A decided public DOHA case, shown for research, not advice or a prediction.
ISCR Case No. 09-01753
Appeal BoardDecided Dec 18, 2009 · Administrative Judge Michael Y. Ra'anan · Appeal
Case headnote
Summary
The applicant, representing herself, faced security clearance issues under Guideline F due to significant financial problems, including approximately $31,000 in delinquent debts and a recent bankruptcy. The judges found that the applicant's financial troubles predated her job loss and that she failed to demonstrate responsible financial conduct, leading to the denial of her security clearance.
Why the applicant was denied
- The applicant had approximately $31,000 in delinquent debts discharged in a Chapter 7 bankruptcy.
- The applicant's financial problems preceded her job loss, undermining her claims of financial distress.
- The applicant did not establish a track record of responsible financial conduct due to the recency of her bankruptcy.
Conditions referenced
Disqualifying
- AG ¶ 19 Financial Considerationsraised
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
- 2009-06-16
- Answer filed
- Applicant represented herself.
- Hearing held
- 2009-10-08 Decision made on the written record.
- Decision date
- 2009-12-18
Cite for
- Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
- Failure to Mitigate Financial Concerns Despite Claims of Job Loss
- Importance of Establishing a Track Record of Responsible Financial Conduct
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 after being denied due to financial considerations under Guideline F. The applicant argued that the Judge erred in applying mitigating conditions and that the decision was arbitrary and capricious. The Board affirmed the Judge's decision, finding no harmful error.
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
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 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. 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. 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