ISCR Case 12-05820.h1

Case Headnote

ISCR Case No. 12-05820.h1

deniedJun 23, 2014· Hon. Wilford H. Ross· hearing

Summary

A 28-year-old engaged male employed by a defense contractor was denied a security clearance under Guidelines E (Personal Conduct) and F (Financial Considerations). The denial stemmed from significant unresolved financial debts totaling approximately $27,719 and false statements made during the clearance process.

The applicant admitted to multiple debts, including $4,116 for a repossessed automobile, $2,030 for an unpaid medical bill from 2005-2006, $71 for past-due cable, $2,408 for a gym membership, $42 and $1,704 for additional medical debts, $15,147 for a student loan, $790 for a credit card, $1,067 for wireless services, and $236 for another cable debt. He denied owing $108 for a past-due telephone bill. Additionally, the applicant made false statements to the Department of Defense during the screening process.

The judge found the applicant's financial issues to be longstanding and inadequately addressed, raising concerns about his reliability and trustworthiness. Although the false statements on the e-QIP were not deemed intentional, they still contributed to questions about his reliability. The applicant failed to present a reasonable plan to resolve his financial obligations, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant has over $27,000 in unresolved debts, indicating financial irresponsibility.
The applicant failed to demonstrate a reasonable plan to address his financial obligations.
The applicant's false statements on the e-QIP were not deemed intentional but raised questions about his reliability.

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 Occurred Under Circumstances Unlikely to RecurThe applicant's financial difficulties have persisted since at least 2006.
AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant did not demonstrate responsible actions to resolve his financial situation.
AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsThe applicant did not present evidence of acceptable payment arrangements with most creditors.
AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not contact creditors to resolve disputed 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 issuedJan 28, 2014
Answer filedMar 20, 2014
Hearing heldMay 16, 2014
Decision dateJun 23, 2014

Cite For

Financial Irresponsibility Due to Unresolved Debts Under Guideline F
False Statements During the Security Clearance Process Under Guideline E
The Importance of Demonstrating a Reasonable Plan to Address Financial Obligations.

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 made false statements to the Department of Defense during the clearance screening process.	For Applicant	Lack of Candor in InterviewNOT DELIBERATE	—	Admitted	—	(a) prompt, good-faith correction before being confronted	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant made false statements to the Department of Defense during the clearance screening process.

For Applicant

Lack of Candor in InterviewNOT DELIBERATE

—

Admitted

—

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

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant admits that he is indebted to a creditor for a repossessed automobile in the amount of $4,116. $4,116	Against Applicant	Auto Loan Debt	Admitted	—	—	—
1.b	Applicant admits that he is indebted to a creditor for a debt in the amount of $2,030 for an unpaid medical bill dating from 2005-2006. $2,030	Against Applicant	Medical Debt	Admitted	—	—	—
1.c	Applicant admits that he was indebted to a creditor for a past-due cable debt in the amount of $71. $71	For Applicant	Utility or Phone Debt	Admitted	—	—	Documented Debt Paid in Full
1.d	Applicant admits that he is indebted to a creditor for a past-due debt concerning a gym membership in the amount of $2,408. $2,408	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.e	Applicant admits that he is indebted to a creditor for a medical debt in the amount of $42. $42	For Applicant	Medical Debt	Admitted	—	—	—
1.f	Applicant admits that he is indebted to the U.S. Department of Education for a student loan debt in the amount of $15,147. $15,147	Against Applicant	Student Loan Debt	Admitted	—	—	—
1.g	Applicant admits that he is indebted to a creditor for a credit card debt in the amount of $790. $790	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.h	Applicant admits that he is indebted to a creditor for a medical debt in the amount of $1,704. $1,704	Against Applicant	Medical Debt	Admitted	—	—	—
1.i	Applicant admits that he is indebted to a creditor for a wireless debt in the amount of $1,067. $1,067	Against Applicant	Utility or Phone Debt	Admitted	—	—	—
1.j	Applicant denies that he owes a creditor $108 for a past-due telephone bill. $108	Against Applicant	Unspecified Financial	Denied	—	—	—
1.k	Applicant admits that he is indebted to a creditor for a cable debt in the amount of $236. $236	Against Applicant	Utility or Phone Debt	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant admits that he is indebted to a creditor for a repossessed automobile in the amount of $4,116.

$4,116

Against Applicant

Auto Loan Debt

Admitted

—

1.b

Applicant admits that he is indebted to a creditor for a debt in the amount of $2,030 for an unpaid medical bill dating from 2005-2006.

$2,030

Against Applicant

Medical Debt

Admitted

—

1.c

Applicant admits that he was indebted to a creditor for a past-due cable debt in the amount of $71.

$71

For Applicant

Utility or Phone Debt

Admitted

—

Documented

Debt Paid in Full

1.d

Applicant admits that he is indebted to a creditor for a past-due debt concerning a gym membership in the amount of $2,408.

$2,408

Against Applicant

Unspecified Financial

Admitted

—

1.e

Applicant admits that he is indebted to a creditor for a medical debt in the amount of $42.

$42

For Applicant

Medical Debt

Admitted

—

1.f

Applicant admits that he is indebted to the U.S. Department of Education for a student loan debt in the amount of $15,147.

$15,147

Against Applicant

Student Loan Debt

Admitted

—

1.g

Applicant admits that he is indebted to a creditor for a credit card debt in the amount of $790.

$790

Against Applicant

Credit Card Debt

Admitted

—

1.h

Applicant admits that he is indebted to a creditor for a medical debt in the amount of $1,704.

$1,704

Against Applicant

Medical Debt

Admitted

—

1.i

Applicant admits that he is indebted to a creditor for a wireless debt in the amount of $1,067.

$1,067

Against Applicant

Utility or Phone Debt

Admitted

—

1.j

Applicant denies that he owes a creditor $108 for a past-due telephone bill.

$108

Against Applicant

Unspecified Financial

Denied

—

1.k

Applicant admits that he is indebted to a creditor for a cable debt in the amount of $236.

$236

Against Applicant

Utility or Phone Debt

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 CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES