ISCR Case 02-28915.h2

Case Headnote

ISCR Case No. 02-28915.h2

deniedMar 21, 2006· Hon. Kathryn Moen Braeman· hearing

Summary

A 45-year-old network operations manager was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from a pattern of unresolved financial obligations and the deliberate falsification of information on his 2001 security clearance application.

The applicant had multiple delinquent debts, some dating back to 1997, totaling approximately $18,000. Specific debts included amounts to Creditor #1 ($376), Creditor #3 ($3,352 and $2,564), Creditor #4 ($722), Creditor #6 ($1,104), Creditor #7 ($55), and Creditor #8 ($3,555.709), which remained unpaid or without evidence of satisfaction. While he claimed to have paid debts to Creditor #2 ($647) and Creditor #5 ($4,945 via wage garnishments), and did pay debts to Creditor #9 ($616) and Creditor #10 ($84) in 2005, the majority of his financial obligations were not resolved.

Crucially, the applicant deliberately failed to disclose these financial issues on his 2001 security clearance application. Despite some efforts to address certain debts, he did not demonstrate a good-faith effort to resolve the majority of his financial obligations, nor did he provide evidence to dispute the listed debts. Consequently, the security clearance was denied.

Why the Applicant Was Denied

Applicant failed to resolve the majority of his delinquent debts, totaling approximately $18,000.
He deliberately falsified his answers on his 2001 security clearance application by omitting financial delinquencies.
Applicant did not provide evidence to dispute the debts listed on his credit reports.

Conditions Referenced

Disqualifying

E2.A5.1.2.2appliedDeliberate Omission, Concealment, or Falsification of Relevant and Material Facts
E2.A6.1.2.1appliedA History of Not Meeting Financial Obligations
E2.A6.1.2.3appliedInability or Unwillingness to Satisfy Debts

Mitigating

E2.A6.1.3.3rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlWhile health issues contributed to financial stress, the applicant's substantial income was not used to resolve debts.
E2.A6.1.3.6rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant failed to demonstrate a good-faith effort to resolve the majority of his debts.

Key Rule Quoted

“"A person granted access to classified information enters into a special relationship with the government. The government must be able to repose a high degree of trust and confidence in those individuals to whom it grants access to classified information."”

Procedural Posture

SOR issuedAug 17, 2004
Answer filedSep 22, 2004
Hearing heldMay 24, 2005
Decision dateMar 21, 2006Remand decision issued.

Cite For

Deliberate Falsification of Financial Information Under Guideline E
Failure to Resolve Significant Financial Obligations Under Guideline F
Impact of Personal Conduct on Security Clearance Eligibility.

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 deliberately falsified his answers on his 2001 security clearance application by failing to disclose all these financial issues.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Admitted	(a) deliberate omission, concealment, or falsification on a security form	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant deliberately falsified his answers on his 2001 security clearance application by failing to disclose all these financial issues.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Admitted

(a) deliberate omission, concealment, or falsification on a security form

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Debt 1.a. to Creditor #1 for $376 was charged off as a bad debt in 1997 and has not been paid. $376	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts	—	—
1.b	Debt 1.b. to Creditor #2 for $647 was charged off as a bad debt in 1997; in his DSS statement in January 2002, Applicant declared he had paid this bill which I accept as paid without his documentation. $647	For Applicant	Unspecified Financial	Admitted	—	—	—
1.c	Debt 1.c. to Creditor #3 for $3,352; however, the first debt was placed for collection in 1997 and the second debt was placed for collection in 1998. Applicant neither disputed nor paid this debt. $3,352	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts	—	—
1.d	Debt 1.d. for $2,564 to Creditor 3; however, the first debt was placed for collection in 1997 and the second debt was placed for collection in 1998. Applicant neither disputed nor paid this debt. $2,564	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts	—	—
1.e	Debt 1.e. to Creditor #4 for $722 was to a department store and was charged off as a bad debt in March 1998 and has not been paid. $722	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts	—	—
1.f	Debt 1.f. to Creditor #5 for $4,945 for a judgment entered in July 1998; however, later he stated it was satisfied through wage garnishments in 2002 which I accept as paid without his documentation. $4,945	For Applicant	Unspecified Financial	Unknown	—	—	—
1.g	Debt 1.g. to Creditor #6 for $1,104 for a judgment entered against him in August 1998 for a personal loan. However, he provided no evidence that the debt has been satisfied. $1,104	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts	—	—
1.h	Initially, in 2002 Applicant claimed no knowledge of debt 1.h. to Creditor #7 for $55 which was placed for collection in 2000 for a mobile phone; subsequently, he said he had paid this bill but had no documentation. $55	For Applicant	Unspecified Financial	Unknown	—	—	—
1.i	Debt 1.i. to Creditor #8 for $3,555.709 was an account placed for collection in 2000 and has not been satisfied. $3,555	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts	—	—
1.j	Debt 1.j. to Creditor #9 for $616 was an account placed for collection. He paid $717 to this creditor in June 2005. $616	For Applicant	Unspecified Financial	Admitted	—	—	—
1.k	Debt 1.k. to Creditor #10 for $84 was placed for collection in 2004. He paid this $84 debt in June 2005. $84	For Applicant	Unspecified Financial	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Debt 1.a. to Creditor #1 for $376 was charged off as a bad debt in 1997 and has not been paid.

$376

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

—

1.b

Debt 1.b. to Creditor #2 for $647 was charged off as a bad debt in 1997; in his DSS statement in January 2002, Applicant declared he had paid this bill which I accept as paid without his documentation.

$647

For Applicant

Unspecified Financial

Admitted

—

1.c

Debt 1.c. to Creditor #3 for $3,352; however, the first debt was placed for collection in 1997 and the second debt was placed for collection in 1998. Applicant neither disputed nor paid this debt.

$3,352

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

—

1.d

Debt 1.d. for $2,564 to Creditor 3; however, the first debt was placed for collection in 1997 and the second debt was placed for collection in 1998. Applicant neither disputed nor paid this debt.

$2,564

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

—

1.e

Debt 1.e. to Creditor #4 for $722 was to a department store and was charged off as a bad debt in March 1998 and has not been paid.

$722

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

—

1.f

Debt 1.f. to Creditor #5 for $4,945 for a judgment entered in July 1998; however, later he stated it was satisfied through wage garnishments in 2002 which I accept as paid without his documentation.

$4,945

For Applicant

Unspecified Financial

Unknown

—

1.g

Debt 1.g. to Creditor #6 for $1,104 for a judgment entered against him in August 1998 for a personal loan. However, he provided no evidence that the debt has been satisfied.

$1,104

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

—

1.h

Initially, in 2002 Applicant claimed no knowledge of debt 1.h. to Creditor #7 for $55 which was placed for collection in 2000 for a mobile phone; subsequently, he said he had paid this bill but had no documentation.

$55

For Applicant

Unspecified Financial

Unknown

—

1.i

Debt 1.i. to Creditor #8 for $3,555.709 was an account placed for collection in 2000 and has not been satisfied.

$3,555

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

—

1.j

Debt 1.j. to Creditor #9 for $616 was an account placed for collection. He paid $717 to this creditor in June 2005.

$616

For Applicant

Unspecified Financial

Admitted

—

1.k

Debt 1.k. to Creditor #10 for $84 was placed for collection in 2004. He paid this $84 debt in June 2005.

$84

For Applicant

Unspecified Financial

Admitted

—

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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

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES

FINDINGS OF FACT

POLICIES