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ISCR Case 20-03658 — CASE

Case record

ISCR Case 20-03658

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: Raashid S. Williams
Case Summary
The applicant in this case was a 37-year-old consultant for a defense industry company 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 excessive indebtedness totaling approximately $23,350 across seven delinquent accounts. The applicant admitted to the allegations in the SOR but did not provide sufficient documentation to demonstrate any efforts to resolve his financial issues.
During the proceedings, the applicant acknowledged his financial problems but failed to present any evidence of payments or repayment agreements for the debts listed in the SOR. Although he claimed to have entered into repayment agreements for some debts, he did not provide supporting documentation. The administrative judge found that the applicant's financial difficulties, coupled with an uneven employment history and multiple periods of unemployment, raised significant concerns regarding his reliability and judgment.
Ultimately, the administrative judge ruled against the applicant, concluding that he did not meet the burden of proof necessary to demonstrate that granting him a security clearance would be consistent with national interest. The judge emphasized the lack of evidence supporting the applicant's claims of financial remediation and determined that the applicant's financial irresponsibility could negatively impact his ability to protect classified information. Consequently, the applicant's request for eligibility for access to classified information was denied.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
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Case Headnote

ISCR Case No. 20-03658

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

Summary

A 37-year-old defense industry consultant was denied a security clearance under Guideline F (Financial Considerations) due to significant financial issues. The Statement of Reasons detailed seven delinquent accounts totaling approximately $23,350, comprising five charged-off accounts and two collection accounts. The applicant admitted to this indebtedness in his answer to the Statement of Reasons.

Despite admitting the debts, the applicant failed to provide sufficient documentary proof of remediation. Specifically, he did not demonstrate that any of the delinquent debts were paid, settled, in a repayment agreement, disputed, canceled, forgiven, or otherwise resolved. While he noted entering into repayment agreements for the three smallest debts, this was not adequately substantiated with evidence.

The judge concluded that the applicant's financial irresponsibility raised significant doubts about his reliability and trustworthiness, leading to the denial of his security clearance. The decision cited Disqualifying Conditions AG ¶ 19(a) and AG ¶ 19(c).

Why the Applicant Was Denied

The applicant admitted to having seven delinquent accounts totaling about $23,350.
He did not provide sufficient documentary evidence to mitigate his financial issues.
The judge found that the applicant's financial irresponsibility raised significant doubts about his reliability and trustworthiness.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(c)raisedA 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 issuedJul 28, 2021
Answer filedSep 1, 2021Applicant admitted all allegations.
Hearing held—Decision based on written record.
Decision dateApr 27, 2022

Cite For

Denial Based on Financial Irresponsibility Under Guideline F
Insufficient Evidence to Mitigate Financial Issues
Impact of Financial Problems on Reliability and Trustworthiness

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 seven delinquent accounts totaling about $23,350. The judge found that the applicant did not engage in sufficient remedial efforts to justify a favorable clearance decision, resulting in a denial of the application for clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	History of financial problems consisting of seven delinquent accounts totaling about $23,350. $23,350	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	The indebtedness consists of five charged-off accounts and two collection accounts.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	He admitted the indebtedness in his answer to the SOR.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	In particular, he 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	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	he noted that he entered into repayment agreements for the three smallest debts in SOR ¶¶ 1.e, 1.f, and 1.g.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Other
1.f–1.g	2 sub-charges — specific text not stated in this decision (against the applicant).	Against Applicant			—	—	—

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.