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ISCR Case 21-02389 — CASE

Case record

ISCR Case 21-02389

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

Case Profile
Decision Date9/11/2023
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Carol G. Ricciardello
Government Counsel: David F. Hayes
Case Summary
The applicant in this case was a 49-year-old military retiree who sought a security clearance but faced allegations under Guideline F, concerning financial considerations. The Statement of Reasons (SOR) outlined multiple financial issues, including delinquent tax returns and significant credit card debts totaling over $34,000. The applicant admitted to these allegations, attributing his financial difficulties to underemployment after military retirement and his wife's health issues, which limited her ability to work.
During the proceedings, the applicant acknowledged failing to file his 2018 and 2019 federal tax returns on time and admitted to owing back taxes. He claimed that his financial problems were exacerbated by legal expenses related to his son and that he had not taken steps to resolve his debts until shortly before the hearing. The applicant's financial situation included an annual income of approximately $80,000, but he had not sought financial counseling and did not maintain a budget.
The administrative judge ruled against the applicant, concluding that he failed to mitigate the security concerns related to his financial issues. The judge emphasized that the applicant's financial history raised questions about his reliability and trustworthiness, which are critical for access to classified information. The decision ultimately denied the applicant's eligibility for a security clearance, reflecting the paramount importance of national security considerations in such determinations.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
Similar decisions
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Case Headnote

ISCR Case No. 21-02389

deniedSep 11, 2023· Hon. Carol G. Ricciardello· hearing

Summary

A 49-year-old military retiree was denied a security clearance due to unresolved financial issues under Guideline F (Financial Considerations). The applicant admitted to three delinquent credit card debts, specifically $16,740, $14,430, and $3,517, totaling approximately $34,687. Additionally, he failed to timely file federal income taxes for the years 2018, 2019, and 2020.

The Statement of Reasons cited these three delinquent credit card debts as specific allegations. Disqualifying conditions under Guideline F, paragraphs 19(a), 19(b), and 19(f), were raised. While mitigating conditions 20(b) and 20(g) were applied, they were insufficient to overcome the concerns.

The denial was based on the applicant's failure to timely pay federal income taxes for the specified years and the continued delinquency of his three credit card debts. The judge concluded that the applicant did not demonstrate a reliable financial track record or responsible management of his debts, leading to the denial of his security clearance application.

Why the Applicant Was Denied

The applicant failed to timely pay federal income taxes for 2018, 2019, and 2020.
He has three delinquent credit card debts totaling approximately $34,687 that remain unpaid.
The applicant did not demonstrate a reliable financial track record or responsible management of his debts.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(b)raisedUnwillingness to Satisfy Debts
AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns

Mitigating

AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not act responsibly under the circumstances of his financial difficulties.
AG ¶ 20(g)rejectedArrangements with Tax AuthorityThe applicant did not provide proof of compliance with tax obligations.

Key Rule Quoted

“Someone who fails repeatedly to fulfill his or her legal obligations does not demonstrate the high degree of good judgment and reliability required of those granted access to classified information.”
— ISCR Case No. 14-01894 at 5 (App. Bd. August 18, 2015)

Procedural Posture

SOR issuedJan 13, 2022
Answer filed—Applicant represented himself pro se.
Hearing heldAug 21, 2023
Decision dateSep 11, 2023

Cite For

Failure to Mitigate Financial Concerns Under Guideline F
Insufficient Evidence of Responsible Financial Management
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.

Standardized Decision Profile

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

Posture: HearingDecided: denied

The judge found against the applicant on three allegations of delinquent credit card debts totaling $34,687. The applicant admitted the debts but failed to demonstrate sufficient mitigation, leading to a denial of the security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant has a delinquent credit card debt of $16,740. $16,740	Against Applicant	Credit Card Debt	Admitted	—	—	Claimed Other
1.b	Applicant has a delinquent credit card debt of $14,430. $14,430	Against Applicant	Credit Card Debt	Admitted	—	—	Claimed Other
1.c	Applicant has a delinquent credit card debt of $3,517. $3,517	Against Applicant	Credit Card Debt	Admitted	—	—	Claimed Other

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.