ISCR Case 03-10004.h1

Case Headnote

ISCR Case No. 03-10004.h1

deniedMay 31, 2005· Hon. Joseph Testan· hearing

Summary

A 49-year-old defense contractor and former U.S. Navy service member was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant had a long-standing federal tax debt of approximately $35,000, with no voluntary payments made since 2000. A state tax lien was filed against him in 1998 and released in 2000, and a federal tax lien was filed in 1999. While most non-tax bills were paid on time, he fell behind on payments to at least three creditors for four debts in 2003/2004.

Additionally, the applicant intentionally falsified information on his December 5, 2002, Security Clearance Application (SCA). He falsely answered "no" to questions regarding wage garnishment and property liens within the last seven years. He admitted to intentionally providing a false response about wage garnishment due to embarrassment and gave inconsistent explanations for his "no" response regarding property liens.

Despite the applicant's claims of intending to establish a payment plan for his tax debt, the judge found insufficient evidence of meaningful progress toward resolving his financial obligations. The intentional falsifications and inconsistent statements regarding his financial history raised serious doubts about his reliability and trustworthiness, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant has a long-standing IRS debt of approximately $35,000 and has not made voluntary payments since 2000.
The applicant intentionally provided false information on his security clearance application regarding his financial history.
The applicant's inconsistent statements about his financial obligations raised serious doubts about his reliability and trustworthiness.

Conditions Referenced

Disqualifying

E2.A5.1.2.2appliedDeliberate Omission, Concealment, or Falsification of Relevant and Material Facts From Any Personnel Security Questionnaire.
E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations.
E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts.

Key Rule Quoted

“When such an individual intentionally falsifies material facts on a security clearance application, it is extremely difficult to conclude that he or she nevertheless possesses the good judgment, reliability and trustworthiness required of clearance holders.”

Procedural Posture

SOR issuedNov 3, 2004
Answer filedDec 2, 2004
Hearing heldMay 10, 2005
Decision dateMay 31, 2005

Cite For

Denial Based on Significant Unresolved Tax Debt Under Guideline F
Impact of Intentional Falsification on Security Clearance Eligibility Under Guideline E
Insufficient Evidence of Financial Reform or Repayment Plans in Security Clearance Cases.

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
1.a	On a Security Clearance Application (SCA) that he executed on December 5, 2002, applicant lied about his financial history when, in response to both Question 34, which asked, "In the last 7 years, have you had your wages garnished for any reason?" and Question 36, which asked, "In the last 7 years, have you had a lien placed against your property for failing to pay taxes or other debts?" he stated "no."	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Denied	(a) deliberate omission, concealment, or falsification on a security form	—	—
2.a	Applicant admits that he intentionally provided a false response to Question 34. He did so because he was embarrassed and didn't want his coworkers to know about his financial problems. With respect to Question 36, applicant has given inconsistent explanations for his "no" response.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Denied	(a) deliberate omission, concealment, or falsification on a security form	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

1.a

On a Security Clearance Application (SCA) that he executed on December 5, 2002, applicant lied about his financial history when, in response to both Question 34, which asked, "In the last 7 years, have you had your wages garnished for any reason?" and Question 36, which asked, "In the last 7 years, have you had a lien placed against your property for failing to pay taxes or other debts?" he stated "no."

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Denied

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

—

2.a

Applicant admits that he intentionally provided a false response to Question 34. He did so because he was embarrassed and didn't want his coworkers to know about his financial problems. With respect to Question 36, applicant has given inconsistent explanations for his "no" response.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Denied

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

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1	A State tax lien was filed against applicant in 1998 for non-payment of income tax. The lien was released in 2000.	Against Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
2	A Federal tax lien was filed against applicant in 1999 for non-payment of income tax.	Against Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
3	Although various credit reports offered into evidence indicate applicant has, for the most part, paid his non-tax bills on time, Exhibit E indicates that in 2003/2004, he fell behind on his payments to at least three creditors involving four different debts.	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

A State tax lien was filed against applicant in 1998 for non-payment of income tax. The lien was released in 2000.

Against Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

A Federal tax lien was filed against applicant in 1999 for non-payment of income tax.

Against Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

Although various credit reports offered into evidence indicate applicant has, for the most part, paid his non-tax bills on time, Exhibit E indicates that in 2003/2004, he fell behind on his payments to at least three creditors involving four different debts.

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

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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

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES