ISCR Case 03-18091.h1

Case Headnote

ISCR Case No. 03-18091.h1

grantedMay 11, 2005· Hon. Thomas M. Crean· hearing

Summary

A 41-year-old aircraft structural technician for a defense contractor was granted a security clearance despite initial concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons detailed several delinquent debts stemming from a failed business and marriage, along with an admission that the applicant deliberately omitted some of these debts from his security clearance application.

The applicant successfully addressed the financial concerns by demonstrating a good-faith effort to repay his debts. This included resolving multiple credit card debts, some through a credit counseling service, and paying off debts related to his failed business and personal utilities. One debt was removed as his obligation after he contacted the credit card company.

The judge found that the omission of debts on the application was an isolated incident that the applicant voluntarily corrected. The applicant's efforts to rectify the situation, including working two jobs and utilizing a credit counseling service, along with letters of recommendation attesting to his character, mitigated the concerns. The security clearance was granted.

Why the Applicant Prevailed

Applicant demonstrated a good-faith effort to repay overdue debts through multiple means, including working two jobs and using a credit counseling service.
The omission of delinquent debts on the security clearance application was an isolated incident that was voluntarily corrected by the applicant.
Letters of recommendation attested to the applicant's good character and trustworthiness.

Conditions Referenced

Disqualifying

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

Mitigating

E2.A6.1.3.3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control
E2.A6.1.3.6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
E2.A5.1.3.2appliedThe Falsification Was an Isolated Incident, Was Not Recent, and the Individual Has Subsequently Provided Correct Information Voluntarily

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 ¶ 6.3.1 through ¶ 6.3.6.

Procedural Posture

SOR issuedMay 17, 2004
Answer filedJul 1, 2004
Hearing held—Applicant elected to have the matter decided on the written record.
Decision dateMay 11, 2005

Cite For

Mitigation of Financial Concerns Under Guideline F Due to Good-faith Efforts to Repay Debts
Isolated Incident of Omission Under Guideline E Mitigated by Voluntary Correction
Consideration of Character References in Security Clearance Decisions

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 omitted some of his delinquent debts past due over 180 days from his security clearance application and admitted to security investigators he deliberately omitted the debts.	For Applicant	Falsification Security FormFOUND DELIBERATESELF-CORRECTED	Financial	Admitted	(b) deliberately providing false information to an investigator or official	(c) offense is minor, long ago, infrequent, or unique circumstances	Credited Corrected Falsification Promptly

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant omitted some of his delinquent debts past due over 180 days from his security clearance application and admitted to security investigators he deliberately omitted the debts.

For Applicant

Falsification Security FormFOUND DELIBERATESELF-CORRECTED

Financial

Admitted

(b) deliberately providing false information to an investigator or official

(c) offense is minor, long ago, infrequent, or unique circumstances

Credited

Corrected Falsification Promptly

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Debt 1.a. and Debt 1.b. in the SOR are delinquent debts from credit card accounts used by he and his ex-wife during their marriage. These debts were managed and paid by the credit counseling service. Applicant made final payment on these accounts and the delinquent debts have been satisfied.	For Applicant	Credit Card Debt	Admitted	—	(c) received/receiving counseling; problem being resolved	Documented Debt Paid in Full
1.b	Debt 1.c. in the SOR is a credit card debt Applicant states belongs to his former wife and not him. Applicant contacted the credit card company and the company removed the debt as Applicant's obligation.	For Applicant	Credit Card Debt	Denied	—	—	—
1.c	Debt 1.d. in the SOR is a debt from the failed business turned over to an agency for collection. Applicant paid this debt in full and it is satisfied.	For Applicant	Unspecified Financial	Admitted	—	(c) received/receiving counseling; problem being resolved	Documented Debt Paid in Full
1.d	Debt 1.e. in the SOR is a credit card debt from the failed business. Applicant paid this debt in full and it is satisfied.	For Applicant	Credit Card Debt	Admitted	—	(c) received/receiving counseling; problem being resolved	Documented Debt Paid in Full
1.e	Debt 1.f. in the SOR is a credit card debt from the failed business in which all past due amounts have been paid and the debt is current.	For Applicant	Credit Card Debt	Admitted	—	(c) received/receiving counseling; problem being resolved	Documented Debt Paid in Full
1.f	Debt 1.g. in the SOR is a bill for personal telephone service. It was paid in full and satisfied in November 2001.	For Applicant	Utility or Phone Debt	Admitted	—	(c) received/receiving counseling; problem being resolved	Documented Debt Paid in Full
1.g	Debt 1.h. in the SOR is for utility service for Applicant's house. This debt was paid in full and satisfied in November 2002.	For Applicant	Utility or Phone Debt	Admitted	—	(c) received/receiving counseling; problem being resolved	Documented Debt Paid in Full
1.h	Debt 1.i. in the SOR is another bill for telephone service used in the failed business which was paid off and satisfied through the credit counseling service.	For Applicant	Utility or Phone Debt	Admitted	—	(c) received/receiving counseling; problem being resolved	Documented Debt Paid in Full
1.i	Debt 1.j. in the SOR is another personal telephone debt which has been paid off and satisfied.	For Applicant	Utility or Phone Debt	Admitted	—	(c) received/receiving counseling; problem being resolved	Documented Debt Paid in Full
1.j	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Debt 1.a. and Debt 1.b. in the SOR are delinquent debts from credit card accounts used by he and his ex-wife during their marriage. These debts were managed and paid by the credit counseling service. Applicant made final payment on these accounts and the delinquent debts have been satisfied.

For Applicant

Credit Card Debt

Admitted

—

(c) received/receiving counseling; problem being resolved

Documented

Debt Paid in Full

1.b

Debt 1.c. in the SOR is a credit card debt Applicant states belongs to his former wife and not him. Applicant contacted the credit card company and the company removed the debt as Applicant's obligation.

For Applicant

Credit Card Debt

Denied

—

1.c

Debt 1.d. in the SOR is a debt from the failed business turned over to an agency for collection. Applicant paid this debt in full and it is satisfied.

For Applicant

Unspecified Financial

Admitted

—

(c) received/receiving counseling; problem being resolved

Documented

Debt Paid in Full

1.d

Debt 1.e. in the SOR is a credit card debt from the failed business. Applicant paid this debt in full and it is satisfied.

For Applicant

Credit Card Debt

Admitted

—

(c) received/receiving counseling; problem being resolved

Documented

Debt Paid in Full

1.e

Debt 1.f. in the SOR is a credit card debt from the failed business in which all past due amounts have been paid and the debt is current.

For Applicant

Credit Card Debt

Admitted

—

(c) received/receiving counseling; problem being resolved

Documented

Debt Paid in Full

1.f

Debt 1.g. in the SOR is a bill for personal telephone service. It was paid in full and satisfied in November 2001.

For Applicant

Utility or Phone Debt

Admitted

—

(c) received/receiving counseling; problem being resolved

Documented

Debt Paid in Full

1.g

Debt 1.h. in the SOR is for utility service for Applicant's house. This debt was paid in full and satisfied in November 2002.

For Applicant

Utility or Phone Debt

Admitted

—

(c) received/receiving counseling; problem being resolved

Documented

Debt Paid in Full

1.h

Debt 1.i. in the SOR is another bill for telephone service used in the failed business which was paid off and satisfied through the credit counseling service.

For Applicant

Utility or Phone Debt

Admitted

—

(c) received/receiving counseling; problem being resolved

Documented

Debt Paid in Full

1.i

Debt 1.j. in the SOR is another personal telephone debt which has been paid off and satisfied.

For Applicant

Utility or Phone Debt

Admitted

—

(c) received/receiving counseling; problem being resolved

Documented

Debt Paid in Full

1.j

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

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Case Profile

Summary

Why the Applicant Prevailed

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

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES

POLICIES