ISCR Case 02-32292.h1

Case Headnote

ISCR Case No. 02-32292.h1

deniedAug 26, 2005· Hon. Carol G. Ricciardello· hearing

Summary

A 49-year-old supervisor, employed since 1988, was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant had a history of significant financial issues, including approximately $37,330.00 in tax liens, unpaid federal income taxes, and other delinquent debts dating back to 1993. Specifically, he was indebted to his resident state for personal income taxes from 1992, 1993, 1997, 2000, and 2001, with tax liens totaling $7,038.49 filed for 1992, 1997, and 2000. He also failed to file a state income tax return for 1994 and owed federal income taxes for 1997, 1998, 2000, 2001, and 2002. The applicant admitted to additional debts as alleged in the Statement of Reasons.

Compounding these financial concerns, the applicant provided false information on his security clearance application (SF 86). He answered "No" to questions regarding tax liens, being over 180 days delinquent on any debt, and being currently over 90 days delinquent on any debt, despite his documented financial history.

The judge found that the applicant's financial irresponsibility and his dishonesty in completing the application raised serious security concerns. He failed to provide any evidence of efforts to resolve his debts or mitigate his financial issues, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant has approximately $37,330.00 in tax liens, unpaid federal income taxes, and delinquent debts dating back to 1993.
He failed to provide any evidence of efforts to resolve his debts or mitigate his financial issues.
The applicant knowingly provided false information on his security clearance application regarding his financial delinquencies.

Conditions Referenced

Disqualifying

E2.A6.1.2.1appliedA History of Not Meeting Financial Obligations
E2.A6.1.2.3appliedInability or Unwillingness to Satisfy Debts
E2.A5.1.2.2appliedThe Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts
E2.A5.1.2.4appliedPersonal Conduct or Concealment of Information That Increases an Individual's Vulnerability to Coercion

Key Rule Quoted

“The clearly consistent standard indicates that security clearance determinations should err, if they must, on the side of denials.”
— Executive Order 10865 § 7.

Procedural Posture

SOR issuedJan 9, 2005
Answer filedApr 13, 2005Applicant admitted all allegations.
Hearing held—Case decided on the written record.
Decision dateAug 26, 2005

Cite For

Denial Based on Significant Delinquent Debts Under Guideline F
Falsification of Information on Security Clearance Application Under Guideline E
Failure to Provide Mitigation for Financial Issues and Personal Conduct Concerns

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 answered "No" to Question 36 on his security clearance application (SF 86) (Your Financial Record-Tax Lien: In the last 7 years, have you had a lien placed against your property for failing to pay taxes or other debts?)	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Admitted	(a) deliberate omission, concealment, or falsification on a security form	—	—
2.b	Applicant answered "No" to Question 38 (Your Financial Delinquencies-180 Days: In the last 7 years, have you been over 180 days delinquent on any debt(s)?)	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Admitted	(a) deliberate omission, concealment, or falsification on a security form	—	—
2.c	Applicant answered "No" to Question 39 (Your Financial Delinquencies-90 Days: Are you currently over 90 days delinquent on any deb(s)?)	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 answered "No" to Question 36 on his security clearance application (SF 86) (Your Financial Record-Tax Lien: In the last 7 years, have you had a lien placed against your property for failing to pay taxes or other debts?)

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Admitted

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

—

2.b

Applicant answered "No" to Question 38 (Your Financial Delinquencies-180 Days: In the last 7 years, have you been over 180 days delinquent on any debt(s)?)

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Admitted

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

—

2.c

Applicant answered "No" to Question 39 (Your Financial Delinquencies-90 Days: Are you currently over 90 days delinquent on any deb(s)?)

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	Applicant is indebted to his resident state for personal income taxes for tax years 1992, 1993, 1997, 2000, and 2001 as alleged in SOR 1.a. Tax liens were filed in circuit court by Applicant's resident state for 1992, 1997, and 2000. The lien's total is $7,038.49. $7,038	Against Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.b	Applicant failed to file a personal income tax return in his resident state for 1994, as alleged in SOR 1.b.	Against Applicant	Tax Filing Failure	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.c	Applicant is indebted to the Internal Revenue Service for federal personal income taxes as alleged in SOR 1.c. as follows: Tax year 2002-$222.28, Tax year 2001-$2,172.12, Tax year 2000-$3,620.90, Tax year 1998-$4,908.52, Tax year 1997-$10,894.27. $222	Against Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.d	Applicant admits he is indebted as alleged in SOR subparagraphs 1.d., 1.e., 1.f., 1.g., 1.h., 1.i., 1.j., 1.k.,and 1.l.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.e–1.l	8 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

Applicant is indebted to his resident state for personal income taxes for tax years 1992, 1993, 1997, 2000, and 2001 as alleged in SOR 1.a. Tax liens were filed in circuit court by Applicant's resident state for 1992, 1997, and 2000. The lien's total is $7,038.49.

$7,038

Against Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.b

Applicant failed to file a personal income tax return in his resident state for 1994, as alleged in SOR 1.b.

Against Applicant

Tax Filing Failure

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.c

Applicant is indebted to the Internal Revenue Service for federal personal income taxes as alleged in SOR 1.c. as follows: Tax year 2002-$222.28, Tax year 2001-$2,172.12, Tax year 2000-$3,620.90, Tax year 1998-$4,908.52, Tax year 1997-$10,894.27.

$222

Against Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.d

Applicant admits he is indebted as alleged in SOR subparagraphs 1.d., 1.e., 1.f., 1.g., 1.h., 1.i., 1.j., 1.k.,and 1.l.

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.e–1.l

8 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

FINDINGS OF FACT

POLICIES

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES