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ISCR Case 22-02061 — CASE

Case record

ISCR Case 22-02061

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

Case Profile
Decision Date11/9/2023
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Carol G. Ricciardello
Government Counsel: Andrea M. Corrales
Case Summary
The applicant in this case was a 37-year-old individual seeking a security clearance, facing allegations under Guideline F, which pertains to financial considerations. The Statement of Reasons (SOR) issued by the Department of Defense outlined concerns regarding the applicant's failure to timely file federal and state tax returns for multiple years, as well as significant delinquent student loan debts. Specifically, the applicant was noted to have unfiled tax returns for 2017, 2018, and 2019, and a total of over $100,000 in delinquent student loans.
During the proceedings, the applicant admitted to some of the allegations, including the failure to file tax returns for the specified years, but denied others. She explained that her financial difficulties stemmed from her time living and working in China, where she believed she was not required to file U.S. tax returns. The applicant also indicated that she had applied for student loan forgiveness and attempted to consolidate her loans, but did not provide sufficient evidence to demonstrate her financial stability or a plan to resolve her debts.
The administrative judge ruled against the applicant, concluding that she failed to mitigate the security concerns related to her financial issues. The judge noted that the applicant's lack of timely action to address her tax liabilities and student loans, along with her reliance on potential future tax refunds to resolve her debts, did not demonstrate the necessary responsibility and reliability required for access to classified information. Consequently, the applicant's eligibility for a security clearance was denied.
Guidelines Evaluated
- Guideline FFinancial Considerations · For Applicant
- Guideline FFinancial Considerations · Against Applicant
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Case Headnote

ISCR Case No. 22-02061

deniedNov 9, 2023· Hon. Carol G. Ricciardello· hearing

Summary

A 37-year-old applicant with a master's degree was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from unresolved financial issues, including a failure to file federal tax returns for at least tax years 2017, 2018, and 2019, and state income tax returns for at least 2017 and 2021.

The applicant also carried significant delinquent debts exceeding $100,000, which included student loans and other accounts. While some debts were resolved in December 2022, specifically a charged-off credit card debt and a debt for an apartment lived in during 2016, these actions were not sufficient to mitigate concerns.

The judge concluded that the applicant did not demonstrate good faith efforts to resolve her overall financial obligations. This lack of demonstrated effort raised concerns about her reliability and trustworthiness, leading to the denial of her security clearance.

Why the Applicant Was Denied

The applicant failed to file federal and state tax returns for 2017, 2018, and 2019.
The applicant has significant delinquent debts exceeding $100,000, including student loans and other accounts.
The applicant did not provide evidence of good faith efforts to resolve her financial obligations.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(b)raisedUnwillingness to Satisfy Debts
AG ¶ 19(f)raisedFailure to File Income Tax Returns

Key Rule Quoted

“A person 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. 15-00216 at 4 (App. Bd. Oct. 24, 2016)

Procedural Posture

SOR issuedNov 17, 2022
Answer filedNov 30, 2022
Hearing heldOct 24, 2023
Decision dateNov 9, 2023

Cite For

Failure to Mitigate Financial Concerns Under Guideline F
Significant Delinquent Debts as a Disqualifying Factor
Lack of Good Faith Efforts to Resolve Financial Obligations

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 significant financial concerns under Guideline F, primarily due to the applicant's failure to timely file federal and state tax returns for multiple years, as well as unresolved debts. While some debts were settled, the applicant's overall financial management and lack of timely action on outstanding obligations led to a decision against her.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	You failed to timely file, as required, Federal tax returns for at least tax years 2017, 2018, and 2019.	Against Applicant	Tax Filing Failure	Denied	—	—	—
1.b	You failed to timely file, as required, state income tax returns for at least tax years 2017 and 2021.	Against Applicant	Tax Filing Failure	Denied	—	—	—
1.q	You settled a charged-off credit card debt in December 2022. $535	For Applicant	Credit Card Debt	Admitted	—	—	—
1.r	You paid a debt for an apartment where you lived in 2016 in December 2022. $101	For Applicant	Unspecified Financial	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.