ISCR Case 02-13657.h1

Case Headnote

ISCR Case No. 02-13657.h1

grantedMay 12, 2005· Hon. Matthew E. Malone· hearing

Summary

A 30-year-old contractor employee, supporting State Department missions, was granted a security clearance despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons detailed several allegations, including involvement in multiple non-judicial punishments and early intervention counseling during military service, passing bad checks during a second marriage, and two moving violations related to an expired license and registration. Additionally, the applicant was alleged to have falsified financial information on an SF-86 and during an interview with a DSS agent. Financial concerns also included a bankruptcy discharge two years prior and admitted intentional passing of bad checks.

The judge found that the applicant's financial issues were mitigated by positive lifestyle changes. Specifically, the applicant demonstrated a lack of intent to make false statements to the government regarding her financial situation. The decision highlighted positive changes in her personal life, including a stable marriage and improved financial management.

Ultimately, the applicant's financial difficulties were largely attributed to circumstances beyond her control, such as two divorces. These factors, combined with a solid employment record, led to the granting of the security clearance.

Why the Applicant Prevailed

The applicant demonstrated a lack of intent to make false statements to the government regarding her financial situation.
Positive changes in the applicant's personal lifestyle, including stable marriage and improved financial management, were evident.
The applicant's financial difficulties were largely attributed to circumstances beyond her control, such as two divorces.

Conditions Referenced

Disqualifying

DC 3raisedDeliberately Providing False or Misleading Information
DC 1raisedA History of Not Meeting Financial Obligations
DC 2raisedDeceptive or Illegal Financial Practices

Mitigating

MC 2appliedThe Falsification Was an Isolated Incident, Was Not Recent, and the Individual Has Subsequently Provided Correct Information Voluntarily
MC 3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control
MC 1appliedThe Behavior Was Not Recent

Key Rule Quoted

“A security clearance decision is intended to resolve whether it is clearly consistent with the national interest for an Applicant to either receive or continue to have access to classified information.”
— Department of the Navy v. Egan, 484 U.S. 518 (1988)

Procedural Posture

SOR issuedOct 20, 2003
Answer filed—Applicant admitted most allegations with explanations.
Hearing heldDec 13, 2004Parties appeared as scheduled.
Decision dateMay 12, 2005

Cite For

Mitigation of Financial Issues Under Guideline F Due to Positive Lifestyle Changes
Lack of Intent in Providing False Information on Security Clearance Applications
Rebuttable Presumption of Personal Conduct Issues Being Mitigated by Stable Circumstances

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
1.a	Applicant was involved in two non-judicial punishments (NJP) and an early intervention counseling while she was in the military.	For Applicant	Rules Violation at Workplace	—	Admitted	—	—	—
1.b	Applicant was involved in two non-judicial punishments (NJP) and an early intervention counseling while she was in the military.	For Applicant	Rules Violation at Workplace	—	Admitted	—	—	—
1.c	Applicant was involved in two non-judicial punishments (NJP) and an early intervention counseling while she was in the military.	For Applicant	Rules Violation at Workplace	—	Admitted	—	—	—
1.d	Applicant was involved in two non-judicial punishments (NJP) and an early intervention counseling while she was in the military.	For Applicant	Rules Violation at Workplace	—	Admitted	—	—	—
1.e	Applicant passed bad checks during her second marriage.	For Applicant	Falsification of Employment or Other RecordsFOUND DELIBERATE	Financial	Admitted	—	—	—
1.f	Applicant had two moving violations stemming from an expired license and expired registration.	For Applicant	Rules Violation at Workplace	—	Admitted	—	—	—
1.g	Applicant allegedly falsified her financial information in an SF 86.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATE	Financial	Denied with Explanation	—	—	—
1.h	Applicant allegedly falsified her financial information in an interview with a DSS agent.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATE	Financial	Denied with Explanation	—	—	—
1.i–1.j	2 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)	For Applicant		—		—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

1.a

Applicant was involved in two non-judicial punishments (NJP) and an early intervention counseling while she was in the military.

For Applicant

Rules Violation at Workplace

—

Admitted

—

1.b

Applicant was involved in two non-judicial punishments (NJP) and an early intervention counseling while she was in the military.

For Applicant

Rules Violation at Workplace

—

Admitted

—

1.c

Applicant was involved in two non-judicial punishments (NJP) and an early intervention counseling while she was in the military.

For Applicant

Rules Violation at Workplace

—

Admitted

—

1.d

Applicant was involved in two non-judicial punishments (NJP) and an early intervention counseling while she was in the military.

For Applicant

Rules Violation at Workplace

—

Admitted

—

1.e

Applicant passed bad checks during her second marriage.

For Applicant

Falsification of Employment or Other RecordsFOUND DELIBERATE

Financial

Admitted

—

1.f

Applicant had two moving violations stemming from an expired license and expired registration.

For Applicant

Rules Violation at Workplace

—

Admitted

—

1.g

Applicant allegedly falsified her financial information in an SF 86.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATE

Financial

Denied with Explanation

—

1.h

Applicant allegedly falsified her financial information in an interview with a DSS agent.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATE

Financial

Denied with Explanation

—

1.i–1.j

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

For Applicant

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
2.a	Applicant had her debts discharged in bankruptcy two years ago.	For Applicant	Bankruptcy Filing	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	(c) received/receiving counseling; problem being resolved	Claimed Debt Paid in Full Claimed Financial Counseling
2.b	Applicant has admitted to intentionally passing bad checks during her second marriage.	For Applicant	Financial Fraud or Check Kiting	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	(c) received/receiving counseling; problem being resolved (a) behavior happened long ago / infrequent / unlikely to recur	Documented Rehabilitation Evidence

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

2.a

Applicant had her debts discharged in bankruptcy two years ago.

For Applicant

Bankruptcy Filing

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

(c) received/receiving counseling; problem being resolved

Claimed

Debt Paid in Full

Claimed

Financial Counseling

2.b

Applicant has admitted to intentionally passing bad checks during her second marriage.

For Applicant

Financial Fraud or Check Kiting

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

(c) received/receiving counseling; problem being resolved

(a) behavior happened long ago / infrequent / unlikely to recur

Documented

Rehabilitation Evidence

Loading case…

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

FOOTNOTES