ISCR Case 14-04834.h1

Case Headnote

ISCR Case No. 14-04834.h1

deniedFeb 9, 2016· Hon. Wilford H. Ross· hearing

Summary

A 36-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 the applicant's intentional falsification of his security clearance application (e-QIP) regarding past drug and alcohol-related criminal charges, which he claimed was due to misreading an unambiguous question. This act raised significant doubts about his reliability and trustworthiness.

Additionally, the applicant faced several financial issues. He had a judgment of $5,904 for a repossessed vehicle and a $727 debt for another repossessed vehicle, both with payment arrangements in place and reported as "Pays account as agreed." A past-due mortgage debt of $34,643 was resolved through a loan modification, resulting in current payments. However, he admitted to two past-due credit card debts of $257 and $323, stating he would make arrangements but providing no further evidence of payments.

Despite some financial issues being resolved or having payment plans, the applicant failed to provide evidence of financial counseling or a personal financial statement. The intentional falsification on his e-QIP, coupled with the unresolved financial matters and lack of mitigating financial actions, ultimately led to the denial of his security clearance.

Why the Applicant Was Denied

The applicant intentionally falsified his e-QIP by denying past criminal charges, which raised questions about his reliability and trustworthiness.
The applicant failed to provide evidence of financial counseling or a personal financial statement to address his financial issues.
The applicant's financial problems, while mostly resolved, did not mitigate the concerns raised by his personal conduct.

Conditions Referenced

Disqualifying

AG ¶ 16(a)appliedDeliberate Omission, Concealment, or Falsification of Relevant Facts

Mitigating

AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue Creditors or Resolve DebtsWhile some debts were being resolved, the applicant did not demonstrate a good-faith effort regarding all debts.
AG ¶ 20(c)rejectedIndications That the Problem Is Being Resolved or Is Under ControlThe applicant's financial issues were not fully resolved, particularly two small debts.

Key Rule Quoted

“Conduct involving questionable judgment, lack of candor, dishonesty or unwillingness to comply with rules or regulations can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”

Procedural Posture

SOR issuedMar 27, 2015
Answer filedApr 15, 2015Applicant requested a decision without a hearing.
Hearing held—No hearing was conducted.
Decision dateFeb 9, 2016

Cite For

Intentional Falsification of Security Clearance Application Under Guideline E
Financial Issues Impacting Security Clearance Eligibility Under Guideline F
Importance of Demonstrating Good-faith Efforts to Resolve Financial Debts

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 knowingly and purposely falsified his e-QIP on February 5, 2014. He alleges that his failure to acknowledge and list his drug and alcohol-related charges was due to misreading the question, and not an intentional act. However, the question is unambiguous. It simply strains credulity for Applicant to claim that a criminal charge is the same as a criminal conviction, when the questionnaire clearly separates the two.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Criminal Conduct	Denied	(a) deliberate omission, concealment, or falsification on a security form	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant knowingly and purposely falsified his e-QIP on February 5, 2014. He alleges that his failure to acknowledge and list his drug and alcohol-related charges was due to misreading the question, and not an intentional act. However, the question is unambiguous. It simply strains credulity for Applicant to claim that a criminal charge is the same as a criminal conviction, when the questionnaire clearly separates the two.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Criminal Conduct

Denied

(a) deliberate omission, concealment, or falsification on a security form

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant denied owing a credit union a judgment in the amount of $5,904 for a repossessed vehicle. He supplied documentation from the credit union showing that he has a payment arrangement with them and was paying on it. The available credit report indicates that Applicant, “Pays account as agreed,” for a voluntary repossession. $5,904	For Applicant	Unspecified Financial	Denied	—	—	—
1.b	Applicant denied owing this past-due mortgage debt to a bank in the amount of $34,643. According to Applicant, “I started a loan modification process with [the bank] at the beginning of 2014. That process took a very long time. I have attached documentation indicating that the loan was modified, the interest rate was reduced and my payments are approximately $204 less than before the modification. These payments are current.” $34,643	For Applicant	Mortgage or Home Loan Debt	Denied	—	—	—
1.c	Applicant admitted owing a past-due credit card debt in the amount of $257. He stated in Item 3 at page 1, “I will make arrangements immediately to make payments on [this debt].” Applicant did not provide any further information as to whether he has made any payments. $257	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.d	Applicant denied owing a credit union $727 for a repossessed vehicle. He supplied documentation from the credit union showing that he has a payment arrangement with them and was paying on it. The available credit report indicates that Applicant, “Pays account as agreed,” for a voluntary repossession. $727	For Applicant	Unspecified Financial	Denied	—	—	—
1.e	Applicant admitted owing a past-due credit card debt in the amount of $323. He stated in Item 3 at page 1, “I will make arrangements immediately to make payments on [this debt].” Applicant did not provide any further information as to whether he has made any payments. $323	Against Applicant	Credit Card Debt	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant denied owing a credit union a judgment in the amount of $5,904 for a repossessed vehicle. He supplied documentation from the credit union showing that he has a payment arrangement with them and was paying on it. The available credit report indicates that Applicant, “Pays account as agreed,” for a voluntary repossession.

$5,904

For Applicant

Unspecified Financial

Denied

—

1.b

Applicant denied owing this past-due mortgage debt to a bank in the amount of $34,643. According to Applicant, “I started a loan modification process with [the bank] at the beginning of 2014. That process took a very long time. I have attached documentation indicating that the loan was modified, the interest rate was reduced and my payments are approximately $204 less than before the modification. These payments are current.”

$34,643

For Applicant

Mortgage or Home Loan Debt

Denied

—

1.c

Applicant admitted owing a past-due credit card debt in the amount of $257. He stated in Item 3 at page 1, “I will make arrangements immediately to make payments on [this debt].” Applicant did not provide any further information as to whether he has made any payments.

$257

Against Applicant

Credit Card Debt

Admitted

—

1.d

Applicant denied owing a credit union $727 for a repossessed vehicle. He supplied documentation from the credit union showing that he has a payment arrangement with them and was paying on it. The available credit report indicates that Applicant, “Pays account as agreed,” for a voluntary repossession.

$727

For Applicant

Unspecified Financial

Denied

—

1.e

Applicant admitted owing a past-due credit card debt in the amount of $323. He stated in Item 3 at page 1, “I will make arrangements immediately to make payments on [this debt].” Applicant did not provide any further information as to whether he has made any payments.

$323

Against 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