ISCR Case 02-19884.h1

Case Headnote

ISCR Case No. 02-19884.h1

deniedDec 11, 2003· Hon. Kathryn Moen Braeman· hearing

Summary

A 51-year-old defense contractor with a master's degree was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant failed to disclose financial delinquencies of 90 and 180 days on his security questionnaire.

Specific financial issues included a $316 debt to Company #1 for cell phone service, which he eventually resolved by paying a successor company $135.28. He also had a debt with monthly payments of $399, which he arranged to repay at $300 per month. Although he claimed these payments were current at one point, he later admitted outstanding payments for November 2001 and February 2002, attributing this to his wife handling bills. This account was paid in full by February 2003. Additionally, he failed to file tax returns and lost paperwork, arranging a $195 monthly payment schedule in June 2000. He later conceded his wife had not made these payments and stated he paid a balance of $1,182.72, but did not provide documentation. He also paid a debt management plan in full, including a 1996 state tax debt.

The denial was based on the applicant's failure to fully resolve some debts, including a state tax debt, and his non-disclosure of financial delinquencies on his security questionnaire. His explanations for these omissions were not considered credible, despite his detailed account of employment issues contributing to his debts.

Why the Applicant Was Denied

The applicant failed to fully resolve debts to some creditors, including a state tax debt.
He did not disclose financial delinquencies on his security questionnaire, reflecting questionable judgment.
The applicant's explanation for omissions was deemed not credible, as he had detailed his employment issues that led to his debts.

Conditions Referenced

Disqualifying

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

Mitigating

F.6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant effectively mitigated some debts by paying them in full.

Key Rule Quoted

“The responsibility for producing evidence initially falls on the Government to demonstrate that it is not clearly consistent with the national interest to grant or continue Applicant's access to classified information.”

Procedural Posture

SOR issuedNov 14, 2002
Answer filedDec 3, 2002Notarized response.
Hearing held—Applicant requested decision without a formal hearing.
Decision dateDec 11, 2003

Cite For

Failure to Disclose Financial Issues Under Guideline E
Inability to Resolve Debts 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	Applicant failed to disclose on his security questionnaire that he had financial delinquencies of 90 and 180 days within the last seven years.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Denied	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant failed to disclose on his security questionnaire that he had financial delinquencies of 90 and 180 days within the last seven years.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Denied

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant's had a debt to Company #1 for $316 for cell phone service while he was self-employed. In January 2002 he planned to make a payment to resolve this debt. In April 2002 Applicant stated that he thought he had previously resolved this debt, but had not done so and intended to contact Company #1 and arrange a payment. In December 2003 he advised that he could not resolve the matter as Company L#1 had no record of his past account. In August 2003 he stated he had resolved his debt to Company #1 by paying a successor company $135.28. $316	For Applicant	Credit Card Debt	Admitted	—	(g) arrangements made with the tax authority; in compliance	Credited Debt Paid in Full
1.b	He became delinquent on his $399 monthly payments and made arrangements to repay at $300 per monthly in November 2001. While he stated they were current in January 2002, in April 2002 he conceded that these payments were not all current. He claimed that his wife pays all the bills, and he was not aware that payments for November 2001 and February 2002 were outstanding. He planned to have automatic electronic payments made to this creditor. He paid this account in full in February 2003. $399	For Applicant	Unspecified Financial	Admitted	—	(g) arrangements made with the tax authority; in compliance	Credited Debt Paid in Full
1.c	provide a copy of the check to document this payment.	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.e	He failed to file tax returns and lost the paperwork. In June 2000 he arranged a payment schedule at $195 per month. In April 2002 he conceded that his wife had not been making these monthly tax payments as agreed, and his 2000 tax year refund was to be applied towards the outstanding balance. In May 2002 he stated he paid the balance of $1,182.72 but did not provide a copy of the check to document this payment. $1,182	Against Applicant	Tax Filing Failure	Admitted	—	—	—
1.f	approximately $1,300. $1,300	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.g	In February 2002 he paid his debt management plan in full, including a payment for his 1996 State #1 tax debt.	For Applicant	Tax Filing Failure	Admitted	—	(g) arrangements made with the tax authority; in compliance	Credited Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant's had a debt to Company #1 for $316 for cell phone service while he was self-employed. In January 2002 he planned to make a payment to resolve this debt. In April 2002 Applicant stated that he thought he had previously resolved this debt, but had not done so and intended to contact Company #1 and arrange a payment. In December 2003 he advised that he could not resolve the matter as Company L#1 had no record of his past account. In August 2003 he stated he had resolved his debt to Company #1 by paying a successor company $135.28.

$316

For Applicant

Credit Card Debt

Admitted

—

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

Credited

Debt Paid in Full

1.b

He became delinquent on his $399 monthly payments and made arrangements to repay at $300 per monthly in November 2001. While he stated they were current in January 2002, in April 2002 he conceded that these payments were not all current. He claimed that his wife pays all the bills, and he was not aware that payments for November 2001 and February 2002 were outstanding. He planned to have automatic electronic payments made to this creditor. He paid this account in full in February 2003.

$399

For Applicant

Unspecified Financial

Admitted

—

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

Credited

Debt Paid in Full

1.c

provide a copy of the check to document this payment.

Against Applicant

Unspecified Financial

Unknown

—

1.e

He failed to file tax returns and lost the paperwork. In June 2000 he arranged a payment schedule at $195 per month. In April 2002 he conceded that his wife had not been making these monthly tax payments as agreed, and his 2000 tax year refund was to be applied towards the outstanding balance. In May 2002 he stated he paid the balance of $1,182.72 but did not provide a copy of the check to document this payment.

$1,182

Against Applicant

Tax Filing Failure

Admitted

—

1.f

approximately $1,300.

$1,300

Against Applicant

Unspecified Financial

Unknown

—

1.g

In February 2002 he paid his debt management plan in full, including a payment for his 1996 State #1 tax debt.

For Applicant

Tax Filing Failure

Admitted

—

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

Credited

Debt Paid in Full

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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