ISCR Case 03-17324.h1

Case Headnote

ISCR Case No. 03-17324.h1

deniedSep 14, 2004· Hon. Charles D. Ablard· hearing

Summary

A 43-year-old defense contractor employee was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant admitted to four delinquent debts totaling almost $15,000, which had been subject to judicial or collection actions. These included an $11,000 debt for medical charges, a $2,900 debt to a credit corporation with a 1999 judgment, and two smaller debts of $199 and $62 in collection since 2001. While a $25,000 IRS debt for back taxes was resolved, the applicant did not demonstrate sufficient efforts to address the remaining financial obligations.

A primary concern was the applicant's failure to disclose these delinquent debts, a lien, and judgments on questions 36, 37, and 38 of his SF 86 application filed on May 15, 2001. The adjudicator found it difficult to believe the applicant was unaware of these actions, given the years since creditors initiated them. This deliberate omission, concealment, or falsification of material facts on a security application raised significant security concerns regarding the applicant's judgment and reliability.

The clearance was denied because the applicant admitted to the four delinquent debts, all of which had a history of judicial or collection actions, and critically, failed to disclose these financial issues on his SF 86.

Why the Applicant Was Denied

Applicant admitted to four delinquent debts totaling almost $15,000.
All debts had been subject to judicial or collection actions, indicating a history of not meeting financial obligations.
Applicant failed to disclose delinquent debts on his SF 86, raising concerns about judgment and reliability.

Conditions Referenced

Disqualifying

E2.A6.1.2.1raisedHistory of Not Meeting Financial Obligations
E2.A6.1.2.3raisedEvidence of Inability or Unwillingness to Satisfy Debts
E2.A5.1.1raisedQuestionable Judgment, Unreliability, and Unwillingness to Comply with Rules
E2.A5.1.2.2raisedDeliberate Omission, Concealment, or Falsification of Relevant and Material Facts

Mitigating

E2.A6.1.3.6rejectedGood Faith Effort to Repay Overdue Creditors or Resolve DebtsApplicant provided proof of resolution of the IRS tax debt but did not demonstrate sufficient efforts to resolve other debts.

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 issuedJan 29, 2004
Answer filedMar 5, 2004Applicant requested a hearing.
Hearing heldMay 19, 2004Applicant waived the 15 day notice requirement.
Decision dateSep 14, 2004

Cite For

Denial Based on Financial Irresponsibility Under Guideline F
Failure to Disclose Debts on Security Clearance Application Under Guideline E
Insufficient Evidence of Rehabilitation Efforts Regarding Financial Obligations

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 failed to disclose the delinquent debts, lien, and judgments in response to the applicable questions 36, 37, and 38 on his SF 86 filed May 15, 2001.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Admitted	—	—	—
2.b	Specifically, the deliberate omission, concealment, or falsification of relevant and material facts from a personnel security application could raise a security concern and be disqualifying.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Financial	Denied	—	—	—
2.c	It is difficult to believe that some notification did not reach him in the years since those actions by creditors were taken and that he would have known about some of them at the time of the filing of the SF 86.	Against Applicant	Questionable Judgment General	—	Unknown	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant failed to disclose the delinquent debts, lien, and judgments in response to the applicable questions 36, 37, and 38 on his SF 86 filed May 15, 2001.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Admitted

—

2.b

Specifically, the deliberate omission, concealment, or falsification of relevant and material facts from a personnel security application could raise a security concern and be disqualifying.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Financial

Denied

—

2.c

It is difficult to believe that some notification did not reach him in the years since those actions by creditors were taken and that he would have known about some of them at the time of the filing of the SF 86.

Against Applicant

Questionable Judgment General

—

Unknown

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant's largest debt for $25,000.00 to the Internal Revenue Service (IRS) was for back taxes and interest. $25,000	Against Applicant	Tax Unpaid	Admitted	(b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.b	The largest remaining debt for $11,000.00 is for hospital and medical charges in connection with an assault on Applicant that resulted in extensive treatment and surgery. $11,000	Against Applicant	Medical Debt	Admitted	(b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.c	The second largest remaining debt is for $2,900.00 to a credit corporation for which a judgment was entered against Applicant in 1999. $2,900	Against Applicant	Unspecified Financial	Admitted	(b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.d	Two other small debts of $199.00 and $62.00 have been in collection since 2001, and have not been paid.	Against Applicant	Unspecified Financial	Admitted	(b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.e	An IRS debt for back taxes of $25,000 was recently resolved. $25,000	For Applicant	Tax Filing Failure	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant's largest debt for $25,000.00 to the Internal Revenue Service (IRS) was for back taxes and interest.

$25,000

Against Applicant

Tax Unpaid

Admitted

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.b

The largest remaining debt for $11,000.00 is for hospital and medical charges in connection with an assault on Applicant that resulted in extensive treatment and surgery.

$11,000

Against Applicant

Medical Debt

Admitted

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.c

The second largest remaining debt is for $2,900.00 to a credit corporation for which a judgment was entered against Applicant in 1999.

$2,900

Against Applicant

Unspecified Financial

Admitted

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.d

Two other small debts of $199.00 and $62.00 have been in collection since 2001, and have not been paid.

Against Applicant

Unspecified Financial

Admitted

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.e

An IRS debt for back taxes of $25,000 was recently resolved.

$25,000

For Applicant

Tax Filing Failure

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