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ISCR Case 19-03286 — CASE

Case record

ISCR Case 19-03286

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

Case Profile
Decision Date1/12/2021
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Judge: Noreen A. Lynch
Government Counsel: John C. Lynch
Applicant's Counsel: Anny Leon
Case Summary
The applicant in this case was a 50-year-old individual who had held a security clearance since 2008 and was employed since 2016. The Department of Defense issued a Statement of Reasons (SOR) citing security concerns under Guideline F (Financial Considerations), alleging that the applicant had eleven delinquent debts, including significant student loan debts totaling approximately $216,847 and a collection account for an apartment amounting to $489. The applicant denied some allegations, particularly regarding the student loans, claiming that many were taken out for her son and that she was unaware of the specifics of her debts.
The administrative judge found that the applicant had a long history of unresolved financial issues, with student loans dating back to 2000. Although the applicant attempted to provide evidence of payments and a rehabilitation plan for her student loans, the judge noted that the documentation was insufficient to clarify which debts were being addressed. The applicant had not received financial counseling and did not demonstrate a good-faith effort to resolve her debts. Ultimately, the judge ruled against the applicant, concluding that the financial concerns raised in the SOR were not mitigated and that the applicant had not met her burden of proof to demonstrate her eligibility for a security clearance.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
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Case Headnote

ISCR Case No. 19-03286

deniedJan 12, 2021· Hon. Noreen A. Lynch· hearing

Summary

A 50-year-old applicant with a Master's degree was denied a security clearance due to significant financial concerns under Guideline F. The Statement of Reasons detailed eleven delinquent debts, including three medical collection accounts totaling approximately $99 and seven student loans amounting to over $216,000. The applicant's credit report indicated numerous overdue accounts as the reason for her credit score.

During the review, the applicant acknowledged some debts but denied owing a 2018 debt of $489 for an apartment rented by her son. She also stated that not all student loans belonged to her and that a repayment plan with one servicer had expired after one year, which she had not realized. The applicant provided a receipt for a $117 payment made on February 13, 2020.

Ultimately, the applicant's testimony was deemed not credible, and she failed to provide sufficient documentation to demonstrate resolution of her financial issues. She did not show a good-faith effort to repay creditors, receive financial counseling, or provide clear indications that her financial situation was under control, leading to the denial of her security clearance.

Why the Applicant Was Denied

The applicant's financial situation was unresolved, with significant delinquent debts acknowledged but not adequately documented or explained.
The applicant's testimony lacked credibility, particularly regarding the ownership and status of her student loans.
The applicant did not demonstrate a good-faith effort to repay overdue creditors or resolve her debts.

Conditions Referenced

Disqualifying

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

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 issuedJan 31, 2020
Answer filedFeb 26, 2020
Hearing heldNov 16, 2020convened as scheduled
Decision dateJan 12, 2021

Cite For

Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
Credibility Issues Impacting the Outcome of a Security Clearance Decision
Failure to Demonstrate Good-faith Efforts in Resolving Financial Obligations

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 eleven delinquent debts primarily consisting of student loans totaling approximately $216,847. The judge ruled against the applicant on most allegations, citing a lack of credible evidence to mitigate the financial issues presented.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant has eleven delinquent debts, three for medical collection accounts in the approximate amount of $99. The debts include seven delinquent student loan debts in the approximate amount of $216,847. $216,847	Against Applicant	Student Loan Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	Applicant acknowledged that not all of the student loans belonged to her.	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.c	Applicant stated she had a repayment plan for a few years with one servicer, but did not realize that it expired after one year.	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.d	Applicant's credit bureau report shows that the reason for her credit score is that she has too many overdue accounts.	Against Applicant	Unspecified Financial	Unknown	(c) a history of not meeting financial obligations	—	—
1.e	Applicant presented a receipt for a total amount of $117 paid on February 13, 2020. $117	Against Applicant	Medical Debt	Unknown	—	—	—
1.f	Applicant denied that she owed the alleged 2018 debt of $489 for an apartment her son rented in college. $489	Against Applicant	Unspecified Financial	Denied	—	—	—
1.i	Applicant failed to meet her burden to mitigate the financial concerns set out in the SOR.	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.j	Applicant did not receive any financial counseling nor are there clear indications that her financial situation is under control.	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.k	Applicant was not credible in her testimony and failed to document with sufficient evidence that she has mitigated the financial concerns.	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (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.