ISCR Case 02-25405.h1

Case Headnote

ISCR Case No. 02-25405.h1

deniedJan 27, 2004· Hon. Joseph Testan· hearing

Summary

A 41-year-old defense contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline J (Criminal Conduct). The denial stemmed from a history of significant financial problems and intentional omissions of material facts on his Security Clearance Application (SCA).

The applicant had approximately $6,750.00 in delinquent debts. These included a $4,355.00 debt, which he initially denied knowledge of, and a $1,067.50 court judgment from 1999 for a former landlord. Other admitted debts ranged from $55.00 to $623.00, with some referred to collection agencies or incurred during active duty. Despite a Personal Financial Statement from March 2000 showing a positive monthly cash flow of $1,268.00, the applicant failed to provide a concrete plan to resolve his long-standing indebtedness.

Furthermore, on his September 6, 2000 SCA, the applicant falsely answered "no" to questions regarding unpaid judgments and debts over 180 days delinquent within the last seven years. The judge found that the applicant's financial irresponsibility and dishonesty, specifically the intentional omission of material facts regarding his debts, precluded a favorable security clearance decision.

Why the Applicant Was Denied

Applicant has a history of significant financial problems, including delinquent debts totaling approximately $6,750.00.
Applicant intentionally omitted material facts regarding his debts on the Security Clearance Application, undermining his credibility.
Applicant failed to provide a concrete plan to address his long-standing indebtedness.

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.A5.1.2.2raisedThe Deliberate Omission of Relevant and Material Facts From Any Personnel Security Questionnaire.

Key Rule Quoted

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

Procedural Posture

SOR issuedJun 9, 2003
Answer filedJun 20, 2003Applicant elected to have the case determined on a written record.
Hearing held—No hearing; case determined on written record.
Decision dateJan 27, 2004

Cite For

Financial Irresponsibility as a Disqualifying Factor Under Guideline E
Intentional Omission of Material Facts as a Disqualifying Condition Under Guideline J
The Burden of Proof Shifts to the Applicant to Demonstrate Resolution of Financial Issues After the Government Establishes a Security Concern.

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 is indebted to this creditor in the amount of $4,355.00.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Admitted	(b) deliberately providing false information to an investigator or official	—	—
1.b	In his response to the SOR, applicant denied any knowledge of a debt to this creditor.	For Applicant	Omission or Failure to Disclose	Financial	Denied	—	—	—
1.c	Although in his SOR Response applicant stated 'I admit to this debt,' when his response is considered in its entirety, it is clear that he is speculating about the origin of the debt and questioning its validity.	For Applicant	Omission or Failure to Disclose	Financial	Denied	—	—	—
1.d	Applicant admits this $55.00 debt, and states he intends to settle it.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Admitted	(b) deliberately providing false information to an investigator or official	—	—
1.e	Applicant admits this $60.00 debt, which had been referred to a collection agency.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Admitted	(b) deliberately providing false information to an investigator or official	—	—
1.f	Applicant admits this $148.00 debt, and states in his response to the SOR that he intends to 'clear this matter within a reasonable amount of time.'	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Admitted	(b) deliberately providing false information to an investigator or official	—	—
1.g	Applicant admits this $623.00 utility debt, and states in his response to the SOR that it was incurred while he was deployed on active duty.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Admitted	(b) deliberately providing false information to an investigator or official	—	—
1.h	Applicant admits this $443.00 utility debt, and states in his response to the SOR that he intends to 'arrange a payment schedule until this debt has been satisfied.'	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Admitted	(b) deliberately providing false information to an investigator or official	—	—
1.i	specific text not stated in this decision	For Applicant	Unspecified Personal Conduct	—	Denied	—	—	—
1.j	Applicant admits that he is indebted to a former landlord in the amount of $1,067.50 as a result of a court judgment he stipulated to in 1999.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Admitted	(b) deliberately providing false information to an investigator or official	—	—
1.k	A Personal Financial Statement (PFS) prepared by applicant in March 2000 indicates he has a positive monthly cash flow of $1,268.00.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Unknown	(b) deliberately providing false information to an investigator or official	—	—
2.a	Applicant executed an SCA on September 6, 2000. In response to Question 37, which asked, 'In the last 7 years, have you had any judgments against you that you have not paid?' applicant stated 'no.'	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Unknown	(b) deliberately providing false information to an investigator or official	—	—
2.b	In response to Question 38, which asked, 'In the last 7 years, have you been over 180 days delinquent on any debt(s)?' applicant stated 'no.'	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Unknown	(b) deliberately providing false information to an investigator or official	—	—
3	specific text not stated in this decision	Unknown	Unspecified Personal Conduct	—	Unknown	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

1.a

Applicant is indebted to this creditor in the amount of $4,355.00.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Admitted

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

—

1.b

In his response to the SOR, applicant denied any knowledge of a debt to this creditor.

For Applicant

Omission or Failure to Disclose

Financial

Denied

—

1.c

Although in his SOR Response applicant stated 'I admit to this debt,' when his response is considered in its entirety, it is clear that he is speculating about the origin of the debt and questioning its validity.

For Applicant

Omission or Failure to Disclose

Financial

Denied

—

1.d

Applicant admits this $55.00 debt, and states he intends to settle it.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Admitted

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

—

1.e

Applicant admits this $60.00 debt, which had been referred to a collection agency.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Admitted

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

—

1.f

Applicant admits this $148.00 debt, and states in his response to the SOR that he intends to 'clear this matter within a reasonable amount of time.'

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Admitted

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

—

1.g

Applicant admits this $623.00 utility debt, and states in his response to the SOR that it was incurred while he was deployed on active duty.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Admitted

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

—

1.h

Applicant admits this $443.00 utility debt, and states in his response to the SOR that he intends to 'arrange a payment schedule until this debt has been satisfied.'

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Admitted

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

—

1.i

specific text not stated in this decision

For Applicant

Unspecified Personal Conduct

—

Denied

—

1.j

Applicant admits that he is indebted to a former landlord in the amount of $1,067.50 as a result of a court judgment he stipulated to in 1999.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Admitted

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

—

1.k

A Personal Financial Statement (PFS) prepared by applicant in March 2000 indicates he has a positive monthly cash flow of $1,268.00.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Unknown

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

—

2.a

Applicant executed an SCA on September 6, 2000. In response to Question 37, which asked, 'In the last 7 years, have you had any judgments against you that you have not paid?' applicant stated 'no.'

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Unknown

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

—

2.b

In response to Question 38, which asked, 'In the last 7 years, have you been over 180 days delinquent on any debt(s)?' applicant stated 'no.'

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Unknown

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

—

specific text not stated in this decision

Unknown

Unspecified Personal Conduct

—

Unknown

—

¶	Allegation	Finding	Offense	Criminal disposition	Response	Disqualifying (¶31)	Mitigating applied (¶32)	Mitigation
1.a	Applicant is indebted to this creditor in the amount of $4,355.00.	Against Applicant	Unspecified Criminal Conduct	—	Admitted	(b) evidence of criminal conduct, regardless of charge or conviction	—	—
1.b	In his response to the SOR, applicant denied any knowledge of a debt to this creditor.	For Applicant	Unspecified Criminal Conduct	—	Denied	—	—	—
1.c	Although in his SOR Response applicant stated "I admit to this debt," when his response is considered in its entirety, it is clear that he is speculating about the origin of the debt and questioning its validity.	For Applicant	Unspecified Criminal Conduct	—	Admitted	—	—	—
1.d	Applicant admits this $55.00 debt, and states he intends to settle it.	Against Applicant	Unspecified Criminal Conduct	—	Admitted	—	—	—
1.e	Applicant admits this $60.00 debt, which had been referred to a collection agency.	Against Applicant	Unspecified Criminal Conduct	—	Admitted	—	—	—
1.f	Applicant admits this $148.00 debt, and states in his response to the SOR that he intends to "clear this matter within a reasonable amount of time . . ."	Against Applicant	Unspecified Criminal Conduct	—	Admitted	—	—	—
1.g	Applicant admits this $623.00 utility debt, and states in his response to the SOR that it was incurred while he was deployed on active duty.	Against Applicant	Unspecified Criminal Conduct	—	Admitted	—	—	—
1.h	Applicant admits this $443.00 utility debt, and states in his response to the SOR that he intends to "arrange a payment schedule until this debt has been satisfied."	Against Applicant	Unspecified Criminal Conduct	—	Admitted	—	—	—
1.i	Applicant denies this debt.	For Applicant	Unspecified Criminal Conduct	—	Denied	—	—	—
1.j	Applicant admits that he is indebted to a former landlord in the amount of $1,067.50 as a result of a court judgment he stipulated to in 1999.	Against Applicant	Unspecified Criminal Conduct	—	Admitted	—	—	—
1.k	A Personal Financial Statement (PFS) prepared by applicant in March 2000 indicates he has a positive monthly cash flow of $1,268.00.	Against Applicant	Unspecified Criminal Conduct	—	Unknown	—	—	—
2.a	Applicant executed an SCA on September 6, 2000. In response to Question 37, which asked, "In the last 7 years, have you had any judgments against you that you have not paid?" applicant stated "no."	Against Applicant	Unspecified Criminal Conduct	—	Unknown	(b) evidence of criminal conduct, regardless of charge or conviction	—	—
2.b	In response to Question 38, which asked, "In the last 7 years, have you been over 180 days delinquent on any debt(s)?" applicant stated "no."	Against Applicant	Unspecified Criminal Conduct	—	Unknown	(b) evidence of criminal conduct, regardless of charge or conviction	—	—
3	specific text not stated in this decision	Against Applicant	Unspecified Criminal Conduct	—	Unknown	—	—	—

Allegation

Finding

Offense

Criminal disposition

Response

Disqualifying (¶31)

Mitigating applied (¶32)

Mitigation

1.a

Applicant is indebted to this creditor in the amount of $4,355.00.

Against Applicant

Unspecified Criminal Conduct

—

Admitted

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

—

1.b

In his response to the SOR, applicant denied any knowledge of a debt to this creditor.

For Applicant

Unspecified Criminal Conduct

—

Denied

—

1.c

Although in his SOR Response applicant stated "I admit to this debt," when his response is considered in its entirety, it is clear that he is speculating about the origin of the debt and questioning its validity.

For Applicant

Unspecified Criminal Conduct

—

Admitted

—

1.d

Applicant admits this $55.00 debt, and states he intends to settle it.

Against Applicant

Unspecified Criminal Conduct

—

Admitted

—

1.e

Applicant admits this $60.00 debt, which had been referred to a collection agency.

Against Applicant

Unspecified Criminal Conduct

—

Admitted

—

1.f

Applicant admits this $148.00 debt, and states in his response to the SOR that he intends to "clear this matter within a reasonable amount of time . . ."

Against Applicant

Unspecified Criminal Conduct

—

Admitted

—

1.g

Applicant admits this $623.00 utility debt, and states in his response to the SOR that it was incurred while he was deployed on active duty.

Against Applicant

Unspecified Criminal Conduct

—

Admitted

—

1.h

Applicant admits this $443.00 utility debt, and states in his response to the SOR that he intends to "arrange a payment schedule until this debt has been satisfied."

Against Applicant

Unspecified Criminal Conduct

—

Admitted

—

1.i

Applicant denies this debt.

For Applicant

Unspecified Criminal Conduct

—

Denied

—

1.j

Applicant admits that he is indebted to a former landlord in the amount of $1,067.50 as a result of a court judgment he stipulated to in 1999.

Against Applicant

Unspecified Criminal Conduct

—

Admitted

—

1.k

A Personal Financial Statement (PFS) prepared by applicant in March 2000 indicates he has a positive monthly cash flow of $1,268.00.

Against Applicant

Unspecified Criminal Conduct

—

Unknown

—

2.a

Applicant executed an SCA on September 6, 2000. In response to Question 37, which asked, "In the last 7 years, have you had any judgments against you that you have not paid?" applicant stated "no."

Against Applicant

Unspecified Criminal Conduct

—

Unknown

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

—

2.b

In response to Question 38, which asked, "In the last 7 years, have you been over 180 days delinquent on any debt(s)?" applicant stated "no."

Against Applicant

Unspecified Criminal Conduct

—

Unknown

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

—

specific text not stated in this decision

Against Applicant

Unspecified Criminal Conduct

—

Unknown

—

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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