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ISCR Case 21-01784 — CASE

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ISCR Case 21-01784

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

Case Profile
Decision Date5/10/2022
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Elizabeth M. Matchinski
Government Counsel: Andrew H. Henderson
Case Summary
The applicant in this case was a 54-year-old individual who had served honorably in the U.S. military and was employed by a defense contractor. He faced security clearance concerns under Guideline F, related to financial considerations, due to defaulting on six accounts totaling approximately $116,500. The Statement of Reasons (SOR) outlined these financial issues, which included charged-off debts and collection accounts, raising questions about his financial judgment and responsibility.
In his response to the SOR, the applicant admitted to the debts but claimed he had sold his house and used the equity to settle some of them for less than their full balances. He indicated that he was in the process of filing for Chapter 13 bankruptcy to manage his financial situation. However, the administrative judge found that the applicant's financial issues were not fully mitigated, as he had not demonstrated sufficient evidence of resolving the debts or managing his financial responsibilities effectively.
The administrative judge ruled to deny the applicant's security clearance eligibility, stating that the concerns regarding his financial judgment were significant and not adequately addressed. The judge emphasized that the applicant's financial history and the circumstances surrounding his debts raised doubts about his reliability and trustworthiness, which are critical factors in determining security clearance eligibility.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
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Case Headnote

ISCR Case No. 21-01784

deniedMay 10, 2022· Hon. Elizabeth M. Matchinski· hearing

Summary

A 54-year-old male applicant with military service was denied a security clearance due to significant financial issues under Guideline F (Financial Considerations). The Statement of Reasons detailed six separate debts, including collection and charged-off accounts, totaling approximately $116,500. Specific allegations included collection debts of $1,770 and $42,233, and charged-off debts of $3,110, $42,233, $15,894, and $29,951, and $23,545.

Disqualifying conditions under Guideline F were raised, citing a history of not meeting financial obligations and an inability or unwillingness to satisfy debts. While the applicant sold his house to address some of these debts, the judge determined that his financial judgment concerns were not fully mitigated.

Ultimately, the security clearance was denied because the applicant's history of defaulting on numerous accounts and the unmitigated concerns about his financial judgment raised questions regarding his reliability and trustworthiness.

Why the Applicant Was Denied

Applicant defaulted on six accounts totaling approximately $116,500.
Concerns about his financial judgment were not fully mitigated despite selling his house to settle some debts.
The judge found a history of not meeting financial obligations, which raised questions about the applicant's reliability and trustworthiness.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“The security clearance adjudication is not a proceeding aimed at collecting an applicant’s personal debts. It is a proceeding aimed at evaluating an applicant’s judgment, reliability, and trustworthiness with regard to his fitness or suitability to handle classified information appropriately.”

Procedural Posture

SOR issuedAug 20, 2021
Answer filedSep 17, 2021Requested decision on the written record.
Hearing held—Decision made based on written record.
Decision dateMay 10, 2022

Cite For

Financial Judgment Concerns Under Guideline F
Impact of Financial Irresponsibility on Security Clearance Eligibility
Mitigating Conditions Related to Financial Issues and Their Application in Security Clearance 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: Decision on RecordDecided: denied

The judge found multiple financial concerns under Guideline F, with some debts being admitted by the applicant. The applicant's claims of having settled some debts were not sufficiently documented to mitigate the concerns, leading to a decision against the applicant on several allegations.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant owed collection debts of $1,770 (SOR ¶ 1.a) and $42,233 (SOR ¶ 1.c). $1,770	Against Applicant	Unspecified Financial	Admitted	—	—	Claimed Other
1.b	Applicant owed charged-off debts of $3,110 (SOR ¶ 1.b). $3,110	For Applicant	Credit Card Debt	Admitted	—	—	Claimed Debt Paid in Full
1.c	Applicant owed charged-off debts of $42,233 (SOR ¶ 1.c). $42,233	Against Applicant	Unspecified Financial	Admitted	—	—	Claimed Other
1.d	Applicant owed charged-off debts of $15,894 (SOR ¶ 1.d). $15,894	For Applicant	Credit Card Debt	Admitted	—	—	Claimed Debt Paid in Full
1.e	Applicant owed charged-off debts of $29,951 (SOR ¶ 1.e). $29,951	For Applicant	Credit Card Debt	Admitted	—	—	Claimed Debt Paid in Full
1.f	Applicant owed charged-off debts of $23,545 (SOR ¶ 1.f). $23,545	For Applicant	Unspecified Financial	Admitted	—	—	Claimed Debt Paid in Full

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.