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ISCR Case 21-00965 — CASE

Case record

ISCR Case 21-00965

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

Case Profile
Decision Date1/11/2022
Statusgranted
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Robert Robinson Gales
Government Counsel: Benjamin R. Dorsey
Case Summary
The applicant in this case was a 43-year-old employee of a defense contractor who sought a security clearance. The Defense Counterintelligence and Security Agency issued a Statement of Reasons (SOR) citing concerns under Guideline F (Financial Considerations), primarily due to the applicant's history of financial difficulties, including two bankruptcies and several delinquent accounts totaling approximately $18,899.
In her response to the SOR, the applicant admitted to all allegations related to her financial issues. She explained that her financial troubles stemmed from various life events, including a joint bankruptcy with her ex-husband, job loss during the recession, and a failed relationship that led to additional debts. However, she demonstrated significant efforts to mitigate these concerns by resolving multiple delinquent accounts and selling her home to focus on paying off her debts. By the time of the decision, she had made substantial payments to settle her outstanding debts and had reduced her overall financial obligations.
The administrative judge ruled in favor of the applicant, granting her eligibility for a security clearance. The judge concluded that the applicant had successfully mitigated the financial concerns by taking proactive steps to address her debts and demonstrating a commitment to financial responsibility. The judge noted her positive character references and her professional conduct in her role, which contributed to the determination that granting her clearance was consistent with the national interest.
Guidelines Evaluated
- Guideline FFinancial Considerations · For Applicant
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Case Headnote

ISCR Case No. 21-00965

grantedJan 11, 2022· Hon. Robert Robinson Gales· hearing

Summary

This case concerns a 43-year-old defense contractor employee whose security clearance was initially challenged under Guideline F (Financial Considerations). The Statement of Reasons (SOR) detailed multiple financial issues, including two bankruptcies—a Chapter 7 discharged in April 2004 and a Chapter 13 discharged in October 2016. Additionally, the SOR listed eight specific delinquent credit and charge accounts, with unpaid balances ranging from $803 to $5,207, many of which had been placed for collection, charged off, or sold to debt purchasers.

Disqualifying conditions under Guideline F were raised due to these financial concerns. However, the applicant successfully mitigated these issues. Prior to the issuance of the SOR, she resolved all delinquent debts, demonstrating a credible plan to manage and mitigate her financial situation.

Furthermore, the applicant maintained a positive employment record and received recognition for her work. These actions were deemed consistent with the national interest, leading to the application of mitigating conditions. Consequently, the applicant’s security clearance was GRANTED.

Why the Applicant Prevailed

Resolved all delinquent debts prior to the Statement of Reasons issuance.
Demonstrated a credible plan to manage and mitigate financial issues.
Maintained a positive track record of employment and received recognition for her work.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(b)rejectedUnwillingness to Satisfy DebtsEvidence showed the applicant acted responsibly to resolve debts.
AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(a)appliedBehavior Occurred Long Ago or Infrequently
AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors

Key Rule Quoted

“Eligibility for access to classified information is granted only upon a finding that it is clearly consistent with the national interest to do so.”
— Exec. Or. 10865, Safeguarding Classified Information within Industry § 2 (Feb. 20, 1960)

Procedural Posture

SOR issuedJun 24, 2021
Answer filedAug 2, 2021Applicant elected to have the case decided on the written record.
Hearing held—Case assigned to judge on December 14, 2021.
Decision dateJan 11, 2022

Cite For

Mitigation of Financial Concerns Under Guideline F
Resolution of Delinquent Debts Prior to SOR Issuance
Demonstration of Good-faith Efforts in Financial Management

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: granted

The judge found that the applicant had resolved all financial concerns raised under Guideline F, including multiple delinquent accounts and two bankruptcies. The applicant's proactive payments and settlements led to a favorable decision granting eligibility for a security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	SOR ¶ 1.a. is a credit-card account with an unpaid balance of $1,571 that was placed for collection and charged off. $1,571	For Applicant	Credit Card Debt	Admitted	—	—	—
1.b	SOR ¶ 1.b. is a credit-card account with an unpaid balance of $3,772 that was placed for collection, charged off, and sold to a debt purchaser. $1,859	For Applicant	Credit Card Debt	Admitted	—	—	—
1.c	SOR ¶ 1.c. is a charge account with an unpaid balance of $1,859 that was placed for collection and charged off. $1,213	For Applicant	Credit Card Debt	Admitted	—	—	—
1.d	SOR ¶ 1.d. is a credit-card account with an unpaid balance of $809 that was placed for collection and charged off. $482	For Applicant	Credit Card Debt	Admitted	—	—	—
1.e	SOR ¶ 1.e. is a credit-card account with an unpaid balance of $5,207 that was placed for collection and charged off. $2,083	For Applicant	Credit Card Debt	Admitted	—	—	—
1.f	SOR ¶ 1.f. is a credit-card account with an unpaid balance of $803 that was placed for collection and charged off. $1,278	For Applicant	Credit Card Debt	Admitted	—	—	—
1.g	SOR ¶ 1.g. is a credit-card account with an unpaid balance of $3,194 that was placed for collection and charged off. $674	For Applicant	Credit Card Debt	Admitted	—	—	—
1.h	SOR ¶ 1.h. is a credit-card account with an unpaid balance of $1,684 that was placed for collection and sold to a debt purchaser.	For Applicant	Unspecified Financial	Admitted	—	—	—
1.i	The Chapter 7 bankruptcy that was discharged on April 28, 2004.	For Applicant	Bankruptcy Filing	Admitted	—	—	—
1.j	The Chapter 13 bankruptcy that was discharged on October 31, 2016.	For Applicant	Bankruptcy Filing	Admitted	—	—	—

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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