CASE · Clearance Adjudication Search EngineCASE

Loading case…

ISCR Case 18-01779 — CASE

ISCR Case 18-01779granted

Case Headnote

ISCR Case No. 18-01779

grantedApr 12, 2019· Hon. LeRoy F. Foreman· hearing

Summary

A security clearance applicant, representing himself, faced concerns under Guideline F (Financial Considerations) due to 11 delinquent debts. These debts stemmed from the loss of second jobs and a marital breakup, which left him responsible for most marital debts and the sole custody of his son without child support.

To address these concerns, the applicant completed a financial counseling course before responding to the Statement of Reasons. He provided evidence that three debts were paid prior to the Statement of Reasons being issued, and he had negotiated payment agreements for two additional debts. He also received a settlement offer for one debt, which he intended to accept. For five unrecognized debts, he requested verification from the creditors.

Ultimately, the applicant submitted documentation showing he had paid all but one debt, for which he was making payments under an agreement. The judge determined that the applicant had successfully mitigated the security concerns, meeting the burden of persuasion for continued eligibility, and the security clearance was granted.

Why the Applicant Prevailed

Completed a financial counseling course before responding to the SOR.
Paid three debts and negotiated payment agreements for two others.
Verified all questionable debts and made payments under an agreement for the remaining debt.

Conditions Referenced

Mitigating

AG ¶ 20(b)appliedThe Individual Has Received Counseling for the Financial Problem.
AG ¶ 20(c)appliedThe Individual Has Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts.
AG ¶ 20(d)appliedThe Individual Has Made a Good-faith Effort to Resolve Debts.

Key Rule Quoted

“The individual has met his burden of persuasion to show that it is clearly consistent with the national security interests of the United States to continue his eligibility for access to classified information.”

Procedural Posture

SOR issuedSep 28, 2018
Answer filed—
Hearing heldMar 27, 2019
Decision dateApr 12, 2019

Cite For

Mitigation of Financial Concerns Under Guideline F
Successful Demonstration of Good-faith Efforts to Resolve Debts
Impact of Financial Counseling on Security Clearance Eligibility

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: HearingDecided: granted

The judge found that the applicant had mitigated the financial concerns under Guideline F by paying off most debts and establishing payment agreements for the remaining debts. The applicant's financial counseling and efforts to verify questionable debts were also considered in the decision to grant clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	The SOR alleged 11 delinquent debts that are reflected in Applicant’s credit reports.	For Applicant	Unspecified Financial	Unknown	—	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	—
1.b	The debts were incurred due to his losses of a series of second jobs and a marital breakup that left him with most of the marital debts and custody of his son, for whom he receives no child support.	For Applicant	Unspecified Financial	Unknown	—	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	—
1.c	When he answered the SOR, he had completed a financial counseling course.	For Applicant	Unspecified Financial	Unknown	—	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Financial Counseling
1.d	He submitted evidence that three of the debts were paid before the SOR was issued, and he had negotiated payment agreements for two debts.	For Applicant	Unspecified Financial	Unknown	—	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full Documented Payment Plan with Creditor
1.e	He had received a settlement agreement for one debt which he intended to accept.	For Applicant	Unspecified Financial	Unknown	—	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	—
1.f	He did not recognize five debts and he asked the creditors to verify them.	For Applicant	Unspecified Financial	Unknown	—	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	—
1.g	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	—
1.h	He submitted documentary evidence that he had paid all the debts except one, for which he was making payments under a payment agreement.	For Applicant	Unspecified Financial	Unknown	—	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full Documented Payment Plan with Creditor

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

DEPARTMENT OF DEFENSE DEFENSE OFFICE OF HEARINGS AND APPEALS In the matter of: ) ) [Redacted] ) ISCR Case No. 18-01779 ) Applicant for Security Clearance ) Appearances For Government: Moira Modzelewski, Esq., Department Counsel For Applicant: Pro se ______________ Decision ______________ FOREMAN, LeRoy F., Administrative Judge: This case involves security concerns raised under Guideline F (Financial Considerations). Eligibility for access to classified information is granted. Applicant submitted a security clearance application on February 23, 2107. On September 28, 2018, the Department of Defense Consolidated Adjudications Facility (DOD CAF) sent him a Statement of Reasons (SOR) alleging security concerns under Guideline F. The DOD CAF acted under Executive Order (Exec. Or.) 10865, Safeguarding Classified Information within Industry (February 20, 1960), as amended; DOD Directive 5220.6, Defense Industrial Personnel Security Clearance Review Program (January 2, 1992), as amended (Directive); and the adjudicative guidelines (AG) promulgated in Security Executive Agent Directive 4, National Security Adjudicative Guidelines (December 10, 2016). The case was assigned to me on February 26, 2019, and I conducted the hearing as scheduled on March 27, 2019. Department Counsel submitted Government’s Exhibits 1 through 4, which were admitted without objection. Applicant testified and submitted Applicant’s Exhibits A through K, which were admitted without objection. On April 1, 2019, 04/12/2019

I notified Department Counsel that I intended to issue a summary disposition in Applicant’s favor. Department Counsel did not object.

The SOR alleged 11 delinquent debts that are reflected in Applicant’s credit reports. The debts were incurred due to his losses of a series of second jobs and a marital breakup that left him with most of the marital debts and custody of his son, for whom he receives no child support. When he answered the SOR, he had completed a financial counseling course. He submitted evidence that three of the debts were paid before the SOR was issued, and he had negotiated payment agreements for two debts. He had received a settlement agreement for one debt which he intended to accept. He did not recognize five debts and he asked the creditors to verify them.

At the hearing, he had verified all the questionable debts. (Tr. 32) He submitted documentary evidence that he had paid all the debts except one, for which he was making payments under a payment agreement. (Tr. 34-41; AX A through J.) I conclude that Applicant presented sufficient evidence to mitigate security concerns under Guideline F. The mitigating conditions in AG ¶¶ 20(b), 20(c), and 20(d) are established.

Applicant has met his burden of persuasion to show that it is clearly consistent with the national security interests of the United States to continue his eligibility for access to classified information. Clearance is granted.

LeRoy F. Foreman Administrative Judge