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ISCR Case 21-00948 — CASE

Case record

ISCR Case 21-00948

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

Case Profile
Decision Date4/6/2023
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Related decisionSee the appeal decision (Case ISCR Case No. 21-00948) →
Participants
Applicant Representation: Pro Se
Judge: Edward W. Loughran
Government Counsel: Andrew H. Henderson
Case Summary
the applicant's eligibility for a security clearance, the administrative judge focused on the financial considerations outlined in Guideline F. The Statement of Reasons (SOR) alleged that the applicant failed to file his 2017 federal income tax return and had ten delinquent debts totaling approximately $23,915. The applicant, a 33-year-old defense contractor and disabled veteran, admitted to not filing his 2017 tax return but claimed it was due to complications related to his divorce and the transition to civilian life.
The judge found that the applicant had not sufficiently mitigated the financial concerns. While the applicant provided evidence of some debts being paid and expressed a commitment to repairing his credit, he also presented inconsistent statements regarding his financial obligations. The judge noted that the applicant's failure to file the 2017 tax return and the existence of multiple delinquent debts raised significant concerns about his financial responsibility. Ultimately, the administrative judge ruled that the applicant did not meet the burden of proof to demonstrate that he was eligible for access to classified information, resulting in a denial of his security clearance.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
Similar decisions
Other decisions whose allegations read most like this one. Descriptive similarity of the allegations only — not a prediction.
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Case Headnote

ISCR Case No. 21-00948

deniedApr 6, 2023· Hon. Edward W. Loughran· hearing

Summary

A 33-year-old defense contractor and disabled veteran was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from several unresolved financial issues, including the failure to file a 2017 federal income tax return and multiple delinquent debts totaling approximately $23,915.

Specific allegations included an unfiled 2017 tax return, an $11,057 debt from a co-signed apartment lease around 2017, a $1,896 delinquent debt to a collection company for a telecommunications service, and a $986 debt to a bank for a computer purchased around 2015.

The administrative judge determined that the applicant's inconsistent statements and insufficient documentation regarding these financial matters raised concerns about his reliability and trustworthiness, ultimately leading to the denial of eligibility for access to classified information.

Why the Applicant Was Denied

The applicant failed to file his 2017 federal income tax return when it was due.
The applicant had multiple delinquent debts totaling approximately $23,915, which he did not adequately address or mitigate.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns

Mitigating

AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant did not demonstrate that his financial issues were beyond his control.
AG ¶ 20(c)rejectedThe Individual Has Received or Is Receiving Financial CounselingWhile the applicant claimed to have hired a financial advisor, there was insufficient evidence to show effective resolution of his financial issues.
AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant's financial issues were ongoing and he did not provide sufficient evidence of good-faith efforts to resolve them.

Key Rule Quoted

“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”

Procedural Posture

SOR issuedMay 10, 2022
Answer filedMay 18, 2022
Hearing heldJan 11, 2023
Decision dateApr 6, 2023

Cite For

Failure to File Tax Returns as a Disqualifying Condition Under Guideline F
Inconsistent Statements Regarding Financial Obligations
Ongoing Financial Issues Impacting 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.

Standardized Decision Profile

SEAD-4 Guideline F · descriptive summary of a decided case

Posture: HearingDecided: denied

The judge found multiple financial concerns under Guideline F, including an unfiled tax return and several delinquent debts. Ultimately, the judge ruled against the applicant on the unfiled tax return and two specific debts, while finding in favor of the applicant on other debts, leading to a denial of the security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant did not file his federal income tax return for tax year 2017 when it was due.	Against Applicant	Tax Filing Failure	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	Applicant cosigned the lease on an apartment in about 2017, which resulted in a debt of $11,057. $11,057	For Applicant	Unspecified Financial	Unknown	—	—	—
1.c–1.d	2 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)	For Applicant			—	—	—
1.e	Applicant has a $1,896 delinquent debt to a collection company on behalf of a telecommunications company. $1,896	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts	—	—
1.f–1.h	3 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)	For Applicant			—	—	—
1.i	Applicant admitted that he owed the $986 debt to a bank on the financing of a computer purchased from an electronics store in about 2015. $986	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.j–1.k	2 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)	For Applicant			—	—	—

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.