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ISCR Case 08-07983 — CASE

ISCR Case 08-07983denied

Case Headnote

ISCR Case No. 08-07983

Oct 2, 2009· Hon. Jeffrey D. Billett· appeal

Summary

An applicant, represented by counsel, was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The Administrative Judge determined the applicant failed to demonstrate sufficient financial responsibility and did not provide adequate documentation for his debt claims. This decision was subsequently affirmed by the DOHA Appeal Board.

The denial stemmed from a history of financial difficulties spanning from 2001 to 2008, with several delinquencies remaining unpaid or unresolved at the time of the decision. Most efforts to address these debts only began after the applicant received the Statement of Reasons (SOR) in February 2009.

Further contributing to the denial was the applicant's failure to seek consumer credit counseling for effective financial management. Additionally, conflicting information was provided regarding federal tax liens, which lacked corroborating evidence. Disqualifying conditions under AG ¶ 19 were raised, while mitigating conditions under AG ¶ 20 were applied, but ultimately did not overcome the security concerns.

Conditions Referenced

Disqualifying

AG ¶ 19raisedFinancial Considerations

Mitigating

AG ¶ 20rejectedFinancial ConsiderationsThe Judge concluded that the evidence in mitigation was insufficient to overcome the government's security concerns.

Key Rule Quoted

“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)

Procedural Posture

SOR issuedFeb 27, 2009
Answer filed—
Hearing heldJun 23, 2009Applicant requested a decision on the written record.
Decision dateOct 2, 2009DOHA Appeal Board affirmed the decision.

Cite For

Unresolved Financial Issues Under Guideline F
Insufficient Financial Responsibility Due to Recent Efforts to Resolve Debts
Rebuttable Presumption That a Judge Has Considered All Record Evidence Unless Stated Otherwise.

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· Full written decision

Affirmed

The appeal involved an applicant seeking a security clearance who was denied due to financial considerations under Guideline F. The applicant argued that the Judge's decision was arbitrary and did not properly consider evidence of his financial management efforts. The Board affirmed the Judge's decision, finding no harmful error in the analysis of the evidence.

Appealed bythe applicant

Applicant representationAttorney

Judge belowJoan Caton Anthony — denied the clearance

Decided onthe written record

Guidelines belowGuideline F

What the Board reviewed

Decision arbitrary, capricious, or contrary to law — raised by the applicantRejected
Applicant argued that the Judge's decision was arbitrary, capricious, or contrary to law.

Why the Board ruled this way

The Board found that the Judge's decision was supported by substantial evidence and that the Judge properly weighed the evidence presented, concluding that the applicant did not demonstrate sufficient financial responsibility to warrant a security clearance.

Standard of review applied

Harmful-error gatekeeperSubstantial-evidence reviewArbitrary-and-capricious reviewProcedural complianceNo de-novo re-decisionNo new evidence on appealDeference to the judge’s credibility calls

Appeal Board panel

Jeffrey D. Billett
Jean E. Smallin
William S. Fields

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

Full decision

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

Decision text, by section

DEFENSE OFFICE OF HEARINGS AND APPEALS

APPEAL

APPEARANCES

DATE: October 2, 2009 In Re: ----- Applicant for Security Clearance ) ) ) ) ) ) ) ) ISCR Case No. 08-07983

APPEAL BOARD DECISION

APPEARANCES

FOR GOVERNMENT James B. Norman, Esq., Chief Department Counsel FOR APPLICANT Alan V. Edmunds, Esq. The Defense Office of Hearings and Appeals (DOHA) declined to grant Applicant a security clearance. On February 27, 2009, DOHA issued a statement of reasons (SOR) advising Applicant of the basis for that decision—security concerns raised under Guideline F (Financial Considerations) of Department of Defense Directive 5220.6 (Jan. 2, 1992, as amended) (Directive). Applicant requested that his case be decided on the written record. On June 23, 2009, after the close of the record, Administrative Judge Joan Caton Anthony denied Applicant’s request for a security clearance. Applicant appealed pursuant to the Directive ¶¶ E3.1.28 and E3.1.30. Applicant raises the following issue on appeal: whether the Judge’s decision is arbitrary, capricious, or contrary to law. For the following reasons, the Board affirms the Judge’s unfavorable decision. Some of Applicant’s assertions on appeal rely on matters not contained in the record below. As such, the assertions are based on new evidence. The Board cannot consider new evidence on appeal. Directive ¶ E3.1.29. The Judge found that Applicant had a history of financial difficulties that at least spanned the period from 2001 to 2008. The Judge concluded that several of the delinquencies remained unpaid or unresolved at the time of the closing of the record and that they occurred under circumstances that were likely to recur. The Judge found that most of Applicant’s attempts to pay, settle, or dispute his debts occurred after he received the SOR in February 2009. She found that Applicant has not sought consumer credit counseling that could provide him with strategies for effectively managing his finances and resolving future delinquent debts. The Judge also found that Applicant resolved three longstanding debts totaling approximately $485, but Applicant instructed a financial management firm he contacted in September 2008 to dispute three debts totaling approximately $20,533 and has since provided no specific information as to the grounds upon which the debts were disputed. She concluded that it is unclear at this time how these currently unresolved debts might impact Applicant’s future financial stability. The Judge also concluded that Applicant provided conflicting information regarding resolution of his two federal tax liens, and he did not provide documentation to corroborate his assertion that the liens were not his responsibility. The Judge ultimately concluded that, while Applicant may have good intentions to pay, settle, or dispute several debts alleged in the SOR, he failed to show a track record of financial responsibility, and it is unclear how he will handle his financial responsibilities in the future.

On appeal, Applicant argues that the Judge did not consider evidence submitted in response to the FORM, specifically two documents from a credit management organization indicating that Applicant was working to resolve specific accounts. Applicant also alleges that the Judge did not properly analyze evidence presented by Applicant that he was not responsible for two tax liens. Applicant finally asserts that the Judge erred when she failed to apply various mitigating conditions in Applicant’s favor. These assertions do not establish error on the part of the Judge. There is a rebuttable presumption that a Judge has considered all the record evidence unless he or she specifically states otherwise. That presumption has not been overcome here. The items of evidence Applicant claims were excluded from the Judge’s analysis are specifically referenced by the Judge in her decision. The Judge discusses the conflict surrounding the status of Applicant’s outstanding tax liens and indicates that the lack of corroboration for his assertion that the liens were not his responsibility was a factor in her resolution of the issue against Applicant. This analysis is sustainable. The presence of some mitigating evidence does not alone compel the Judge to make a favorable security clearance decision. As the trier of fact, the Judge has to weigh the evidence as a whole and decide whether the favorable evidence outweighs the unfavorable evidence, or vice versa. See, e.g., ISCR Case No. 06-10320 at 2 (App. Bd. Nov. 7, 2007). A party’s disagreement with the Judge’s weighing of the evidence, or an ability to argue for a different interpretation of the evidence, is not sufficient to demonstrate the Judge weighed the evidence or reached conclusions in a manner that is arbitrary, capricious, or contrary to law. See, e.g., ISCR Case No. 06-17409 at 3 (App. Bd. Oct. 12, 2007). In this case, the Judge weighed the mitigating evidence offered by Applicant against the seriousness of the disqualifying conduct and considered the possible application of relevant conditions and factors. She specifically gave Applicant credit for the debts that he had resolved and also discussed his interactions with a credit management company. She also noted, however, that Applicant’s efforts to resolve his delinquent debt were recent and inconclusive. The Judge concluded that the evidence in mitigation was of insufficient strength to overcome the government’s security concerns. This conclusion is reasonably supported by the record. The Board does not review a case de novo. The favorable evidence cited by Applicant is not sufficient to demonstrate the Judge’s decision is arbitrary, capricious, or contrary to law. See, e.g., ISCR Case No. 06-11172 at 3 (App. Bd. Sep. 4, 2007). After reviewing the record, the Board concludes that the Judge examined the relevant data and articulated a satisfactory explanation for her 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 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). Therefore, the Judge’s ultimate unfavorable security clearance decision under Guideline F is sustainable.

ORDER

The decision of the Judge denying Applicant a security clearance is AFFIRMED. Signed: Jeffrey D. Billett Jeffrey D. Billett Administrative Judge Member, Appeal Board Signed: Jean E. Smallin Jean E. Smallin Administrative Judge Member, Appeal Board Signed: William S. Fields William S. Fields Administrative Judge Member, Appeal Board