ISCR Case 01-06276.h1

Case Headnote

ISCR Case No. 01-06276.h1

grantedMay 1, 2002· Hon. Kathryn Moen Braeman· hearing

Summary

A 35-year-old male applicant with a military background was granted a security clearance despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons detailed several financial issues, including a $666 judgment for unpaid state taxes from February 2001, and a $1,700 judgment from Creditor #1 in October 1996, which was later satisfied. Another debt of $13,438 to Creditor #2, charged off in October 1996 for a totaled car, was also satisfied.

Further allegations included a $334 debt to Creditor #3 placed for collection in February 2001, which the applicant claimed to have paid in 2000 without documentation. He was also behind on a $1,694 debt to Creditor #4 in September 2001, though he stated he made a $200 payment in October 2001 to bring it current, again without documentation. Finally, a $200 debt to Creditor #5 was placed for collection in September 2001, which the applicant was unaware of and intended to research.

The judge found that the applicant did not intend to falsify information and had made significant efforts to address his financial obligations. He demonstrated a commitment to resolving his financial issues, including a payment plan for state taxes, and provided evidence of good character and integrity from his employer and a family friend. His financial problems were largely resolved, and he now lives within his means, leading to the granted security clearance.

Why the Applicant Prevailed

The applicant demonstrated a commitment to resolving his financial issues, including a payment plan for state taxes.
He provided evidence of good character and integrity through references from his employer and a family friend.
The applicant's financial problems were largely resolved, and he now lives within his means.

Conditions Referenced

Disqualifying

F1raisedA History of Not Meeting Financial Obligations
F3raisedInability or Unwillingness to Satisfy Debts
E2raisedThe Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts

Mitigating

F4appliedThere Are Clear Indications That the Problem Is Being Resolved or Is Under Control
F6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
E3appliedThe Individual Made Prompt, Good-faith Efforts to Correct the Falsification Before Being Confronted with the Facts

Key Rule Quoted

“The responsibility for producing evidence initially falls on the Government to demonstrate that it is not clearly consistent with the national interest to grant or continue Applicant's access to classified information.”

Procedural Posture

SOR issuedSep 19, 2001
Answer filedOct 15, 2001Notarized response submitted.
Hearing held—Decision made on the record without a hearing.
Decision dateMay 1, 2002

Cite For

Mitigation of Financial Concerns Under Guideline F
Good Character and Integrity as Mitigating Factors Under Guideline E
Intent to Omit Information as a Non-falsifying Act in Security Clearance Applications

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–2.c	3 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant		—		—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a–2.c

3 sub-charges — specific text not stated in this decision (for the applicant).

For Applicant

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	A State #1 judgment from February 2001 for unpaid state taxes of $666. $666	For Applicant	Tax Unpaid	Denied	—	—	—
1.b	In October 1996 Creditor #1 filed a judgment against him of $1,700; however, the creditor (previously known as Creditor #2) advised that the debt was satisfied. $1,700	For Applicant	Unspecified Financial	Denied	—	—	—
1.c	A credit report reported that in October 1996 Creditor #2 charged off as a bad debt a loan of $13,438; however, this debt was for a car that was totaled and the creditor stated that the debt was satisfied. $13,438	For Applicant	Auto Loan Debt	Denied	—	—	—
1.d	His debt of $334 to Creditor #3 was placed for collection in February 2001; he claims to have paid the debt in 2000, but provided no documentation. $334	For Applicant	Unspecified Financial	Denied	—	—	—
1.e	In September 2001, he was behind in paying his debt to Creditor #4 for $1,694, as he did not pay the credit card debt for three months in July, August, and September 2001; but in October 2001 he stated he paid $200 to bring it current, but provided no documentation. $1,694	For Applicant	Credit Card Debt	Denied	—	—	—
1.f	His debt to Creditor #5 of $200 was placed for collection in September 2001; however, he claimed to be unaware of this creditor and said he would research the debt, but provided no additional information at the time of his response to the FORM. $200	For Applicant	Unspecified Financial	Denied	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

A State #1 judgment from February 2001 for unpaid state taxes of $666.

$666

For Applicant

Tax Unpaid

Denied

—

1.b

In October 1996 Creditor #1 filed a judgment against him of $1,700; however, the creditor (previously known as Creditor #2) advised that the debt was satisfied.

$1,700

For Applicant

Unspecified Financial

Denied

—

1.c

A credit report reported that in October 1996 Creditor #2 charged off as a bad debt a loan of $13,438; however, this debt was for a car that was totaled and the creditor stated that the debt was satisfied.

$13,438

For Applicant

Auto Loan Debt

Denied

—

1.d

His debt of $334 to Creditor #3 was placed for collection in February 2001; he claims to have paid the debt in 2000, but provided no documentation.

$334

For Applicant

Unspecified Financial

Denied

—

1.e

In September 2001, he was behind in paying his debt to Creditor #4 for $1,694, as he did not pay the credit card debt for three months in July, August, and September 2001; but in October 2001 he stated he paid $200 to bring it current, but provided no documentation.

$1,694

For Applicant

Credit Card Debt

Denied

—

1.f

His debt to Creditor #5 of $200 was placed for collection in September 2001; however, he claimed to be unaware of this creditor and said he would research the debt, but provided no additional information at the time of his response to the FORM.

$200

For Applicant

Unspecified Financial

Denied

—

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Case Profile

Summary

Why the Applicant Prevailed

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