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ISCR Case 22-01681 — CASE

Case record

ISCR Case 22-01681

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

Case Profile
Decision Date12/14/2023
Statusgranted
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Edward W. Loughran
Government Counsel: Aubrey M. De Angelis
Case Summary
The applicant in this case was a 58-year-old employee of a defense contractor who had served in the U.S. military from 1986 until his retirement in 2006. The Department of Defense issued a Statement of Reasons (SOR) on November 18, 2022, citing security concerns under Guideline F (financial considerations) due to eight delinquent debts totaling approximately $83,000. The applicant acknowledged his financial difficulties, attributing them to a decrease in income after returning from overseas work and reliance on credit.
During the hearing, the applicant admitted to having a history of financial problems but demonstrated efforts to mitigate these concerns by enrolling in a debt-resolution program in June 2018. He had made significant payments into an escrow account and settled several debts, with ongoing plans to address the remaining obligations. The administrative judge ruled in favor of the applicant, concluding that while he did not present a perfect case for mitigation, he had shown a commitment to resolving his financial issues and had made substantial progress. The judge emphasized that the adjudication process focused on evaluating the applicant's judgment, reliability, and trustworthiness rather than serving as a debt-collection procedure. Consequently, the applicant was granted eligibility for access to classified information.
Guidelines Evaluated
- Guideline FFinancial Considerations · For 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. 22-01681

grantedDec 14, 2023· Hon. Edward W. Loughran· hearing

Summary

This case concerns a 58-year-old defense contractor whose security clearance eligibility was reviewed under Guideline F (Financial Considerations) due to eight delinquent debts totaling approximately $83,000. Specific allegations included a $23,167 debt and a $22,222 debt, both in a debt-resolution program. Other debts included a $20,000 charged-off debt settled for $9,812, a $3,889 charged-off debt that was settled and paid, and a $1,117 delinquent debt settled for $723. Additionally, a $54 telecommunications debt was paid, a $7,581 charged-off deficiency balance on an auto loan was noted, and a $5,226 delinquent debt was in the process of enrollment in a debt-resolution program.

Disqualifying conditions under AG ¶ 19(a) and AG ¶ 19(c) were raised. However, the administrative judge applied mitigating conditions AG ¶ 20(b) and AG ¶ 20(d).

The applicant demonstrated a commitment to resolving his financial issues by actively engaging in a debt-resolution program, settling several debts, and making significant payments towards others prior to the Statement of Reasons. His financial situation showed improvement, and he presented a credible plan for continued debt resolution. Consequently, the administrative judge found that the applicant had mitigated the financial concerns, and eligibility for access to classified information was GRANTED.

Why the Applicant Prevailed

The applicant demonstrated a commitment to resolving his financial issues through a debt-resolution program.
He settled several debts prior to the SOR issuance and made significant payments towards others.
The applicant's financial situation showed improvement and he had a credible plan to continue addressing his debts.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors

Key Rule Quoted

“A security clearance adjudication is not a debt-collection procedure. It is a procedure designed to evaluate an applicant’s judgment, reliability, and trustworthiness.”

Procedural Posture

SOR issuedNov 18, 2022
Answer filedDec 1, 2022
Hearing heldAug 8, 2023
Decision dateDec 14, 2023

Cite For

Mitigation of Financial Concerns Under Guideline F
Commitment to a Debt-resolution Program as a Mitigating Factor
Evaluation of Financial Issues in the Context of Overall Reliability and Trustworthiness

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: granted

The judge found that the applicant had several delinquent debts, but all were either settled or in a debt-resolution program. Ultimately, the judge ruled in favor of the applicant, concluding that the financial considerations did not raise security concerns.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	$23,167 delinquent debt in debt-resolution program. $23,167	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	$22,222 delinquent debt in debt-resolution program. $22,222	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	$20,000 charged-off debt settled for $9,812. $20,000	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	$3,889 charged-off debt settled and paid. $3,889	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	$1,117 delinquent debt settled for $723. $1,117	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	$54 telecommunications debt paid. $54	For Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	$7,581 charged-off deficiency balance on auto loan. $7,581	For Applicant	Auto Loan Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	$5,226 delinquent debt in process of enrollment in debt-resolution program. $5,226	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

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.