ISCR Case 02-22163.h1

Case Headnote

ISCR Case No. 02-22163.h1

deniedNov 25, 2003· Hon. Philip S. Howe· hearing

Summary

A 45-year-old secretary for a defense contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct), Guideline F (Financial Considerations), and Guideline J (Criminal Conduct). The applicant had three unpaid and delinquent credit card debts totaling over $21,000. Additionally, she failed to disclose two other delinquent credit card debts, totaling approximately $20,000, on her security clearance application, which were 90 days or more delinquent at the time of submission.

The denial was based on the applicant's significant financial delinquencies and her deliberate omission of material facts from her security clearance application. The judge found that these omissions constituted falsification of information and a violation of federal law regarding false statements. Although the applicant entered a debt repayment plan in 2002, she failed to provide current documentation to demonstrate good faith efforts to resolve her debts.

Ultimately, the judge determined that the applicant did not sufficiently mitigate the concerns related to her financial irresponsibility, personal conduct, and criminal conduct, leading to the denial of her security clearance.

Why the Applicant Was Denied

Applicant has three unpaid and delinquent credit card debts totaling over $21,000.
Applicant failed to disclose two delinquent credit card debts on her security clearance application.
The judge found that the applicant's failure to provide current documentation on her debt repayment plan undermined her claims of good faith efforts to resolve her debts.
The judge concluded that the applicant's actions constituted a violation of federal law regarding false statements.

Conditions Referenced

Disqualifying

E2.A6.1.2.1appliedDC 1: A History of Not Meeting Financial Obligations.
E2.A6.1.2.3appliedDC 2: Inability or Unwillingness to Satisfy Debts.
E2.A5.1.2.2appliedDC 2: the Deliberate Omission, Concealment, Falsification or Misrepresentation of Relevant and Material Facts.
E2.A10.1.2.1appliedDC 1: Allegations or Admissions of Criminal Conduct, Regardless of Whether the Person Was Formally Charged.
E2.A10.1.2.2appliedDC 2: A Single Serious Crime or Multiple Lesser Offenses.

Mitigating

E2.A6.1.3.4rejectedMC 4: the Person Has Received Counseling for the Problem.Applicant did not provide evidence of counseling.
E2.A6.1.3.6rejectedMC 6: the Person Initiated a Good Faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts.Applicant failed to provide current documentation on the status of her debt repayment plan.

Key Rule Quoted

“"[N]o one has a 'right' to a security clearance."”
— Department of the Navy v. Egan, 484 U.S. 518, 528 (1988)

Procedural Posture

SOR issuedJul 21, 2003
Answer filedAug 15, 2003Applicant submitted a signed and sworn statement.
Hearing held—Applicant requested decision on the written record.
Decision dateNov 25, 2003

Cite For

Failure to Disclose Delinquent Debts on Security Clearance Application Under Guideline E
Financial Overextension and Inability to Satisfy Debts Under Guideline F
Criminal Conduct Related to Falsification of Information Under Guideline J

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 deliberate omission, concealment, falsification or misrepresentation of relevant and material facts from any personnel security questionnaire, personal history statement or similar form used to conduct investigations, determine employment qualifications, award benefits or status, determine security clearance eligibility or trustworthiness, or award fiduciary responsibilities.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Denied	(b) deliberately providing false information to an investigator or official	—	—
2.b	The deliberate omission, concealment, falsification or misrepresentation of relevant and material facts from any personnel security questionnaire, personal history statement or similar form used to conduct investigations, determine employment qualifications, award benefits or status, determine security clearance eligibility or trustworthiness, or award fiduciary responsibilities.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Denied	(b) deliberately providing false information to an investigator or official	—	—
2.c	The deliberate omission, concealment, falsification or misrepresentation of relevant and material facts from any personnel security questionnaire, personal history statement or similar form used to conduct investigations, determine employment qualifications, award benefits or status, determine security clearance eligibility or trustworthiness, or award fiduciary responsibilities.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	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

The deliberate omission, concealment, falsification or misrepresentation of relevant and material facts from any personnel security questionnaire, personal history statement or similar form used to conduct investigations, determine employment qualifications, award benefits or status, determine security clearance eligibility or trustworthiness, or award fiduciary responsibilities.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Denied

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

—

2.b

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Denied

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

—

2.c

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Denied

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

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant has three unpaid and delinquent credit card debts totaling over $21,000. $21,000	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.b	Applicant did not disclose two delinquent credit card debts she also owed at the same time to a credit card issuer. These delinquent debts were both 90 days or more delinquent at the time Applicant completed the SCA, as shown by a credit report dated November 2001. The total owed on those debts was approximately $20,000. $20,000	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.c	Applicant's debt to a national department store chain was 'paid as agreed' at the time the SCA was completed in November 2001, and did not have to be disclosed on the SCA. That debt later became delinquent, and was included in a debt repayment plan Applicant entered into in 2002.	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant has three unpaid and delinquent credit card debts totaling over $21,000.

$21,000

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.b

Applicant did not disclose two delinquent credit card debts she also owed at the same time to a credit card issuer. These delinquent debts were both 90 days or more delinquent at the time Applicant completed the SCA, as shown by a credit report dated November 2001. The total owed on those debts was approximately $20,000.

$20,000

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.c

Applicant's debt to a national department store chain was 'paid as agreed' at the time the SCA was completed in November 2001, and did not have to be disclosed on the SCA. That debt later became delinquent, and was included in a debt repayment plan Applicant entered into in 2002.

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

¶	Allegation	Finding	Offense	Criminal disposition	Response	Disqualifying (¶31)	Mitigating applied (¶32)	Mitigation
3.a	specific text not stated in this decision	Against Applicant	Unspecified Criminal Conduct	—	Unknown	(a) pattern of minor offenses casting doubt on judgment/reliability (b) evidence of criminal conduct, regardless of charge or conviction	—	—

Allegation

Finding

Offense

Criminal disposition

Response

Disqualifying (¶31)

Mitigating applied (¶32)

Mitigation

3.a

specific text not stated in this decision

Against Applicant

Unspecified Criminal Conduct

—

Unknown

(a) pattern of minor offenses casting doubt on judgment/reliability

(b) evidence of criminal conduct, regardless of charge or conviction

—

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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