ISCR Case 21-02525

Case Headnote

ISCR Case No. 21-02525

deniedJul 15, 2022· Hon. Braden M. Murphy· hearing

Summary

A 38-year-old former U.S. Air Force staff sergeant was denied a security clearance due to unresolved financial issues under Guideline F (Financial Considerations). The applicant had delinquent debts totaling approximately $39,000. While some medical debts were resolved, the applicant did not provide sufficient evidence to mitigate concerns regarding the larger, ongoing debts.

The Statement of Reasons included allegations that the applicant failed to provide sufficient evidence to mitigate financial concerns arising from these delinquent debts, despite the applicant reporting that several accounts had been paid. Disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c) were raised, while mitigating conditions under AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were applied.

Ultimately, the denial was based on the applicant's failure to demonstrate a good-faith effort to address the larger debts, despite a stable annual income of about $104,000. The unresolved nature of these debts raised concerns about the applicant's current reliability and judgment.

Why the Applicant Was Denied

The applicant did not provide sufficient evidence to mitigate financial concerns arising from delinquent debts totaling approximately $39,000.
The applicant failed to demonstrate a good-faith effort to address larger debts, despite having a stable income of about $104,000 annually.
The applicant's debts were largely ongoing and unresolved, casting doubt on his current reliability and judgment.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile the applicant's income was affected by an auto accident, he did not demonstrate reasonable actions to address his debts.
AG ¶ 20(c)rejectedFinancial CounselingThe applicant did not show participation in credit counseling or that his debts were being resolved.
AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant did not provide sufficient evidence of a good-faith effort to repay or resolve his non-medical debts.

Key Rule Quoted

“"the clearly consistent standard indicates that security determinations should err, if they must, on the side of denials."”
— Department of the Navy v. Egan, 484 U.S. 518, 531 (1988)

Procedural Posture

SOR issuedDec 16, 2021
Answer filedDec 23, 2021
Hearing held—Decision made on the written record.
Decision dateJul 15, 2022

Cite For

Insufficient Evidence to Mitigate Financial Concerns Under Guideline F
Importance of Demonstrating Good-faith Efforts to Address Debts
Impact of Unresolved Debts on Security Clearance Eligibility

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant did not provide sufficient evidence to mitigate financial considerations security concerns arising from his delinquent debts. $20,000	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.b	Applicant did not provide sufficient evidence to mitigate financial considerations security concerns arising from his delinquent debts. $5,983	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.c	Applicant did not provide sufficient evidence to mitigate financial considerations security concerns arising from his delinquent debts. $9,240	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.d–1.f	3 sub-charges — specific text not stated in this decision (against the applicant).	Against Applicant			—	—	—
1.g	Applicant reported that all of these accounts have been paid. $258	For Applicant	Medical Debt	Admitted	—	—	—
1.h	Applicant reported that all of these accounts have been paid. $56	For Applicant	Medical Debt	Admitted	—	—	—
1.i	Applicant reported that all of these accounts have been paid. $10	For Applicant	Medical Debt	Admitted	—	—	—
1.j	Applicant reported that all of these accounts have been paid. $60	For Applicant	Medical Debt	Admitted	—	—	—
1.k	Applicant reported that all of these accounts have been paid. $57	For Applicant	Medical Debt	Admitted	—	—	—
1.l	Applicant reported that all of these accounts have been paid. $57	For Applicant	Medical Debt	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant did not provide sufficient evidence to mitigate financial considerations security concerns arising from his delinquent debts.

$20,000

Against Applicant

Unspecified Financial

Admitted

—

1.b

Applicant did not provide sufficient evidence to mitigate financial considerations security concerns arising from his delinquent debts.

$5,983

Against Applicant

Unspecified Financial

Admitted

—

1.c

Applicant did not provide sufficient evidence to mitigate financial considerations security concerns arising from his delinquent debts.

$9,240

Against Applicant

Unspecified Financial

Admitted

—

1.d–1.f

3 sub-charges — specific text not stated in this decision (against the applicant).

Against Applicant

—

1.g

Applicant reported that all of these accounts have been paid.

$258

For Applicant

Medical Debt

Admitted

—

1.h

Applicant reported that all of these accounts have been paid.

$56

For Applicant

Medical Debt

Admitted

—

1.i

Applicant reported that all of these accounts have been paid.

$10

For Applicant

Medical Debt

Admitted

—

1.j

Applicant reported that all of these accounts have been paid.

$60

For Applicant

Medical Debt

Admitted

—

1.k

Applicant reported that all of these accounts have been paid.

$57

For Applicant

Medical Debt

Admitted

—

1.l

Applicant reported that all of these accounts have been paid.

$57

For Applicant

Medical Debt

Admitted

—

Loading case…

Case Profile

Summary

Why the Applicant Was Denied

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION