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ISCR Case 20-03433 — CASE

Case record

ISCR Case 20-03433

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

Case Profile
Decision Date12/5/2022
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Shari Dam
Government Counsel: Brian L. Farrell
Case Summary
The applicant in this case was a 40-year-old individual who had been employed by federal contractors since 2007. The Department of Defense issued a Statement of Reasons (SOR) citing security concerns under Guideline F (Financial Considerations), alleging that the applicant had accumulated multiple delinquent debts totaling approximately $26,779 between 2018 and 2021. The applicant denied the allegations in the SOR and attributed the financial difficulties to periods of unemployment and reliance on credit cards during those times.
During the proceedings, the applicant admitted to some debts but claimed to be making efforts to resolve them, including establishing payment plans for certain accounts. He provided evidence of some debts being resolved, while others remained outstanding, including a personal loan and several student loans. The applicant's financial situation showed a net monthly income of $6,700 against expenses of $4,525, leaving a surplus of $2,100. However, he had not participated in financial counseling since college and had not fully resolved all debts.
The administrative judge ruled against the applicant, concluding that he failed to mitigate the financial considerations security concerns. The judge emphasized that the applicant's financial history raised questions about his reliability and trustworthiness, which are critical for access to classified information. The decision ultimately denied the applicant's eligibility for a security clearance, citing the need to prioritize national security interests.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
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Case Headnote

ISCR Case No. 20-03433

deniedDec 5, 2022· Hon. Shari Dam· hearing

Summary

A 40-year-old federal contractor was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues totaling $26,779. The Statement of Reasons detailed several specific debts. These included a student loan with a $4,515 balance, past due by $266, on which the applicant reported making $20 monthly payments since October 2019. Another significant debt was an $11,643 personal loan taken in October 2017 to consolidate credit card bills.

Additionally, a $4,690 credit card debt, charged off in 2019, was settled and paid in February 2021. However, a $201 internet bill placed in collection in 2020 lacked sufficient evidence of resolution.

The denial was based on the applicant's failure to resolve significant delinquent debts, a reliance on credit cards during unemployment indicating poor financial management, and an insufficient demonstration of a reliable track record in handling financial obligations. While some debts were settled, the judge concluded that the applicant did not adequately mitigate the financial security concerns, leading to the denial.

Why the Applicant Was Denied

The applicant failed to resolve significant delinquent debts totaling $26,779.
The applicant's reliance on credit cards during unemployment indicated poor financial management.
The applicant did not demonstrate a reliable track record of responsibly handling financial obligations.

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 so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
AG ¶ 20(b)appliedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
AG ¶ 20(c)rejectedReceived or Is Receiving Financial CounselingThe applicant has not participated in financial counseling since college.
AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant did not initiate a good-faith effort to resolve debts until after the SOR was issued.

Key Rule Quoted

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

Procedural Posture

SOR issuedDec 1, 2018
Answer filed—
Hearing heldOct 12, 2022via video teleconference
Decision dateDec 5, 2022

Cite For

Failure to Mitigate Financial Concerns Under Guideline F
Impact of Financial Management on Security Clearance Eligibility
Consideration of the Whole-person Concept in Financial Cases

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 that the applicant had several financial concerns under Guideline F, including student loans and credit card debts. While some debts were resolved, significant debts remained unpaid, leading to a decision against the applicant's eligibility for a security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	The student loan alleged in SOR ¶ 1.a has a balance of $4,515, and was past due $266, according to Applicant’s June 2020 CBR. Applicant said he has been making a monthly minimum payment of $20 since October 2019. $4,515	For Applicant	Student Loan Debt	Admitted	—	—	—
1.c	The $11,643 debt alleged in SOR ¶ 1.c is owed to a company for a $14,000 personal loan Applicant took out in October 2017 to consolidate credit card bills and allow him to make only one monthly payment. $11,643	Against Applicant	Personal Loan Debt	Denied	—	—	—
1.d	The $4,690 credit card debt alleged in SOR ¶ 1.d was charged off in 2019. It was settled and paid in February 2021. $4,690	For Applicant	Credit Card Debt	Admitted	—	—	—
1.k	The $201 internet bill alleged in SOR ¶ 1.k was placed in collection in 2020. There is insufficient evidence to determine whether that this debt has been resolved. $201	Against Applicant	Unspecified Financial	Denied	—	—	—

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.