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ISCR Case 21-02033 — CASE

Case record

ISCR Case 21-02033

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

Case Profile
Decision Date2/8/2022
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Related decisionSee the appeal decision (Case 21-02033) →
Participants
Applicant Representation: Pro Se
Judge: Robert Robinson Gales
Government Counsel: Andre M. Gregorian
Case Summary
The applicant in this case was a 52-year-old senior electrical engineer employed by a defense contractor, who applied for a security clearance on November 30, 2020. The Department of Defense issued a Statement of Reasons (SOR) citing security concerns under Guideline F (Financial Considerations), alleging that the applicant had unresolved delinquent debts totaling approximately $21,797. The SOR indicated that the applicant's financial issues raised doubts about his reliability and trustworthiness.
In his response to the SOR, the applicant admitted to the allegations regarding his financial difficulties, which stemmed from debts incurred during his first marriage and subsequent divorce. He acknowledged that he had not paid several delinquent accounts, despite having the ability to do so. The applicant argued that the statute of limitations had run on these debts, and he had sought to settle them but was unable to reach an agreement with creditors. He provided some documentation, including credit reports, but did not present evidence of financial counseling or a clear plan to address his debts.
The administrative judge ruled against the applicant, concluding that he failed to mitigate the security concerns related to his financial situation. The judge noted the lack of evidence demonstrating that the applicant's financial problems were under control or that he was taking proactive steps to resolve them. The judge emphasized the importance of trust and reliability in the context of national security, ultimately denying the applicant's eligibility for a security clearance.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
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Case Headnote

ISCR Case No. 21-02033

deniedFeb 8, 2022· Hon. Robert Robinson Gales· hearing

Summary

A 52-year-old defense contractor employee was denied a security clearance under Guideline F, Financial Considerations, due to unresolved financial issues. The Statement of Reasons detailed three delinquent bank accounts, all of which had been placed for collection and charged off. These included a credit card with an unpaid balance of approximately $14,702, a line of credit with an unpaid balance of $3,579, and another credit card with an unpaid balance of $3,516. The applicant stated these accounts were used for family, school, and relocation expenses while married to his first wife.

The total outstanding debt across these three accounts was approximately $21,797. Disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), and AG ¶ 19(c) were raised. While mitigating condition AG ¶ 20(b) was applied, it was insufficient to overcome the concerns.

The denial was based on the applicant's failure to provide a credible repayment plan for the acknowledged debts. This demonstrated a lack of financial responsibility and an unwillingness to address his financial obligations, raising concerns about his reliability and trustworthiness.

Why the Applicant Was Denied

The applicant has three delinquent accounts totaling approximately $21,797.
He acknowledged the debts but failed to demonstrate a credible plan for repayment.
The applicant's actions indicated a lack of financial responsibility and willingness to address his debts.

Conditions Referenced

Disqualifying

AG ¶ 19(a)appliedInability to Satisfy Debts
AG ¶ 19(b)appliedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlWhile the applicant's divorce contributed to his financial issues, he did not act responsibly to resolve his debts.

Key Rule Quoted

“"No one has a ‘right’ to a security clearance."”
— Department of the Navy v. Egan, 484 U.S. 518, 528 (1988)

Procedural Posture

SOR issuedSep 29, 2021
Answer filedOct 12, 2021Elected to have case decided on written record.
Hearing held—Decision made based on written record.
Decision dateFeb 8, 2022

Cite For

Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
Lack of Credible Repayment Plan as a Basis for Denial
Importance of Demonstrating Financial Responsibility in Security Clearance Evaluations

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 against the applicant on all financial allegations under Guideline F, citing three delinquent accounts totaling approximately $21,797. The applicant admitted to the debts but failed to demonstrate responsible efforts to resolve them, leading to a denial of his security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	SOR ¶ 1.a. is a bank credit-card account with an unpaid balance of approximately $14,702 that was placed for collection and charged off. Applicant used the card to pay for family and school expenses while married to his first wife. $14,702	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.b	SOR ¶ 1.b. is a bank line of credit with an unpaid balance of $3,579 that was placed for collection and charged off. Applicant used the account to pay for a relocation in 2005 and subsequent family expenses while married to his first wife. $3,579	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.c	SOR ¶ 1.c. is a bank credit-card account with an unpaid balance of $3,516 that was placed for collection and charged off. Applicant used the card to pay for family expenses while married to his first wife. $3,516	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—

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.