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ISCR Case 19-03739 — CASE

Case record

ISCR Case 19-03739

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

Case Profile
Decision Date8/11/2020
Statusgranted
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Noreen A. Lynch
Government Counsel: A. H. Henderson
Case Summary
The applicant in this case was a 49-year-old individual who had served honorably in the United States Navy from 1989 until 2009 and was currently employed by a federal contractor. The Department of Defense issued a Statement of Reasons (SOR) citing security concerns under Guideline F (Financial Considerations), alleging that the applicant had five delinquent debts and two judgments totaling approximately $87,000. The applicant admitted to all allegations in the SOR and attributed his financial difficulties to a challenging period from 2014 to 2016, during which he faced significant personal and family-related financial burdens.
The administrative judge found that the applicant had made efforts to address his financial issues, including consistent payments to creditors and attempts to modify his mortgage. The applicant provided evidence of a budget and a bill-paying checklist, demonstrating a monthly net income of about $11,000. The judge noted that the applicant's financial troubles stemmed from circumstances largely beyond his control, such as caring for terminally ill family members and unexpected changes in employment. The applicant's proactive steps to resolve his debts and his established payment history were considered mitigating factors.
Ultimately, the administrative judge ruled in favor of the applicant, granting eligibility for access to classified information. The judge concluded that the applicant had sufficiently mitigated the financial security concerns, emphasizing that the applicant's past financial difficulties were unlikely to recur and did not cast doubt on his current reliability and judgment.
Guidelines Evaluated
- Guideline FFinancial Considerations · For Applicant
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Case Headnote

ISCR Case No. 19-03739

grantedAug 11, 2020· Hon. Noreen A. Lynch· hearing

Summary

This case involved a 49-year-old married veteran with two adult children seeking security clearance, which was initially challenged under Guideline F (Financial Considerations). The Statement of Reasons alleged seven delinquent debts and two judgments, totaling $87,000. Specific debts included a 2014 judgment for $7,849 related to a homeowner association, a $29,268 charged-off consolidation loan, and a past-due account of approximately $406 with a total balance of $4,626. Additionally, a charged-off credit card account for $4,626 and another charged-off account for $482.27, which was in repayment status, were cited. The applicant also admitted to initially incurring a $9,005 charged-off debt but contested the amount owed.

Disqualifying conditions under Guideline F were raised, but the administrative judge applied several mitigating conditions. The applicant demonstrated significant efforts to address the financial issues, including consistent payments and legal assistance. The judge found that the financial difficulties largely stemmed from circumstances beyond the applicant's control, specifically caring for ill family members.

Ultimately, the applicant successfully mitigated the security concerns by demonstrating a good-faith effort to repay creditors and resolve debts, supported by evidence of consistent payments and a budget. As a result, the administrative judge granted the applicant eligibility for access to classified information.

Why the Applicant Prevailed

The applicant demonstrated a good-faith effort to repay overdue creditors and resolve debts.
The financial difficulties were largely due to circumstances beyond the applicant's control, including caring for ill family members.
The applicant provided evidence of consistent payments and a budget to manage debts.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(a)appliedBehavior Happened Long Ago or Infrequently
AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
AG ¶ 20(d)appliedGood-faith Effort to Repay Debts
AG ¶ 20(e)appliedReasonable Basis to Dispute Legitimacy of Debt

Key Rule Quoted

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

Procedural Posture

SOR issuedMar 6, 2020
Answer filed—
Hearing held—Applicant requested a review based on the written record.
Decision dateAug 11, 2020

Cite For

Mitigation of Financial Concerns Under Guideline F
Consideration of Personal Circumstances Affecting Financial Stability
Good-faith Efforts in Debt Repayment

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: granted

The judge found that the applicant had multiple delinquent debts and judgments totaling $87,000, but ultimately ruled in favor of the applicant, determining that the financial concerns were mitigated. The applicant provided evidence of payments made and explanations for his financial difficulties, leading to the conclusion that granting clearance was consistent with the national interest.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant has five delinquent debts and two judgments for a total amount of debt of $87,000. $87,000	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur	Claimed Other
1.b	Applicant admits the 2014 judgment entered against him for $7,849 for non-payment of a home owner association debt. $7,849	For Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur	Documented Debt Paid in Full
1.c	Applicant admits that he is indebted for a charged-off account in the amount of $29,268 for a consolidation loan. $29,268	For Applicant	Personal Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur	Documented Payment Plan with Creditor
1.d	Applicant admits he is indebted for an account that is past due in the amount of approximately $406, with a total balance of $4,626. $4,626	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur	Claimed Other
1.e	The charged-off account in SOR 1.e, for $4,626, is the result of a credit card account. $4,626	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur	Documented Payment Plan with Creditor
1.f	The charged-off account in SOR 1.f in the amount of $482.27 is in a repayment status. $482	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur	Documented Payment Plan with Creditor
1.g	For a charged-off account in the amount of $9,005, Applicant admits that he initially incurred this debt but contests the amount owed. $9,005	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur	Claimed Other

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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