ISCR Case 12-09887.h1

Case Headnote

ISCR Case No. 12-09887.h1

deniedSep 30, 2015· Hon. Carol G. Ricciardello· hearing

Summary

A 60-year-old federal employee was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant had 19 delinquent debts totaling approximately $65,842. These debts included several charged-off individual and joint credit card accounts, some opened prior to his marriage or for which he believed his wife was responsible. Other debts included multiple unresolved medical accounts, a satellite television bill, and an internet service bill, though the internet bill was considered paid.

The judge found that the applicant failed to take responsibility for the debts and did not act responsibly in managing their finances. Specifically, the applicant completed his security clearance application in March 2012, answering "no" to questions about financial delinquencies, despite admitting at his hearing that he should have answered "yes." His testimony regarding his awareness of the extent of the delinquencies was deemed not credible, leading to a finding that he deliberately failed to disclose known delinquent debts.

The denial was based on the applicant's failure to disclose known delinquent debts on his application, his lack of financial control despite awareness of his wife's spending, and the non-credible nature of his testimony, indicating a deliberate concealment of financial issues.

Why the Applicant Was Denied

The applicant failed to disclose known delinquent debts on his security clearance application, demonstrating a lack of honesty and responsibility.
The applicant did not take control of his finances despite being aware of his wife's excessive spending habits and the resulting debts.
The applicant's testimony was found not credible, indicating a deliberate concealment of financial issues.

Conditions Referenced

Disqualifying

F.19.araisedInability or Unwillingness to Satisfy Debts
F.19.craisedA History of Not Meeting Financial Obligations

Mitigating

F.20.brejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant was aware of his wife's excessive spending and failed to act responsibly.
F.20.drejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsReliance on the statute of limitations does not constitute a good-faith effort to resolve 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 issuedApr 18, 2015
Answer filedMay 15, 2015
Hearing heldSep 16, 2015
Decision dateSep 30, 2015

Cite For

Failure to Disclose Financial Delinquencies on Security Clearance Applications
Lack of Credibility in Testimony Regarding Financial Responsibility
Impact of Personal Conduct 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 completed his security clearance application (SCA) and signed it in March 2012. He answered “no” to all questions about any financial delinquencies regarding his accounts, including if he had accounts that were 120 days delinquent. At his hearing, Applicant admitted he should have answered “yes.” He admitted he was aware of their delinquencies, but was not aware of the extent. He stated at the time he was only aware of their delinquent medical debts, and he did not think they were a concern, so did not disclose them. Applicant’s testimony was not credible. I find at the time Applicant completed his SCA he was aware he had delinquent debts and deliberately failed to disclose them.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Denied	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant completed his security clearance application (SCA) and signed it in March 2012. He answered “no” to all questions about any financial delinquencies regarding his accounts, including if he had accounts that were 120 days delinquent. At his hearing, Applicant admitted he should have answered “yes.” He admitted he was aware of their delinquencies, but was not aware of the extent. He stated at the time he was only aware of their delinquent medical debts, and he did not think they were a concern, so did not disclose them. Applicant’s testimony was not credible. I find at the time Applicant completed his SCA he was aware he had delinquent debts and deliberately failed to disclose them.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Denied

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	charged-off individual credit union credit card account ($14,732) that Applicant opened in 2003, prior to his marriage. He stated that he thought he had closed the account and the amount owed was less than the current balance. This account is not attributed to his wife. The last activity on the account was 2008. It is unpaid. $14,732	Against Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	a collection account for an individual credit card account ($13,133) opened at a luxury store in 2006. Applicant indicated he thinks he opened this account because his wife could not get credit. The last activity on the account was 2008. It is unpaid. $13,133	Against Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	charged-off individual credit card account ($8,497) in Applicant’s name. The last activity on the account was 2008. It is unpaid. $8,497	Against Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	charged-off joint credit card account ($6,560) opened at a luxury store in 2005. The last activity was 2008. It is unpaid. $6,560	Against Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	charged-off individual credit card account ($5,755) in Applicant’s name opened in 2005. The last activity was in 2008. It is unpaid. $5,755	Against Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	charged-off individual credit card account ($5,053) in Applicant’s name opened in July 2006. The last activity was 2008. $5,053	Against Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	charged-off joint department store credit card account ($3,518) opened in July 2004, and the last activity was 2008. $3,518	Against Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	charged-off individual home improvement store credit card account ($3,362). It was opened in February 2006 and charged off in April 2008. Applicant believed he purchased home appliances with the account, but his wife failed to pay the bill. $3,362	Against Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	charged-off joint credit card account to a woman’s clothing store ($3,028). It was opened in 2005, and the last activity was in 2008. Applicant admitted he was aware of this account. $3,028	Against Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.j	medical accounts that Applicant’s wife is disputing and refuses to pay. No documents were provided to show the basis of the dispute or actions taken to resolve the debts. Applicant indicated the bills were from 2014, and his wife believes the claims were not properly submitted to the insurance company. They remain unresolved.	Against Applicant	Medical Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.k	medical accounts that Applicant’s wife is disputing and refuses to pay. No documents were provided to show the basis of the dispute or actions taken to resolve the debts. Applicant indicated the bills were from 2014, and his wife believes the claims were not properly submitted to the insurance company. They remain unresolved.	Against Applicant	Medical Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.l	a satellite television bill ($385). Applicant indicated that he discontinued services with the company because it was unreliable, and he thought he paid the final bill. He did not provide proof of payment. $385	Against Applicant	Utility or Phone Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.m	medical accounts that Applicant’s wife is disputing and refuses to pay. No documents were provided to show the basis of the dispute or actions taken to resolve the debts. Applicant indicated the bills were from 2014, and his wife believes the claims were not properly submitted to the insurance company. They remain unresolved.	Against Applicant	Medical Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.n	medical accounts that Applicant’s wife is disputing and refuses to pay. No documents were provided to show the basis of the dispute or actions taken to resolve the debts. Applicant indicated the bills were from 2014, and his wife believes the claims were not properly submitted to the insurance company. They remain unresolved.	Against Applicant	Medical Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.o	medical accounts that Applicant’s wife is disputing and refuses to pay. No documents were provided to show the basis of the dispute or actions taken to resolve the debts. Applicant indicated the bills were from 2014, and his wife believes the claims were not properly submitted to the insurance company. They remain unresolved.	Against Applicant	Medical Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.p	medical accounts that Applicant’s wife is disputing and refuses to pay. No documents were provided to show the basis of the dispute or actions taken to resolve the debts. Applicant indicated the bills were from 2014, and his wife believes the claims were not properly submitted to the insurance company. They remain unresolved.	Against Applicant	Medical Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.q	a bill for Internet service ($92) that was sent to collection in 2011. Applicant stated he paid this bill. He indicated he had the receipt. I accept his testimony and will consider the bill paid. $92	For Applicant	Utility or Phone Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	—
1.r	medical accounts that Applicant’s wife is disputing and refuses to pay. No documents were provided to show the basis of the dispute or actions taken to resolve the debts. Applicant indicated the bills were from 2014, and his wife believes the claims were not properly submitted to the insurance company. They remain unresolved.	Against Applicant	Medical Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.s	medical accounts that Applicant’s wife is disputing and refuses to pay. No documents were provided to show the basis of the dispute or actions taken to resolve the debts. Applicant indicated the bills were from 2014, and his wife believes the claims were not properly submitted to the insurance company. They remain unresolved.	Against Applicant	Medical Debt	Denied	(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

charged-off individual credit union credit card account ($14,732) that Applicant opened in 2003, prior to his marriage. He stated that he thought he had closed the account and the amount owed was less than the current balance. This account is not attributed to his wife. The last activity on the account was 2008. It is unpaid.

$14,732

Against Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

a collection account for an individual credit card account ($13,133) opened at a luxury store in 2006. Applicant indicated he thinks he opened this account because his wife could not get credit. The last activity on the account was 2008. It is unpaid.

$13,133

Against Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

charged-off individual credit card account ($8,497) in Applicant’s name. The last activity on the account was 2008. It is unpaid.

$8,497

Against Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

charged-off joint credit card account ($6,560) opened at a luxury store in 2005. The last activity was 2008. It is unpaid.

$6,560

Against Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

charged-off individual credit card account ($5,755) in Applicant’s name opened in 2005. The last activity was in 2008. It is unpaid.

$5,755

Against Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

charged-off individual credit card account ($5,053) in Applicant’s name opened in July 2006. The last activity was 2008.

$5,053

Against Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

charged-off joint department store credit card account ($3,518) opened in July 2004, and the last activity was 2008.

$3,518

Against Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

charged-off individual home improvement store credit card account ($3,362). It was opened in February 2006 and charged off in April 2008. Applicant believed he purchased home appliances with the account, but his wife failed to pay the bill.

$3,362

Against Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i

charged-off joint credit card account to a woman’s clothing store ($3,028). It was opened in 2005, and the last activity was in 2008. Applicant admitted he was aware of this account.

$3,028

Against Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.j

medical accounts that Applicant’s wife is disputing and refuses to pay. No documents were provided to show the basis of the dispute or actions taken to resolve the debts. Applicant indicated the bills were from 2014, and his wife believes the claims were not properly submitted to the insurance company. They remain unresolved.

Against Applicant

Medical Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.k

Against Applicant

Medical Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.l

a satellite television bill ($385). Applicant indicated that he discontinued services with the company because it was unreliable, and he thought he paid the final bill. He did not provide proof of payment.

$385

Against Applicant

Utility or Phone Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.m

Against Applicant

Medical Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.n

Against Applicant

Medical Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.o

Against Applicant

Medical Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.p

Against Applicant

Medical Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.q

a bill for Internet service ($92) that was sent to collection in 2011. Applicant stated he paid this bill. He indicated he had the receipt. I accept his testimony and will consider the bill paid.

$92

For Applicant

Utility or Phone Debt

Admitted

—

(d) good-faith effort to repay or otherwise resolve debts

—

1.r

Against Applicant

Medical Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.s

Against Applicant

Medical Debt

Denied

(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