ISCR Case 05-11276.h1

Case Headnote

ISCR Case No. 05-11276.h1

deniedJan 9, 2007· Hon. Paul J. Mason· hearing

Summary

A 50-year-old systems programmer was denied a security clearance due to concerns under Guidelines E (Personal Conduct), F (Financial Considerations), and J (Criminal Conduct). The applicant's financial difficulties stemmed from a period of unemployment, leading to significant delinquent debts and a tax lien.

The denial was primarily based on the applicant's deliberate falsification of information on two public trust questionnaires, executed in April 2003 and August 2004. On both occasions, she falsely answered "no" to questions regarding bankruptcies, tax liens, legal judgments for debt, and being over 180 days delinquent on financial obligations. These denials were directly contradicted by her own statements acknowledging her delinquent debts. She also deliberately omitted material information about her lien and debts, then certified the questionnaires as true and correct.

Despite being employed for five years, the applicant failed to provide documented evidence of debt repayment since 2001. The combination of her unresolved financial issues and the deliberate dishonesty on official forms raised significant concerns about her judgment, reliability, and overall trustworthiness, resulting in the denial of her security clearance.

Why the Applicant Was Denied

The applicant failed to provide documented evidence of debt repayment since 2001.
The applicant deliberately falsified information on public trust questionnaires regarding her financial status.
The applicant's financial issues and dishonesty raised significant concerns about her judgment and trustworthiness.

Conditions Referenced

Disqualifying

F DC 1raisedA History of Not Meeting Financial Obligations
F DC 3raisedInability or Unwillingness to Satisfy Debts
E DC 2raisedThe Deliberate Omission or Falsification of Relevant and Material Facts
J DC 1raisedAllegations or Admission of Criminal Conduct

Mitigating

F MC 3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control
E MC 1rejectedThe Information Was Unsubstantiated or Not Pertinent to a Determination of Judgment, Trustworthiness or Reliability
J MC 6rejectedThere Is Clear Evidence of Successful Rehabilitation

Key Rule Quoted

“When an individual is financially overextended, she is at risk of engaging in illegal acts to generate funds.”

Procedural Posture

SOR issuedDec 21, 2005
Answer filedMar 17, 2006
Hearing heldOct 3, 2006Government's exhibits admitted; applicant testified.
Decision dateJan 9, 2007

Cite For

Deliberate Falsification of Financial Information Under Guideline E
Financial Overextension as a Disqualifying Condition Under Guideline F
Criminal Conduct Related to False Statements Under Guideline J

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	In April 2003, Applicant executed a public trust questionnaire in which she answered "no" to question 22.a. (in the last 7 years, have you, or a company over which you exercise some control, filed for bankruptcy, been declared bankrupt, been subject to a tax lien, or had legal judgment rendered against you for a debt?)	Against Applicant	Lack of Candor in InterviewFOUND DELIBERATE	Financial	Denied	(b) deliberately providing false information to an investigator or official	—	—
2.b	In August 2004, Applicant executed a second public trust questionnaire where she answered "no" to question 22.a. (tax lien question).	Against Applicant	Lack of Candor in InterviewFOUND DELIBERATE	Financial	Denied	(b) deliberately providing false information to an investigator or official	—	—
2.c	In the same two questionnaires referenced above, Applicant deliberately answered "no" to question 22.b. (Are you now over 180 days delinquent on any loan or financial obligation? Include loans or obligations funded or guaranteed by the Federal Government).	Against Applicant	Lack of Candor in InterviewFOUND DELIBERATE	Financial	Denied	(b) deliberately providing false information to an investigator or official	—	—
2.d	Applicant's denials to both allegations are directly controverted by her statements in her answer indicating she knew she had delinquent debts.	Against Applicant	Pattern of Dishonesty or Rule ViolationsFOUND DELIBERATE	—	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

In April 2003, Applicant executed a public trust questionnaire in which she answered "no" to question 22.a. (in the last 7 years, have you, or a company over which you exercise some control, filed for bankruptcy, been declared bankrupt, been subject to a tax lien, or had legal judgment rendered against you for a debt?)

Against Applicant

Lack of Candor in InterviewFOUND DELIBERATE

Financial

Denied

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

—

2.b

In August 2004, Applicant executed a second public trust questionnaire where she answered "no" to question 22.a. (tax lien question).

Against Applicant

Lack of Candor in InterviewFOUND DELIBERATE

Financial

Denied

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

—

2.c

In the same two questionnaires referenced above, Applicant deliberately answered "no" to question 22.b. (Are you now over 180 days delinquent on any loan or financial obligation? Include loans or obligations funded or guaranteed by the Federal Government).

Against Applicant

Lack of Candor in InterviewFOUND DELIBERATE

Financial

Denied

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

—

2.d

Applicant's denials to both allegations are directly controverted by her statements in her answer indicating she knew she had delinquent debts.

Against Applicant

Pattern of Dishonesty or Rule ViolationsFOUND DELIBERATE

—

Denied

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

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a–1.gg	33 sub-charges — specific text not stated in this decision (26 against, 7 for the applicant).	Mixed			—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a–1.gg

33 sub-charges — specific text not stated in this decision (26 against, 7 for the applicant).

Mixed

—

¶	Allegation	Finding	Offense	Criminal disposition	Response	Disqualifying (¶31)	Mitigating applied (¶32)	Mitigation
3.a	The applicant deliberately omitted material information about her lien and debts on her April 2003 and August 2004 questionnaires, then certified (with her signature) the information in the questionnaires were true and correct.	Against Applicant	Fraud or Deception Criminal	Conduct No Charge	Denied	(a) pattern of minor offenses casting doubt on judgment/reliability	—	—

Allegation

Finding

Offense

Criminal disposition

Response

Disqualifying (¶31)

Mitigating applied (¶32)

Mitigation

3.a

The applicant deliberately omitted material information about her lien and debts on her April 2003 and August 2004 questionnaires, then certified (with her signature) the information in the questionnaires were true and correct.

Against Applicant

Fraud or Deception Criminal

Conduct No Charge

Denied

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

—

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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

FINDINGS OF FACT

POLICIES

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES