The Government submitted five items for the record.      1
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                        DEPARTMENT OF DEFENSE
         DEFENSE OFFICE OF HEARINGS AND APPEALS
          
            
In the matter of: )
)
)       ISCR Case No. 14-03342
)
)
Applicant for Security Clearance )
Appearances
For Government: Pamela Benson,  Esq., Department Counsel
For Applicant: Pro se
                                                                            
______________
Decision
______________
LYNCH, Noreen A., Administrative Judge:
On July 30, 2014, the Department of Defense  (DOD) issued a Statement of
Reasons (SOR) listing security concerns arising under Guideline F (Financial
Considerations). The action was taken under Executive Order 10865, Safeguarding
Classified Information within Industry (February 20, 1960), as amended; Department of
Defense (DoD) Directive 5220.6, Defense Industrial Personnel Security Clearance
Review Program (January 2, 1992), as amended (Directive); and the adjudicative
guidelines (AG), implemented in September 2006. 
Applicant timely answered the SOR and requested a review based on the written
record in lieu of a hearing. The case was assigned to me on May 28, 2015.
Department Counsel submitted a File of Relevant Material (FORM), dated February 19,
2015 . Applicant received the FORM on April 9, 2015. Applicant did not submit any1
information in response to the FORM. Based on a review of the case file, eligibility for
access to classified information is denied.
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Findings of Fact
In his answer to the SOR, Applicant admitted all SOR allegations under
Guideline F (financial considerations). (Item 1)
Applicant is 44 years old. He received his GED in 1999.  He obtained a technical
degree in 1994. Applicant is single and has no children. He has been employed with his
current employer since October 2013. (Item 3) This is Applicant’s first request for a
security clearance. (Item 3)
The SOR alleges five delinquent debts, including , medical accounts and credit
accounts. He also failed to file his Federal and state tax returns for tax years 2009,
2010, and 2011. He failed to file his state tax return for tax year 2012. (Item 5) The
delinquent debts total approximately $21,150. He has an estimated Federal tax debt of
about $6,000.
Applicant admits that the delinquent debts listed in the SOR and the failure to file
Federal and state tax returns for the years mentioned are the result of financial and
health hardship. He was unemployed from April 2009 until May 2013. He received help
from his parents with whom he has lived since 2008. (Item 2) Applicant also received
unemployment compensation. Applicant was diagnosed with a medical condition and
took six months leave from work. He did not elaborate or explain these issues with any
details.
In his 2013 investigative interview, Applicant stated that he did not file his
Federal or state tax returns in 2009, 2010, 2011, and 2012, because he knew he would
not have the money to pay the tax bill. He stated that he would start paying his taxes
when he had employment.  He noted that his current financial situation is not good and
for this reason he lives with his parents. He used his money to pay his medical
insurance. (Item 2) 
Applicant disclosed in his 2013 security clearance application that he would start
paying his bills and file taxes when he became employed. He noted that it was a lack of
income that prevented him from addressing his financial issues. 
Applicant did not provide any information or present any evidence in response to
the FORM. It is not possible to know if he has paid any accounts or has established a
plan. He promised to pay his delinquent debts, but he did not provide any
documentation. 
Policies
When evaluating an applicant’s suitability for a security clearance, an
administrative judge must consider the adjudicative guidelines (AG). In addition to brief
introductory explanations for each guideline, the adjudicative guidelines list potentially
disqualifying conditions and mitigating conditions. These guidelines are not inflexible
rules of law. Instead, recognizing the complexities of human behavior, they are applied
 See also ISCR Case No. 94-1075 at 3-4 (App. Bd. Aug. 10, 1995).      2
 Department of the Navy v. Egan, 484 U.S. 518, 531 (1988).      3
 ISCR Case No. 93-1390 at 7-8 (App. Bd. Jan. 27, 1995).      4
 See also EO 12968, Section 3.1(b) (listing multiple prerequisites for access to classified or sensitive      5
information), and EO 10865 § 7.
 ISCR Case No. 93-1390 at 7-8 (App. Bd. Jan. 27, 1995).      6
 Id.      7
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in conjunction with the factors listed in the adjudicative process. An administrative
judge’s overarching adjudicative goal is a fair, impartial, and commonsense decision.
Under AG ¶ 2(c), this process is a conscientious scrutiny of a number of variables
known as the “whole-person concept.” An administrative judge must consider all
available, reliable information about the person, past and present, favorable and
unfavorable, in making a decision.
The protection of the national security is the paramount consideration. AG ¶ 2(b)
requires that “[a]ny doubt concerning personnel being considered for access to
classified information will be resolved in favor of national security.” In reaching this
decision, I have drawn only those conclusions that are reasonable, logical, and based
on the evidence contained in the record. 
The U.S. Government must present evidence to establish controverted facts
alleged in the SOR. An applicant is responsible for presenting “witnesses and other
evidence to rebut, explain, extenuate, or mitigate facts admitted by applicant or proven
by Department Counsel. . . .”  The burden of proof is something less than a2
preponderance of evidence.  The ultimate burden of persuasion is on the applicant.  3 4
A person seeking access to classified information enters into a fiduciary
relationship with the Government based on trust and confidence. This relationship
transcends normal duty hours and endures throughout off-duty hours. The Government
reposes a high degree of trust and confidence in individuals to whom it grants access to
classified information. Decisions include, by necessity, consideration of the possible risk
the applicant may deliberately or inadvertently fail to protect classified information. Such
decisions entail a certain degree of legally permissible extrapolation of potential, rather
than actual, risk of compromise of classified information.
 
Section 7 of Executive Order 10865 provides that decisions shall be “in terms of
the national interest and shall in no sense be a determination as to the loyalty of the
applicant concerned.”  “The clearly consistent standard indicates that security clearance5
determinations should err, if they must, on the side of denials.”  Any reasonable doubt6
about whether an applicant should be allowed access to sensitive information must be
resolved in favor of protecting such information.  The decision to deny an individual a7
security clearance does not necessarily reflect badly on an applicant’s character. It is
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merely an indication that the applicant has not met the strict guidelines the President
and the Secretary of Defense established for issuing a clearance.
Analysis
Guideline F, Financial Considerations
The security concern for Financial Considerations is set out in AG ¶ 18:
Failure or an inability to live within one’s means, satisfy debts, and meet
financial obligations may indicate poor self-control, lack of judgment, or
unwillingness to abide by rules and regulations, all of which can raise
questions about an individual’s reliability, trustworthiness and ability to
protect classified information.” It also states that “an individual who is
financially overextended is at risk of having to engage in illegal acts to
generate funds.
Applicant admitted that he had delinquent debts and did not file his taxes for a
number of years. His 2015 credit report confirms the debts. Consequently, Financial
Considerations Disqualifying Conditions (FC DC) AG ¶ 19(a) (inability or unwillingness
to satisfy debts), and FC DC AG ¶ 19(c) (a history of not meeting financial obligations)
apply.  FC DC 19(g) (failure to file annual Federal, state, or local income tax returns as
required or the fraudulent filing of the same) is also applicable. With such conditions
raised, it is left to Applicant to overcome the case against him and mitigate security
concerns.  
The nature, frequency, and relative recency of Applicant’s financial difficulties
make it difficult to conclude that it occurred “so long ago.” Applicant still has unresolved
debts and has not provided proof of filing any tax returns. Consequently, Financial
Considerations Mitigating Condition (FC MC) AG ¶ 20(a) (the behavior happened so
long ago, was so infrequent, or occurred under such circumstances that it is unlikely to
recur and does not cast doubt on the individual’s current reliability, trustworthiness, or
good judgment) does not apply.
Financial Considerations Mitigating Condition (FC MC) AG ¶ 20(b) (the
conditions that resulted in the behavior were largely beyond the person’s control (e.g.,
loss of employment, a business downturn, unexpected medical emergency, or a death,
divorce or separation) and the individual acted responsibly under the circumstances)
does not apply. Applicant has given reasons for his delinquent debts. His
unemployment and medical condition were beyond his control. However, he presented
no evidence that he has acted responsibly. He has been working since 2013. He states
that he intends to pay his delinquent  accounts, but he did not provide any corroborating
evidence. He has not acted responsibly.  
FC MC AG ¶ 20(d), (the individual initiated a good-faith effort to repay overdue
creditors or otherwise resolve debts) has no application.  FC MC AG ¶ 20(c) (the person
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has received or is receiving counseling for the problem and/or there are clear
indications that the  problem is being resolved, or is under control) does not apply.
Whole-Person Concept
Under the whole-person concept, the administrative judge must evaluate an
applicant’s eligibility for a security clearance by considering the totality of an applicant’s
conduct and all the circumstances. The administrative judge should consider the nine
adjudicative process factors listed at AG ¶ 2(a): 
(1) the nature, extent, and seriousness of the conduct; (2) the
circumstances surrounding the conduct, to include knowledgeable
participation; (3) the frequency and recency of the conduct; (4) the
individual’s age and maturity at the time of the conduct; (5) the extent to
which participation is voluntary; (6) the presence or absence of
rehabilitation and other permanent behavioral changes; (7) the motivation
for the conduct; (8) the potential for pressure, coercion, exploitation, or
duress; and (9) the likelihood of continuation or recurrence. 
Under AG ¶ 2(c), the ultimate determination of whether to grant eligibility for a
security clearance must be an overall commonsense judgment based upon careful
consideration of the guidelines and the whole-person concept. As noted above, the
ultimate burden of persuasion is on the applicant seeking a security clearance. 
I considered the potentially disqualifying and mitigating conditions in light of all
the facts and circumstances surrounding this case, as well as the whole-person factors.
Applicant is a young man who has worked for a number of years. He is single and has
no children. The record does not provide any details about his duty performance.
Applicant has not provided information concerning payment of his delinquent
debts. He promised to pay when he was gainfully employed. He has not provided
evidence of any payments or filing of taxes to supplement the record.
Applicant did not persuade me that he refuted or mitigated the Government’s
case concerning the financial considerations security concerns. Any doubts must be
resolved in the Government’s favor. 
Formal Findings
Formal findings for or against Applicant on the allegations set forth in the SOR,
as required by section E3.1.25 of Enclosure 3 of the Directive, are:
Paragraph 1, Guideline F : AGAINST APPLICANT
Subparagraphs 1.a-1.i: Against Applicant
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Conclusion
In light of all of the circumstances presented by the record in this case, it is not
clearly consistent with the national interest to grant Applicant a security clearance.
Clearance is denied.
                                                     
NOREEN A. LYNCH.
Administrative Judge