ISCR Case 03-02410.h1

Case Headnote

ISCR Case No. 03-02410.h1

deniedAug 27, 2004· Hon. Michael J. Breslin· hearing

Summary

A 44-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 two primary issues: a 1995 arrest for attempting to purchase cocaine, which the applicant failed to disclose on his security clearance application, and significant financial difficulties.

The applicant's financial issues included an unpaid federal income tax assessment of approximately $2,564 for 1997, and a Chapter 7 bankruptcy filing in May 2003 with $655 in assets and $54,159 in liabilities. Additionally, he was delinquent on multiple debts, including $482 for emergency medical services, about $149 to a cable provider, and $157 to a hospital, all of which remained unpaid as of December 2003. He also failed to disclose numerous other delinquent debts on his application.

The judge determined that the applicant deliberately omitted his 1995 arrest and drug-related charges from his application, and falsified information regarding his delinquent debts. The applicant did not provide sufficient credible evidence to mitigate the security concerns related to his personal conduct or his substantial and unresolved financial difficulties, leading to the denial of his security clearance.

Why the Applicant Was Denied

Applicant deliberately omitted his 1995 arrest for attempting to purchase cocaine from his security clearance application.
He had substantial debts that were delinquent for more than 90 days and filed for bankruptcy in 2003.
The applicant failed to provide credible evidence to mitigate the security concerns related to his financial difficulties and personal conduct.

Conditions Referenced

Disqualifying

E2.A5.1.2.1raisedQuestionable Judgment, Untrustworthiness, and Lack of Candor
E2.A6.1.2.1raisedHistory of Not Meeting Financial Obligations
E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts

Mitigating

E2.A6.1.3.6appliedGood-faith Efforts to Repay CreditorsApplicant initiated a payment plan for his back taxes and paid off a small debt to a cable service provider.
E2.A6.1.3.3rejectedCircumstances Beyond ControlWhile financial difficulties were exacerbated by job loss, the applicant had pre-existing debts.
E2.A6.1.3.1rejectedBehavior Not RecentThe applicant's financial issues were ongoing and not isolated incidents.

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."”
— Directive, ¶ E2.2.1.

Procedural Posture

SOR issuedJan 5, 2004
Answer filedMar 2, 2004
Hearing held—Case decided on written record.
Decision dateAug 27, 2004

Cite For

Disqualifying Conditions Under Guideline E and F
Failure to Disclose Criminal History on Security Clearance Application
Financial Difficulties Leading to Bankruptcy as a Security Concern

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 attempted to purchase "crack" cocaine from an undercover police officer in 1995, resulting in his arrest and criminal charges.	Against Applicant	Questionable Judgment GeneralFOUND DELIBERATE	—	Admitted	—	—	—
2.b	Applicant falsified material facts on his Security Clearance Application when, in response to Question 24, he denied ever being charged with or convicted of any offenses related to alcohol or drugs.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Criminal Conduct	Denied	—	—	—
2.c	Applicant falsified material facts on the security clearance application by failing to disclose that he was over 90 days delinquent to a number of creditors, including 15 specific instances.	Against Applicant	Falsification Security FormFOUND DELIBERATE	—	Denied	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant attempted to purchase "crack" cocaine from an undercover police officer in 1995, resulting in his arrest and criminal charges.

Against Applicant

Questionable Judgment GeneralFOUND DELIBERATE

—

Admitted

—

2.b

Applicant falsified material facts on his Security Clearance Application when, in response to Question 24, he denied ever being charged with or convicted of any offenses related to alcohol or drugs.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Criminal Conduct

Denied

—

2.c

Applicant falsified material facts on the security clearance application by failing to disclose that he was over 90 days delinquent to a number of creditors, including 15 specific instances.

Against Applicant

Falsification Security FormFOUND DELIBERATE

—

Denied

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant did not pay his federal income tax assessment of about $2,564.00 for calendar year 1997 when it was due on April 15, 1998. $2,564	Against Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts	—	—
1.b	Applicant petitioned for Chapter 7 bankruptcy in May 2003, with total assets of $655.00 and liabilities of $54,159.00. $54,159	Against Applicant	Bankruptcy Filing	Admitted	(a) inability to satisfy debts	—	—
1.c	The SOR, ¶ 1.c, alleged that as of December 30, 2003, Applicant was delinquent on a debt for emergency medical services totaling $482.00. $482	For Applicant	Unspecified Financial	Denied	—	—	—
1.d	Applicant was delinquent on a debt for about $149.00 to a cable services provider. $149	For Applicant	Utility or Phone Debt	Denied	—	(c) received/receiving counseling; problem being resolved	Credited Debt Paid in Full
1.e	The SOR, ¶ 1.e, also alleged the Applicant was delinquent on a $157.00 debt to a hospital which remained unpaid on December 30, 2003. $157	For Applicant	Unspecified Financial	Denied	—	—	—
1.f	Applicant was unable or unwilling to satisfy his delinquent debts, including those discussed above.	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant did not pay his federal income tax assessment of about $2,564.00 for calendar year 1997 when it was due on April 15, 1998.

$2,564

Against Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

—

1.b

Applicant petitioned for Chapter 7 bankruptcy in May 2003, with total assets of $655.00 and liabilities of $54,159.00.

$54,159

Against Applicant

Bankruptcy Filing

Admitted

(a) inability to satisfy debts

—

1.c

The SOR, ¶ 1.c, alleged that as of December 30, 2003, Applicant was delinquent on a debt for emergency medical services totaling $482.00.

$482

For Applicant

Unspecified Financial

Denied

—

1.d

Applicant was delinquent on a debt for about $149.00 to a cable services provider.

$149

For Applicant

Utility or Phone Debt

Denied

—

(c) received/receiving counseling; problem being resolved

Credited

Debt Paid in Full

1.e

The SOR, ¶ 1.e, also alleged the Applicant was delinquent on a $157.00 debt to a hospital which remained unpaid on December 30, 2003.

$157

For Applicant

Unspecified Financial

Denied

—

1.f

Applicant was unable or unwilling to satisfy his delinquent debts, including those discussed above.

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

—

Loading case…

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

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES