ISCR Case 23-00324

Case Headnote

ISCR Case No. 23-00324

deniedAug 8, 2023· Hon. Darlene Lokey Anderson· hearing

Summary

A 37-year-old Bond Room Technician was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial irresponsibility. The applicant failed to file federal and state income tax returns for tax years 2019 through 2021. Additionally, he was alleged to be indebted for over $50,979 across numerous delinquent accounts, including credit card debts, medical co-pays, and $7,440 in back child support.

While the applicant admitted most allegations and attributed his financial difficulties to a serious car accident, the judge found insufficient evidence of a good faith effort to resolve his financial delinquencies. Although two medical debts totaling $726 each were resolved, many other debts remained owing, with the applicant providing no documentary evidence for claims of payment on several accounts.

The denial was based on the applicant's demonstrated history of not addressing his debts, an inability to do so, and a choice not to prioritize debt repayment despite having significant discretionary income. This indicated poor judgment, leading to the denial of the security clearance.

Why the Applicant Was Denied

The applicant demonstrated a history of not addressing his debts and an inability to do so.
The applicant had significant discretionary income but chose not to prioritize debt repayment, indicating poor judgment.
There was insufficient evidence of a good faith effort to resolve financial delinquencies.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
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 ControlWhile the applicant's financial problems were attributed to a car accident, the judge found insufficient evidence of responsible actions taken to mitigate the issues.
AG ¶ 20(d)rejectedGood Faith Effort to Repay Overdue CreditorsThe applicant did not provide sufficient evidence of a good faith effort to resolve debts.
AG ¶ 20(g)rejectedArrangements with Tax AuthorityThe applicant had not filed tax returns for multiple years, undermining claims of compliance.

Key Rule Quoted

“Failure to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness, and ability to protect classified or sensitive information.”

Procedural Posture

SOR issuedApr 5, 2023
Answer filedApr 20, 2023
Hearing heldJun 23, 2023
Decision dateAug 8, 2023

Cite For

Insufficient Evidence of Financial Responsibility Under Guideline F
Poor Judgment in Managing Financial Obligations
Failure to Demonstrate Good Faith Efforts to Resolve Debts

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant failed to file his Federal income tax returns for tax years 2019 through 2021.	Against Applicant	Tax Filing Failure	Admitted	—	—	—
1.b	Applicant failed to file his State income tax returns for tax years 2019 through 2021.	Against Applicant	Tax Filing Failure	Admitted	—	—	—
1.c	Applicant is indebted to a creditor in the amount of $726 for an account that was placed for collection. This was a medical debt. Applicant paid the debt for $713. The debt is no longer owing. $726	For Applicant	Medical Debt	Admitted	—	—	—
1.d	Applicant is indebted to a creditor in the amount of $5,705 for an account that was placed for collection. Applicant claims that he has paid this debt, but provides no documentary evidence. The debt remains owing. $5,705	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.e	Applicant is indebted to a creditor in the amount of $3,838 for an account that was placed for collection. This was a credit card. The debt remains owing. $3,838	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.f	Applicant is indebted to a creditor in the amount of $3,372 for an account that was placed for collection. This was a credit card. The debt remains owing. $3,372	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.g	Applicant is indebted to a creditor in the amount of $3,361 for an account that was placed for collection. This was a credit card. The debt remains owing. $3,361	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.h	Applicant is indebted to a creditor in the amount of $2,695 for an account that was placed for collection. This was a credit card. The debt remains owing. $2,695	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.i	Applicant is indebted to a creditor in the amount of $2,462 for an account that was charged off. This was a credit card. The debt remains owing. $2,462	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.j	Applicant is indebted to a creditor in the amount of $2,037 for an account that was placed for collection. This was a credit card. The debt remains owing. $2,037	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.k	Applicant is indebted to a creditor in the amount of $1,463 for an account that was placed for collection. This was a credit card. The debt remains owing. $1,463	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.l	Applicant is indebted to a creditor in the amount of $1,236 for an account that was charged off. This was a credit card. The debt remains owing. $1,236	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.m	Applicant is indebted to a creditor in the amount of $953 for an account that was placed for collection. The debt remains owing. $953	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.n	Applicant is indebted to a creditor in the amount of $936 for an account that was placed for collection. Applicant contends that he has paid this debt, but provides no documentary evidence. The debt remains owing. $936	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.o	Applicant is indebted to a creditor in the amount of $726 for an account that was placed for collection. This was a medical debt. Applicant paid the debt for $713. The debt is no longer owing. $726	For Applicant	Medical Debt	Admitted	—	—	—
1.p	Applicant is indebted to a creditor in the amount of $470 for an account that was charged off. The debt remains owing. $470	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.q	Applicant is indebted to a creditor for a medical co-pay in the amount of $49 for an account that was placed for collection. Applicant stated that he has paid the debt, but provides no documentary evidence. The debt remains owing. $49	Against Applicant	Medical Debt	Admitted	—	—	—
1.r	Applicant is indebted to the State Child Support authorities for back child support in the amount of $7,440 for an account that was placed for collection. Applicant stated that the payment is currently being garnished from his paycheck in the amount of $166 per week, about $650 monthly, which includes his required current payment of $550, and for his arrearage for $100 that began when he started his current employment. $7,440	For Applicant	Child Support Debt	Admitted	—	—	—
1.s	Applicant is indebted to a creditor in the amount of $2,467 for an account that was charged off. The debt remains owing. $2,467	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.t	Applicant is indebted to a creditor in the amount of $558 for an account that was charged off. The debt remains owing. $558	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.u	Applicant is indebted to a creditor in the amount of $453 for an account that was placed for collection. The debt remains owing. $453	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.v	Applicant is indebted to a creditor in the amount of $119 for a medical co-pay for an account that was placed for collection. Applicant stated that he has paid the debt, but provides no documentary evidence. The debt remains owing. $119	Against Applicant	Medical Debt	Admitted	—	—	—
1.w	Applicant is indebted to a creditor for a medical co-pay in the amount of $75 for an account that was placed for collection. Applicant stated that he has paid the debt, but provides no documentary evidence. The debt remains owing. $75	Against Applicant	Medical Debt	Denied	—	—	—
1.x	Applicant is indebted to a creditor for a medical co-pay in the amount of $50 for an account that was placed for collection. Applicant stated that he has paid the debt, but provides no documentary evidence. The debt remains owing. $50	Against Applicant	Medical Debt	Denied	—	—	—
1.y	Applicant is indebted to a creditor for a medical co-pay in the amount of $50 for an account that was placed for collection. Applicant stated that he has paid the debt, but provides no documentary evidence. The debt remains owing. $50	Against Applicant	Medical Debt	Admitted	—	—	—
1.z	Applicant is indebted to a creditor for a medical co-pay in the amount of $50 for an account that was placed for collection. Applicant stated that he has paid the debt, but provides no documentary evidence. The debt remains owing. $50	Against Applicant	Medical Debt	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant failed to file his Federal income tax returns for tax years 2019 through 2021.

Against Applicant

Tax Filing Failure

Admitted

—

1.b

Applicant failed to file his State income tax returns for tax years 2019 through 2021.

Against Applicant

Tax Filing Failure

Admitted

—

1.c

Applicant is indebted to a creditor in the amount of $726 for an account that was placed for collection. This was a medical debt. Applicant paid the debt for $713. The debt is no longer owing.

$726

For Applicant

Medical Debt

Admitted

—

1.d

Applicant is indebted to a creditor in the amount of $5,705 for an account that was placed for collection. Applicant claims that he has paid this debt, but provides no documentary evidence. The debt remains owing.

$5,705

Against Applicant

Unspecified Financial

Admitted

—

1.e

Applicant is indebted to a creditor in the amount of $3,838 for an account that was placed for collection. This was a credit card. The debt remains owing.

$3,838

Against Applicant

Credit Card Debt

Admitted

—

1.f

Applicant is indebted to a creditor in the amount of $3,372 for an account that was placed for collection. This was a credit card. The debt remains owing.

$3,372

Against Applicant

Credit Card Debt

Admitted

—

1.g

Applicant is indebted to a creditor in the amount of $3,361 for an account that was placed for collection. This was a credit card. The debt remains owing.

$3,361

Against Applicant

Credit Card Debt

Admitted

—

1.h

Applicant is indebted to a creditor in the amount of $2,695 for an account that was placed for collection. This was a credit card. The debt remains owing.

$2,695

Against Applicant

Credit Card Debt

Admitted

—

1.i

Applicant is indebted to a creditor in the amount of $2,462 for an account that was charged off. This was a credit card. The debt remains owing.

$2,462

Against Applicant

Credit Card Debt

Admitted

—

1.j

Applicant is indebted to a creditor in the amount of $2,037 for an account that was placed for collection. This was a credit card. The debt remains owing.

$2,037

Against Applicant

Credit Card Debt

Admitted

—

1.k

Applicant is indebted to a creditor in the amount of $1,463 for an account that was placed for collection. This was a credit card. The debt remains owing.

$1,463

Against Applicant

Credit Card Debt

Admitted

—

1.l

Applicant is indebted to a creditor in the amount of $1,236 for an account that was charged off. This was a credit card. The debt remains owing.

$1,236

Against Applicant

Credit Card Debt

Admitted

—

1.m

Applicant is indebted to a creditor in the amount of $953 for an account that was placed for collection. The debt remains owing.

$953

Against Applicant

Unspecified Financial

Admitted

—

1.n

Applicant is indebted to a creditor in the amount of $936 for an account that was placed for collection. Applicant contends that he has paid this debt, but provides no documentary evidence. The debt remains owing.

$936

Against Applicant

Unspecified Financial

Admitted

—

1.o

Applicant is indebted to a creditor in the amount of $726 for an account that was placed for collection. This was a medical debt. Applicant paid the debt for $713. The debt is no longer owing.

$726

For Applicant

Medical Debt

Admitted

—

1.p

Applicant is indebted to a creditor in the amount of $470 for an account that was charged off. The debt remains owing.

$470

Against Applicant

Unspecified Financial

Admitted

—

1.q

Applicant is indebted to a creditor for a medical co-pay in the amount of $49 for an account that was placed for collection. Applicant stated that he has paid the debt, but provides no documentary evidence. The debt remains owing.

$49

Against Applicant

Medical Debt

Admitted

—

1.r

Applicant is indebted to the State Child Support authorities for back child support in the amount of $7,440 for an account that was placed for collection. Applicant stated that the payment is currently being garnished from his paycheck in the amount of $166 per week, about $650 monthly, which includes his required current payment of $550, and for his arrearage for $100 that began when he started his current employment.

$7,440

For Applicant

Child Support Debt

Admitted

—

1.s

Applicant is indebted to a creditor in the amount of $2,467 for an account that was charged off. The debt remains owing.

$2,467

Against Applicant

Unspecified Financial

Admitted

—

1.t

Applicant is indebted to a creditor in the amount of $558 for an account that was charged off. The debt remains owing.

$558

Against Applicant

Unspecified Financial

Admitted

—

1.u

Applicant is indebted to a creditor in the amount of $453 for an account that was placed for collection. The debt remains owing.

$453

Against Applicant

Unspecified Financial

Admitted

—

1.v

Applicant is indebted to a creditor in the amount of $119 for a medical co-pay for an account that was placed for collection. Applicant stated that he has paid the debt, but provides no documentary evidence. The debt remains owing.

$119

Against Applicant

Medical Debt

Admitted

—

1.w

Applicant is indebted to a creditor for a medical co-pay in the amount of $75 for an account that was placed for collection. Applicant stated that he has paid the debt, but provides no documentary evidence. The debt remains owing.

$75

Against Applicant

Medical Debt

Denied

—

1.x

Applicant is indebted to a creditor for a medical co-pay in the amount of $50 for an account that was placed for collection. Applicant stated that he has paid the debt, but provides no documentary evidence. The debt remains owing.

$50

Against Applicant

Medical Debt

Denied

—

1.y

$50

Against Applicant

Medical Debt

Admitted

—

1.z

$50

Against Applicant

Medical Debt

Admitted

—

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Summary

Why the Applicant Was Denied

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision