ISCR Case 02-30267.h1

Case Headnote

ISCR Case No. 02-30267.h1

deniedNov 24, 2003· Hon. Darlene Lokey Anderson· hearing

Summary

A 41-year-old defense contractor employee was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from excessive financial indebtedness and the falsification of her security clearance application.

Specifically, the applicant intentionally provided false answers on her application regarding a Chapter 13 bankruptcy filing in February 2000, which was dismissed in May 2001 due to missed payments, and the existence of court judgments against her. She admitted to past financial difficulties, citing a divorce and low-wage employment, and remained indebted to sixteen creditors, with three unsatisfied judgments totaling approximately $1,700.00.

The judge found that the applicant failed to provide sufficient evidence of reform and rehabilitation for her financial situation, which had not improved despite her current employment. Her financial irresponsibility and intentional dishonesty on the application raised significant concerns about her judgment, reliability, and trustworthiness, leading to the denial of her security clearance.

Why the Applicant Was Denied

The applicant failed to demonstrate sufficient evidence of reform and rehabilitation regarding her financial situation.
The applicant intentionally falsified material aspects of her security clearance application, including bankruptcy filings and outstanding judgments.
The applicant's financial irresponsibility and dishonesty raised significant concerns about her judgment and trustworthiness.

Conditions Referenced

Disqualifying

F1raisedA History of Not Meeting Financial Obligations
F3raisedInability or Unwillingness to Satisfy Debts
E2raisedThe Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts

Mitigating

F3rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlWhile the applicant's divorce and job difficulties were acknowledged, there was no evidence of good faith efforts to improve her financial situation.

Key Rule Quoted

“The adjudicative process is an examination of a sufficient period of a person's life to make an affirmative determination that the person is eligible for a security clearance.”
— Executive Order 10865

Procedural Posture

SOR issuedFeb 13, 2003
Answer filedMar 8, 2003Applicant elected to have the case determined on a written record.
Hearing held—No hearing; case determined on written record.
Decision dateNov 24, 2003

Cite For

Denial Based on Financial Irresponsibility Under Guideline F
Falsification of Security Clearance Application Under Guideline E
Insufficient Evidence of Rehabilitation in Financial Matters

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 Applicant intentionally falsified material aspects of her personal background during the clearance screening process.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Denied	—	—	—
2.b	In response to question 33, which asked whether in the last seven years the Applicant had filed under any chapter of the bankruptcy code, the Applicant responded, "NO". This was a false answer.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Denied	—	—	—
2.c	The same questionnaire, at question 37, asked whether in the last seven years the Applicant had any judgments against her. The Applicant responded, "NO". This was also a false answer.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Denied	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

The Applicant intentionally falsified material aspects of her personal background during the clearance screening process.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Denied

—

2.b

In response to question 33, which asked whether in the last seven years the Applicant had filed under any chapter of the bankruptcy code, the Applicant responded, "NO". This was a false answer.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Denied

—

2.c

The same questionnaire, at question 37, asked whether in the last seven years the Applicant had any judgments against her. The Applicant responded, "NO". This was also a false answer.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Denied

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	The Applicant is ineligible for clearance because she is financially overextended and at risk to engage in illegal acts to generate funds.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.b	The Applicant admits to financial difficulties in the past based upon a divorce she was going through, and difficulties in finding a full time job that paid more than minimum wage.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.c	The Applicant remains indebted to sixteen separate creditors set forth in the SOR.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.d	The Applicant filed for Bankruptcy under Chapter 13 in February 2000, at which time her total liabilities amounted to $39,584.23. Her case was ultimately dismissed in May 2001, because she failed to make regular payments according to the bankruptcy plan. $39,584	Against Applicant	Bankruptcy Filing	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.e	The three creditors listed in allegations 1.(o), 1.(p), and 1(q), have obtained court judgments against the Applicant, collectively totaling approximately $1,700.00. $1,700	Against Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.f	The Applicant has either been unable or unwilling to pay her debts, and remains in a position where she poses a potentially serious risk to the national security.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.g	The Applicant's intentions to meet with an attorney in September 2003, to clear up her financial indebtedness, is a positive one.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	Claimed Other
1.h	The Applicant has not provided this Administrative Judge with sufficient evidence in mitigation that would negate the negative impact her falsifications have on her security worthiness.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.i	The Applicant has not demonstrated that she is trustworthy, and does not meet the eligibility requirements for access to classified information.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.j	The Applicant's excessive financial indebtedness has not been mitigated by sufficient evidence of reform and rehabilitation.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.k	The Applicant's financial situation poses a risk to national security.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.l	The Applicant's financial difficulties were largely beyond her control, but she has not made a good faith effort to improve her situation since obtaining her current employment.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.m	The Applicant's Chapter 13 bankruptcy was dismissed due to her failure to make regular payments according to the bankruptcy plan.	Against Applicant	Bankruptcy Filing	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.n	The Applicant has not provided sufficient evidence in mitigation that would negate the negative impact of her financial history on her security worthiness.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.o	The Applicant has three unsatisfied judgments against her totaling approximately $1,700.00. $1,700	Against Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.p	The Applicant's financial situation has not improved despite her current employment.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.q	The Applicant's financial history raises significant concerns regarding her judgment and reliability.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
2.a–2.c	3 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)	Against Applicant			—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The Applicant is ineligible for clearance because she is financially overextended and at risk to engage in illegal acts to generate funds.

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.b

The Applicant admits to financial difficulties in the past based upon a divorce she was going through, and difficulties in finding a full time job that paid more than minimum wage.

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.c

The Applicant remains indebted to sixteen separate creditors set forth in the SOR.

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.d

The Applicant filed for Bankruptcy under Chapter 13 in February 2000, at which time her total liabilities amounted to $39,584.23. Her case was ultimately dismissed in May 2001, because she failed to make regular payments according to the bankruptcy plan.

$39,584

Against Applicant

Bankruptcy Filing

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.e

The three creditors listed in allegations 1.(o), 1.(p), and 1(q), have obtained court judgments against the Applicant, collectively totaling approximately $1,700.00.

$1,700

Against Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.f

The Applicant has either been unable or unwilling to pay her debts, and remains in a position where she poses a potentially serious risk to the national security.

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.g

The Applicant's intentions to meet with an attorney in September 2003, to clear up her financial indebtedness, is a positive one.

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

Claimed

Other

1.h

The Applicant has not provided this Administrative Judge with sufficient evidence in mitigation that would negate the negative impact her falsifications have on her security worthiness.

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.i

The Applicant has not demonstrated that she is trustworthy, and does not meet the eligibility requirements for access to classified information.

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.j

The Applicant's excessive financial indebtedness has not been mitigated by sufficient evidence of reform and rehabilitation.

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.k

The Applicant's financial situation poses a risk to national security.

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.l

The Applicant's financial difficulties were largely beyond her control, but she has not made a good faith effort to improve her situation since obtaining her current employment.

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.m

The Applicant's Chapter 13 bankruptcy was dismissed due to her failure to make regular payments according to the bankruptcy plan.

Against Applicant

Bankruptcy Filing

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.n

The Applicant has not provided sufficient evidence in mitigation that would negate the negative impact of her financial history on her security worthiness.

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.o

The Applicant has three unsatisfied judgments against her totaling approximately $1,700.00.

$1,700

Against Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.p

The Applicant's financial situation has not improved despite her current employment.

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.q

The Applicant's financial history raises significant concerns regarding her judgment and reliability.

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

2.a–2.c

3 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)

Against Applicant

—

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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