ISCR Case 20-02364

Case Headnote

ISCR Case No. 20-02364

deniedJul 29, 2021· Hon. John Bayard Glendon· hearing

Summary

A 28-year-old engineer was denied a security clearance due to concerns under Guideline E (Personal Conduct), Guideline F (Financial Considerations), and Guideline H (Drug Involvement). The primary reason for denial was unresolved financial issues, specifically significant medical debts totaling approximately $75,000, which stemmed from a sports injury in 2013.

The applicant had five medical debts in collection. One debt for $2,680 was resolved in March 2020 after a settlement payment of $804. However, a substantial medical account of $71,801, delinquent since about 2013, remained unresolved, along with three other medical debts of $281, $281, and $202, all delinquent since 2013 or 2014. The applicant also faced an allegation of intentionally omitting five debts from his Security Clearance Application (SCA), which he denied.

While the applicant disclosed past marijuana use beginning at age 14 in 2006, with frequency declining over time, and mitigating factors were applied for personal conduct and drug involvement, these were insufficient to overcome the financial concerns. The judge determined that the applicant's overall financial situation raised doubts about his reliability and trustworthiness, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant failed to mitigate financial concerns related to significant medical debts totaling approximately $75,000.
Despite efforts to address some debts, the overall financial situation raised doubts about the applicant's reliability and trustworthiness.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurThe applicant's debts were recent and unresolved.
AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlWhile the applicant faced circumstances beyond his control, he failed to act responsibly in addressing his debts.
AG ¶ 20(c)appliedReceiving Financial CounselingThe applicant is receiving financial counseling and has made some progress.
AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant has only recently begun to address his debts and has not made sufficient payments.

Key Rule Quoted

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

Procedural Posture

SOR issuedJan 6, 2021
Answer filedJan 7, 2021Applicant responded pro se.
Hearing heldJun 8, 2021Conducted via DCS video teleconference.
Decision dateJul 29, 2021

Cite For

Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
Mitigating Factors Related to Personal Conduct and Drug Involvement Considered but Insufficient to Outweigh Financial Concerns
Importance of Demonstrating a Good-faith Effort to Resolve Debts in Security Clearance Cases.

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

¶	Allegation	Finding	Conduct	Concealed Issue	Response	Disqualifying (¶16)	Mitigating applied (¶17)	Mitigation
2.a	Applicant intentionally omitted in his SCA the five debts listed in paragraph 1 of the SOR. Applicant denied that the omission was intentional.	For Applicant	Omission or Failure to DiscloseFOUND DELIBERATE	Financial	Denied	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant intentionally omitted in his SCA the five debts listed in paragraph 1 of the SOR. Applicant denied that the omission was intentional.

For Applicant

Omission or Failure to DiscloseFOUND DELIBERATE

Financial

Denied

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Medical account in collection in the amount of $71,801. This bill was incurred after his sports injury. This debt became delinquent in about 2013, and the creditor assigned it to a collection agency at that time. Applicant has not been able to pay it. This debt is not resolved. $71,801	Against Applicant	Medical Debt	Denied	—	—	—
1.b	Medical account in collection in the amount of $2,680. This debt is for anesthesia services that were rendered as part of his treatment for his 2013 injury. Applicant negotiated a settlement of this account for $804. In March 2020, he paid this debt after receiving a settlement offer from the creditor in the mail. This debt is resolved. $2,680	For Applicant	Medical Debt	Admitted	—	—	Documented Debt Paid in Full
1.c	Medical account in collection in the amount of $281. This debt became delinquent in about 2013, and the creditor assigned it to a collection agency at that time. Applicant has made no payments on this debt. This debt is not resolved. $281	Against Applicant	Medical Debt	Denied	—	—	—
1.d	Medical account in collection in the amount of $281. This debt became delinquent in about 2013, and the creditor assigned it to a collection agency at that time. Applicant has made no payments on this debt. This debt is not resolved. $281	Against Applicant	Medical Debt	Denied	—	—	—
1.e	Medical account in collection in the amount of $202. This debt became delinquent in about 2014, and the creditor assigned it to a collection agency at that time. Applicant has made no payments on this debt. This debt is not resolved. $202	Against Applicant	Medical Debt	Denied	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Medical account in collection in the amount of $71,801. This bill was incurred after his sports injury. This debt became delinquent in about 2013, and the creditor assigned it to a collection agency at that time. Applicant has not been able to pay it. This debt is not resolved.

$71,801

Against Applicant

Medical Debt

Denied

—

1.b

Medical account in collection in the amount of $2,680. This debt is for anesthesia services that were rendered as part of his treatment for his 2013 injury. Applicant negotiated a settlement of this account for $804. In March 2020, he paid this debt after receiving a settlement offer from the creditor in the mail. This debt is resolved.

$2,680

For Applicant

Medical Debt

Admitted

—

Documented

Debt Paid in Full

1.c

Medical account in collection in the amount of $281. This debt became delinquent in about 2013, and the creditor assigned it to a collection agency at that time. Applicant has made no payments on this debt. This debt is not resolved.

$281

Against Applicant

Medical Debt

Denied

—

1.d

$281

Against Applicant

Medical Debt

Denied

—

1.e

Medical account in collection in the amount of $202. This debt became delinquent in about 2014, and the creditor assigned it to a collection agency at that time. Applicant has made no payments on this debt. This debt is not resolved.

$202

Against Applicant

Medical Debt

Denied

—

¶	Allegation	Finding	Substance / event	Use level	Response	Disqualifying (¶25)	Mitigating applied (¶26)	Mitigation
3.a	Applicant provided information in his February 2019 SCA regarding his past use of marijuana. He disclosed that he began using marijuana in 2006 when he was about 14 years old. He wrote that over time, the frequency of his use declined.	For Applicant	Marijuana	Occasional	Denied	—	—	—

Allegation

Finding

Substance / event

Use level

Response

Disqualifying (¶25)

Mitigating applied (¶26)

Mitigation

3.a

Applicant provided information in his February 2019 SCA regarding his past use of marijuana. He disclosed that he began using marijuana in 2006 when he was about 14 years old. He wrote that over time, the frequency of his use declined.

For Applicant

Marijuana

Occasional

Denied

—

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Case Profile

Summary

Why the Applicant Was Denied

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 ANALYSIS

FORMAL FINDINGS

CONCLUSION