ISCR Case 01-02441.h1

Case Headnote

ISCR Case No. 01-02441.h1

deniedMar 27, 2003· Hon. Claude R. Heiny II· hearing

Summary

A 41-year-old defense contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from approximately $10,800 in unpaid debts and multiple instances of falsification on his security clearance application.

Specifically, the Applicant answered "no" to questions on his September 1999 SF-86 regarding debts delinquent over 180 days and current delinquencies over 90 days. In September 2000, he provided false information in a sworn statement concerning a credit union debt. The Applicant admitted to these falsifications, stating he was embarrassed by his outstanding debts and did not fully understand the consequences. His debts included $2,569 to a credit card company and $8,019.11 to a credit union, both charged off, plus $255 in unpaid state taxes.

The judge determined that the Applicant admitted to significant debts and falsifying information. He failed to demonstrate a good faith effort to repay his debts or mitigate the financial issues, and no mitigating conditions were found applicable to his conduct. Consequently, the security clearance was denied.

Why the Applicant Was Denied

The Applicant admitted to owing significant debts and falsifying information on his security clearance application.
The Applicant failed to demonstrate a good faith effort to repay his debts or to mitigate the financial issues.
The judge found no mitigating conditions applicable to the Applicant's conduct.

Conditions Referenced

Disqualifying

E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations.
E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts.
E2.A5.1.2.2raisedThe Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts.
E2.A5.1.2.3raisedDeliberately Providing False or Misleading Information Concerning Relevant and Material Matters.

Key Rule Quoted

“Complete honesty and candor on the part of applicants for access to classified information is essential to make an accurate and meaningful security clearance determination.”
— Department of Navy v. Egan, 484 U.S. 518, 531 (1988)

Procedural Posture

SOR issuedSep 16, 2002
Answer filedSep 29, 2002Applicant elected to have the case decided on the written record.
Hearing held—No hearing; decision based on written record.
Decision dateMar 27, 2003

Cite For

Denial of Clearance Due to Financial Irresponsibility Under Guideline F
Falsification of Information on Security Clearance Applications Under Guideline E
Insufficient Evidence of Mitigation in Cases of Financial Difficulties and Personal Conduct Issues.

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	In September 1999, the Applicant completed a Questionnaire for National Security Positions, Standard Form (SF) 86). He answered "no" to question 38, which asked if he had been more than 180 days delinquent on any debt during the prior seven years. He also answered "no" to question 39, which asked if the Applicant was currently more than 90 days delinquent with any debt.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Admitted	(b) deliberately providing false information to an investigator or official	—	—
2.b	In September 2000, he gave false information in a signed, sworn statement about paying his credit union debt.	Against Applicant	Lack of Candor in InterviewFOUND DELIBERATE	Financial	Admitted	(b) deliberately providing false information to an investigator or official	—	—
2.c	The Applicant admits he falsified and sought to conceal facts about his financial history because he was embarrassed about his outstanding debts and did not fully realize the consequences of his actions.	Against Applicant	Pattern of Dishonesty or Rule ViolationsFOUND DELIBERATE	Financial	Admitted	(b) deliberately providing false information to an investigator or official	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

In September 1999, the Applicant completed a Questionnaire for National Security Positions, Standard Form (SF) 86). He answered "no" to question 38, which asked if he had been more than 180 days delinquent on any debt during the prior seven years. He also answered "no" to question 39, which asked if the Applicant was currently more than 90 days delinquent with any debt.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Admitted

(b) deliberately providing false information to an investigator or official

—

2.b

In September 2000, he gave false information in a signed, sworn statement about paying his credit union debt.

Against Applicant

Lack of Candor in InterviewFOUND DELIBERATE

Financial

Admitted

(b) deliberately providing false information to an investigator or official

—

2.c

The Applicant admits he falsified and sought to conceal facts about his financial history because he was embarrassed about his outstanding debts and did not fully realize the consequences of his actions.

Against Applicant

Pattern of Dishonesty or Rule ViolationsFOUND DELIBERATE

Financial

Admitted

(b) deliberately providing false information to an investigator or official

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	The Applicant is indebted to a credit card company in the amount of $2,569.00, an amount which was charged off. $2,569	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	The Applicant is indebted to a credit union in the amount of $8,019.11, which was charged off. $8,019	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	The Applicant owed the state $255.00 for unpaid taxes. $255	Against Applicant	Tax Unpaid	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

The Applicant is indebted to a credit card company in the amount of $2,569.00, an amount which was charged off.

$2,569

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

The Applicant is indebted to a credit union in the amount of $8,019.11, which was charged off.

$8,019

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

The Applicant owed the state $255.00 for unpaid taxes.

$255

Against Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Loading case…

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

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES