A decided public DOHA case, shown for research, not advice or a prediction.
ISCR Case No. 21-01492
GrantedDecided Nov 29, 2022 · Administrative Judge Gina L. Marine · Hearing
Case headnote
Summary
The applicant, a 53-year-old defense contractor, faced financial difficulties leading to a default on a home equity line of credit (HELOC) but demonstrated financial responsibility and hardship, resulting in debt forgiveness. The judge found that the applicant met the mitigating conditions under Guideline F, leading to a favorable decision granting security clearance.
Why the applicant prevailed
- The applicant established financial hardship that led to debt forgiveness.
- The applicant demonstrated responsible financial management post-debt forgiveness.
- No other delinquent debts were reported in recent credit reports.
Conditions referenced
Mitigating
- AG ¶ 20(a) The conditions that led to the financial difficulties were beyond the applicant's control.applied
- AG ¶ 20(b) The applicant has shown a track record of financial responsibility since the debt was forgiven.applied
Key rule quoted
“I conclude that Applicant has met his burden of persuasion to show that it is clearly consistent with the interests of national security to grant him eligibility for access to classified information.”
Procedural posture
- SOR issued
- 2021-12-07
- Answer filed
- Hearing held
- 2022-10-19 via video conference
- Decision date
- 2022-11-29
Cite for
- Establishment of Financial Hardship Leading to Debt Forgiveness Under Guideline F
- Demonstration of Responsible Financial Management Post-debt Forgiveness
- Application of Mitigating Conditions in Financial Consideration Cases
Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.
From the decision
Facts this decision states, each with the sentence it comes from. Descriptive of the record, not an assessment.
- Prior Clearance
- held
- Bankruptcy
- none
Allegations under Guideline F
Reading the 5 per allegation rows needs a free account.
5 rows in this decision.
It opens the per allegation record on every guideline: the amounts, the findings, and the sentence behind each row.
Descriptive standardized rendering of a decided public case. The verbatim source decision is below.
Full decision
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Decision text, by section
DEPARTMENT OF DEFENSE DEFENSE OFFICE OF HEARINGS AND APPEALS
In the matter of: )
)
[REDACTED]
)
ISCR Case No. 21-01492
) Applicant for Security Clearance )
Appearances
For Government: Brian Farrell, Esq., Department Counsel For Applicant: Pro se
11/29/2022
______________
Decision ______________
MARINE, Gina L., Administrative Judge:
On December 7, 2021, the Defense Counterintelligence and Security Agency Consolidated Adjudications Facility (CAF) sent Applicant a Statement of Reasons (SOR) alleging security concerns under Guideline F (Financial Considerations). Applicant answered the SOR and requested a hearing. I convened the hearing on October 19, 2022, via video conference, during which Applicant testified and the Government submitted exhibits that I admitted to the record. Post-hearing, Applicant submitted exhibits that I admitted to the record. After I received the transcript on October 31, 2022, I notified the Government’s counsel that I intended to issue a summary decision, to which he did not object.
Applicant, age 53, has been employed on the same defense contract with two different employers since April 2021. He has maintained a Department of Defense (DOD) security clearance since about 2015. He struggled with his finances due to the unemployment and underemployment he experienced from about 2012 through 2018, when he was unable to find consistent work as a defense contractor. During that period, he defaulted on the home equity line of credit (HELOC) alleged in the SOR. After Applicant established hardship, the creditor forgave the HELOC debt and issued an IRS Form 1099-C (Cancellation of Debt) in tax year 2015. Applicant discussed the HELOC
and debt forgiveness with the investigator during his April 8, 2020 security clearance interview. On about April 23, 2020, he gave the investigator a copy of the 1099-C, which was appended to the summary of that interview.
Credit reports from December 2020, November 2021, and October 2022 were included among the Government exhibits admitted to the record. The 2020 credit report corroborated the HELOC balance alleged in the SOR; however, it also reflected that Applicant had disputed the debt. The 2021 credit report reflected the dispute and a $0 balance on the HELOC debt. The HELOC debt did not appear on the 2022 credit report. Those credit reports revealed no other delinquent debts. The Government included summaries of Applicant’s two April 2020 security clearance interviews and the appended 1099-C among the exhibits admitted to the record. After the hearing, Applicant provided documents which demonstrated that he was then living within his means and managing his finances responsibly.
I considered the applicable disqualifying and mitigating conditions, as well as the whole-person concept. Specifically, I find that the mitigating conditions under Guideline F Adjudicative Guidelines ¶¶ 20(a) and 20(b) were established by the record evidence. I conclude that Applicant has met his burden of persuasion to show that it is clearly consistent with the interests of national security to grant him eligibility for access to classified information. Clearance is granted.
Gina L. Marine Administrative Judge