ISCR Case 03-23221.h1

Case Headnote

ISCR Case No. 03-23221.h1

deniedDec 31, 2005· Hon. Matthew E. Malone· hearing

Summary

A 35-year-old engineering specialist employed by a defense contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from a history of significant financial delinquencies and a lack of candor on his security clearance application.

Specifically, the applicant's Chapter 13 bankruptcy was dismissed after he ceased payments, leading to approximately $19,000 in new delinquencies, including a $550 judgment for unpaid rent, a $694 debt to a former employer, and a $609 debt to an electronics store. He also failed to repay an $800 Navy exchange account, though this was later satisfied. Furthermore, he improperly received and spent about $3,663 in unemployment compensation after starting his current job.

The judge found that the applicant deliberately omitted information about his arrest record and several unpaid judgments from his security clearance application (SF 86). He also falsely answered "no" to questions regarding debts 90 or 180 days past due. These omissions and ongoing financial issues raised serious concerns about his judgment and reliability, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant failed to complete a Chapter 13 bankruptcy repayment plan and accrued over $19,000 in new delinquencies.
He deliberately omitted relevant information regarding his debts and a prior felony indictment from his security clearance application.

Conditions Referenced

Disqualifying

DC 1appliedA History of Not Meeting Financial Obligations
DC 2appliedDeceptive or Illegal Financial Practices
DC 3appliedInability or Unwillingness to Satisfy Debts
DC 2appliedDeliberate Omission, Concealment, or Falsification of Relevant and Material Facts

Mitigating

MC 3rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlThe applicant's failure to complete the bankruptcy plan and continued generation of delinquent debts undermined the weight of this condition.

Key Rule Quoted

“A security clearance decision is intended to resolve whether it is clearly consistent with the national interest for an Applicant to either receive or continue to have access to classified information.”

Procedural Posture

SOR issuedDec 3, 2004
Answer filed—Applicant admitted all but five allegations.
Hearing heldSep 20, 2005
Decision dateDec 31, 2005

Cite For

Disqualifying Conditions Under Guideline F Related to Financial Considerations
Disqualifying Conditions Under Guideline E Related to Personal Conduct
Issues of Candor and Reliability in Security Clearance Applications

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 omitted from his most recent security clearance application (SF 86) relevant information about his arrest record.	Against Applicant	Lack of Candor in InterviewFOUND DELIBERATE	Criminal Conduct	Denied	(b) deliberately providing false information to an investigator or official	—	—
2.b	Applicant failed to list in question 37 any of the unpaid judgments in place against him at the time he filled out the SF 86.	Against Applicant	Lack of Candor in InterviewFOUND DELIBERATE	Other	Denied	(b) deliberately providing false information to an investigator or official	—	—
2.c	Applicant answered 'no' to questions 38 and 39, which asked if he had ever been 180 days or was currently 90 days past due on any debts.	Against Applicant	Lack of Candor in InterviewFOUND DELIBERATE	Other	Denied	(b) deliberately providing false information to an investigator or official	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant deliberately omitted from his most recent security clearance application (SF 86) relevant information about his arrest record.

Against Applicant

Lack of Candor in InterviewFOUND DELIBERATE

Criminal Conduct

Denied

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

—

2.b

Applicant failed to list in question 37 any of the unpaid judgments in place against him at the time he filled out the SF 86.

Against Applicant

Lack of Candor in InterviewFOUND DELIBERATE

Other

Denied

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

—

2.c

Applicant answered 'no' to questions 38 and 39, which asked if he had ever been 180 days or was currently 90 days past due on any debts.

Against Applicant

Lack of Candor in InterviewFOUND DELIBERATE

Other

Denied

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

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant's bankruptcy was dismissed after he stopped paying into the plan.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.b	A March 1995 judgment for unpaid rent totaling $550 plus costs and interest. $550	Against Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.c	Applicant accrued 18 additional delinquencies after he filed bankruptcy totaling approximately $17,964. $17,964	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.d–1.i	6 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)	Against Applicant			—	—	—
1.j	Applicant did not repay the company that advanced him the funds, and still owes approximately $694. $694	Against Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.k	specific text not stated in this decision	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.l	A debt left over from the bankruptcy dismissal was for $609 owed to an electronics store. $609	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.m–1.n	2 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)	Against Applicant			—	—	—
1.o	Applicant accepted and spent approximately $3,663 in unemployment compensation payments even after he went to work for his current employer. $3,663	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.p–1.t	5 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)	Against Applicant			—	—	—
1.u	Applicant failed to pay an account with the Navy exchange totaling about $800, which appears to have been satisfied in March 2002. $800	For Applicant	Unspecified Financial	Denied	—	—	—
1.v	specific text not stated in this decision	Against Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant's bankruptcy was dismissed after he stopped paying into the plan.

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.b

A March 1995 judgment for unpaid rent totaling $550 plus costs and interest.

$550

Against Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.c

Applicant accrued 18 additional delinquencies after he filed bankruptcy totaling approximately $17,964.

$17,964

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.d–1.i

6 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)

Against Applicant

—

1.j

Applicant did not repay the company that advanced him the funds, and still owes approximately $694.

$694

Against Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.k

specific text not stated in this decision

Against Applicant

Unspecified Financial

Unknown

—

1.l

A debt left over from the bankruptcy dismissal was for $609 owed to an electronics store.

$609

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.m–1.n

2 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)

Against Applicant

—

1.o

Applicant accepted and spent approximately $3,663 in unemployment compensation payments even after he went to work for his current employer.

$3,663

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.p–1.t

5 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)

Against Applicant

—

1.u

Applicant failed to pay an account with the Navy exchange totaling about $800, which appears to have been satisfied in March 2002.

$800

For Applicant

Unspecified Financial

Denied

—

1.v

specific text not stated in this decision

Against Applicant

Unspecified Financial

Unknown

—

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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