A decided public DOHA case, shown for research, not advice or a prediction.
ISCR Case No. 23-02663
Appeal BoardDecided Jun 30, 2025 · Administrative Judge Moira D. Modzelewski · Appeal
Case headnote
Summary
The applicant, representing himself, faced security clearance denial primarily due to unresolved financial issues under Guideline F. Despite favorable findings on some allegations, the appeal board upheld the denial, citing ongoing debts and a lack of evidence demonstrating financial stability.
Why the applicant was denied
- The applicant had unresolved debts totaling approximately $103,400, including a significant child support arrearage.
- The applicant accrued new medical debt of approximately $10,900, indicating ongoing financial issues.
- The applicant did not demonstrate that his financial problems were under control or resolved.
Conditions referenced
Disqualifying
- AG ¶ 20 Financial Considerationsraised
Mitigating
- AG ¶ 20(c) The individual has made good faith efforts to repay overdue creditors or otherwise resolve debts.rejected
- AG ¶ 20(b) The conditions that resulted in the financial problem were largely beyond the person's control.rejected
Key rule quoted
“The general standard is that a clearance may be granted only when ‘clearly consistent with the interests of the national security.’”
Procedural posture
- SOR issued
- 2024-07-30
- Answer filed
- Applicant requested a decision based on the written record.
- Hearing held
- Decision based on written record.
- Decision date
- 2025-06-30 Appeal decision affirmed.
Cite for
- Upholding Denial Based on Unresolved Financial Issues Under Guideline F
- Impact of Ongoing Debts on Security Clearance Eligibility
- Standards for Evaluating Financial Considerations in Security Clearance Cases
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 involved a denial of security clearance based on financial considerations, personal conduct, and foreign influence. The Applicant argued that he did not have sufficient time to provide evidence. The Board affirmed the Administrative Judge's decision, finding no harmful error in the proceedings.
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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Decision text, by section
Appearances
_______________________________________ ) In the matter of: )
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)
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ISCR Case No. 23-02663
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) Applicant for Security Clearance ) _______________________________________)
DEPARTMENT OF DEFENSE DEFENSE LEGAL SERVICES AGENCY DEFENSE OFFICE OF HEARINGS AND APPEALS APPEAL BOARD POST OFFICE BOX 3656 ARLINGTON, VIRGINIA 22203 (703) 696-4759 Date: June 30, 2025
Appearances
FOR GOVERNMENT Julie R. Mendez, Esq., Chief Department Counsel FOR APPLICANT Pro se The Department of Defense (DoD) declined to grant Applicant a security clearance. On July 30, 2024, DoD issued a Statement of Reasons (SOR) advising Applicant of the basis of that decision – security concerns raised under Guideline F (Financial Considerations), Guideline E (Personal Conduct), and Guideline B (Foreign Influence) of the National Security Adjudicative Guidelines (AG) in Appendix A of Security Executive Agent Directive 4 (effective June 8, 2017) and DoD Directive 5220.6 (Jan. 2, 1992, as amended) (Directive). On May 7, 2025, Defense Office of Hearings and Appeals Administrative Judge Bryan J. Olmos denied Applicant national security eligibility. Applicant appealed pursuant to Directive ¶¶ E3.1.28 and E3.1.30. In his Answer to the SOR, Applicant requested a decision based on the written record in lieu of a hearing. On February 19, 2025, Department Counsel submitted the Government’s File of Relevant Material (FORM), in which the Government withdrew the Guideline B allegations. On March 25, 2025, Applicant submitted his response to the FORM, in which he included updated responses to interrogatories, additional information, and documents. The Judge found favorably for Applicant on both Guideline E allegations. Under Guideline F, the SOR alleged seven delinquent debts totaling approximately $103,400, the most significant of which was a child
support arrearage in the approximate amount of $69,300. The Judge found favorably for Applicant on that allegation but adversely on the remaining six. The Judge acknowledged that Applicant had experienced unforeseen events that impacted his financial circumstances. He noted, however, that Applicant had not resolved any of the remaining alleged debts and had accrued a new medical debt of approximately $10,900. In light of these circumstances, the Judge concluded that Applicant’s financial issues were not under control but instead “remain recent and ongoing.” Decision at 8. There is no presumption of error below and the appealing party has the burden of raising claims of error with specificity. Directive ¶ E3.1.30. On appeal, Applicant alleges that the decision is in error because he did not have “time to provide the right evidence.” With his appeal, Applicant provides evidence of a post-decision payment. The record contains no indicia that Applicant asked for additional time. Instead, the record confirms that Applicant submitted a timely and substantive response to the FORM and that the Judge considered his evidence. Applicant has not established that he was denied the due process afforded by the Directive. To the extent that the documents submitted constitute new evidence, the Appeal Board is prohibited from considering new evidence on appeal. Directive ¶ E3.1.29. Applicant has failed to establish any harmful error below. The record supports a conclusion that the Judge examined the relevant evidence and articulated a satisfactory explanation for the decision. The 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). “Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security. AG ¶ 2(b).
Order
The decision in ISCR Case No. 23-02663 is AFFIRMED. Signed: Moira Modzelewski Moira Modzelewski Administrative Judge Chair, Appeal Board Signed: Allison Marie Allison Marie Administrative Judge Member, Appeal Board Signed: Jennifer I. Goldstein Jennifer I. Goldstein Administrative Judge Member, Appeal Board