ISCR Case 01-08198.h1

Case Headnote

ISCR Case No. 01-08198.h1

deniedMar 3, 2003· Hon. Darlene Lokey Anderson· hearing

Summary

A 27-year-old Applications Software Developer was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant had a history of excessive indebtedness and failed to disclose material facts on her security clearance application. While the judge found her omissions were not deliberate, her financial irresponsibility and lack of reform were significant issues.

Specifically, the applicant falsely answered "No" to a question about judgments against her, despite a $608.00 judgment from March 1996. She also failed to disclose a creditor to whom she was over 180 days delinquent. Her outstanding debts included $283.00 to a credit management company, $300.00 to a fitness center, $75.00 and $225.00 to a telephone company, $278.51 to a physician, $400.50 to one creditor, $3,912.00 to another, and $8,591.00 to a third. Additionally, she defaulted on 11 student loan accounts totaling $35,496.00. Several other debts were paid in full.

The denial was based on the applicant's long history of excessive financial indebtedness, which demonstrated poor judgment and unreliability. She failed to provide sufficient evidence of reform and rehabilitation regarding her financial issues, leading to the conclusion that her past debts and financial management raised significant security concerns.

Why the Applicant Was Denied

The applicant has a long history of excessive financial indebtedness, demonstrating poor judgment and unreliability.
The applicant failed to provide sufficient evidence of reform and rehabilitation regarding her financial issues.
The applicant's past debts and financial management raised significant security concerns.

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

Key Rule Quoted

“The adjudicative process is an examination of a sufficient period of a person's life to make an affirmative determination that the person is an acceptable security risk.”

Procedural Posture

SOR issuedAug 20, 2002
Answer filedSep 12, 2002Applicant elected to have the case determined on a written record.
Hearing held—No hearing; case determined on written record.
Decision dateMar 3, 2003

Cite For

Financial Irresponsibility as a Disqualifying Factor Under Guideline F
Failure to Disclose Material Facts on Security Clearance Applications Under Guideline E
Insufficient Evidence of Rehabilitation in Financial Matters as a Basis for Denial of Clearance

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 response to question 37, which asked, "In the last seven years have you had any judgments against you that have not been paid?" the Applicant answered "No". This was not a truthful statement. The truth is that the Applicant had a judgment entered against her in March 1996, in favor of a hospital, in the amount of $608.00.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATE	Criminal Conduct	Denied	—	—	—
2.b	The same questionnaire asked the Applicant in question 38, "In the last seven years, have you been over 180 days delinquent on any debt(s)?" The Applicant failed to disclose one creditor to whom she was indeed over 180 days delinquent.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATE	Other	Denied	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

In response to question 37, which asked, "In the last seven years have you had any judgments against you that have not been paid?" the Applicant answered "No". This was not a truthful statement. The truth is that the Applicant had a judgment entered against her in March 1996, in favor of a hospital, in the amount of $608.00.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATE

Criminal Conduct

Denied

—

2.b

The same questionnaire asked the Applicant in question 38, "In the last seven years, have you been over 180 days delinquent on any debt(s)?" The Applicant failed to disclose one creditor to whom she was indeed over 180 days delinquent.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATE

Other

Denied

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	remains indebted to several creditors, including a credit management company, in the amount of $283.00 $283	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.b	remains indebted to a telephone company for two accounts in the amount of $75.00 and $225.00 $300	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.c	remains indebted to a creditor in the amount of $3,912.00 $3,912	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.d	remains indebted to a physician for $278.51 $278	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.e	remains indebted to a creditor for $400.50 $400	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.h	remains indebted to a fitness center for $300.00 $300	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.j	remains indebted to a creditor for $8,591.00 $8,591	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.k	has defaulted on 11 student loan accounts with the United States Department of Education totaling $35,496.00 $35,496	Against Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.f	debts set forth under subparagraphs 1(f.) have been paid in full	For Applicant	Unspecified Financial	Admitted	—	—	—
1.g	debts set forth under subparagraphs 1(g.) have been paid in full	For Applicant	Unspecified Financial	Admitted	—	—	—
1.i	debts set forth under subparagraphs 1(i.) have been paid in full	For Applicant	Unspecified Financial	Admitted	—	—	—
1.o	debts set forth under subparagraphs 1(o.) have been paid in full	For Applicant	Unspecified Financial	Admitted	—	—	—
1.p	debts set forth under subparagraphs 1(p.) have been paid in full	For Applicant	Unspecified Financial	Admitted	—	—	—
1.q	debts set forth under subparagraphs 1(q.) have been paid in full	For Applicant	Unspecified Financial	Admitted	—	—	—
1.r	debts set forth under subparagraphs 1(r.) have been paid in full	For Applicant	Unspecified Financial	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

remains indebted to several creditors, including a credit management company, in the amount of $283.00

$283

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.b

remains indebted to a telephone company for two accounts in the amount of $75.00 and $225.00

$300

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.c

remains indebted to a creditor in the amount of $3,912.00

$3,912

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.d

remains indebted to a physician for $278.51

$278

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.e

remains indebted to a creditor for $400.50

$400

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.h

remains indebted to a fitness center for $300.00

$300

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.j

remains indebted to a creditor for $8,591.00

$8,591

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.k

has defaulted on 11 student loan accounts with the United States Department of Education totaling $35,496.00

$35,496

Against Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.f

debts set forth under subparagraphs 1(f.) have been paid in full

For Applicant

Unspecified Financial

Admitted

—

1.g

debts set forth under subparagraphs 1(g.) have been paid in full

For Applicant

Unspecified Financial

Admitted

—

1.i

debts set forth under subparagraphs 1(i.) have been paid in full

For Applicant

Unspecified Financial

Admitted

—

1.o

debts set forth under subparagraphs 1(o.) have been paid in full

For Applicant

Unspecified Financial

Admitted

—

1.p

debts set forth under subparagraphs 1(p.) have been paid in full

For Applicant

Unspecified Financial

Admitted

—

1.q

debts set forth under subparagraphs 1(q.) have been paid in full

For Applicant

Unspecified Financial

Admitted

—

1.r

debts set forth under subparagraphs 1(r.) have been paid in full

For Applicant

Unspecified Financial

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

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES