ISCR Case 02-15962.h1

Case Headnote

ISCR Case No. 02-15962.h1

deniedFeb 28, 2005· Hon. Henry Lazzaro· hearing

Summary

A 44-year-old maintenance electrician was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant had a history of financial difficulties, including automobiles repossessed in 1995 and 2000, a judgment entered against him, a medical bill referred for collection, and two revolving charge accounts charged off. A second car repossession in 2000 resulted in an $11,063 collection account.

Crucially, the applicant failed to disclose the 2000 automobile repossession, the 1996 judgment, and other delinquent accounts in his September 2001 security clearance application (SF 86). His explanations for these omissions were found not credible. Although he had recently taken steps to manage his finances and was current on recent obligations, he did not take substantial action to resolve older delinquent accounts until after the Statement of Reasons was issued.

The denial was based on the applicant's significant outstanding debts and his failure to disclose critical financial information in his application, with his explanations for these omissions deemed not credible.

Why the Applicant Was Denied

The applicant had two automobiles repossessed and allowed several accounts to become delinquent.
He failed to disclose significant financial issues in his security clearance application, which the judge found not credible.
Despite recent efforts to improve his financial situation, he still had large outstanding debts.

Conditions Referenced

Disqualifying

DC 1raisedA History of Not Meeting Financial Obligations
DC 2appliedThe Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts
DC 3raisedInability or Unwillingness to Satisfy Debts

Mitigating

MC 3rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlThe applicant's financial issues were not solely due to circumstances beyond his control.
MC 6rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant's efforts to resolve debts were deemed insufficient.

Key Rule Quoted

“No one has a right to a security clearance and "the clearly consistent standard indicates that security clearance determinations should err, if they must, on the side of denials."”
— Egan, 484 U.S. at 531.

Procedural Posture

SOR issuedSep 3, 2003
Answer filedOct 16, 2003
Hearing heldDec 28, 2004
Decision dateFeb 28, 2005

Cite For

Failure to Disclose Financial Issues in a Security Clearance Application Under Guideline E
Significant Unpaid Debts as a Disqualifying Condition Under Guideline F
Credibility of Applicant's Explanations Regarding 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	The applicant failed to disclose the 2000 automobile repossession and other delinquent accounts in his security clearance application (SF 86) submitted in September 2001.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Denied	(b) deliberately providing false information to an investigator or official	—	—
2.b	The applicant's explanations for not fully disclosing his financial condition in a security clearance application he submitted in September 2001 are not credible.	For Applicant	Lack of Candor in Interview	Financial	Denied	—	—	—
2.c	The applicant failed to take any substantial steps toward paying his delinquent accounts until after issuance of the SOR.	Against Applicant	Rules Violation at Workplace	—	Denied	—	—	—
2.d	The applicant's explanations for not listing the 2000 repossession and other delinquent accounts are not credible.	Against Applicant	Lack of Candor in InterviewFOUND DELIBERATE	Financial	Denied	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

The applicant failed to disclose the 2000 automobile repossession and other delinquent accounts in his security clearance application (SF 86) submitted in September 2001.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Denied

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

—

2.b

The applicant's explanations for not fully disclosing his financial condition in a security clearance application he submitted in September 2001 are not credible.

For Applicant

Lack of Candor in Interview

Financial

Denied

—

2.c

The applicant failed to take any substantial steps toward paying his delinquent accounts until after issuance of the SOR.

Against Applicant

Rules Violation at Workplace

—

Denied

—

2.d

The applicant's explanations for not listing the 2000 repossession and other delinquent accounts are not credible.

Against Applicant

Lack of Candor in InterviewFOUND DELIBERATE

Financial

Denied

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant had automobiles repossessed in 1995 and 2000, and has allowed several accounts to become delinquent.	For Applicant	Auto Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	Applicant incurred a judgment being entered against him in connection with one of those repossessions. $5,202	For Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts	—	—
1.c	Applicant incurred a medical bill that was referred for collection in January 2001 in the amount of $150.00. $150	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts	—	—
1.d	Applicant had two revolving charge accounts that were charged off in the amounts of $587.00 and $612.00. $1,199	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.e	Applicant had a second car repossessed in 2000 that has resulted in the account being referred for collection in the amount of $11,063.00 in October 2000. $11,063	Against Applicant	Auto Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	Applicant failed to disclose the 2000 repossession, 1996 judgment, and the other delinquent accounts in the SF 86 he submitted in September 2001.	Against Applicant	Unspecified Financial	Admitted	(b) unwillingness to satisfy debts regardless of ability	—	—
1.g	Applicant has recently taken steps to bring his finances under control, and appears to be on his way toward living a financially responsible lifestyle.	For Applicant	Unspecified Financial	Admitted	—	(g) arrangements made with the tax authority; in compliance	—
1.h	Applicant's recent credit reports indicate he is current on all obligations he has incurred in the past several years.	For Applicant	Unspecified Financial	Denied	—	—	—
1.i	Despite assertions he was going to resolve many of his delinquent accounts a couple of years ago, Applicant failed to take any substantial steps toward paying them until after issuance of the SOR.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant had automobiles repossessed in 1995 and 2000, and has allowed several accounts to become delinquent.

For Applicant

Auto Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

Applicant incurred a judgment being entered against him in connection with one of those repossessions.

$5,202

For Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

—

1.c

Applicant incurred a medical bill that was referred for collection in January 2001 in the amount of $150.00.

$150

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

—

1.d

Applicant had two revolving charge accounts that were charged off in the amounts of $587.00 and $612.00.

$1,199

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

1.e

Applicant had a second car repossessed in 2000 that has resulted in the account being referred for collection in the amount of $11,063.00 in October 2000.

$11,063

Against Applicant

Auto Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

Applicant failed to disclose the 2000 repossession, 1996 judgment, and the other delinquent accounts in the SF 86 he submitted in September 2001.

Against Applicant

Unspecified Financial

Admitted

(b) unwillingness to satisfy debts regardless of ability

—

1.g

Applicant has recently taken steps to bring his finances under control, and appears to be on his way toward living a financially responsible lifestyle.

For Applicant

Unspecified Financial

Admitted

—

(g) arrangements made with the tax authority; in compliance

—

1.h

Applicant's recent credit reports indicate he is current on all obligations he has incurred in the past several years.

For Applicant

Unspecified Financial

Denied

—

1.i

Despite assertions he was going to resolve many of his delinquent accounts a couple of years ago, Applicant failed to take any substantial steps toward paying them until after issuance of the SOR.

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

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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

SYNOPSIS

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES