ISCR Case 03-22281.h1

Case Headnote

ISCR Case No. 03-22281.h1

deniedJan 30, 2006· Hon. Philip S. Howe· hearing

Summary

A 44-year-old project manager for a defense contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct), Guideline F (Financial Considerations), and Guideline J (Criminal Conduct). The denial stemmed from his failure to disclose delinquent debts and a 1999 arrest on his security clearance application.

Specifically, the applicant did not disclose a 1999 arrest for second-degree battery, which was later reduced to disturbing the peace, to which he pled guilty. He also failed to disclose several delinquent debts, including a hospital debt of $7,718.55, two consolidated credit card debts totaling $1,887, and a $30 radiologist bill, all of which were part of a Chapter 13 bankruptcy filing in August 2004. Additionally, two car loans not included in the bankruptcy were listed in 2002 and 2003 credit reports.

While the applicant mitigated the criminal conduct concern related to the 1999 arrest, he did not adequately address the financial considerations or personal conduct issues, particularly the deliberate failure to disclose these matters on his application. Consequently, his security clearance was denied.

Why the Applicant Was Denied

Applicant failed to disclose delinquent debts on his security clearance application.
Applicant did not adequately mitigate financial considerations and personal conduct security concerns.

Conditions Referenced

Disqualifying

E2.A6.1.2.1appliedFinancial Considerations: A History of Not Meeting Financial Obligations
E2.A6.1.2.2appliedFinancial Considerations: Inability or Unwillingness to Satisfy Debts
E2.A10.1.2.1appliedCriminal Conduct: Allegations or Admissions of Criminal Conduct
E2.A10.1.2.2appliedCriminal Conduct: A Single Serious Crime or Multiple Lesser Offenses
E2.A5.1.2.2appliedPersonal Conduct: Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts

Mitigating

E2.A10.1.3.1appliedCriminal Conduct: the Criminal Behavior Is Not Recent
E2.A10.1.3.2appliedCriminal Conduct: the Crime Was an Isolated Incident
E2.A6.1.3.6appliedFinancial Considerations: the Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve 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 issuedOct 27, 2004
Answer filedDec 6, 2004
Hearing held—Applicant requested decision on written record.
Decision dateJan 30, 2006

Cite For

Failure to Disclose Delinquent Debts Under Guideline F
Impact of Criminal Conduct on Security Clearance Under Guideline J
Personal Conduct Concerns Related to Omissions on Security Clearance Applications 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
3.a	Applicant failed to disclose his delinquent debts and arrest on his security clearance application.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Denied	(b) deliberately providing false information to an investigator or official	—	—
3.b	Applicant deliberately failed to disclose his arrest in 1999 for second degree battery in answer to Question 26.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Criminal Conduct	Denied	(b) deliberately providing false information to an investigator or official	—	—
3.c	Applicant did not disclose his delinquent debts in response to Question 38 and Question 39, but answered 'no' to both questions.	Against Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Denied	(b) deliberately providing false information to an investigator or official	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

3.a

Applicant failed to disclose his delinquent debts and arrest on his security clearance application.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Denied

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

—

3.b

Applicant deliberately failed to disclose his arrest in 1999 for second degree battery in answer to Question 26.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Criminal Conduct

Denied

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

—

3.c

Applicant did not disclose his delinquent debts in response to Question 38 and Question 39, but answered 'no' to both questions.

Against Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Denied

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

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	The delinquent debt for $7,718.55 to a hospital alleged in SOR subparagraph 1.b. is included in Applicant's Chapter 13 bankruptcy filing on August 13, 2004. $7,718	For Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.b	The delinquent debt owed to a bank for two credit card debts consolidated for a total amount of $1,887 is included in the Chapter 13 bankruptcy. $1,887	For Applicant	Credit Card Debt	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.c	Applicant has a car loan not included in the Chapter 13 bankruptcy that is listed in the 2002 and 2003 credit bureau reports.	Against Applicant	Auto Loan Debt	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.d	The radiologist's medical bill in the amount of $30 is included in the Chapter 13 bankruptcy. $30	For Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.e	Applicant also has a car loan not included in the Chapter 13 bankruptcy that is listed in the 2002 and 2003 credit bureau reports.	For Applicant	Auto Loan Debt	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The delinquent debt for $7,718.55 to a hospital alleged in SOR subparagraph 1.b. is included in Applicant's Chapter 13 bankruptcy filing on August 13, 2004.

$7,718

For Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.b

The delinquent debt owed to a bank for two credit card debts consolidated for a total amount of $1,887 is included in the Chapter 13 bankruptcy.

$1,887

For Applicant

Credit Card Debt

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.c

Applicant has a car loan not included in the Chapter 13 bankruptcy that is listed in the 2002 and 2003 credit bureau reports.

Against Applicant

Auto Loan Debt

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.d

The radiologist's medical bill in the amount of $30 is included in the Chapter 13 bankruptcy.

$30

For Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.e

Applicant also has a car loan not included in the Chapter 13 bankruptcy that is listed in the 2002 and 2003 credit bureau reports.

For Applicant

Auto Loan Debt

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

¶	Allegation	Finding	Offense	Criminal disposition	Response	Disqualifying (¶31)	Mitigating applied (¶32)	Mitigation
2.a	Applicant has a single arrest in 1999 for second degree battery. That charge was later reduced to disturbing the peace to which Applicant pled guilty.	For Applicant	Assault or Battery	Convicted	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability (b) evidence of criminal conduct, regardless of charge or conviction	(a) so much time has passed, or unusual circumstances, that it is unlikely to recur (b) pressured/coerced and unlikely to recur absent that pressure	—

Allegation

Finding

Offense

Criminal disposition

Response

Disqualifying (¶31)

Mitigating applied (¶32)

Mitigation

2.a

Applicant has a single arrest in 1999 for second degree battery. That charge was later reduced to disturbing the peace to which Applicant pled guilty.

For Applicant

Assault or Battery

Convicted

Admitted

(a) pattern of minor offenses casting doubt on judgment/reliability

(b) evidence of criminal conduct, regardless of charge or conviction

(a) so much time has passed, or unusual circumstances, that it is unlikely to recur

(b) pressured/coerced and unlikely to recur absent that pressure

—

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