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A decided public DOHA case, shown for research, not advice or a prediction.

ISCR Case No. 19-01560.a1

Appeal Board

Decided Aug 3, 2020 · Administrative Judge Michael Y. Ra'anan · Appeal

Case headnote

Summary

The applicant, represented by counsel, sought a security clearance but was denied due to significant delinquent debts totaling approximately $64,000, attributed to unemployment and personal circumstances. The appeal board affirmed the denial, finding that the applicant's claims of financial hardship were insufficient to mitigate security concerns, and that the judge had adequately considered the evidence presented.

Why the applicant was denied

  • The applicant had approximately $64,000 in delinquent debts, which were not sufficiently mitigated by claims of financial hardship.
  • The judge found that the applicant did not demonstrate reasonable efforts to pay his debts or that the financial issues would be resolved in the near future.

Conditions referenced

Disqualifying

  • AG ¶ 20 Financial Considerationsraised

Mitigating

  • AG ¶ 21 Financial Considerationsrejected

Key rule quoted

Procedural posture

SOR issued
2019-06-20
Answer filed
Hearing held
2020-04-29
Decision date
2020-08-03

Cite for

  • Affirmation of Adverse Decision Based on Financial Considerations Under Guideline F
  • Insufficient Evidence of Mitigation Regarding Financial Hardship
  • The Standard for Granting Security Clearance Related to National Security Interests

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

Appeal at a glance

The appeal was filed by the applicant after the Administrative Judge denied his request for a security clearance based on financial considerations and personal conduct. The applicant argued that the Judge's decision was arbitrary and capricious. The Board affirmed the Judge's decision, finding that the Judge had considered the relevant evidence and provided a rational basis for the denial.

Descriptive structured reading of this decided, public Appeal Board decision: what the case says, not a prediction or advice.

Full decision

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The complete official text, footnotes and signatures included, is in the original PDF.

Decision text, by section

Synopsis

KEYWORD: Guideline F; Guideline E DIGEST: Applicant cites to various pieces of record evidence which, he contends, the Judge did not consider or that he mis-weighed, including his period of homelessness, his unemployment, his care for his father, his tentative payment plan, etc. The Judge made findings about the things that Applicant has mentioned and explicitly addressed at least some of them in his Analysis. A Judge is not expected to address every piece of evidence in the record, which would be a virtual impossibility. Applicant’s arguments are not enough to rebut the presumption that the Judge considered all of the evidence in the record or to show that the Judge weighed the evidence in a manner that was arbitrary, capricious, or contrary to law. Adverse decision is affirmed. CASE NO: 19-01560.a1 DATE: 08/03/2020 DATE: August 3, 2020 ) In Re: ) ) ---------------------- ) ISCR Case No. 19-01560

) ) Applicant for Security Clearance ) )

Appearances

FOR GOVERNMENT James B. Norman, Esq., Chief Department Counsel FOR APPLICANT Joseph D. Jordan, Esq. The Department of Defense (DoD) declined to grant Applicant a security clearance. On June 20, 2019, DoD issued a statement of reasons (SOR) advising Applicant of the basis for that decision–security concerns raised under Guideline F (Financial Considerations) and Guideline E (Personal Conduct) of Department of Defense Directive 5220.6 (Jan. 2, 1992, as amended) (Directive). Applicant requested a hearing. On April 29, 2020, after the hearing, Defense Office of Hearings and Appeals (DOHA) Administrative Judge Gregg A. Cervi denied Applicant’s request for a security clearance. Applicant appealed pursuant to Directive ¶¶ E3.1.28 and E3.1.30. Applicant raised the following issue on appeal: whether the Judge’s adverse decision was arbitrary, capricious, or contrary to law. The Judge’s favorable findings under Guideline E are not at issue in this appeal. Consistent with the following, we affirm. Applicant owes about $64,000 in delinquent debts. He attributed his financial problems to several things: a two-year period in which his wife was stationed overseas; a year and a half of unemployment while caring for his ill father; and to medical treatment. In his security clearance application, Applicant disclosed unemployment during all of 2017 as well, although he later stated that he had been self-employed during that time. Applicant disclosed that he was homeless for about three months in 2017. He has a tentative payment plan but is waiting on the result of his clearance adjudication before implementing it. Applicant submitted information from a credit management company and an enrollment letter from a financial education company. His financial statement shows a negative balance of nearly $1,300. In January 2020 his salary was increased to $80,000, and he receives income from two investment properties. Applicant served in the military, deploying abroad in support of U.S. military objectives. His employer describes him as trustworthy, honest, and loyal. The Judge characterized Applicant’s presentation as promises to pay off debts in the future, which he found insufficient to mitigate the concerns addressed in the SOR. He stated that Applicant had not demonstrated reasonable efforts to pay his debts and that there is insufficient evidence that his financial problems will be resolved in the near future. The Judge cited to Applicant’s military service, his employment history, his delinquent debts, and the circumstances underlying them. He ultimately concluded that Applicant had not met his burden of persuasion to mitigation. Applicant cites to various pieces of record evidence which, he contends, the Judge did not consider or that he mis-weighed, including his period of homelessness, his unemployment, his care for his father, his tentative payment plan, etc. The Judge made findings about the things that Applicant has mentioned and explicitly addressed at least some of them in his Analysis. A Judge is not expected to address every piece of evidence in the record, which would be a virtual impossibility. See, e.g., ISCR Case No. 18-02872 at 3 (App. Bd. Jan. 15, 2020). Applicant’s arguments are not enough to rebut the presumption that the Judge considered all of the evidence in the record or to show that the Judge weighed the evidence in a manner that was arbitrary, capricious, or contrary to law. Id. The record supports a conclusion that the Judge examined the relevant data and articulated a satisfactory explanation for the decision, “including a ‘rational connection between the facts found and the choice made.’” Motor Vehicle Mfrs. Ass’n of the United States v. State Farm Mut. Auto. Ins. Co., 463 U.S. 29, 43 (1983)(quoting Burlington Truck Lines, Inc. v. United States, 371 U.S. 156, 168 (1962)). The Judge’s adverse decision is sustainable on this record. “The general standard is that a clearance may be granted only when ‘clearly consistent with the interests of the national security.’” Department of the Navy v. Egan, 484 U.S. 518, 528 (1988). See also Directive, Encl. 2, App. A ¶ 2(b): “Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”

Order

The Decision is AFFIRMED. Signed: Michael Y. Ra’anan Michael Y. Ra’anan Administrative Judge Chairperson, Appeal Board Signed: James E. Moody James E. Moody Administrative Judge Member, Appeal Board Signed: James F. Duffy James F. Duffy Administrative Judge Member, Appeal Board