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ISCR Case 19-00539 — CASE

Case record

ISCR Case 19-00539

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

Case Profile
Decision Date3/31/2020
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Elizabeth M. Matchinski
Government Counsel: Carroll J. Connelley
Case Summary
The applicant in this case was a 32-year-old field service technician employed by a defense contractor, who sought a security clearance but faced significant financial issues. The Department of Defense issued a Statement of Reasons (SOR) citing concerns under Guideline F, specifically regarding approximately $37,646 in delinquent debts, including a mortgage in foreclosure and several charged-off credit card debts. The applicant admitted to all allegations in the SOR, acknowledging his financial difficulties but did not provide substantial evidence of efforts to resolve these issues.
During the proceedings, the applicant testified about his financial situation, attributing much of the debt to his ex-wife's mismanagement of their finances and her failure to make mortgage payments. He admitted to losing control over household budgeting and expressed feelings of being overwhelmed by his financial responsibilities. Despite some rental income from his property, he had made no progress in addressing his debts, and his mortgage lender had initiated foreclosure proceedings. The administrative judge ultimately ruled against the applicant, concluding that the financial considerations raised significant security concerns that were not mitigated by his explanations or circumstances. As a result, the applicant's eligibility for a security clearance was denied.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
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Case Headnote

ISCR Case No. 19-00539

deniedMar 31, 2020· Hon. Elizabeth M. Matchinski· hearing

Summary

A 32-year-old field service technician for a defense contractor was denied a security clearance due to significant financial considerations under Guideline F. The applicant admitted to over $37,000 in delinquent debts, which included a mortgage in foreclosure with a past-due amount of $30,698 on a $158,242 balance.

Additional debts included three charged-off credit cards totaling $4,460, two collection debts of $742, a defaulted student loan of $472, and four medical debts amounting to $790. These issues raised disqualifying conditions under Adjudicative Guidelines Paragraphs 19(a) and 19(c).

The administrative judge determined that the applicant had made no progress in resolving these debts, despite having rental income. The applicant admitted to all allegations in the Statement of Reasons without providing any explanation for the financial difficulties or steps taken toward resolution. Consequently, the applicant's security clearance eligibility was denied.

Why the Applicant Was Denied

The applicant owed approximately $37,646 in delinquent debts, including a mortgage in foreclosure.
He made no progress on resolving his debts despite having rental income.
The applicant admitted to all allegations in the Statement of Reasons without explanation.

Conditions Referenced

Disqualifying

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

Key Rule Quoted

“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
— Department of the Navy v. Egan, 484 U.S. 518, 528 (1988)

Procedural Posture

SOR issuedMar 8, 2019
Answer filedJul 16, 2019Applicant admitted all allegations.
Hearing heldMar 5, 2020Hearing conducted.
Decision dateMar 31, 2020

Cite For

Financial Considerations Under Guideline F
Impact of Delinquent Debts on Security Clearance Eligibility
Importance of Managing Financial Obligations for National Security Interests

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: denied

The judge found multiple financial concerns under Guideline F, including significant mortgage delinquency, charged-off credit card debts, collection debts, a defaulted student loan, and medical debts. The judge ruled against the applicant, concluding that the financial difficulties were not mitigated and that more progress was needed to establish financial stability.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant was past due $30,698 on a mortgage loan with a $158,242 balance. $30,698	Against Applicant	Mortgage or Home Loan Debt	Admitted	—	—	—
1.b	Applicant owed three charged-off credit-card debts totaling $4,460. $4,460	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.e	Applicant owed two collection debts of $742. $742	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.f	Applicant owed a defaulted student-loan debt of $472. $472	Against Applicant	Student Loan Debt	Admitted	—	—	—
1.h	Applicant owed four medical debts totaling $790. $790	Against Applicant	Medical Debt	Admitted	—	—	—
1.c–1.k	6 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)	Against 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.