Case Headnote
ISCR Case No. 06-03812.h1
deniedDec 29, 2006· Hon. Charles D. Ablard· hearing
Summary
A 37-year-old defense contractor was denied a security clearance based on Guidelines E (Personal Conduct), F (Financial Considerations), and J (Criminal Conduct). The denial stemmed from 29 delinquent debts, totaling nearly $12,000 and dating back to 1999, which the applicant failed to report on his SF 86 security clearance application. Specifically, he did not disclose debts exceeding 90 and 180 days at Questions 38 and 39.
The Statement of Reasons highlighted these financial delinquencies and the failure to report them as key concerns. Although the applicant was enrolled in a debt consolidation plan, he could not demonstrate sufficient financial stability, as his monthly expenses exceeded his income.
Ultimately, the applicant failed to mitigate the financial security concerns and issues related to his judgment and reliability. The decision concluded that granting a security clearance was not consistent with national interest.
Why the Applicant Was Denied
- Applicant failed to mitigate financial security concerns related to 29 delinquent debts totaling nearly $12,000.
- Monthly expenses exceeded income, indicating financial instability.
- Applicant's failure to report delinquent debts on his SF 86 raised concerns about judgment and reliability.
Conditions Referenced
Disqualifying
- E2.A5.1.1raisedGuideline E: Questionable Judgment, Unreliability, and Unwillingness to Comply with Rules and Regulations.
- E2.A5.1.2.2raisedGuideline E: Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts.
- E2.A6.1.1raisedGuideline F: Financial Overextension May Lead to Illegal Acts.
- E2.A6.1.2.1raisedGuideline F: History of Not Meeting Financial Obligations.
- E2.A6.1.2.3raisedGuideline F: Evidence of Inability or Unwillingness to Satisfy Debts.
- E2.A6.1.3.6raisedGuideline F: Deliberate Omission of Debts on SF 86.
- E2.A6.1.3.3rejectedGuideline F: Conditions Beyond the Person's Control.Applicant failed to establish that debts resulted from conditions beyond his control.
- E2.A6.1.3.6rejectedGuideline F: Good-faith Effort to Repay Overdue Creditors.No evidence was offered to establish any mitigating conditions.
- E2.A6.1.3.3rejectedGuideline F: Conditions Beyond the Person's Control.Applicant did not provide evidence of circumstances beyond his control.
- E2.A6.1.3.6rejectedGuideline F: Good-faith Effort to Repay Overdue Creditors.Applicant's debt consolidation plan did not demonstrate a good-faith effort.
- E2.A6.1.3.3rejectedGuideline F: Conditions Beyond the Person's Control.Applicant's financial issues were not shown to be beyond his control.
- E2.A6.1.3.6rejectedGuideline F: Good-faith Effort to Repay Overdue Creditors.No evidence of payments made towards debts.
- E2.A5.1.1raisedGuideline E: Questionable Judgment, Unreliability, and Unwillingness to Comply with Rules and Regulations.
- E2.A5.1.2.2raisedGuideline E: Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts.
- E2.A5.1.1raisedGuideline E: Questionable Judgment, Unreliability, and Unwillingness to Comply with Rules and Regulations.
- E2.A5.1.2.2raisedGuideline E: Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts.
- E2.A6.1.1raisedGuideline F: Financial Overextension May Lead to Illegal Acts.
- E2.A6.1.2.1raisedGuideline F: History of Not Meeting Financial Obligations.
- E2.A6.1.2.3raisedGuideline F: Evidence of Inability or Unwillingness to Satisfy Debts.
- E2.A6.1.3.6raisedGuideline F: Deliberate Omission of Debts on SF 86.
- E2.A6.1.3.3rejectedGuideline F: Conditions Beyond the Person's Control.Applicant failed to establish that debts resulted from conditions beyond his control.
- E2.A6.1.3.6rejectedGuideline F: Good-faith Effort to Repay Overdue Creditors.No evidence was offered to establish any mitigating conditions.
- E2.A6.1.3.3rejectedGuideline F: Conditions Beyond the Person's Control.Applicant did not provide evidence of circumstances beyond his control.
- E2.A6.1.3.6rejectedGuideline F: Good-faith Effort to Repay Overdue Creditors.Applicant's debt consolidation plan did not demonstrate a good-faith effort.
- E2.A6.1.3.3rejectedGuideline F: Conditions Beyond the Person's Control.Applicant's financial issues were not shown to be beyond his control.
- E2.A6.1.3.6rejectedGuideline F: Good-faith Effort to Repay Overdue Creditors.No evidence of payments made towards debts.
- E2.A5.1.1raisedGuideline E: Questionable Judgment, Unreliability, and Unwillingness to Comply with Rules and Regulations.
- E2.A5.1.2.2raisedGuideline E: Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts.
- E2.A5.1.1raisedGuideline E: Questionable Judgment, Unreliability, and Unwillingness to Comply with Rules and Regulations.
- E2.A5.1.2.2raisedGuideline E: Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts.
- E2.A6.1.1raisedGuideline F: Financial Overextension May Lead to Illegal Acts.
- E2.A6.1.2.1raisedGuideline F: History of Not Meeting Financial Obligations.
- E2.A6.1.2.3raisedGuideline F: Evidence of Inability or Unwillingness to Satisfy Debts.
- E2.A6.1.3.6raisedGuideline F: Deliberate Omission of Debts on SF 86.
- E2.A6.1.3.3rejectedGuideline F: Conditions Beyond the Person's Control.Applicant failed to establish that debts resulted from conditions beyond his control.
- E2.A6.1.3.6rejectedGuideline F: Good-faith Effort to Repay Overdue Creditors.No evidence was offered to establish any mitigating conditions.
- E2.A6.1.3.3rejectedGuideline F: Conditions Beyond the Person's Control.Applicant did not provide evidence of circumstances beyond his control.
- E2.A6.1.3.6rejectedGuideline F: Good-faith Effort to Repay Overdue Creditors.Applicant's debt consolidation plan did not demonstrate a good-faith effort.
- E2.A6.1.3.3rejectedGuideline F: Conditions Beyond the Person's Control.Applicant's financial issues were not shown to be beyond his control.
- E2.A6.1.3.6rejectedGuideline F: Good-faith Effort to Repay Overdue Creditors.No evidence of payments made towards debts.
- E2.A5.1.1raisedGuideline E: Questionable Judgment, Unreliability, and Unwillingness to Comply with Rules and Regulations.
- E2.A5.1.2.2raisedGuideline E: Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts.
- E2.A5.1.1raisedGuideline E: Questionable Judgment, Unreliability, and Unwillingness to Comply with Rules and Regulations.
- E2.A5.1.2.2raisedGuideline E: Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts.
- E2.A6.1.1raisedGuideline F: Financial Overextension May Lead to Illegal Acts.
- E2.A6.1.2.1raisedGuideline F: History of Not Meeting Financial Obligations.
- E2.A6.1.2.3raisedGuideline F: Evidence of Inability or Unwillingness to Satisfy Debts.
- E2.A6.1.3.6raisedGuideline F: Deliberate Omission of Debts on SF 86.
- E2.A6.1.3.3rejectedGuideline F: Conditions Beyond the Person's Control.Applicant failed to establish that debts resulted from conditions beyond his control.
- E2.A6.1.3.6rejectedGuideline F: Good-faith Effort to Repay Overdue Creditors.No evidence was offered to establish any mitigating conditions.
- E2.A6.1.3.3rejectedGuideline F: Conditions Beyond the Person's Control.Applicant did not provide evidence of circumstances beyond his control.
- E2.A6.1.3.6rejectedGuideline F: Good-faith Effort to Repay Overdue Creditors.Applicant's debt consolidation plan did not demonstrate a good-faith effort.
- E2.A6.1.3.3rejectedGuideline F: Conditions Beyond the Person's Control.Applicant's financial issues were not shown to be beyond his control.
- E2.A6.1.3.6rejectedGuideline F: Good-faith Effort to Repay Overdue Creditors.No evidence of payments made towards debts.
Mitigating
- E2.A6.1.3.6rejectedGuideline F: Good-faith Effort to Repay Overdue Creditors.No evidence was offered to establish any mitigating conditions.
- E2.A6.1.3.3rejectedGuideline F: Conditions Beyond the Person's Control.Applicant failed to establish that debts resulted from conditions beyond his control.
- E2.A6.1.3.6rejectedGuideline F: Good-faith Effort to Repay Overdue Creditors.Applicant's debt consolidation plan did not demonstrate a good-faith effort.
- E2.A6.1.3.3rejectedGuideline F: Conditions Beyond the Person's Control.Applicant's financial issues were not shown to be beyond his control.
- E2.A6.1.3.6rejectedGuideline F: Good-faith Effort to Repay Overdue Creditors.No evidence of payments made towards debts.
- E2.A5.1.1rejectedGuideline E: Questionable Judgment, Unreliability, and Unwillingness to Comply with Rules and Regulations.Applicant's explanation for omissions was not credible.
- E2.A5.1.2.2rejectedGuideline E: Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts.No mitigating conditions applicable.
- E2.A5.1.1rejectedGuideline E: Questionable Judgment, Unreliability, and Unwillingness to Comply with Rules and Regulations.Applicant's explanation for omissions was not credible.
- E2.A5.1.2.2rejectedGuideline E: Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts.No mitigating conditions applicable.
- E2.A6.1.1rejectedGuideline F: Financial Overextension May Lead to Illegal Acts.No evidence of good-faith effort to repay debts.
- E2.A6.1.2.1rejectedGuideline F: History of Not Meeting Financial Obligations.No evidence of good-faith effort to repay debts.
- E2.A6.1.2.3rejectedGuideline F: Evidence of Inability or Unwillingness to Satisfy Debts.No evidence of good-faith effort to repay debts.
- E2.A6.1.3.6rejectedGuideline F: Deliberate Omission of Debts on SF 86.No evidence of good-faith effort to repay debts.
- E2.A6.1.3.3rejectedGuideline F: Conditions Beyond the Person's Control.No evidence of good-faith effort to repay debts.
- E2.A6.1.3.6rejectedGuideline F: Good-faith Effort to Repay Overdue Creditors.No evidence of payments made towards debts.
- E2.A5.1.1rejectedGuideline E: Questionable Judgment, Unreliability, and Unwillingness to Comply with Rules and Regulations.Applicant's explanation for omissions was not credible.
- E2.A5.1.2.2rejectedGuideline E: Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts.No mitigating conditions applicable.
- E2.A5.1.1rejectedGuideline E: Questionable Judgment, Unreliability, and Unwillingness to Comply with Rules and Regulations.Applicant's explanation for omissions was not credible.
- E2.A5.1.2.2rejectedGuideline E: Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts.No mitigating conditions applicable.
- E2.A6.1.1rejectedGuideline F: Financial Overextension May Lead to Illegal Acts.No evidence of good-faith effort to repay debts.
- E2.A6.1.2.1rejectedGuideline F: History of Not Meeting Financial Obligations.No evidence of good-faith effort to repay debts.
- E2.A6.1.2.3rejectedGuideline F: Evidence of Inability or Unwillingness to Satisfy Debts.No evidence of good-faith effort to repay debts.
- E2.A6.1.3.6rejectedGuideline F: Deliberate Omission of Debts on SF 86.No evidence of good-faith effort to repay debts.
- E2.A6.1.3.3rejectedGuideline F: Conditions Beyond the Person's Control.No evidence of good-faith effort to repay debts.
- E2.A6.1.3.6rejectedGuideline F: Good-faith Effort to Repay Overdue Creditors.No evidence of payments made towards debts.
Key Rule Quoted
“"No one has a 'right' to a security clearance."”
Procedural Posture
- SOR issuedJul 19, 2006
- Answer filedAug 1, 2006Applicant elected to have case decided on written record.
- Hearing held—No hearing; case decided on written record.
- Decision dateDec 29, 2006
Cite For
- Denial of Security Clearance Due to Financial Instability Under Guideline F
- Failure to Report Debts on SF 86 Under Guideline E
- Deliberate Omission of Material Facts Raises Security Concerns 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.