ISCR Case 03-24422.h1

Case Headnote

ISCR Case No. 03-24422.h1

deniedAug 26, 2005· Hon. Henry Lazzaro· hearing

Summary

A 62-year-old defense contractor was denied a security clearance due to significant financial issues, a history of alcohol-related incidents, and failure to disclose relevant information on his security clearance application. The denial was based on concerns under Guideline E (Personal Conduct), Guideline F (Financial Considerations), Guideline G (Alcohol Consumption), and Guideline J (Criminal Conduct).

The applicant had over $25,000 in delinquent debt, including one judgment, one past-due account, six charged-off debts, six collection accounts, and a deficiency from an auto repossession. He had filed for bankruptcy five times between 1969 and 1996 and provided no plan to resolve his current debts. He attributed some financial issues to co-signing loans for his children or debts incurred by them.

Additionally, the applicant had a history of multiple alcohol-related incidents, including six convictions for DWI or DUI between 1964 and 1999, nonjudicial punishment for intoxication on duty in 1962, a domestic battery and resisting arrest incident in 1997, and criminal damage to property in 1998, all after consuming alcohol. Crucially, he provided numerous false answers and failed to disclose most of this information on his February 2000 security clearance application. Despite demonstrating long-term sobriety and positive behavioral changes, the cumulative weight of his financial irresponsibility and personal conduct led to the denial.

Why the Applicant Was Denied

The applicant has over $25,000 in delinquent debt with no plan to resolve it.
The applicant has a history of multiple bankruptcies and alcohol-related offenses.
The applicant provided false information on his security clearance application.

Conditions Referenced

Disqualifying

F1raisedA History of Not Meeting Financial Obligations
F3raisedInability or Unwillingness to Satisfy Debts
G1raisedAlcohol-related Incidents Away From Work
G5raisedHabitual or Binge Consumption of Alcohol to the Point of Impaired Judgment
E2raisedThe Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts
J1raisedAllegations or Admissions of Criminal Conduct

Mitigating

G2appliedThe Problem Occurred a Number of Years Ago and There Is No Indication of a Recent Problem
G3appliedPositive Changes in Behavior Supportive of Sobriety
J6appliedThere Is Clear Evidence of Successful Rehabilitation

Key Rule Quoted

“No one has a right to a security clearance and "the clearly consistent standard indicates that security clearance determinations should err, if they must, on the side of denials."”
— Egan, 484 U.S. at 531.

Procedural Posture

SOR issuedDec 17, 2004
Answer filedUndated
Hearing heldN/AApplicant requested a decision based on the written record.
Decision dateAug 26, 2005

Cite For

Financial Irresponsibility Leading to Security Concerns Under Guideline F
Alcohol-related Incidents Impacting Security Clearance Under Guideline G
Deliberate Falsification of Information in 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 provided numerous false answers in the SF 86 he submitted.	Against Applicant	Falsification Security FormFOUND DELIBERATE	Other	Denied	(b) deliberately providing false information to an investigator or official	—	—
3.b–3.d	3 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)	Against Applicant		—		—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

3.a

Applicant provided numerous false answers in the SF 86 he submitted.

Against Applicant

Falsification Security FormFOUND DELIBERATE

Other

Denied

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

—

3.b–3.d

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

Against Applicant

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant filed for bankruptcy protection in 1969, 1974, 1976, 1988, and 1996.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	Applicant has outstanding one judgment, one past-due account, six accounts charged off as bad debts, six collection accounts, and one deficiency following repossession on an automobile. $25,612	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	The total owing on these accounts is $25,612.00. $25,612	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	Applicant failed to provide any information on any plan to resolve any of the debts.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	Applicant attributes the auto repossession to his voluntary surrender of the vehicle because of problems he had with the used vehicle he purchased and his inability to obtain relief under the state 'Lemon Law.'	Against Applicant	Auto Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	Applicant claims that many of the delinquent accounts resulted from his cosigning on loans for his children or were directly incurred by his children on accounts in his name.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	Applicant has numerous alcohol-related incidents in his background, and failed to disclose most of this information in a security clearance application he submitted in February 2000.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	Applicant has more than $25,000.00 in delinquent debt. $25,612	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant filed for bankruptcy protection in 1969, 1974, 1976, 1988, and 1996.

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

Applicant has outstanding one judgment, one past-due account, six accounts charged off as bad debts, six collection accounts, and one deficiency following repossession on an automobile.

$25,612

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

The total owing on these accounts is $25,612.00.

$25,612

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

Applicant failed to provide any information on any plan to resolve any of the debts.

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

Applicant attributes the auto repossession to his voluntary surrender of the vehicle because of problems he had with the used vehicle he purchased and his inability to obtain relief under the state 'Lemon Law.'

Against Applicant

Auto Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

Applicant claims that many of the delinquent accounts resulted from his cosigning on loans for his children or were directly incurred by his children on accounts in his name.

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

Applicant has numerous alcohol-related incidents in his background, and failed to disclose most of this information in a security clearance application he submitted in February 2000.

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

Applicant has more than $25,000.00 in delinquent debt.

$25,612

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

¶	Allegation	Finding	Incident	Response	Disqualifying (¶22)	Mitigating applied (¶23)	Mitigation
2.a–2.n	14 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant			—	—	—

Allegation

Finding

Incident

Response

Disqualifying (¶22)

Mitigating applied (¶23)

Mitigation

2.a–2.n

14 sub-charges — specific text not stated in this decision (for the applicant).

For Applicant

—

¶	Allegation	Finding	Offense	Criminal disposition	Response	Disqualifying (¶31)	Mitigating applied (¶32)	Mitigation
1.a	Applicant was charged with either Driving While Intoxicated (DWI) or Driving Under the Influence of Alcohol (DUI) in 1964, 1974, 1976, 1984, 1985, and 1999. He was convicted of each of those offenses or a negotiated reduced charge to the offense.	For Applicant	DUI or DWI Criminal	Convicted	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability	(c) no reliable evidence the individual committed the offense	—
1.b	He received nonjudicial punishment under Article 15, Uniform Code of Military Justice, in 1962 for being intoxicated while on duty.	For Applicant	DUI or DWI Criminal	Conduct No Charge	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability	—	—
1.c	He committed a domestic battery and resisted a police officer in January 1997 after consuming alcohol.	For Applicant	Domestic Violence	Convicted	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability	—	—
1.d	He committed a criminal damage to property in October 1998 by damaging vehicle tires on cars of people he had gotten into an argument within a bar where he had been drinking.	For Applicant	Vandalism or Property Damage	Convicted	Admitted	(a) pattern of minor offenses casting doubt on judgment/reliability	—	—
1.e–1.t	16 sub-charges — specific text not stated in this decision (rulings shown). (low confidence)	Mixed		—		—	—	—

Allegation

Finding

Offense

Criminal disposition

Response

Disqualifying (¶31)

Mitigating applied (¶32)

Mitigation

1.a

Applicant was charged with either Driving While Intoxicated (DWI) or Driving Under the Influence of Alcohol (DUI) in 1964, 1974, 1976, 1984, 1985, and 1999. He was convicted of each of those offenses or a negotiated reduced charge to the offense.

For Applicant

DUI or DWI Criminal

Convicted

Admitted

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

(c) no reliable evidence the individual committed the offense

—

1.b

He received nonjudicial punishment under Article 15, Uniform Code of Military Justice, in 1962 for being intoxicated while on duty.

For Applicant

DUI or DWI Criminal

Conduct No Charge

Admitted

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

—

1.c

He committed a domestic battery and resisted a police officer in January 1997 after consuming alcohol.

For Applicant

Domestic Violence

Convicted

Admitted

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

—

1.d

He committed a criminal damage to property in October 1998 by damaging vehicle tires on cars of people he had gotten into an argument within a bar where he had been drinking.

For Applicant

Vandalism or Property Damage

Convicted

Admitted

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

—

1.e–1.t

16 sub-charges — specific text not stated in this decision (rulings shown). (low confidence)

Mixed

—

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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

PROCEDURAL MATTERS

FINDINGS OF FACT

POLICIES

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES