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ISCR Case 21-00548 — CASE

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ISCR Case 21-00548

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

Case Profile
Decision Date6/30/2022
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Elizabeth M. Matchinski
Government Counsel: Carroll J. Connelley
Case Summary
The applicant in this case was a 54-year-old administrative aide for a defense contractor who faced security clearance issues primarily under Guideline F, concerning financial considerations. The Statement of Reasons (SOR) outlined multiple allegations of serious delinquency on consumer credit accounts, totaling over $100,000, which stemmed from financial difficulties related to a failed business venture. The applicant admitted to the debts but did not provide substantial evidence of efforts to resolve them.
Key facts revealed that the applicant and her spouse had previously owned two coffee shops, which they closed due to declining business and competition. They incurred significant debt while operating these businesses, and despite acknowledging their financial issues, they had not made consistent payments towards their debts or pursued bankruptcy due to concerns about their children's education funding. The applicant's financial disclosures on her security clearance application were found to be misleading, as she underreported her debts.
The administrative judge ruled to deny the applicant's security clearance, concluding that her financial problems raised significant concerns about her reliability and trustworthiness. The judge noted that while the applicant's financial difficulties were largely due to external factors, her lack of proactive measures to address the debts and the misleading information provided during the clearance process were critical factors in the decision.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
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Case Headnote

ISCR Case No. 21-00548

deniedJun 30, 2022· Hon. Elizabeth M. Matchinski· hearing

Summary

A 54-year-old administrative aide was denied a security clearance under Guideline F, Financial Considerations, due to significant unresolved debts totaling over $87,000. The Statement of Reasons detailed two judgment debts of $45,778 and $3,189, five collection debts amounting to $33,264, and two charged-off debts totaling $5,060.

The denial was based on the applicant's history of defaulting on financial obligations and her ongoing disregard for these debts. She continued to receive and ignore collection notices, failing to demonstrate responsible financial management.

Ultimately, the applicant did not take timely steps to work with her creditors to resolve her financial issues, raising concerns about her reliability and trustworthiness. The decision cited Disqualifying Conditions AG ¶ 19(a) and AG ¶ 19(c).

Why the Applicant Was Denied

The applicant defaulted on over $87,000 in credit debt, demonstrating a history of not meeting financial obligations.
The applicant exhibited ongoing disregard for her debts, continuing to receive and ignore collection notices.
The applicant failed to take timely steps to work with her creditors toward resolving her financial issues.

Conditions Referenced

Disqualifying

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

Key Rule Quoted

“The security clearance adjudication is not a proceeding aimed at collecting an applicant’s personal debts. Rather, it is a proceeding aimed at evaluating an applicant’s judgment, reliability, and trustworthiness with regard to his or her fitness or suitability to handle classified information appropriately.”
— ISCR Case No. 09-02160 (App. Bd. June 21, 2010)

Procedural Posture

SOR issuedJun 11, 2021
Answer filedJun 18, 2021Requested a decision on the written record.
Hearing heldJun 6, 2022Scheduled via coordination due to COVID-19.
Decision dateJun 30, 2022

Cite For

Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
Importance of Demonstrating Responsible Financial Management for Security Clearance Eligibility
Evaluation of Judgment and Reliability in the Context of Financial Obligations

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 judge found multiple financial concerns under Guideline F, including several judgment debts, collection debts, and charged-off debts totaling over $100,000. The judge ruled against the applicant on all allegations, concluding that the financial issues were not mitigated and were inconsistent with national security interests.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant owed two judgment debts of $45,778 and $3,189; five collection debts totaling $33,264; and two charged-off debts totaling $5,060. $45,778	Against Applicant	Judgment Against Applicant	Admitted	—	—	—
1.b	Applicant owed two judgment debts of $45,778 and $3,189; five collection debts totaling $33,264; and two charged-off debts totaling $5,060. $3,189	Against Applicant	Judgment Against Applicant	Admitted	—	—	—
1.c	Applicant owed two judgment debts of $45,778 and $3,189; five collection debts totaling $33,264; and two charged-off debts totaling $5,060. $12,944	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.d	Applicant owed two judgment debts of $45,778 and $3,189; five collection debts totaling $33,264; and two charged-off debts totaling $5,060. $8,982	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.e	Applicant owed two judgment debts of $45,778 and $3,189; five collection debts totaling $33,264; and two charged-off debts totaling $5,060. $8,839	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.f	Applicant owed two judgment debts of $45,778 and $3,189; five collection debts totaling $33,264; and two charged-off debts totaling $5,060. $4,741	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.g	Applicant owed two judgment debts of $45,778 and $3,189; five collection debts totaling $33,264; and two charged-off debts totaling $5,060. $1,377	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.h	Applicant owed two judgment debts of $45,778 and $3,189; five collection debts totaling $33,264; and two charged-off debts totaling $5,060. $1,122	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.i	Applicant owed two judgment debts of $45,778 and $3,189; five collection debts totaling $33,264; and two charged-off debts totaling $5,060. $319	Against Applicant	Credit Card Debt	Admitted	—	—	—

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.