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ISCR Case 19-00808 — CASE

Case record

ISCR Case 19-00808

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

Case Profile
Decision Date12/20/2019
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Noreen A. Lynch
Government Counsel: Patricia M. Lynch-Epps
Case Summary
The applicant in this case was a 51-year-old office manager with a long history of holding a security clearance since 1988. The Department of Defense issued a Statement of Reasons (SOR) citing security concerns under Guideline F (Financial Considerations) and Guideline E (Personal Conduct), primarily alleging that the applicant had approximately $51,000 in delinquent debts, including unpaid federal taxes totaling around $12,000 for the years 2011 through 2018. The applicant admitted to most of the allegations but denied some, claiming that certain accounts were resolved or in dispute.
The administrative judge found that the applicant acknowledged her financial hardships over the past several years, attributing them to personal circumstances and poor judgment in managing her debts. Despite her claims of attempting to address her financial issues, the judge noted that the applicant had not received financial counseling and had not established a credible plan to resolve her debts. The judge ruled against the applicant, concluding that the applicant failed to mitigate the financial concerns raised in the SOR, as her financial situation remained unresolved and she did not provide sufficient evidence to demonstrate responsible management of her obligations. Consequently, the applicant's eligibility for access to classified information was denied.
Guidelines Evaluated
- Guideline EPersonal Conduct · For Applicant
- Guideline FFinancial Considerations · Against Applicant
Similar decisions
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Case Headnote

ISCR Case No. 19-00808

deniedDec 20, 2019· Hon. Noreen A. Lynch· hearing

Summary

A 51-year-old office manager was denied a security clearance due to concerns under Guideline F (Financial Considerations) and Guideline E (Personal Conduct). The judge found significant unresolved financial issues, including approximately $51,000 in delinquent debts and unpaid federal taxes for the years 2011 through 2018, totaling about $12,000.

Specific financial allegations included a $4,430 charged-off account related to her son and an insurance company, a $2,267 charged-off account for which she is now in a payment arrangement, and an $836 collection account where payments were not being made as she believed. Other debts included a $153 collection account she denied due to no record, a disputed $52 medical account, a $497 medical account she did not recognize, and a $2,063 collection account for a 2011 timeshare.

The denial was based on the applicant's failure to provide credible explanations for her financial problems or demonstrate responsible actions to address them. She did not establish a payment plan with the IRS or show that her financial situation was under control. While the judge found no intentional falsification of her security clearance application, the unresolved financial issues led to the denial.

Why the Applicant Was Denied

The applicant had significant unresolved financial issues, including approximately $51,000 in delinquent debts and unpaid federal taxes totaling about $12,000.
The applicant did not provide credible explanations for her financial problems or demonstrate that she acted responsibly to address them.
The applicant failed to establish a payment plan with the IRS or show that her financial situation was under control.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
AG ¶ 19(f)raisedFailure to Pay Annual Federal, State, or Local Income Tax as Required

Key Rule Quoted

“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”

Procedural Posture

SOR issuedMar 29, 2019
Answer filedJun 7, 2019
Hearing heldNov 21, 2019hearing was postponed and rescheduled
Decision dateDec 20, 2019

Cite For

Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
Consideration of Personal Conduct Under Guideline E
Importance of Demonstrating Financial Responsibility for 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 against the applicant, including significant delinquent debts and unpaid federal income taxes. Despite the applicant's claims of hardship and attempts to address her debts, the judge concluded that she failed to mitigate the financial issues, resulting in a denial of her security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant has delinquent debt in the approximate amount of $51,000. $51,000	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	Charged-off account in the amount of $4,430 is an ongoing situation between her son and an insurance company. $4,430	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	Charged-off account in the amount of $2,267, Applicant admitted that she is now in a payment arrangement. $2,267	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	Collection credit account in the amount of $836, Applicant thought that $200 a month was being made, but it was not. $836	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	Collection account in the amount of $153, Applicant denied the debt because she called the company and they had no record of the account. $153	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	Medical account in collection for the amount of $52, Applicant is disputing this account. $52	Against Applicant	Medical Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	Another medical account in the amount of $497, she has no idea what the account is for. $497	Against Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	Collection account in the amount of $2,063 for a timeshare that she purchased in 2011, she is aware of the debt. $2,063	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	Applicant admitted that she owed Federal income tax for the years 2011 through 2018. $12,000	Against Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations (f) failure to file / fraudulent filing of tax returns or unpaid tax	—	—

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

Full decision

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