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

ISCR Case No. 09-01753.a1

Appeal Board

Decided Dec 18, 2009 · Administrative Judge Michael Y. Ra'anan · Appeal

Case headnote

Summary

The applicant, representing herself, faced security clearance denial under Guideline F due to significant financial issues, including approximately $31,000 in delinquent debts and a recent bankruptcy. The judge found that the applicant's financial troubles predated her job loss and noted insufficient evidence to mitigate security concerns, emphasizing the need for a clear connection between financial conduct and national security interests.

Why the applicant was denied

  • The applicant had approximately $31,000 in delinquent debts discharged in a Chapter 7 bankruptcy.
  • The judge found insufficient evidence explaining the cause of the applicant's indebtedness.
  • The applicant did not establish a track record of responsible financial conduct.

Conditions referenced

Disqualifying

  • AG ¶ 20 Financial Considerationsraised

Key rule quoted

Procedural posture

SOR issued
2009-06-16
Answer filed
Applicant requested a decision on the written record.
Hearing held
2009-10-08
Decision date
2009-12-18

Cite for

  • Insufficient Evidence to Mitigate Financial Concerns Under Guideline F
  • Importance of Establishing a Track Record of Responsible Financial Conduct
  • Connection Between Financial Conduct and 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 involved an applicant seeking a security clearance who was denied due to financial considerations under Guideline F. The applicant argued that her financial troubles were due to job loss, but the Judge found insufficient evidence to mitigate the security concerns. The Board affirmed the Judge's decision, finding no harmful error in the application of the law or the facts considered.

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 DIGEST: The Judge noted absence of evidence as to the cause of Applicant’s indebtedness and the lack of a track record of responsible financial conduct. Adverse decision affirmed CASENO: 09-01753.a1 DATE: 12/18/2009 DATE: December 18, 2009 In Re: ------ Applicant for Security Clearance ) ) ) ) ) ) ) ) ISCR Case No. 09-01753

Appearances

FOR GOVERNMENT James B. Norman, Esq., Chief Department Counsel FOR APPLICANT Pro Se The Defense Office of Hearings and Appeals (DOHA) declined to grant Applicant a security clearance. On June 16, 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 Applicant asserts that the record evidence shows that her family’s financial troubles were due to loss of employment. She had made such a statement in her security clearance application. However, the Judge correctly observed that the record evidence indicates that Applicant’s financial problems preceded the cited loss of employment. requested a decision on the written record. On October 8, 2009, after considering the record, Administrative Judge Carol G. Ricciardello denied Applicant’s request for a security clearance. Applicant appealed pursuant to Directive ¶¶ E3.1.28 and E3.1.30. Applicant raised the following issues on appeal: whether the Judge’s application of the mitigating conditions was erroneous and whether the Judge’s adverse security clearance decision is arbitrary, capricious, or contrary to law. Finding no error, we affirm. The Judge found that Applicant had approximately $31,000 in delinquent debts, which were discharged in a Chapter 7 bankruptcy in mid-2009. The Judge acknowledged that the specific debts alleged in the SOR were no longer owed due to the bankruptcy. She also acknowledged that Applicant’s financial condition was affected by a job loss and pregnancy. However, the Judge concluded that Applicant had failed to mitigate the security concerns in her case. Specifically, the Judge noted the paucity of record evidence explaining the reason for Applicant having amassed the debts in the first place. She also concluded that Applicant had not established a track record of responsible financial conduct, given the relative recency of the bankruptcy at the close of the record. After reviewing the record, the Board concludes 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 decision that “it is not clearly consistent with national security to grant Applicant eligibility for a security clearance” is sustainable on this record. Decision at 7. “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).

Order

The Judge’s adverse security clearance decision is AFFIRMED. Signed: Michael Y. Ra’anan Michael Y. Ra’anan Administrative Judge Chairperson, Appeal Board Signed: William S. Fields William S. Fields Administrative Judge Member, Appeal Board Signed: James E. Moody James E. Moody Administrative Judge Member, Appeal Board