ISCR Case 02-28502.h1

Case Headnote

ISCR Case No. 02-28502.h1

deniedDec 30, 2003· Hon. Kathryn Moen Braeman· hearing

Summary

A 33-year-old defense contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from unresolved financial issues and the deliberate omission of significant debts from his security questionnaire.

Specifically, the applicant failed to disclose an unpaid judgment from a realty company dating back to June 1995. While he paid a $360 debt to one creditor in January 2003 and provided evidence of resolving some other debts, he did not provide documentation for resolving debts to two specific companies. He also reported paying a $3,300 debt for a repossessed vehicle through monthly payments to AmeriDebt and had an outstanding $2,677 debt from 1993, incurred by his former wife, with no payments since 1994.

The denial was based on the applicant's history of financial problems, an inability or unwillingness to satisfy all debts, and a lack of candor in failing to disclose significant financial delinquencies. Despite some progress on minor debts, insufficient evidence was provided for resolving larger debts, and a commitment to financial management was not demonstrated.

Why the Applicant Was Denied

The applicant has a history of financial problems and has shown an inability or unwillingness to satisfy all of his debts.
The applicant failed to disclose significant financial delinquencies on his security questionnaire, reflecting questionable judgment and lack of candor.
The applicant did not provide sufficient evidence of resolving larger debts or demonstrate a commitment to financial management.

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 mitigated some small debts by making payments.

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 issuedJan 14, 2003
Answer filedJan 30, 2003Applicant requested a decision without a formal hearing.
Hearing held—Decision made on the record.
Decision dateDec 30, 2003

Cite For

Denial Based on Unresolved Financial Issues Under Guideline F
Failure to Disclose Significant Debts Under Guideline E
Insufficient Evidence of Financial Management Efforts Leading to Security Concerns

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, or falsification 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	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Denied	—	—	—
2.b	The deliberate omission, concealment, or falsification 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	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Denied	—	—	—
2.c	The deliberate omission, concealment, or falsification 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	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Denied	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

The deliberate omission, concealment, or falsification 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

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Denied

—

2.b

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Denied

—

2.c

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Denied

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant paid the debt of $360 to Creditor #3 in January 2003. $360	For Applicant	Credit Card Debt	Admitted	—	(g) arrangements made with the tax authority; in compliance	Credited Debt Paid in Full
1.b	Applicant failed to disclose an unpaid judgment to Creditor #2, a realty company in June 1995.	Against Applicant	Judgment Against Applicant	Denied	(b) unwillingness to satisfy debts regardless of ability	—	—
1.c	Applicant has made progress and provided documentary evidence in January 2003 that some of these debts have been resolved.	For Applicant	Unspecified Financial	Admitted	—	(g) arrangements made with the tax authority; in compliance	Credited Debt Paid in Full
1.d	Applicant stated he was paying his $3,300 debt to Creditor #4 for a repossessed vehicle through a monthly payment of $72 to AmeriDebt. $3,300	For Applicant	Auto Loan Debt	Admitted	—	—	Claimed Payment Plan with Creditor
1.e	Applicant incurred a debt of $2,677 which was incurred by his former wife to purchase some encyclopedias in 1993, with no payments having been made since 1994. $2,677	For Applicant	Credit Card Debt	Admitted	—	(g) arrangements made with the tax authority; in compliance	Credited Debt Paid in Full
1.f	Applicant provided no documentary evidence of his having resolved his debt to Company #1 and Company #4.	Against Applicant	Unspecified Financial	Denied	(b) unwillingness to satisfy debts regardless of ability	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant paid the debt of $360 to Creditor #3 in January 2003.

$360

For Applicant

Credit Card Debt

Admitted

—

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

Credited

Debt Paid in Full

1.b

Applicant failed to disclose an unpaid judgment to Creditor #2, a realty company in June 1995.

Against Applicant

Judgment Against Applicant

Denied

(b) unwillingness to satisfy debts regardless of ability

—

1.c

Applicant has made progress and provided documentary evidence in January 2003 that some of these debts have been resolved.

For Applicant

Unspecified Financial

Admitted

—

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

Credited

Debt Paid in Full

1.d

Applicant stated he was paying his $3,300 debt to Creditor #4 for a repossessed vehicle through a monthly payment of $72 to AmeriDebt.

$3,300

For Applicant

Auto Loan Debt

Admitted

—

Claimed

Payment Plan with Creditor

1.e

Applicant incurred a debt of $2,677 which was incurred by his former wife to purchase some encyclopedias in 1993, with no payments having been made since 1994.

$2,677

For Applicant

Credit Card Debt

Admitted

—

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

Credited

Debt Paid in Full

1.f

Applicant provided no documentary evidence of his having resolved his debt to Company #1 and Company #4.

Against Applicant

Unspecified Financial

Denied

(b) unwillingness to satisfy debts regardless of ability

—

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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