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ISCR Case 18-02302 — CASE

Case record

ISCR Case 18-02302

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

Case Profile
Decision Date3/29/2019
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Related decisionSee the appeal decision (Case 18-02302.a1) →
Participants
Applicant Representation: Pro Se
Judge: Robert J. Kilmartin
Government Counsel: Michelle P. Tilford
Case Summary
The applicant in this case was a 52-year-old engineer employed by a major federal contractor for 22 years, who sought a security clearance after submitting a security clearance application in March 2017. The Department of Defense issued a Statement of Reasons (SOR) on October 19, 2018, citing security concerns under Guideline F, related to financial considerations. The SOR detailed four delinquent debts totaling $394,812, including charged-off mortgage loans and a credit card debt.
During the proceedings, the applicant admitted to the existence of the debts but denied any wrongdoing, claiming confusion over the status of his debts and asserting that he believed charged-off debts were forgiven. He provided evidence of financial counseling and made some efforts to settle his debts, including a recent settlement of one mortgage debt. However, the administrative judge found that the applicant's financial issues were largely self-inflicted and that he had not acted responsibly in managing his debts prior to the security clearance process. The judge ruled against the applicant, concluding that he failed to mitigate the security concerns, as his financial problems were not under control and did not meet the criteria for the mitigating conditions outlined in the adjudicative guidelines. Consequently, the applicant's eligibility for access to classified information was denied.
Guidelines Evaluated
- Guideline FFinancial Considerations · For Applicant
- Guideline FFinancial Considerations · Against Applicant
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Case Headnote

ISCR Case No. 18-02302

deniedMar 29, 2019· Hon. Robert J. Kilmartin· hearing

Summary

A 52-year-old engineer was denied a security clearance under Guideline F (Financial Considerations) due to unresolved debts totaling $394,812. The Statement of Reasons detailed four specific allegations: a charged-off mortgage loan of $239,347, a charged-off second mortgage of $83,101, a charged-off credit card account for $2,716 (which was paid in full), and a related debt placed for collection totaling $69,648.

The decision cited Disqualifying Conditions AG ¶ 19(b) and AG ¶ 19(c). While Mitigating Conditions AG ¶ 20(c) and AG ¶ 20(d) were considered, they were not sufficient to overcome the security concerns.

Despite the applicant settling some debts shortly before the hearing, the judge found his testimony regarding his financial understanding and actions lacked credibility. This led to a determination that the applicant failed to demonstrate responsible financial behavior and did not mitigate the security concerns, ultimately resulting in the denial of his clearance due to doubts about his reliability and trustworthiness.

Why the Applicant Was Denied

The applicant failed to demonstrate responsible financial behavior and did not mitigate the security concerns under Guideline F.
The judge found the applicant's testimony regarding his financial understanding not credible, leading to doubts about his reliability and trustworthiness.

Conditions Referenced

Disqualifying

AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(c)appliedThe Individual Has Received, or Is Receiving Financial Counseling for the Problem From a Legitimate and Credible Source
AG ¶ 20(d)rejectedThe Individual Has Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors and Otherwise Resolved DebtsThe applicant's efforts were deemed too little, too late.

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedOct 19, 2018
Answer filed—Applicant submitted a detailed 13-page answer.
Hearing heldFeb 27, 2019Hearing convened as scheduled.
Decision dateMar 29, 2019

Cite For

Failure to Mitigate Financial Issues Under Guideline F
Credibility of Applicant's Financial Understanding
Impact of Financial Irresponsibility 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: denied

The judge found multiple financial concerns under Guideline F, including charged-off mortgage loans and a credit card debt. While some debts were resolved, the judge ultimately ruled against the applicant on the majority of allegations, citing a lack of mitigation for the financial issues presented.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Charged-off mortgage loan totaling $239,347. $239,347	Against Applicant	Mortgage or Home Loan Debt	Admitted	(b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.b	Charged-off second mortgage totaling $83,101. $83,101	Against Applicant	Mortgage or Home Loan Debt	Admitted	(b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.c	Charged-off credit card account totaling $2,716, paid in full. $2,716	For Applicant	Credit Card Debt	Admitted	(b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.d	Related debt placed for collection totaling $69,648. $69,648	For Applicant	Unspecified Financial	Admitted	(b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—

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.