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ISCR Case 19-02340 — CASE

Case record

ISCR Case 19-02340

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

Case Profile
Decision Date3/18/2020
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Elizabeth M. Matchinski
Government Counsel: Moira Modzelewski
Case Summary
The applicant in this case, a 59-year-old male with a high school education and military service, sought a security clearance but faced allegations under Guideline F, concerning financial considerations. The Statement of Reasons (SOR) indicated that he defaulted on $36,359 in consumer debt, including federal student loans and other debts, raising concerns about his financial stability and responsibility.
The applicant admitted to the debts listed in the SOR and provided documentation of some payments made towards them. He explained that his financial difficulties stemmed from job losses and a subsequent mortgage modification. Despite making small payments on his debts, he did not demonstrate that his financial issues were resolved or no longer posed a security concern. The applicant's financial history included a series of delinquencies and defaults, which he attempted to mitigate by entering repayment arrangements and seeking assistance from credit counseling services.
The administrative judge ruled to deny the applicant's security clearance, concluding that he had not sufficiently mitigated the financial concerns raised in the SOR. The judge noted that while the applicant had made some payments, he failed to establish a clear and consistent plan to resolve his debts, which remained a significant security concern.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
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Case Headnote

ISCR Case No. 19-02340

deniedMar 18, 2020· Hon. Elizabeth M. Matchinski· hearing

Summary

A 59-year-old male applicant was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved consumer debt. The applicant had defaulted on $36,359 in obligations, including federal student loans. These issues raised disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c).

While the applicant made some payments, he failed to demonstrate that his financial difficulties were resolved or no longer presented a security concern. The Adjudicator considered mitigating conditions under AG ¶ 20(b) and AG ¶ 20(d), but ultimately determined they were insufficient to overcome the security concerns.

Consequently, the applicant's security clearance was denied because he could not establish that his financial issues were adequately resolved.

Why the Applicant Was Denied

Applicant defaulted on $36,359 in consumer debt, including federal student loans.
He failed to establish that his financial issues were resolved or no longer posed a security concern.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlApplicant attributed his financial problems to job loss and a spouse's vehicle accident.
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsApplicant demonstrated some good faith by making payments on his debts.

Key Rule Quoted

“An applicant is not required to be debt free, but is required to manage his finances in a way as to exhibit sound judgment and responsibility.”

Procedural Posture

SOR issuedOct 4, 2019
Answer filedNov 4, 2019Requested decision on the written record without a hearing.
Hearing held—
Decision dateMar 18, 2020

Cite For

Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
Importance of Demonstrating Financial Responsibility for Security Clearance Eligibility
Consideration of Mitigating Conditions Related to Financial Difficulties

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

Full decision

The complete, official text — footnotes and signatures included — is in the original PDF.