ISCR Case 02-13626.h1

Case Headnote

ISCR Case No. 02-13626.h1

deniedMar 30, 2004· Hon. Martin H. Mogul· hearing

Summary

A 47-year-old defense contractor employee was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from a history of unresolved financial difficulties and intentional misrepresentations on her Security Clearance Application (SCA).

The applicant had significant outstanding tax debts, including federal income taxes from 1994 through 2002, totaling $8,868.27 as of May 1, 1998, which led to wage garnishment. She also owed approximately $19,848 in state income taxes for tax years 1993 through 2002, despite recently beginning payments. Additionally, she filed for Chapter 13 bankruptcy three times between 1995 and 1997, but all cases were dismissed without discharging any debts. While some debts, such as a 1997 judgment for $1,122 and several credit card debts, were eventually resolved through garnishment or settlement, these issues contributed to the financial concerns.

Crucially, the applicant provided false information on her SCA. She answered "No" to questions about unpaid judgments, being over 180 days delinquent on debts, and being a party to public record civil court actions, despite having an outstanding 1997 judgment and being delinquent on multiple debts at the time. The judge found that her financial obligations were not met and that she intentionally provided false information, leading to the denial of her security clearance.

Why the Applicant Was Denied

The applicant has a long history of unresolved financial difficulties, including significant debts for federal and state taxes.
The applicant intentionally provided false information on her Security Clearance Application regarding her financial situation.

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.A5.1.2.2appliedThe Deliberate Omission, Concealment, Falsification or Misrepresentation of Relevant and Material Facts

Key Rule Quoted

“When such an individual intentionally falsifies material facts on a security clearance application, it is extremely difficult to conclude that she nevertheless possesses the judgment, reliability and trustworthiness required of clearance holders.”

Procedural Posture

SOR issuedAug 27, 2003
Answer filedOct 14, 2003Applicant responded to SOR allegations.
Hearing heldFeb 26, 2004Hearing conducted with no witnesses called.
Decision dateMar 30, 2004

Cite For

Denial Based on Unresolved Financial Obligations Under Guideline F
Intentional Misrepresentation on Security Clearance Application Under Guideline E
Lack of Mitigating Conditions for 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 the last 7 years, have you had any judgements against you that have not been paid? Applicant answered "No" to this question. At the time she completed the SCA, Applicant was delinquent on a judgement from 1997 in the amount of $1,122, as alleged in 1.e. of the SOR. She should have answered "yes" to this question and referred to this judgment.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Criminal Conduct	Denied	(b) deliberately providing false information to an investigator or official	—	—
2.b	In the last 7 years, have you been over 180 days delinquent on any debt(s)? Applicant answered "No" to this question. At the time she completed the SCA, Applicant was delinquent on all of the debts discussed above, and she should have answered "yes" to this question and included the debts listed in the SOR.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Denied	(b) deliberately providing false information to an investigator or official	—	—
2.c	In the last 7 years, have you been a party to any public record civil court actions not listed elsewhere on this form? Applicant answered "No" to this question. At the time she completed the SCA, Applicant was delinquent on a judgement from 1997 in the amount of $1,122, as alleged in 1.e. of the SOR. Applicant should have answered "yes" either to this question or to question #37 and referred to this judgment.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Criminal Conduct	Denied	(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 the last 7 years, have you had any judgements against you that have not been paid? Applicant answered "No" to this question. At the time she completed the SCA, Applicant was delinquent on a judgement from 1997 in the amount of $1,122, as alleged in 1.e. of the SOR. She should have answered "yes" to this question and referred to this judgment.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Criminal Conduct

Denied

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

—

2.b

In the last 7 years, have you been over 180 days delinquent on any debt(s)? Applicant answered "No" to this question. At the time she completed the SCA, Applicant was delinquent on all of the debts discussed above, and she should have answered "yes" to this question and included the debts listed in the SOR.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Denied

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

—

2.c

In the last 7 years, have you been a party to any public record civil court actions not listed elsewhere on this form? Applicant answered "No" to this question. At the time she completed the SCA, Applicant was delinquent on a judgement from 1997 in the amount of $1,122, as alleged in 1.e. of the SOR. Applicant should have answered "yes" either to this question or to question #37 and referred to this judgment.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Criminal Conduct

Denied

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

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant owes Federal Income taxes for the tax years 1994 through 2002. As of May 1, 1998, she owed $8,868.27, and at that time she received a notice from the Internal Revenue Service (IRS) that her wages were to be garnished. $8,868	Against Applicant	Tax Unpaid	Denied	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.b	Applicant owes state income taxes for tax years 1993 through 2002. She owed approximately $21,248.00, but she has begun making payments of $700 a month for two months. She currently owes $19,848. $19,848	Against Applicant	Tax Unpaid	Denied	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.c	Applicant filed a Chapter 13 bankruptcy in 1995, 1996, and 1997. It appeared that all of the bankruptcies were dismissed, and none of Applicant's debts were discharged in bankruptcy.	Against Applicant	Bankruptcy Filing	Denied	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.d	A judgement was issued against Applicant in 1997 in the amount of $1,122, for writing checks with insufficient funds. This debt was paid off through a garnishment of Applicant's wages by the creditor. $1,122	Against Applicant	Judgment Against Applicant	Denied	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.e	Applicant was delinquent on a credit card debt in the approximate amount of $1,132. This debt has been settled. $1,132	Against Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.f	Applicant was delinquent on a credit card debt in the approximate amount of $647. This debt has been settled. $647	Against Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.g	Applicant was delinquent on a credit card debt in the approximate amount of $658. This debt has been settled. $658	Against Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.h–1.m	6 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)	Against Applicant			—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant owes Federal Income taxes for the tax years 1994 through 2002. As of May 1, 1998, she owed $8,868.27, and at that time she received a notice from the Internal Revenue Service (IRS) that her wages were to be garnished.

$8,868

Against Applicant

Tax Unpaid

Denied

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.b

Applicant owes state income taxes for tax years 1993 through 2002. She owed approximately $21,248.00, but she has begun making payments of $700 a month for two months. She currently owes $19,848.

$19,848

Against Applicant

Tax Unpaid

Denied

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.c

Applicant filed a Chapter 13 bankruptcy in 1995, 1996, and 1997. It appeared that all of the bankruptcies were dismissed, and none of Applicant's debts were discharged in bankruptcy.

Against Applicant

Bankruptcy Filing

Denied

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.d

A judgement was issued against Applicant in 1997 in the amount of $1,122, for writing checks with insufficient funds. This debt was paid off through a garnishment of Applicant's wages by the creditor.

$1,122

Against Applicant

Judgment Against Applicant

Denied

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.e

Applicant was delinquent on a credit card debt in the approximate amount of $1,132. This debt has been settled.

$1,132

Against Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.f

Applicant was delinquent on a credit card debt in the approximate amount of $647. This debt has been settled.

$647

Against Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.g

Applicant was delinquent on a credit card debt in the approximate amount of $658. This debt has been settled.

$658

Against Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.h–1.m

6 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)

Against Applicant

—

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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