ISCR Case 02-00042.h1

Case Headnote

ISCR Case No. 02-00042.h1

deniedNov 12, 2003· Hon. Joan Caton Anthony· hearing

Summary

A 43-year-old furniture mover with a high school education was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from his failure to disclose significant financial delinquencies on his SF-86, specifically answering "no" to questions regarding debts over 90 and 180 days delinquent.

The applicant had a history of financial problems, exacerbated by unemployment, leading to several outstanding debts. While he had paid some debts, his wife paid another, and he established payment plans for an education loan and other obligations. He was also in arrears on child support due to unsteady employment, though child support for one child had terminated. The applicant denied one debt without evidence and could not disprove another. His financial statements were inconclusive regarding his ability to pay.

Ultimately, the clearance was denied because the applicant failed to disclose financial delinquencies on his SF-86 and offered no credible explanation for these omissions. His current unemployment and ongoing financial issues further raised doubts about his ability to meet future financial obligations, impacting his trustworthiness and reliability.

Why the Applicant Was Denied

The applicant failed to disclose financial delinquencies on his SF-86, which raised concerns about his trustworthiness and reliability.
The applicant provided no credible explanation for the falsification of his SF-86 responses regarding financial delinquencies.
The applicant's current unemployment and ongoing financial issues cast doubt on his ability to meet future obligations.

Conditions Referenced

Disqualifying

E2.A5.1.2.2appliedDeliberate Omission, Concealment, or Falsification of Relevant and Material Facts
E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts

Mitigating

E2.A6.1.3.6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
E2.A6.1.3.3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control
E2.A5.1.3.2rejectedThe Falsification Was an Isolated Incident, Was Not Recent, and the Individual Has Subsequently Provided Correct Information Voluntarily

Key Rule Quoted

“"[N]o one has a 'right' to a security clearance."”
— Department of the Navy v. Egan, 484 U.S. 518, 528 (1988)

Procedural Posture

SOR issuedApr 30, 2003
Answer filedMay 22, 2003
Hearing heldJul 8, 2003
Decision dateNov 12, 2003

Cite For

Failure to Disclose Financial Delinquencies on SF-86 Under Guideline E
Impact of Financial Issues on Security Clearance Eligibility Under Guideline F
Credibility of Applicant's Explanations for Financial Conduct

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	On February 22, 2001, Applicant executed a Security Clearance Application (SF-86) containing a question numbered 39, which reads as follows: Your Financial Delinquencies - 90 Days Are you currently over 90 days delinquent on any debt(s)? In response to question 39, Applicant answered "no." Applicant also responded "no" to Question 38 on his SF-86. Question 38 reads as follows: Your Financial Delinquencies - 180 Days In the last 7 years, have you been over 180 days delinquent on any debt(s)?	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Denied	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

On February 22, 2001, Applicant executed a Security Clearance Application (SF-86) containing a question numbered 39, which reads as follows: Your Financial Delinquencies - 90 Days Are you currently over 90 days delinquent on any debt(s)? In response to question 39, Applicant answered "no." Applicant also responded "no" to Question 38 on his SF-86. Question 38 reads as follows: Your Financial Delinquencies - 180 Days In the last 7 years, have you been over 180 days delinquent on any debt(s)?

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Denied

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant has paid the debt attributed to this allegation.	For Applicant	Unspecified Financial	Admitted	—	—	—
1.b	Applicant's wife paid the debt attributed to this allegation.	For Applicant	Unspecified Financial	Admitted	—	—	—
1.c	Applicant has paid the debt attributed to this allegation.	For Applicant	Unspecified Financial	Admitted	—	—	—
1.d	Applicant was unable to provide evidence that this debt was not his.	Against Applicant	Unspecified Financial	Denied	—	—	—
1.e	Applicant has a current arrangement to pay this education loan.	For Applicant	Student Loan Debt	Admitted	—	—	—
1.f	Applicant is in arrears on child support payments due to unsteady employment.	For Applicant	Child Support Debt	Admitted	—	—	—
1.g	Applicant has provided evidence that child support for one child was terminated.	For Applicant	Child Support Debt	Admitted	—	—	—
1.h	Applicant has provided evidence of a payment plan for this debt.	For Applicant	Unspecified Financial	Admitted	—	—	—
1.i	Applicant has provided evidence of a payment plan for this debt.	For Applicant	Unspecified Financial	Admitted	—	—	—
1.j	Applicant denied the existence of this debt but did not provide evidence to support his claim.	Against Applicant	Unspecified Financial	Denied	—	—	—
1.k	Applicant's financial statements were inconclusive and did not support his ability to pay debts.	For Applicant	Unspecified Financial	Denied	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant has paid the debt attributed to this allegation.

For Applicant

Unspecified Financial

Admitted

—

1.b

Applicant's wife paid the debt attributed to this allegation.

For Applicant

Unspecified Financial

Admitted

—

1.c

Applicant has paid the debt attributed to this allegation.

For Applicant

Unspecified Financial

Admitted

—

1.d

Applicant was unable to provide evidence that this debt was not his.

Against Applicant

Unspecified Financial

Denied

—

1.e

Applicant has a current arrangement to pay this education loan.

For Applicant

Student Loan Debt

Admitted

—

1.f

Applicant is in arrears on child support payments due to unsteady employment.

For Applicant

Child Support Debt

Admitted

—

1.g

Applicant has provided evidence that child support for one child was terminated.

For Applicant

Child Support Debt

Admitted

—

1.h

Applicant has provided evidence of a payment plan for this debt.

For Applicant

Unspecified Financial

Admitted

—

1.i

Applicant has provided evidence of a payment plan for this debt.

For Applicant

Unspecified Financial

Admitted

—

1.j

Applicant denied the existence of this debt but did not provide evidence to support his claim.

Against Applicant

Unspecified Financial

Denied

—

1.k

Applicant's financial statements were inconclusive and did not support his ability to pay debts.

For Applicant

Unspecified Financial

Denied

—

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