ISCR Case 20-01743

Case Headnote

ISCR Case No. 20-01743

grantedJun 28, 2021· Hon. Pamela C. Benson· hearing

Summary

A 42-year-old director with a master's degree was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons cited delinquent accounts totaling $71,131. These included a $20,957 debt to Midland Funding, a $7,453 charged-off Bank of America account, and three separate student loan accounts with ECMC, each for $21,144. Additionally, the applicant had a 2014 federal tax lien for $9,824 and a 2019 federal tax lien for $11,753.

Disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), and AG ¶ 19(f) were raised. However, the decision applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d), and AG ¶ 20(g). The applicant demonstrated significant progress in resolving these financial issues, including paying off tax liens and consolidating student loans.

The financial difficulties were largely attributed to circumstances beyond his control, specifically a separation in 2013 and his spouse's employment situation. The applicant's commitment to repaying his debts and managing his financial obligations was a key factor in the decision to grant the security clearance.

Why the Applicant Prevailed

The applicant made significant progress in resolving delinquent accounts.
He demonstrated a commitment to repaying his debts and managing his financial obligations.
The financial issues were largely due to circumstances beyond his control, such as a separation and his spouse's employment situation.

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 File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns or Failure to Pay Annual Federal, State, or Local Income Tax as Required

Mitigating

AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
AG ¶ 20(g)appliedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those Arrangements

Key Rule Quoted

“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”

Procedural Posture

SOR issuedOct 15, 2020
Answer filedDec 16, 2020Requested a decision on the written record without a hearing.
Hearing heldJun 4, 2021Applicant provided updated information.
Decision dateJun 28, 2021

Cite For

Mitigation of Financial Concerns Under Guideline F
Impact of Personal Circumstances on Financial Obligations
Good-faith Efforts to Resolve Debts as a Mitigating Factor

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

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant is indebted to Midland Funding in the amount of $20,957, for an account placed into collection. $20,957	For Applicant	Unspecified Financial	Denied	—	—	—
1.b	Applicant is indebted to Bank of America for a charged-off account in the amount of $7,453. $7,453	For Applicant	Credit Card Debt	Admitted	—	—	—
1.c	Applicant is indebted for student loan accounts placed for collection with ECMC in the total amount of $21,144. $21,144	For Applicant	Student Loan Debt	Admitted	—	—	—
1.d	Applicant is indebted for student loan accounts placed for collection with ECMC in the total amount of $21,144. $21,144	For Applicant	Student Loan Debt	Admitted	—	—	—
1.e	Applicant is indebted for student loan accounts placed for collection with ECMC in the total amount of $21,144. $21,144	For Applicant	Student Loan Debt	Admitted	—	—	—
1.f	Applicant is indebted to the Federal government in the amount of $9,824 after a tax lien was entered against him in 2014. $9,824	For Applicant	Tax Unpaid	Denied	—	—	—
1.g	Applicant has a 2019 Federal tax lien in the amount of $11,753. $11,753	For Applicant	Tax Unpaid	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant is indebted to Midland Funding in the amount of $20,957, for an account placed into collection.

$20,957

For Applicant

Unspecified Financial

Denied

—

1.b

Applicant is indebted to Bank of America for a charged-off account in the amount of $7,453.

$7,453

For Applicant

Credit Card Debt

Admitted

—

1.c

Applicant is indebted for student loan accounts placed for collection with ECMC in the total amount of $21,144.

$21,144

For Applicant

Student Loan Debt

Admitted

—

1.d

Applicant is indebted for student loan accounts placed for collection with ECMC in the total amount of $21,144.

$21,144

For Applicant

Student Loan Debt

Admitted

—

1.e

Applicant is indebted for student loan accounts placed for collection with ECMC in the total amount of $21,144.

$21,144

For Applicant

Student Loan Debt

Admitted

—

1.f

Applicant is indebted to the Federal government in the amount of $9,824 after a tax lien was entered against him in 2014.

$9,824

For Applicant

Tax Unpaid

Denied

—

1.g

Applicant has a 2019 Federal tax lien in the amount of $11,753.

$11,753

For Applicant

Tax Unpaid

Admitted

—

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Case Profile

Summary

Why the Applicant Prevailed

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION