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ISCR Case 22-01495 — CASE

Case record

ISCR Case 22-01495

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

Case Profile
Decision Date4/17/2023
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Shari Dam
Government Counsel: Nicholas T. Temple
Case Summary
The applicant in this case was a 41-year-old individual with a master's degree who had worked for federal contractors since 2010 and held a security clearance since that time. The Department of Defense issued a Statement of Reasons (SOR) citing security concerns under Guideline F (Financial Considerations), alleging that the applicant had accumulated approximately $57,157 in delinquent debts between 2017 and 2020, primarily due to a failed cryptocurrency business venture.
The applicant admitted to the allegations in the SOR, explaining that he had used credit cards and a personal loan to finance his business, which became insolvent. He resolved one debt of $5,676 and was in the process of settling another debt of $22,443. However, several other debts remained unresolved, totaling around $29,000. The applicant indicated that he had a monthly surplus of $800 to $1,000 after expenses, which he was saving to address his debts, and he had informed his employer about his financial issues.
The administrative judge ruled against the applicant, concluding that he failed to sufficiently mitigate the security concerns related to his financial situation. The judge noted that while some debts were being addressed, the overall pattern of financial irresponsibility raised ongoing doubts about the applicant's judgment and reliability. The judge found that the applicant's reliance on credit for a speculative business venture was within his control, and he had not demonstrated significant efforts to resolve his financial issues or sought credit counseling, leading to the denial of his security clearance.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
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Case Headnote

ISCR Case No. 22-01495

deniedApr 17, 2023· Hon. Shari Dam· hearing

Summary

A 41-year-old federal contractor with a master's degree was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved financial issues totaling over $57,000. The Statement of Reasons included eight allegations of delinquent debts. Specific examples included an unresolved charged-off credit card account for $7,857 and another for $4,859. Additionally, a $5,676 judgment from 2022 for a delinquent charge card was settled and paid for $5,140 in April 2022.

The judge identified disqualifying conditions under AG ¶ 19(a) and AG ¶ 19(c). While mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were considered, they were deemed insufficient.

The denial was based on the applicant's admission to the eight allegations and minimal mitigation efforts. The judge concluded that ongoing financial instability and a failure to demonstrate responsible debt management raised concerns about reliability and trustworthiness, determining that granting clearance was not in the national interest.

Why the Applicant Was Denied

The applicant admitted to eight allegations of delinquent debts totaling over $57,000, with minimal mitigation efforts.
Ongoing financial instability and failure to demonstrate responsible management of debts raised concerns about reliability and trustworthiness.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe debts are ongoing and significant.
AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile the business failure was beyond his control, reliance on credit was within his control.
AG ¶ 20(c)rejectedReceiving Financial CounselingThe applicant did not participate in credit or budget counseling.
AG ¶ 20(d)appliedGood-faith Effort to Repay DebtsMinimal efforts were made to resolve debts after being sued.

Key Rule Quoted

“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”
— AG ¶ 2(b)

Procedural Posture

SOR issuedSep 19, 2022
Answer filedOct 17, 2022Requested decision on written record without a hearing.
Hearing held—Decision made based on written record.
Decision dateApr 17, 2023

Cite For

Insufficient Mitigation of Financial Concerns Under Guideline F
Ongoing Financial Instability as a Disqualifying Factor
The Importance of Demonstrating Responsible Management of Debts for 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: Decision on RecordDecided: denied

The judge found multiple financial concerns under Guideline F, including several unresolved charged-off credit card accounts and a judgment. While the applicant admitted to some debts and settled one judgment, the overall financial situation was deemed insufficiently mitigated, leading to a decision against the applicant.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	specific text not stated in this decision	For Applicant	Unspecified Financial	Admitted	—	—	—
1.b	The $7,857 charged-off credit card account alleged in SOR 1.b is unresolved. $7,857	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.e	The $5,676 debt alleged in SOR 1.e is a judgment that was filed against Applicant in 2022 for a delinquent charge card. He settled the debt for $5,140 and paid it in April 2022. $5,676	For Applicant	Judgment Against Applicant	Admitted	—	—	—
1.f	The $4,859 charged-off credit card account alleged in SOR 1.f is unresolved. $4,859	Against Applicant	Credit Card Debt	Admitted	—	—	—

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.