ISCR Case 03-13674.h1

Case Headnote

ISCR Case No. 03-13674.h1

deniedSep 1, 2004· Hon. Elizabeth M. Matchinski· hearing

Summary

A 40-year-old technician was denied a security clearance due to concerns under Guideline F (Financial Considerations) and Guideline E (Personal Conduct). The applicant had a history of delinquent accounts, some resulting in civil judgments. Specific financial issues included a $392 charged-off credit card balance from 1999, a $2,160 civil judgment from 1997, and a $1,111 civil judgment from 1998. Other debts included a $1,943 utility judgment from 2001, an $845 past-due credit card balance from 2000, and a $465 radiology judgment from 2000 that was later paid via wage garnishment in 2003.

Further financial issues involved a $153.50 medical debt from 2000, a $7,313 deficiency balance after a vehicle repossession in 2001, and an $1,859.11 hospital judgment from 2000. While the applicant's failure to report all debts on his SF 86 was not deemed deliberate, his overall financial situation remained precarious.

The denial was based on the applicant's history of financial delinquency, with approximately $14,500 in outstanding debt. Despite some debts being resolved through garnishment, he had made minimal effort to address the remaining delinquencies. His financial situation was considered tenuous, with no appreciable savings, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant has a history of financially delinquent accounts, with approximately $14,500 in outstanding debt.
Despite some debts being repaid through garnishment, the applicant has made little effort to resolve remaining delinquencies.
The applicant's financial situation is tenuous, living paycheck to paycheck with no appreciable savings.

Conditions Referenced

Disqualifying

E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts

Mitigating

E2.A6.1.3.3rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlWhile the applicant experienced unforeseen circumstances, he made poor financial decisions that contributed to his situation.

Key Rule Quoted

“"[N]o one has a 'right' to a security clearance."”
— Department of the Navy v. Egan, 484 U.S. 518, 528 (1988)

Procedural Posture

SOR issuedNov 7, 2003
Answer filedNov 18, 2003
Hearing heldMar 9, 2004Applicant waived the 15-day notice requirement.
Decision dateSep 1, 2004

Cite For

Financial Irresponsibility as a Disqualifying Condition Under Guideline F
Insufficient Evidence of Good Faith Effort to Resolve Financial Delinquencies
Non-deliberate Failure to Report Debts Does Not Mitigate Financial Concerns Under Guideline E

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 deliberately falsified his SF 86 when he failed to list several delinquent debts.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATE	Financial	Denied	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant deliberately falsified his SF 86 when he failed to list several delinquent debts.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATE

Financial

Denied

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	A $392 past due credit card balance was charged off by a creditor in December 1999 $392	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.b	In August 1997, a bank obtained a civil judgment against him in the amount of $2,160 $2,160	Against Applicant	Judgment Against Applicant	Admitted	—	—	—
1.c	In May 1998, the local telephone company obtained a civil judgment against Applicant in the amount of $1,111 $1,111	Against Applicant	Judgment Against Applicant	Admitted	—	—	—
1.d	In January 2001, a local utility obtained a civil judgment of $1,943 against Applicant $1,943	Against Applicant	Judgment Against Applicant	Admitted	—	—	—
1.e	A credit card account was cancelled by the credit grantor in August 2000 when it became $845 past due on an outstanding balance of $1,544 $1,544	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.f	In August 2000, a radiology group obtained a civil judgment in the amount of $465 against Applicant that was eventually paid through garnishment of his wages in June 2003 $465	For Applicant	Judgment Against Applicant	Admitted	—	—	—
1.g	In March 2000, a $153.50 unpaid medical debt was placed for collection $153	Against Applicant	Medical Debt	Admitted	—	—	—
1.h	In April or May 2001 the vehicle was voluntarily repossessed. Applicant owed a deficiency balance on his loan of $7,313 $7,313	Against Applicant	Auto Loan Debt	Admitted	—	—	—
1.i	In June 2000, a local hospital obtained a civil judgment against Applicant in the amount of $1,859.11 for unpaid medical care provided the younger of his daughters $1,859	For Applicant	Judgment Against Applicant	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

A $392 past due credit card balance was charged off by a creditor in December 1999

$392

Against Applicant

Credit Card Debt

Admitted

—

1.b

In August 1997, a bank obtained a civil judgment against him in the amount of $2,160

$2,160

Against Applicant

Judgment Against Applicant

Admitted

—

1.c

In May 1998, the local telephone company obtained a civil judgment against Applicant in the amount of $1,111

$1,111

Against Applicant

Judgment Against Applicant

Admitted

—

1.d

In January 2001, a local utility obtained a civil judgment of $1,943 against Applicant

$1,943

Against Applicant

Judgment Against Applicant

Admitted

—

1.e

A credit card account was cancelled by the credit grantor in August 2000 when it became $845 past due on an outstanding balance of $1,544

$1,544

Against Applicant

Credit Card Debt

Admitted

—

1.f

In August 2000, a radiology group obtained a civil judgment in the amount of $465 against Applicant that was eventually paid through garnishment of his wages in June 2003

$465

For Applicant

Judgment Against Applicant

Admitted

—

1.g

In March 2000, a $153.50 unpaid medical debt was placed for collection

$153

Against Applicant

Medical Debt

Admitted

—

1.h

In April or May 2001 the vehicle was voluntarily repossessed. Applicant owed a deficiency balance on his loan of $7,313

$7,313

Against Applicant

Auto Loan Debt

Admitted

—

1.i

In June 2000, a local hospital obtained a civil judgment against Applicant in the amount of $1,859.11 for unpaid medical care provided the younger of his daughters

$1,859

For Applicant

Judgment Against Applicant

Admitted

—

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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