ISCR Case 02-28915.h1

Case Headnote

ISCR Case No. 02-28915.h1

deniedNov 23, 2005· 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 unresolved debts exceeding $18,000 and deliberate omissions on his security clearance application regarding these financial issues.

Specifically, the applicant failed to disclose any financial delinquencies on his October 16, 2001, Security Clearance Application (SF 86). The Statement of Reasons detailed multiple outstanding debts, including several charged off as bad debts between 1997 and 1998, and others placed for collection between 1997 and 2004. While some debts were accepted as paid based on the applicant's statements (totaling $647, $4,945, $55, $717, and $84), the majority remained unresolved and lacked documentation of satisfaction.

The judge found that the applicant did not demonstrate a good-faith effort to resolve his debts and acted with intent to deceive by not disclosing financial delinquencies. The denial was based on his failure to resolve the majority of delinquent debts, the deliberate falsification of his application by omitting financial issues, and his inability to provide evidence disputing the validity of the debts listed on his credit reports.

Why the Applicant Was Denied

The applicant failed to resolve the majority of his delinquent debts, which raised security concerns.
He deliberately falsified his answers on his security clearance application by omitting financial issues.
The applicant did not provide evidence to dispute the validity of 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.A6.1.2.3appliedInability or Unwillingness to Satisfy Debts
E2.A6.1.2.2appliedA History of Not Meeting Financial Obligations

Mitigating

E2.A6.1.3.3rejectedConditions 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 DebtsThe applicant failed to demonstrate a good-faith effort to address the majority of his debts.

Key Rule Quoted

“"Any doubt as to whether access to classified information is clearly consistent with national security will be resolved in favor of the national security."”
— Egan, 484 U.S. at 531; see Directive ¶ E2.2.2.

Procedural Posture

SOR issuedAug 17, 2004
Answer filedSep 22, 2004
Hearing heldMay 24, 2005
Decision dateNov 23, 2005

Cite For

Deliberate Omission of Financial Issues Under Guideline E
Failure to Resolve Significant Debts Under Guideline F
Insufficient Evidence of Good-faith Efforts to Address Financial Obligations.

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	When Applicant completed his Security Clearance Application (SF 86) on October 16, 2001, he failed to disclose any of his financial delinquency issues in response to questions 38 or 39.	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

When Applicant completed his Security Clearance Application (SF 86) on October 16, 2001, he failed to disclose any of his financial delinquency issues in response to questions 38 or 39.

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 was placed for collection in 1997 and has not been paid nor disputed by Applicant. $3,352	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts	—	—
1.d	Debt 1.d. for $2,564 to Creditor 3 was placed for collection in 1998; neither has not been paid nor disputed by Applicant. $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	Judgment Against Applicant	Admitted	—	—	—
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	Judgment Against Applicant	Unknown	(a) inability to satisfy debts	—	—
1.h	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	Admitted	—	—	—
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 was placed for collection in 1997 and has not been paid nor disputed by Applicant.

$3,352

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

—

1.d

Debt 1.d. for $2,564 to Creditor 3 was placed for collection in 1998; neither has not been paid nor disputed by Applicant.

$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

Judgment Against Applicant

Admitted

—

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

Judgment Against Applicant

Unknown

(a) inability to satisfy debts

—

1.h

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

Admitted

—

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

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES