ISCR Case 14-01884.h1

Case Headnote

ISCR Case No. 14-01884.h1

deniedMar 31, 2015· Hon. Philip S. Howe· hearing

Summary

A 33-year-old married defense contractor with two children was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from unresolved financial debts and the falsification of his security clearance application. The applicant admitted to falsifying Section 26 of his e-QIP regarding financial delinquencies.

Specific financial concerns included an unresolved cell phone debt of $443 from 2013, which the applicant claimed was paid but provided no proof. A significant mortgage debt of $42,762 on a rental property was 180 days past due and in foreclosure, with a total balance of $267,918. The applicant asserted the house was sold and he was no longer indebted, but provided no supporting documentation, and the October 2014 credit report still showed the debt in foreclosure. Additionally, a $65 collection account from 2010 remained unresolved, with the applicant claiming payment without proof.

The judge found that the applicant failed to provide sufficient evidence to mitigate the security concerns. Despite claiming to have resolved all debts on a specific date, he offered no explanation or documentation for these payments. The applicant's admission to falsifying his e-QIP and his failure to provide documentary evidence for debt resolution, coupled with the unresolved financial issues, indicated poor judgment, leading to the denial of his security clearance.

Why the Applicant Was Denied

Applicant admitted to all allegations, including falsification of his e-QIP.
Applicant failed to provide documentary evidence to support claims of debt resolution.
The applicant's financial issues were unresolved and indicated poor judgment.

Conditions Referenced

Disqualifying

F.1.araisedInability or Unwillingness to Satisfy Debts
F.1.craisedA History of Not Meeting Financial Obligations
E.2.araisedDeliberate Omission, Concealment, or Falsification of Relevant Facts

Mitigating

F.2.brejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlApplicant did not provide sufficient evidence to show that his wife's job loss significantly affected his financial situation.
F.2.drejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant failed to provide documentation supporting his claims of debt payments.

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 issuedJun 26, 2014
Answer filedJul 21, 2014
Hearing held—Applicant requested decision based on written record.
Decision dateMar 31, 2015

Cite For

Denial of Security Clearance Due to Unresolved Financial Obligations
Falsification of Information on Security Clearance Application
Lack of Evidence to Mitigate Financial Concerns Under Guideline F and Personal Conduct Under Guideline E

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 admitted he falsified his answer to Section 26 about any financial delinquencies on the e-QIP.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Admitted	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant admitted he falsified his answer to Section 26 about any financial delinquencies on the e-QIP.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Admitted

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant owed $443 on a cell telephone debt dating from 2013. As of the date of the SOR the debt was not paid, but Applicant’s Answer states it was paid July 7, 2014. The debt does not appear on the October 2014 credit report, but does appear on the 2013 and 2012 credit reports. Applicant did not support his assertion of payment with any documentary proof of actual payment. This debt is unresolved. $443	Against Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	Applicant owed a bank $42,762 on a mortgage account that was 180 days past due at the time of the SOR was issued. The account is in foreclosure and the balance of the mortgage debt is $267,918. Applicant asserts in his Answer that on July 7, 2014, the bank told him the house was sold on April 27, 2014, and he is no longer indebted to the bank for $42,762. Applicant did not submit any documents to verify his claim. He also submitted a letter dated July 18, 2014, stating that this property was a rental home and that he “took steps” for the property to be sold in a “short sale.” He states further that he “assumed this had been taken care of” and that is why he did not think he had any delinquent accounts. Applicant submitted a letter from the mortgage company dated June 17, 2014. This letter stated the foreclosure started on October 22, 2010, and the property was sold on June 27, 2013. It provides other information to Applicant but does not state he no longer owes any additional money. The October 2014 credit report shows the debt is in foreclosure. This debt is unresolved. $42,762	Against Applicant	Mortgage or Home Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	Applicant owed $65 on an account in collection to a local organization dating from 2010. Applicant contends he paid the debt on July 7, 2014, but does not submit any documents to show it was paid. This debt is on the 2012 credit report, but not the 2013 and 2014 credit report. While Applicant claims all his debts were paid on July 7, 2014, he does not submit any explanation as to what occurred on that date to pay the debts or that he actually paid them, causing them to be removed from his credit report. This debt is unresolved and is owed. $65	Against Applicant	Unspecified Financial	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

Applicant owed $443 on a cell telephone debt dating from 2013. As of the date of the SOR the debt was not paid, but Applicant’s Answer states it was paid July 7, 2014. The debt does not appear on the October 2014 credit report, but does appear on the 2013 and 2012 credit reports. Applicant did not support his assertion of payment with any documentary proof of actual payment. This debt is unresolved.

$443

Against Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

Applicant owed a bank $42,762 on a mortgage account that was 180 days past due at the time of the SOR was issued. The account is in foreclosure and the balance of the mortgage debt is $267,918. Applicant asserts in his Answer that on July 7, 2014, the bank told him the house was sold on April 27, 2014, and he is no longer indebted to the bank for $42,762. Applicant did not submit any documents to verify his claim. He also submitted a letter dated July 18, 2014, stating that this property was a rental home and that he “took steps” for the property to be sold in a “short sale.” He states further that he “assumed this had been taken care of” and that is why he did not think he had any delinquent accounts. Applicant submitted a letter from the mortgage company dated June 17, 2014. This letter stated the foreclosure started on October 22, 2010, and the property was sold on June 27, 2013. It provides other information to Applicant but does not state he no longer owes any additional money. The October 2014 credit report shows the debt is in foreclosure. This debt is unresolved.

$42,762

Against Applicant

Mortgage or Home Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

Applicant owed $65 on an account in collection to a local organization dating from 2010. Applicant contends he paid the debt on July 7, 2014, but does not submit any documents to show it was paid. This debt is on the 2012 credit report, but not the 2013 and 2014 credit report. While Applicant claims all his debts were paid on July 7, 2014, he does not submit any explanation as to what occurred on that date to pay the debts or that he actually paid them, causing them to be removed from his credit report. This debt is unresolved and is owed.

$65

Against Applicant

Unspecified Financial

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