ISCR Case 12-06777.h1

Case Headnote

ISCR Case No. 12-06777.h1

deniedJan 17, 2014· Hon. Wilford H. Ross· hearing

Summary

A 64-year-old married woman seeking a security clearance for a defense contractor was denied due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant faced allegations of significant unresolved debts and making false statements during the clearance process.

Specifically, the applicant admitted to approximately $49,087 in unresolved credit card and other debts, with individual amounts ranging from $280 to $20,588. These financial issues began in 2006 and were not adequately addressed. Furthermore, in a May 2012 government questionnaire, the applicant falsely stated that her prior clearance was "taken until further investigation then later granted back," when in fact it had been revoked following adverse decisions in 2006. She also falsely claimed no bills had been sent to collections, no credit cards suspended for non-payment, and no debts were 120 days delinquent within the preceding seven years.

The judge found that the applicant's financial irresponsibility and intentional misrepresentations regarding her financial situation and prior clearance revocation raised questions about her reliability and trustworthiness. Consequently, the security clearance was denied.

Why the Applicant Was Denied

The applicant admitted to having significant unresolved debts totaling approximately $49,087, indicating financial irresponsibility.
The applicant made false statements on her security clearance application regarding her financial situation and prior clearance revocation, which the judge found to be intentional misrepresentations.

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(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not present sufficient evidence of acceptable payment arrangements with the majority of her creditors.
AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant's financial difficulties were not due to circumstances beyond her control.
AG ¶ 20(c)rejectedClear Indications That the Problem Is Being Resolved or Is Under ControlThe applicant's financial situation was not under control, with ongoing significant debts.

Key Rule Quoted

“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”

Procedural Posture

SOR issuedJun 5, 2013
Answer filedJul 23, 2013
Hearing heldOct 16, 2013
Decision dateJan 17, 2014

Cite For

Financial Irresponsibility and Unresolved Debts Under Guideline F
False Statements During the Security Clearance Process Under Guideline E
Impact of Financial Difficulties on Security Clearance Eligibility

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 May 2012. Question 25 of that questionnaire asked if Applicant had “EVER had a security clearance eligibility/access authorization denied, suspended, or revoked?” Applicant responded, “Yes,” and provided the following explanation of the circumstances, “my clearance was taken until further investigation then later granted back to me but there was no job openings.” In fact, as stated earlier, Applicant had her clearance revoked due to a prior DOHA proceeding, resulting in an adverse administrative judge decision on January 18, 2006; and an adverse appeal board decision on July 24, 2006.	For Applicant	Omission or Failure to Disclose	Other	Admitted	—	—	—
2.b	Regarding her finances, Applicant stated that within the seven years prior to filling out the questionnaire she had not had bills turned over to a collection agency; had not had any credit card suspended, charged off, or cancelled for failing to pay as agreed; and that she was not 120 days delinquent on any debt. These answers were not true, as set forth in detail under Paragraph 1, above.	For Applicant	Lack of Candor in Interview	Financial	Admitted	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant filled out a Government questionnaire in May 2012. Question 25 of that questionnaire asked if Applicant had “EVER had a security clearance eligibility/access authorization denied, suspended, or revoked?” Applicant responded, “Yes,” and provided the following explanation of the circumstances, “my clearance was taken until further investigation then later granted back to me but there was no job openings.” In fact, as stated earlier, Applicant had her clearance revoked due to a prior DOHA proceeding, resulting in an adverse administrative judge decision on January 18, 2006; and an adverse appeal board decision on July 24, 2006.

For Applicant

Omission or Failure to Disclose

Other

Admitted

—

2.b

Regarding her finances, Applicant stated that within the seven years prior to filling out the questionnaire she had not had bills turned over to a collection agency; had not had any credit card suspended, charged off, or cancelled for failing to pay as agreed; and that she was not 120 days delinquent on any debt. These answers were not true, as set forth in detail under Paragraph 1, above.

For Applicant

Lack of Candor in Interview

Financial

Admitted

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant admits that she is indebted to a creditor for a credit card debt in the amount of $8,200. $8,200	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts	—	—
1.b	Applicant admits that she was indebted to a creditor for a debt in the amount of $763. $763	For Applicant	Credit Card Debt	Admitted	—	—	—
1.c	Applicant admits that she is indebted to a creditor for a credit card debt in the amount of $8,189. $8,189	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts	—	—
1.d	Applicant admits that she is indebted to a creditor for a credit card debt in the amount of $20,588. $20,588	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts	—	—
1.e	Applicant admits that she was indebted to a creditor for a credit card debt in the amount of $2,212. $2,212	For Applicant	Credit Card Debt	Admitted	—	—	—
1.f	Applicant admits that she is indebted to a creditor for a credit card debt in the amount of $4,214. $4,214	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts	—	—
1.g	Applicant admits that she was indebted to a creditor for a credit card debt in the amount of $1,339. $1,339	For Applicant	Credit Card Debt	Admitted	—	—	—
1.h	Applicant admits that she is indebted to a creditor for a credit card debt in the amount of $305. $305	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts	—	—
1.i	Applicant admits that she is indebted to a creditor for a credit card debt in the past-due amount of $280. $280	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts	—	—
1.j	Applicant admits that she is indebted to a creditor for a credit card debt in the amount of $314. $314	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts	—	—
1.k	Applicant admits that she was indebted to a creditor for a credit card debt in the amount of $2,683. $2,683	For Applicant	Credit Card Debt	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant admits that she is indebted to a creditor for a credit card debt in the amount of $8,200.

$8,200

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

—

1.b

Applicant admits that she was indebted to a creditor for a debt in the amount of $763.

$763

For Applicant

Credit Card Debt

Admitted

—

1.c

Applicant admits that she is indebted to a creditor for a credit card debt in the amount of $8,189.

$8,189

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

—

1.d

Applicant admits that she is indebted to a creditor for a credit card debt in the amount of $20,588.

$20,588

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

—

1.e

Applicant admits that she was indebted to a creditor for a credit card debt in the amount of $2,212.

$2,212

For Applicant

Credit Card Debt

Admitted

—

1.f

Applicant admits that she is indebted to a creditor for a credit card debt in the amount of $4,214.

$4,214

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

—

1.g

Applicant admits that she was indebted to a creditor for a credit card debt in the amount of $1,339.

$1,339

For Applicant

Credit Card Debt

Admitted

—

1.h

Applicant admits that she is indebted to a creditor for a credit card debt in the amount of $305.

$305

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

—

1.i

Applicant admits that she is indebted to a creditor for a credit card debt in the past-due amount of $280.

$280

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

—

1.j

Applicant admits that she is indebted to a creditor for a credit card debt in the amount of $314.

$314

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

—

1.k

Applicant admits that she was indebted to a creditor for a credit card debt in the amount of $2,683.

$2,683

For Applicant

Credit Card 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