DEPARTMENT OF DEFENSE
         DEFENSE OFFICE OF HEARINGS AND APPEALS
          
            
In the matter of: )
)
 )       ISCR Case No. 15-03621
)
)
Applicant for Security Clearance )
Appearances
For Government: Pamela C. Benson,  Esq., Department Counsel
For Applicant: Pro se
                                                                            
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Decision
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LYNCH, Noreen A., Administrative Judge:
On November 25, 2015, the Department of Defense (DOD) issued Applicant a
Statement of Reasons (SOR) listing security concerns arising under Guideline F
(Financial Considerations). The action was taken under Executive Order (EO) 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.  1
Applicant timely answered the SOR and requested an administrative
determination. Department Counsel submitted a File of Relevant Material (FORM)
In this case, the SOR was issued under Adjudicative Guidelines effective within the Defense Department      1
on September 1, 2006. Revised Adjudicative Guidelines were issued on December 10, 2016, and became
effective on June 8, 2017. My decision and Formal Findings under the revised Guideline F would not be
different under the 2006 Guidelines.
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dated May 4, 2016.  Applicant received the FORM on July 8, 2016. He did not submit2
an additional response to the FORM. The case was assigned to me on July 1, 2017.
Based on a review of the case file, submissions, and exhibits, eligibility for access to
classified information is denied.
Findings of Fact
In his answer to the SOR, Applicant admitted allegation 1.c and denied the other 
allegations in the SOR under Guideline F, with explanations for each item. His denials
were based on a disagreement with the amount of the tax owed. (Item 1)
Applicant is 62 years old. He obtained an undergraduate degree in 1976. He is
married and has one child. Since 2002, he has worked as a defense contractor. 
Applicant has held a security clearance since 2002. He completed his security
clearance application (SCA) in 2014. (Item 2)
The SOR alleges that Applicant has four unreleased tax liens filed against him,
three from his state of residence and one is a Federal tax lien, for a combined total of
$244,314. In addition, the SOR alleges that Applicant was delinquent with his mortgage
loan in the amount of $20,260 with a total loan balance of $331,561. The total amount
of delinquent debt cited in the SOR totals $264,574. (Items 1 and 4)
Applicant denied all SOR allegations except the Federal tax lien in the amount of
$138,000 (SOR 1.c) as noted in his answer. He failed to list any tax liens or delinquent
mortgage account on his security clearance application that he completed in 2014.
(Item 2)
During his January 2015,  investigative interview, Applicant also denied that he
had any current  delinquent debt. (Item 5) The investigator confronted Applicant with
information from a credit report obtained after Applicant completed his SCA. (Items 3
and 4)
The credit report disclosed the four tax liens, an unpaid medical debt in the
amount of $51, and at that time, a delinquent mortgage account in the amount of
$9,279, for a combined total of $253,644. Applicant claimed that he had no idea about
the tax liens that had been filed against him from October 2011 through November
2013, and although he knew that he had paid his mortgage loan late on numerous
occasions,  Applicant stated that he had no idea that he was delinquent for $9,279. He
explained that was the reason that he did not list this information on his 2014 SCA.
(Items 1, 2, 3, and 5)
Applicant did not submit any documentation to support his denials to the SOR
debts. He did not submit a response to the FORM. There is no information in the record
The Government submitted five items for the record.      2
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as to how Applicant developed the state and Federal tax liens, and if he has a plan to
resolve them. Applicant did not meet his burden of proof in this case to mitigate the
security concerns under the financial considerations guideline.
   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
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(a), 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 national security
eligibility will be resolved in favor of the 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 a3
preponderance of evidence.  The ultimate burden of persuasion is on the applicant.  4 5
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
 See also ISCR Case No. 94-1075 at 3-4 (App. Bd. Aug. 10, 1995).      3
 Department of the Navy v. Egan, 484 U.S. 518, 531 (1988).      4
 ISCR Case No. 93-1390 at 7-8 (App. Bd. Jan. 27, 1995).      5
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applicant concerned.”  “The clearly consistent standard indicates that security clearance6
determinations should err, if they must, on the side of denials.”  Any reasonable doubt7
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 a8
security clearance does not necessarily reflect badly on an applicant’s character. It is
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 to live within one’s means, satisfy debts, and meet financial
obligations may indicate poor self-control, lack of judgement, or
unwillingness to abide by rules and regulations, all of which can raise
questions about an individuals’ reliability, trustworthiness, and ability to
protect classified or sensitive information. Financial distress can also be
caused or exacerbated by, and thus be a possible indicator of, other
issues of personnel security concerns such as excessive gambling,
mental health conditions, substance misuse, or alcohol abuse or
dependence. An individual who is financially overextended is at a greater
risk of having to engage in illegal or otherwise questionable acts to
generate funds. Affluence that cannot be explained by known sources of
income is also a security concern insofar as it may result from criminal
activity, including espionage.
The Government provided credible evidence that Applicant has three state tax
liens and a Federal tax lien from 2011 to 2013. Applicant also has a delinquent
mortgage account debt. Consequently, Financial Considerations Disqualifying
Conditions (FC DC) AG ¶ 19(a), (c), and (f) (failure to file or fraudulently filing annual
Federal, state, or local income tax returns or failure to pay annual Federal, state or local
income tax as required) applies. With such conditions raised, it is left to Applicant to
overcome the case against him and mitigate security concerns.  
 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. Applicant provided no information
 See also EO 12968, Section 3.1(b) (listing multiple prerequisites for access to classified or sensitive      6
information), and EO 10865 § 7.
 ISCR Case No. 93-1390 at 7-8 (App. Bd. Jan. 27, 1995).      7
 Id.      8
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that would allow this MC. There is no explanation from Applicant concerning the
delinquent debt. None of the mitigating conditions apply in this case.
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(d): 
(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 62 years old. He has worked for his current employer since 2002. He is an
educated man. He has held a security clearance for many years. Applicant reports no
difficulty with his income.  
Applicant’s overall delinquent debt has increased from 2014 to 2015.  He
provided no explanation for the security issues. He has not met his burden of proof in
this case. He has not complied with rules and regulations. I have doubts about his
judgment and reliability. Any doubts must be resolved in favor of the Government.
Applicant failed to meet his burden in this case. He did not mitigate the security
concerns under the financial considerations guideline.
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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.e: Against Applicant
 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
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