ISCR Case 18-00776

Case Headnote

ISCR Case No. 18-00776

deniedJan 24, 2019· Hon. Carol G. Ricciardello· hearing

Summary

A 44-year-old federal contractor was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues, including delinquent debts and child support arrearages. The applicant admitted to several allegations in the Statement of Reasons, including a $13,013 debt for a repossessed vehicle from 2014 and $15,065 in child support arrearages. While the applicant provided proof of two payments made in September 2018 on one debt and testified to paying two other debts of $329 and $200, documentation for the $200 payment was not provided, leaving that debt unresolved.

The applicant disputed several other debts reflected on an October 2018 credit report. Although the applicant has been making consistent payments toward one child's support arrearages, demonstrating a good-faith effort, payments for other child support obligations remain delinquent each month. The applicant also acknowledged an apartment debt and another debt delinquent since approximately 2015 that was not paid.

Despite testifying to attending school to improve employment prospects, the applicant did not provide sufficient evidence to demonstrate resolution of most delinquent debts. The judge concluded that the applicant failed to mitigate the financial concerns, leading to the denial of the security clearance due to unresolved financial issues impacting reliability and trustworthiness.

Why the Applicant Was Denied

The applicant failed to mitigate financial concerns under Guideline F.
The applicant admitted to several allegations regarding delinquent debts and child support arrearages.
The applicant's financial situation remains unresolved, raising questions about reliability and trustworthiness.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlThe applicant's accident and issues with medical coverage were beyond his control.
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant made consistent payments towards one child-support arrearage.
AG ¶ 20(e)appliedReasonable Basis to Dispute Legitimacy of Past-due DebtThe applicant disputed several debts on his credit report.

Key Rule Quoted

“Failure to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness, and ability to protect classified or sensitive information.”
— AG ¶ 18

Procedural Posture

SOR issuedMay 4, 2018
Answer filedJul 28, 2018
Hearing heldNov 6, 2018Hearing was held as scheduled.
Decision dateJan 24, 2019

Cite For

Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
Impact of Financial Distress on Reliability and Trustworthiness
Application of Mitigating Conditions Related to Financial Difficulties

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

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant admitted the allegations in the SOR ¶¶ 1.a through 1.c, 1.e, 1.g, 1.m, 1.o, and 1.q.	For Applicant	Unspecified Financial	Admitted	—	—	—
1.b	Applicant acknowledged the debt in SOR ¶ 1.b ($13,013) for a repossessed vehicle in 2014. $13,013	Against Applicant	Auto Loan Debt	Admitted	—	—	—
1.c	Applicant has child-support arrearages owed (SOR ¶ 1.a-$15,065). $15,065	Against Applicant	Child Support Debt	Admitted	—	—	—
1.d	Applicant disputed the debts in SOR ¶¶ 1.h, 1.j, 1.k, 1.l, and 1.m, which are reflected as such on his October 2018 credit report. (low confidence)	Against Applicant	Unspecified Financial	Denied	—	—	—
1.e	Applicant provided proof that he made two payments in September 2018 on the debt in SOR ¶ 1.e, but there is still a balance owed. (low confidence)	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.f	Applicant has not provided sufficient evidence to show he is resolving most of his delinquent debt. (low confidence)	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.g	Applicant acknowledged the debt in SOR ¶ 1.g for an apartment in which he lived with the mother of his younger children.	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.h	Applicant testified that he paid the debt in SOR ¶ 1.m ($329). $329	For Applicant	Unspecified Financial	Admitted	—	—	—
1.i	Applicant testified that he paid the debt in SOR 1.p ($200) and would provide documentation. He did not. This debt is not resolved. $200	Against Applicant	Unspecified Financial	Denied	—	—	—
1.j	Applicant testified that he is attending school so he can get a better job and earn more money. (low confidence)	For Applicant	Unspecified Financial	Unknown	—	—	—
1.k	Applicant has been making consistent payments toward one child’s support arrearages, indicating a good-faith effort to resolve that debt. (low confidence)	For Applicant	Unspecified Financial	Unknown	—	—	—
1.l	Applicant continues to be delinquent each month on his other child-support payments. (low confidence)	For Applicant	Unspecified Financial	Unknown	—	—	—
1.m	Applicant testified that he paid the debt in SOR 1.p ($200) and would provide documentation. He did not. This debt is not resolved. (low confidence) $200	For Applicant	Unspecified Financial	Unknown	—	—	—
1.n	Applicant has not provided sufficient evidence to show he is resolving most of his delinquent debt. (low confidence)	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.o	Applicant acknowledged the debt in SOR ¶ 1.o has been delinquent since about 2015, and was not paid.	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.p	Applicant testified that he paid the debt in SOR 1.p ($200) and would provide documentation. He did not. This debt is not resolved. (low confidence) $200	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.q	Applicant has not provided sufficient evidence to show he is resolving most of his delinquent debt. (low confidence)	Against Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant admitted the allegations in the SOR ¶¶ 1.a through 1.c, 1.e, 1.g, 1.m, 1.o, and 1.q.

For Applicant

Unspecified Financial

Admitted

—

1.b

Applicant acknowledged the debt in SOR ¶ 1.b ($13,013) for a repossessed vehicle in 2014.

$13,013

Against Applicant

Auto Loan Debt

Admitted

—

1.c

Applicant has child-support arrearages owed (SOR ¶ 1.a-$15,065).

$15,065

Against Applicant

Child Support Debt

Admitted

—

1.d

Applicant disputed the debts in SOR ¶¶ 1.h, 1.j, 1.k, 1.l, and 1.m, which are reflected as such on his October 2018 credit report. (low confidence)

Against Applicant

Unspecified Financial

Denied

—

1.e

Applicant provided proof that he made two payments in September 2018 on the debt in SOR ¶ 1.e, but there is still a balance owed. (low confidence)

Against Applicant

Unspecified Financial

Unknown

—

1.f

Applicant has not provided sufficient evidence to show he is resolving most of his delinquent debt. (low confidence)

Against Applicant

Unspecified Financial

Unknown

—

1.g

Applicant acknowledged the debt in SOR ¶ 1.g for an apartment in which he lived with the mother of his younger children.

Against Applicant

Unspecified Financial

Admitted

—

1.h

Applicant testified that he paid the debt in SOR ¶ 1.m ($329).

$329

For Applicant

Unspecified Financial

Admitted

—

1.i

Applicant testified that he paid the debt in SOR 1.p ($200) and would provide documentation. He did not. This debt is not resolved.

$200

Against Applicant

Unspecified Financial

Denied

—

1.j

Applicant testified that he is attending school so he can get a better job and earn more money. (low confidence)

For Applicant

Unspecified Financial

Unknown

—

1.k

Applicant has been making consistent payments toward one child’s support arrearages, indicating a good-faith effort to resolve that debt. (low confidence)

For Applicant

Unspecified Financial

Unknown

—

1.l

Applicant continues to be delinquent each month on his other child-support payments. (low confidence)

For Applicant

Unspecified Financial

Unknown

—

1.m

Applicant testified that he paid the debt in SOR 1.p ($200) and would provide documentation. He did not. This debt is not resolved. (low confidence)

$200

For Applicant

Unspecified Financial

Unknown

—

1.n

Applicant has not provided sufficient evidence to show he is resolving most of his delinquent debt. (low confidence)

Against Applicant

Unspecified Financial

Unknown

—

1.o

Applicant acknowledged the debt in SOR ¶ 1.o has been delinquent since about 2015, and was not paid.

Against Applicant

Unspecified Financial

Admitted

—

1.p

Applicant testified that he paid the debt in SOR 1.p ($200) and would provide documentation. He did not. This debt is not resolved. (low confidence)

$200

Against Applicant

Unspecified Financial

Unknown

—

1.q

Applicant has not provided sufficient evidence to show he is resolving most of his delinquent debt. (low confidence)

Against Applicant

Unspecified Financial

Unknown

—

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Case Profile

Summary

Why the Applicant Was Denied

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION