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ISCR Case 20-01444 — CASE

Case record

ISCR Case 20-01444

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

Case Profile
Decision Date4/27/2022
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Michael H. Leonard
Government Counsel: Patricia M. Lynch-Epps
Case Summary
The applicant in this case was a 46-year-old technician employed in the defense industry, seeking a security clearance for the first time. The Department of Defense (DoD) issued a Statement of Reasons (SOR) citing financial considerations under Guideline F, specifically a history of financial problems that included 13 delinquent accounts totaling approximately $27,000. The applicant admitted to one of the allegations but denied the remaining accounts, claiming she was unaware of the details and had not read the financial questions on her security clearance application.
The administrative judge found that the applicant had a significant history of financial issues, including charged-off accounts and collections, which raised concerns about her reliability and judgment. Despite her claims, the applicant did not provide sufficient documentation to demonstrate any efforts to resolve her debts or mitigate the financial concerns. The judge noted that none of the mitigating conditions applied in her case, and the applicant failed to meet her burden of proof to show that granting her clearance would be consistent with national interest.
Ultimately, the administrative judge ruled against the applicant, concluding that her unresolved financial issues indicated a lack of self-control and judgment, which could compromise her ability to protect classified information. As a result, the applicant's request for eligibility for access to classified information was denied.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
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Other decisions whose allegations read most like this one. Descriptive similarity of the allegations only — not a prediction.
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Case Headnote

ISCR Case No. 20-01444

deniedApr 27, 2022· Hon. Michael H. Leonard· hearing

Summary

A 46-year-old defense industry technician was denied a security clearance due to unresolved financial issues under Guideline F (Financial Considerations). The applicant faced allegations of 13 delinquent accounts totaling approximately $27,000, consisting of charged-off, collection, and medical collection accounts, as established by credit reports from 2018, 2019, and 2022.

Initially, the applicant denied 12 of the 13 accounts in her response to the Statement of Reasons, claiming she did not incur them. However, during a 2019 background investigation, she admitted to numerous delinquent accounts, explaining she did not recall reading the financial questions on the SF-86, did not know the details of the accounts, and was aware of her poor credit.

Despite these admissions, the applicant failed to provide sufficient documentary evidence to mitigate her financial problems. She did not offer affirmative proof, such as payment records, settlement agreements, repayment plans, or evidence of disputes or forgiveness, for any of the 13 delinquent accounts. Consequently, the security clearance was denied due to the lack of resolution for her financial indebtedness, raising concerns about her reliability and judgment.

Why the Applicant Was Denied

The applicant did not present sufficient documentary evidence to mitigate her history of financial problems.
She admitted to having 13 delinquent accounts totaling approximately $27,000, with no evidence of resolution provided.

Conditions Referenced

Disqualifying

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

Key Rule Quoted

“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness, and ability to protect classified or sensitive information.”
— AG ¶ 18

Procedural Posture

SOR issuedOct 20, 2021
Answer filedDec 1, 2021Mixed responses; admitted one allegation.
Hearing held—Requested decision based on written record.
Decision dateApr 27, 2022

Cite For

Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
Importance of Providing Documentary Evidence to Mitigate Financial Problems
Impact of Financial Irresponsibility on Reliability and Judgment in Handling Classified Information

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: denied

The applicant has a history of financial problems consisting of 13 delinquent accounts totaling about $27,000. The judge found that the applicant did not engage in sufficient remedial efforts to justify a favorable clearance decision, resulting in a ruling against the applicant on all allegations under Guideline F.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	History of financial problems consisting of 13 delinquent accounts totaling about $27,000. $27,000	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	The indebtedness consists of five charged-off accounts, four collection accounts, and four medical collection accounts.	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	In her answer to the SOR, she denied 12 of the 13 accounts, explaining simply that she did not make those accounts.	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	During her 2019 background investigation, upon confrontation, she admitted numerous delinquent accounts.	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	She also explained that she did not recall reading the financial questions when completing the SF 86; she did not bring the accounts up because she did not know the details; and she knew she had bad credit.	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	The 13 delinquent accounts are established by credit reports from 2018, 2019, and 2022.	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	Other than the various statements made during the 2019 background investigation, Applicant has not provided affirmative proof, via reliable documentation, that she has resolved any of the 13 delinquent accounts.	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	In particular, she has not provided documentary proof that any of the delinquent debts were paid, settled, in a repayment agreement, disputed, cancelled, forgiven, or otherwise resolved.	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i–1.m	5 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)	Against Applicant			—	—	—

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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