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ISCR Case 18-01352 — CASE

ISCR Case 18-01352granted

Case Headnote

ISCR Case No. 18-01352

grantedApr 29, 2019· Hon. Marc E. Curry· hearing

Summary

This security clearance decision involved a retired Air Force officer whose eligibility was initially questioned under Guideline F, Financial Considerations. The Statement of Reasons cited delinquent debts and overdue tax filings, specifically noting that while some tax returns were filed late, payments were being made. Disqualifying conditions related to financial irresponsibility were raised.

However, the applicant successfully mitigated these concerns. He secured full-time employment with a substantially increased salary, which significantly improved his financial standing. He resolved all but two of his delinquent debts and established regular payment plans for the remaining two. Furthermore, he filed all outstanding tax returns and entered into a compliant payment plan for his tax obligations.

The judge ultimately granted the security clearance, concluding that the applicant's proactive steps, including obtaining stable employment, addressing his debts, and becoming compliant with tax requirements, effectively resolved the initial financial concerns.

Why the Applicant Prevailed

The applicant obtained full-time employment with a significantly higher salary.
He satisfied all but two delinquent debts and is making regular payments on them.
The applicant filed all delinquent tax returns and is in compliance with a payment plan for his tax obligations.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(b)raisedDelinquent Debts
AG ¶ 19(f)raisedFailure to File Annual Income Tax Returns

Mitigating

AG ¶ 20(a)appliedThe Behavior Was Not Recent
AG ¶ 20(b)appliedThe Conditions That Resulted in the Behavior Were Beyond the Person's Control
AG ¶ 20(c)appliedThe Person Has Received Counseling for the Problem
AG ¶ 20(d)appliedThe Person Has Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
AG ¶ 20(g)appliedThe Individual Has a Reasonable Basis to Expect to Be Able to Satisfy Debts

Key Rule Quoted

“It is clearly consistent with the interests of national security to grant Applicant eligibility for a security clearance.”

Procedural Posture

SOR issued—
Answer filed—
Hearing held—
Decision dateApr 29, 2019

Cite For

Mitigation of Financial Issues Under Guideline F
Impact of Employment on Financial Stability
Importance of Compliance with Tax Obligations 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.

Standardized Decision Profile

SEAD-4 Guideline F · descriptive summary of a decided case

Posture: Decision on RecordDecided: granted

The judge found that the applicant had delinquent debts and had fallen behind on tax filings, but he has since filed his delinquent income tax returns and is making payments. The applicant's financial situation was mitigated by his steady payments and work with a financial counselor, leading to a decision to grant eligibility for a security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant has delinquent debts and fell behind on tax filings. $2,800	For Applicant	Tax Filing Failure	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved	Documented Financial Counseling Claimed Debt Paid in Full
1.b	Applicant has filed delinquent income tax returns and is making payments. $2,800	For Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved	Documented Financial Counseling Claimed Debt Paid in Full
1.c–1.h	6 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)	For Applicant			—	—	—

Descriptive standardized rendering of a decided public case (Guideline F). The verbatim source decision is shown in full below.

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

HEARING

APPEARANCES

DEPARTMENT OF DEFENSE DEFENSE OFFICE OF HEARINGS AND APPEALS In the matter of: ) ) ) ISCR Case No. 18-01352 ) Applicant for Security Clearance ) Appearances 04/29/2019 For Government: Andrea Corrales, Esq., Department Counsel For Applicant: Jay Ian Igiel, Esq. ______________ Summary Disposition ______________ Curry, Marc E., Administrative Judge: Applicant retired from the Air Force in August 2011 after a 21-year career as an aircraft maintenance officer. He and his wife agreed that after retirement, he would not work, and instead, would stay home and watch their four children.1 (Tr. 25) Two years later, in September 2013, Applicant’s wife left him, leading to their subsequent divorce. When the separation occurred, Applicant was still a stay-at-home father, and was generating no income other than his monthly pension distribution. Unable to manage the upkeep of the home and the family’s other expenses on this limited income, Applicant sought employment, but it took a year before he was able to obtain a full-time job. (Tr. 27) During this time, Applicant’s debts became delinquent, and he fell behind on his federal and state income tax filings in 2015. After Applicant gained a job in June 2015, he began satisfying his delinquent debts. (Tr. 29) Currently, he has satisfied all of the debts in their entirety except those alleged in subparagraphs 1.a and 1.b, which he has been paying steadily in monthly increments. (AE 1 Applicant’s children consist of two from a previous marriage, and his wife’s two children whom he legally adopted after they married in 2007.

1 - AE 3; AE 24 - AE 25) He has filed his delinquent income tax returns, and is paying $100 monthly through an agreement with his state income tax authority for tax year 2016. The balance is $2,800. (AE 22) He owes no additional tax debts. (AE19 – AE 21)

Applicant’s current job, which he obtained in May 2018, pays an annual salary of $186,000, which constitutes $81,000 more than the salary he made previously. (Tr. 42) Applicant has between $2,000 to $3,000 of monthly discretionary income. Applicant has been working with a financial counselor since June 2018 to help him mange his financial affairs. (Ex. 16)

I conclude that the disqualifying conditions set forth in AG ¶¶ 19(a), 19(b) and 19(f) apply, and are mitigated by the mitigating conditions set forth in AG ¶¶ 20(a) through 20(d), and 20(g). Applicant mitigated the security concerns. Clearance is granted.

FORMAL FINDINGS

Formal findings for or against Applicant on the allegations set forth in the SOR, as required by section E3.1.25 of Enclosure 3 of the Directive, are:

Paragraph 1, Guideline F:

FOR APPLICANT

Subparagraphs 1.a – 1.h:

For Applicant

CONCLUSION

In light of all of the circumstances presented by the record in this case, it is clearly consistent with the interests of national security to grant Applicant eligibility for a security clearance. Eligibility for access to classified information is granted.

_____________________ Marc E. Curry Administrative Judge