ISCR Case 02-28896.h1

Case Headnote

ISCR Case No. 02-28896.h1

grantedNov 18, 2003· Hon. Joan Caton Anthony· hearing

Summary

A 38-year-old radiological control technician and Navy reservist was granted a security clearance despite concerns under Guidelines E (Personal Conduct), F (Financial Considerations), and J (Criminal Conduct). The Statement of Reasons (SOR) cited a 1992 bankruptcy discharging over $21,000 in debts, along with numerous subsequent unpaid debts and judgments. Additionally, the applicant was alleged to have deliberately failed to disclose these unpaid judgments and other financial delinquencies on her SF-86, and to have made intentional false statements on the form.

The applicant provided persuasive evidence that she had paid or settled the debts listed in the SOR. She demonstrated that her financial difficulties stemmed largely from personal hardships, including job loss and medical issues, which were beyond her control.

Crucially, the applicant initiated a good-faith effort to repay overdue creditors and resolve her debts, including working over 1400 hours of overtime. These mitigating efforts, coupled with the resolution of her financial issues, led to the granting of her security clearance.

Why the Applicant Prevailed

The applicant provided persuasive evidence of having paid or settled the debts alleged in the Statement of Reasons (SOR).
The applicant demonstrated that her financial problems were largely due to circumstances beyond her control, such as job loss and medical issues.
The applicant initiated a good-faith effort to repay overdue creditors and resolve her debts.

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, Concealment, or Falsification of Relevant and Material Facts
E2.A10.1.2.1raisedAllegations or Admissions of Criminal Conduct

Mitigating

E2.A6.1.3.1appliedThe Behavior Was Not Recent
E2.A6.1.3.3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control
E2.A6.1.3.6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
E2.A5.1.3.1appliedThe Information Was Unsubstantiated or Not Pertinent to a Determination of Judgment, Trustworthiness, or Reliability
E2.A5.1.3.5appliedThe Individual Has Taken Positive Steps to Significantly Reduce or Eliminate Vulnerability to Coercion, Exploitation, or Duress
E2.A10.1.3.4appliedThe Person Did Not Voluntarily Commit the Act And/or the Factors Leading to the Violation Are Not Likely to Recur

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 issuedFeb 5, 2003
Answer filedMar 3, 2003
Hearing heldJul 10, 2003
Decision dateNov 18, 2003

Cite For

Mitigating Conditions for Financial Considerations Under Guideline F
Mitigating Conditions for Personal Conduct Under Guideline E
Mitigating Conditions for Criminal Conduct 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	In executing her response to question 37 on the SF-86, Applicant deliberately failed to disclose the unpaid judgments alleged at subparagraphs 1.h. and 1.i of the SOR.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATE	Financial	Denied	—	(a) prompt, good-faith correction before being confronted (b) omission/refusal followed advice of counsel; later cooperated fully	—
2.b	In executing her responses to questions 38 and 39 on the SF-86, the Applicant deliberately failed to list her financial delinquencies of over 180 days in the past seven years and current financial delinquencies of over 90 days.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATE	Financial	Denied	—	(a) prompt, good-faith correction before being confronted (b) omission/refusal followed advice of counsel; later cooperated fully	—
2.b(1)	Applicant's deliberate falsifications were identified in the allegations specified in Paragraph 1 of the SOR.	For Applicant	Pattern of Dishonesty or Rule Violations	—	Denied	—	—	—
2.b(2)	After completing her security clearance application, Applicant settled several accounts that she should have listed on her application.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATE	Financial	Denied	—	(a) prompt, good-faith correction before being confronted (b) omission/refusal followed advice of counsel; later cooperated fully	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

In executing her response to question 37 on the SF-86, Applicant deliberately failed to disclose the unpaid judgments alleged at subparagraphs 1.h. and 1.i of the SOR.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATE

Financial

Denied

—

(a) prompt, good-faith correction before being confronted

(b) omission/refusal followed advice of counsel; later cooperated fully

—

2.b

In executing her responses to questions 38 and 39 on the SF-86, the Applicant deliberately failed to list her financial delinquencies of over 180 days in the past seven years and current financial delinquencies of over 90 days.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATE

Financial

Denied

—

(a) prompt, good-faith correction before being confronted

(b) omission/refusal followed advice of counsel; later cooperated fully

—

2.b(1)

Applicant's deliberate falsifications were identified in the allegations specified in Paragraph 1 of the SOR.

For Applicant

Pattern of Dishonesty or Rule Violations

—

Denied

—

2.b(2)

After completing her security clearance application, Applicant settled several accounts that she should have listed on her application.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATE

Financial

Denied

—

(a) prompt, good-faith correction before being confronted

(b) omission/refusal followed advice of counsel; later cooperated fully

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant filed for bankruptcy in 1992 and her debts of over $21,000 were discharged. $21,000	For Applicant	Bankruptcy Filing	Admitted	—	—	—
1.b	Applicant has unpaid debts and judgments.	For Applicant	Unspecified Financial	Admitted	—	—	—
1.c	Applicant has unpaid debts and judgments.	For Applicant	Unspecified Financial	Admitted	—	—	—
1.d	Applicant has unpaid debts and judgments.	For Applicant	Unspecified Financial	Admitted	—	—	—
1.e	Applicant has unpaid debts and judgments.	For Applicant	Unspecified Financial	Admitted	—	—	—
1.f	Applicant has unpaid debts and judgments.	For Applicant	Unspecified Financial	Admitted	—	—	—
1.g	Applicant has unpaid debts and judgments.	For Applicant	Unspecified Financial	Admitted	—	—	—
1.h	Applicant has unpaid debts and judgments.	For Applicant	Unspecified Financial	Admitted	—	—	—
1.i	Applicant has unpaid debts and judgments.	For Applicant	Unspecified Financial	Admitted	—	—	—
1.j	Applicant has unpaid debts and judgments.	For Applicant	Unspecified Financial	Denied	—	—	—
1.k	Applicant has unpaid debts and judgments.	For Applicant	Unspecified Financial	Denied	—	—	—
1.l	Applicant has unpaid debts and judgments.	For Applicant	Unspecified Financial	Admitted	—	—	—
1.m	Applicant has unpaid debts and judgments.	For Applicant	Unspecified Financial	Denied	—	—	—
1.n	Applicant has unpaid debts and judgments.	For Applicant	Unspecified Financial	Admitted	—	—	—
1.o	Applicant has unpaid debts and judgments.	For Applicant	Unspecified Financial	Admitted	—	—	—
1.p	Applicant has unpaid debts and judgments.	For Applicant	Unspecified Financial	Denied	—	—	—
1.q	Applicant has unpaid debts and judgments.	For Applicant	Unspecified Financial	Denied	—	—	—
1.r	Applicant has unpaid debts and judgments.	For Applicant	Unspecified Financial	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant filed for bankruptcy in 1992 and her debts of over $21,000 were discharged.

$21,000

For Applicant

Bankruptcy Filing

Admitted

—

1.b