ISCR Case 02-28917.h1

Case Headnote

ISCR Case No. 02-28917.h1

deniedFeb 2, 2005· Hon. Barry M. Sax· hearing

Summary

A 45-year-old environmental technician for a defense contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant had a history of financial issues, including a Chapter 7 bankruptcy in 1991 and a subsequent bankruptcy in 2003 that resolved $25,000 in delinquent debts.

The primary issue stemmed from the applicant's March 21, 2002, security clearance application (SF 86). While he disclosed a 1999 debt of $500 to Gasoline Company D, he intentionally omitted nine other delinquent debts from his responses to questions regarding financial delinquencies. These omitted debts included amounts owed to Military Exchange B ($3,512.00), Bank C ($1,317.58), Gasoline Company D ($938.00), Dentist E ($131.00), Collection Agency F ($1,318.00), Company G ($922.00), and Telephone Company H ($482.00).

The judge found the applicant's explanations for these omissions, specifically his claim that he believed the debts were covered by a previous question, to be not credible. Consequently, the applicant failed to demonstrate adequate mitigation of the security concerns, leading to the denial of his security clearance.

Why the Applicant Was Denied

Applicant intentionally omitted nine debts from his security clearance application.
The applicant's explanations for the omissions were deemed not credible.
The applicant failed to demonstrate adequate mitigation of the security concerns.

Conditions Referenced

Disqualifying

E2.A2.2.2raisedDeliberate Omission, Concealment, or Falsification of Relevant and Material Facts From Any Personnel Security Questionnaire, or Similar Forms Used to Conduct Investigations.

Mitigating

F3.A3.1.3rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control (loss of Employment, Unexpected Medical Emergency, Etc.).While the applicant resolved his debts, the judge found no mitigating conditions applicable due to the willful falsification.
F3.A3.1.6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts.The applicant resolved his debts through bankruptcy.

Key Rule Quoted

“"Any doubt as to whether access to classified information is clearly consistent with the interests of national security will be resolved in favor of the nation's security."”
— DoD Directive 5220.6, E2.2.2.

Procedural Posture

SOR issuedMar 10, 2004
Answer filedApr 22, 2004
Hearing heldSep 2, 2004
Decision dateFeb 2, 2005

Cite For

Issues of Intentional Omission in Security Clearance Applications
Credibility of Applicant's Explanations for Financial Conduct
Impact of Financial Misconduct 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 falsified material facts on his March 21, 2002 security clearance application (SF 86). In response to Question 38. Your Financial Delinquencies- 180 days, "In the last seven years, have you been over days delinquent . . . ," Applicant answered "Yes" and cited a 1999 debt of $500.00 owed to Gasoline Company D (SOR 1.d.). He intentionally omitted any mention of the delinquent debts cited in SOR 1.b., 1.c., 1.e., 1.f., 1.g., and 1.h., above. Although it is not cited in the SOR, Applicant also answered "No" to Question 39. Your Financial Delinquencies - 90 days, "Are you currently over 90 days delinquent on any debt(s)?," even though the debts cited in 2.a. were still delinquent at the time the SF 86 was completed. His explanation, that he thought these debts were included within the previous question is not credible and is not a valid excuse for his false answer.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Denied	(b) deliberately providing false information to an investigator or official	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant falsified material facts on his March 21, 2002 security clearance application (SF 86). In response to Question 38. Your Financial Delinquencies- 180 days, "In the last seven years, have you been over days delinquent . . . ," Applicant answered "Yes" and cited a 1999 debt of $500.00 owed to Gasoline Company D (SOR 1.d.). He intentionally omitted any mention of the delinquent debts cited in SOR 1.b., 1.c., 1.e., 1.f., 1.g., and 1.h., above. Although it is not cited in the SOR, Applicant also answered "No" to Question 39. Your Financial Delinquencies - 90 days, "Are you currently over 90 days delinquent on any debt(s)?," even though the debts cited in 2.a. were still delinquent at the time the SF 86 was completed. His explanation, that he thought these debts were included within the previous question is not credible and is not a valid excuse for his false answer.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Denied

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

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	had filed for Chapter 7 bankruptcy protection in 1991 and the covered debts were discharged in the summer of 1991.	For Applicant	Bankruptcy Filing	Admitted	—	—	—
1.b	had delinquent debts owed to the following creditors in the approximate amounts shown: Military Exchange B - $3,512.00; $3,512	For Applicant	Unspecified Financial	Admitted	—	—	—
1.c	had delinquent debts owed to the following creditors in the approximate amounts shown: Bank C - $1,317.58; $1,317	For Applicant	Unspecified Financial	Admitted	—	—	—
1.d	had delinquent debts owed to the following creditors in the approximate amounts shown: Gasoline Company D - $938.00; $938	For Applicant	Unspecified Financial	Admitted	—	—	—
1.e	had delinquent debts owed to the following creditors in the approximate amounts shown: Dentist E - $131.00; $131	For Applicant	Unspecified Financial	Admitted	—	—	—
1.f	had delinquent debts owed to the following creditors in the approximate amounts shown: Collection Agency F - $1,318.00; $1,318	For Applicant	Unspecified Financial	Admitted	—	—	—
1.g	had delinquent debts owed to the following creditors in the approximate amounts shown: Company G - $922.00; $922	For Applicant	Unspecified Financial	Admitted	—	—	—
1.h	had delinquent debts owed to the following creditors in the approximate amounts shown: Telephone Company H - $482.00; $482	For Applicant	Unspecified Financial	Denied	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

had filed for Chapter 7 bankruptcy protection in 1991 and the covered debts were discharged in the summer of 1991.

For Applicant

Bankruptcy Filing

Admitted

—

1.b

had delinquent debts owed to the following creditors in the approximate amounts shown: Military Exchange B - $3,512.00;

$3,512

For Applicant

Unspecified Financial

Admitted

—

1.c

had delinquent debts owed to the following creditors in the approximate amounts shown: Bank C - $1,317.58;

$1,317

For Applicant

Unspecified Financial

Admitted

—

1.d

had delinquent debts owed to the following creditors in the approximate amounts shown: Gasoline Company D - $938.00;

$938

For Applicant

Unspecified Financial

Admitted

—

1.e

had delinquent debts owed to the following creditors in the approximate amounts shown: Dentist E - $131.00;

$131

For Applicant

Unspecified Financial

Admitted

—

1.f

had delinquent debts owed to the following creditors in the approximate amounts shown: Collection Agency F - $1,318.00;

$1,318

For Applicant

Unspecified Financial

Admitted

—

1.g

had delinquent debts owed to the following creditors in the approximate amounts shown: Company G - $922.00;

$922

For Applicant

Unspecified Financial

Admitted

—

1.h

had delinquent debts owed to the following creditors in the approximate amounts shown: Telephone Company H - $482.00;

$482

For Applicant

Unspecified Financial

Denied

—

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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

FINDINGS OF FACT

POLICIES

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES