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ISCR Case 02-03627.h1 — CASE

Case record

ISCR Case 02-03627.h1

A decided public DOHA case, shown for research — not advice or a prediction.

Case Profile
Decision Date9/30/2002
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Judge: John R. Erck
Applicant Representation: Pro Se
Case Summary
The judge found that the applicant did not intentionally withhold information regarding his delinquent debts on the SF 86. The applicant's explanation of misunderstanding the question was deemed credible, leading to a finding in favor of the applicant under Guideline E.
Guidelines Evaluated
- Guideline EPersonal Conduct · Unknown Outcome
- Guideline FFinancial Considerations · Unknown Outcome
Similar decisions
Other decisions whose allegations read most like this one. Descriptive similarity of the allegations only — not a prediction.
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Case Headnote

ISCR Case No. 02-03627.h1

deniedSep 30, 2002· Hon. John R. Erck· hearing

Summary

A 30-year-old military veteran's security clearance was denied due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant had over $13,000 in delinquent debts, including an $8,094.13 educational debt, a $472.00 credit card debt, a $78.00 medical debt, and a $2,150.00 debt to a collection agency. He also failed to disclose these delinquent financial obligations on his security clearance application (SF 86).

Despite the applicant's assurances of working on a debt consolidation plan, no progress had been made in resolving the debts over an 18-month period since he was first questioned about his finances. The judge determined that the applicant's additional financial responsibilities for his fiancée and her children would likely prevent him from improving his financial situation in the foreseeable future.

Consequently, the security clearance was denied, citing the applicant's substantial delinquent financial obligations, lack of progress in addressing them, and the failure to disclose these debts on his application.

Why the Applicant Was Denied

The applicant has over $13,000 in delinquent financial obligations and has not made progress in addressing them for 18 months.
The applicant's financial responsibilities for his fiancée and her children hinder his ability to resolve his debts.
The applicant's failure to disclose his delinquent debts on the SF 86 raises security concerns.

Conditions Referenced

Disqualifying

E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
E2.A6.1.2.3raisedInability or Unwilling to Satisfy Debts

Key Rule Quoted

“A person who seeks access to classified information enters a fiduciary relationship with the Government predicated upon trust and confidence.”
— Department of Navy v. Egan, 484 U.S. 518, 531 (1988)

Procedural Posture

SOR issuedApr 5, 2002
Answer filedApr 26, 2002Applicant requested a decision without a hearing.
Hearing held—
Decision dateSep 30, 2002

Cite For

Denial of Clearance Due to Significant Delinquent Debts Under Guideline F
Failure to Disclose Financial Obligations on Security Clearance Application Under Guideline E
Impact of Personal Financial Responsibilities on Security Clearance Eligibility

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

Standardized Decision Profile

SEAD-4 Guideline E (Personal Conduct) · descriptive summary of a decided case

Posture: Decision on RecordDecided: denied

The judge found that the applicant did not intentionally withhold information regarding his delinquent debts on the SF 86. The applicant's explanation of misunderstanding the question was deemed credible, leading to a finding in favor of the applicant under Guideline E.

¶	Allegation	Finding	Conduct	Concealed Issue	Response	Disqualifying (¶16)	Mitigating applied (¶17)	Mitigation
2.a	specific text not stated in this decision	For Applicant	Unspecified Personal Conduct	—	Denied	—	—	—

Descriptive standardized rendering of a decided public case (Guideline E). The verbatim source decision is shown in full below.

Standardized Decision Profile

SEAD-4 Guideline F · descriptive summary of a decided case

Posture: Decision on RecordDecided: denied

The judge found that the applicant had over $13,000 in delinquent financial obligations and had not made progress in addressing these debts over an 18-month period. Despite the applicant's intentions to pay off his debts, the judge concluded that the financial situation raised significant security concerns, resulting in a denial of the security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant is behind in paying financial obligations totaling more than $13,000.00. $13,000	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.b	Applicant incurred additional debt to finance his education at a trade school. He ultimately incurred education-related indebtedness of $8,094.13 to Creditor B--which became delinquent in late 2000. $8,094	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.c	Applicant became delinquent on other obligations: an indebtedness of $472.00 to Creditor C, a bank, incurred on a credit card; an indebtedness of $78.00 to Creditor D for medical care; and an indebtedness of $2,150.00 to Creditor E, a collection agency. $2,700	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.d	Applicant has not made any progress in the 18 months since he was first questioned about his finances, and he is unlikely to make progress in the foreseeable future given the extent of his other financial responsibilities.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.f	Applicant indicated his delinquent debt is more than $14,000.00, and provides assurances he is working on a debt consolidation plan. $14,000	For Applicant	Unspecified Financial	Admitted	—	(c) received/receiving counseling; problem being resolved	Claimed Debt Paid in Full

Descriptive standardized rendering of a decided public case (Guideline F). The verbatim source decision is shown in full below.

Full decision

The complete, official text — footnotes and signatures included — is in the original PDF.