits that he is indebted to a creditor on a past-due debt in the amount of $2,486. $2,486	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.q	Applicant admits that he is indebted to a creditor on a past-due debt in the amount of $570. $570	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.r	Applicant did not admit or deny that he is indebted to a creditor on a past-due debt in the amount of $4,176. He stated that this debt is not paid in his interrogatory. $4,176	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.s	Applicant denies that he is indebted to a creditor on a past-due debt for a repossessed automobile in the amount of $6,512. However, Applicant admits that this debt is unpaid in his interrogatory. $6,512	Against Applicant	Unspecified Financial	Denied	—	—	—
1.t	Applicant admits that he is indebted to a creditor on a past-due debt in the amount of $505. $505	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.u	Applicant did not admit or deny that he is indebted to a creditor on a past-due debt in the amount of $490. He stated that this debt is not paid in an interview with an investigator from OPM. $490	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.v	Applicant admits that he is indebted to a creditor on a past-due debt in the amount of $982. $982	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.w	Applicant admits that he is indebted to a creditor on a past-due debt in the amount of $1,051. $1,051	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.x	Applicant denies that he is indebted to a creditor for a past-due debt in the amount of $10,956. He states in his Answer, 'Don’t know what this is.' $10,956	Against Applicant	Unspecified Financial	Denied	—	—	—
1.y	Applicant denies that he is indebted to a creditor for a past-due debt in the amount of $116. He states in his Answer, 'Don’t know what this is.' $116	Against Applicant	Unspecified Financial	Denied	—	—	—
1.z	Applicant admits that he was indebted to a collection agency for a past-due debt in the amount of $342. He states in his Answer, 'This is being taken care of. I spoke to a representative about it.' $342	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.aa	Applicant admits that he is indebted to a creditor for a past-due debt in the amount of $471. $471	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.bb	Applicant denies that he is indebted to a creditor on a past-due credit card bill in the amount of $3,150. He states in his Answer, 'This was paid and account is current.' $3,150	Against Applicant	Unspecified Financial	Denied	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant denies that he is indebted to a creditor for a judgment in the amount of $4,402. He admitted that this judgment was not paid in his interrogatory response.

$4,402

Against Applicant

Unspecified Financial

Denied

—

1.b

Applicant admits that he is indebted to a creditor for a judgment in the amount of $678. He states in his Answer, 'Could pay when I was unemployed because of contract ending. Just fell behind.'

$678

Against Applicant

Unspecified Financial

Admitted

—

1.c

Applicant denies that he is indebted to a creditor for a judgment in the amount of $997. He states that this debt is paid in his Answer and in his interrogatory.

$997

Against Applicant

Unspecified Financial

Denied

—

1.d

Applicant admits that he was indebted to a creditor for a medical bill in the amount of $19. Applicant states in his Answer that this debt was paid.

$19

For Applicant

Medical Debt

Admitted

—

1.e

Applicant admits that he was indebted to a creditor for a different medical bill in the amount of $19. Applicant states in his Answer that this debt was paid.

$19

For Applicant

Medical Debt

Admitted

—

1.f

Applicant denies that he is indebted to a creditor for a mobile phone bill in the amount of $1,660. However, he stated in his interrogatory that this debt is not paid.

$1,660

Against Applicant

Unspecified Financial

Denied

—

1.g

Applicant denies that he is indebted to a creditor for a medical bill in the amount of $218. He states in his Answer, 'I don’t know what this is. I have two different types of medical coverage.'

$218

Against Applicant

Unspecified Financial

Denied

—

1.h

Applicant denies that he is indebted to a creditor for a medical bill in the amount of $312. He states in his Answer, 'Don’t know what this is from.'

$312

Against Applicant

Unspecified Financial

Denied

—

1.i

Applicant denies that he is indebted to a creditor on a past-due mobile phone bill in the amount of $598. He states in his Answer, 'I have no knowledge of what this is.'

$598

Against Applicant

Unspecified Financial

Denied

—

1.j

Applicant did not admit or deny that he is indebted to a creditor on a past-due medical debt in the amount of $389. He stated that this debt is not paid in his interrogatory.

$389

Against Applicant

Unspecified Financial

Unknown

—

1.k

Applicant denies that he is indebted to a creditor on a past-due debt in the amount of $3,890. He states in his Answer, 'I don’t know what this is.'

$3,890

Against Applicant

Unspecified Financial

Denied

—

1.l

Applicant denies that he is indebted to a creditor on a past-due credit card bill in the amount of $1,400. He states in his Answer, 'My account was paid off. Re-opened and up to date.'

$1,400

Against Applicant

Unspecified Financial

Denied

—

1.m

Applicant denies that he is indebted to a creditor on a past-due debt in the amount of $4,889. He states in his Answer, 'Have no knowledge of what this is.'

$4,889

Against Applicant

Unspecified Financial

Denied

—

1.n

Applicant denies that he is indebted to a creditor on a past-due credit card debt in the amount of $2,887. He states in his Answer, 'Have no knowledge of what this is.'

$2,887

Against Applicant

Unspecified Financial

Denied

—

1.o

Applicant admits that he is indebted to a creditor on a past-due debt in the amount of $570.

$570

Against Applicant

Unspecified Financial

Admitted

—

1.p

Applicant admits that he is indebted to a creditor on a past-due debt in the amount of $2,486.

$2,486

Against Applicant

Unspecified Financial

Admitted

—

1.q

Applicant admits that he is indebted to a creditor on a past-due debt in the amount of $570.

$570

Against Applicant

Unspecified Financial

Admitted

—

1.r

Applicant did not admit or deny that he is indebted to a creditor on a past-due debt in the amount of $4,176. He stated that this debt is not paid in his interrogatory.

$4,176

Against Applicant

Unspecified Financial

Unknown

—

1.s

Applicant denies that he is indebted to a creditor on a past-due debt for a repossessed automobile in the amount of $6,512. However, Applicant admits that this debt is unpaid in his interrogatory.

$6,512

Against Applicant

Unspecified Financial

Denied

—

1.t

Applicant admits that he is indebted to a creditor on a past-due debt in the amount of $505.

$505

Against Applicant

Unspecified Financial

Admitted

—

1.u

Applicant did not admit or deny that he is indebted to a creditor on a past-due debt in the amount of $490. He stated that this debt is not paid in an interview with an investigator from OPM.

$490

Against Applicant

Unspecified Financial

Unknown

—

1.v

Applicant admits that he is indebted to a creditor on a past-due debt in the amount of $982.

$982

Against Applicant

Unspecified Financial

Admitted

—

1.w

Applicant admits that he is indebted to a creditor on a past-due debt in the amount of $1,051.

$1,051

Against Applicant

Unspecified Financial

Admitted

—

1.x

Applicant denies that he is indebted to a creditor for a past-due debt in the amount of $10,956. He states in his Answer, 'Don’t know what this is.'

$10,956

Against Applicant

Unspecified Financial

Denied

—

1.y

Applicant denies that he is indebted to a creditor for a past-due debt in the amount of $116. He states in his Answer, 'Don’t know what this is.'

$116

Against Applicant

Unspecified Financial

Denied

—

1.z

Applicant admits that he was indebted to a collection agency for a past-due debt in the amount of $342. He states in his Answer, 'This is being taken care of. I spoke to a representative about it.'

$342

Against Applicant

Unspecified Financial

Admitted

—

1.aa

Applicant admits that he is indebted to a creditor for a past-due debt in the amount of $471.

$471

Against Applicant

Unspecified Financial

Admitted

—

1.bb

Applicant denies that he is indebted to a creditor on a past-due credit card bill in the amount of $3,150. He states in his Answer, 'This was paid and account is current.'

$3,150

Against Applicant

Unspecified Financial

Denied

—

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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