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ISCR Case 21-01947 — CASE

Case record

ISCR Case 21-01947

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

Case Profile
Decision Date6/1/2023
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Related decisionSee the appeal decision (Case 21-01947) →
Participants
Applicant Representation: Pro Se
Judge: Carol G. Ricciardello
Government Counsel: Jeffrey T. Kent
Case Summary
The applicant in this case was a 44-year-old individual who sought a security clearance but faced allegations under Guideline F, concerning financial considerations. The Statement of Reasons (SOR) outlined multiple financial issues, including a Chapter 7 bankruptcy filed in 1998, a charged-off mortgage, and a credit card debt resulting in a default judgment. The applicant admitted to some debts but denied others, claiming he had learned from past financial mistakes and was attempting to resolve his obligations.
Key findings revealed that the applicant had a history of financial difficulties, including the inability to pay mortgages on rental properties and a significant utility bill debt. While he provided evidence of substantial income and investments, he admitted to not having sought financial counseling and had not made payments on certain debts despite claiming he could afford to do so. The administrative judge found the applicant's explanations and admissions insufficient to mitigate the security concerns, ultimately ruling that the applicant failed to demonstrate the reliability and trustworthiness necessary for access to classified information. Consequently, the applicant's eligibility for a security clearance was denied.
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. 21-01947

deniedJun 1, 2023· Hon. Carol G. Ricciardello· hearing

Summary

A 44-year-old self-employed applicant was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved debts. The Statement of Reasons detailed three specific financial allegations: an unpaid utility bill of $11,023 owed to a former landlord, a $9,463 credit card debt from a home improvement store with a default judgment, and a charged-off mortgage totaling $67,844. These issues raised disqualifying conditions under Adjudicative Guidelines Paragraphs 19(b) and 19(c).

The administrative judge determined that the applicant failed to mitigate the security concerns stemming from his financial history. Specifically, he did not provide evidence of resolving the utility bill or the credit card debt. His financial conduct demonstrated a pattern of ignoring legitimate debts, which raised doubts about his judgment and reliability.

Furthermore, the applicant had not sought financial counseling and only began addressing his debts after his security clearance was jeopardized. Consequently, the judge found that the applicant had not overcome the security concerns, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant failed to provide evidence of resolving significant debts, including a utility bill and a credit card debt with a default judgment.
The applicant's financial history indicated a pattern of ignoring debts he legitimately owed, raising concerns about his judgment and reliability.
The applicant did not receive financial counseling and only took action to address debts after his security clearance was jeopardized.

Conditions Referenced

Disqualifying

AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations

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 issuedFeb 1, 2022
Answer filed—Undated answer to the SOR.
Hearing heldApr 11, 2023Hearing was held as scheduled.
Decision dateJun 1, 2023

Cite For

Failure to Mitigate Financial Concerns Under Guideline F
Impact of Financial Irresponsibility on Security Clearance Eligibility
Importance of Timely Addressing Debts 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: HearingDecided: denied

The judge found multiple financial concerns under Guideline F, including unpaid utility bills, credit card debt, and a charged-off mortgage. Despite the applicant's claims of substantial financial resources and attempts to negotiate payment plans, the judge concluded that the applicant failed to mitigate the security concerns, resulting in a denial of the security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant failed to pay the utility bill of $11,023 owed to his former landlord. $11,023	Against Applicant	Utility or Phone Debt	Admitted	—	—	Claimed Acknowledgment and Remorse
1.b	Applicant has a credit card debt of $9,463 from a home improvement store, with a default judgment entered against him. $9,463	Against Applicant	Credit Card Debt	Denied	—	—	Documented Payment Plan with Creditor
1.c	Applicant has a charged-off mortgage of $67,844. $67,844	Against Applicant	Mortgage or Home Loan Debt	Denied	—	—	—

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.