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ISCR Case 23-00916 — CASE

Case record

ISCR Case 23-00916

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

Case Profile
Decision Date12/5/2023
Statusdenied
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 37-year-old employee of a defense contractor who had been employed since June 2021. The Department of Defense issued a Statement of Reasons (SOR) citing security concerns under Guideline F (financial considerations), primarily due to the applicant's history of financial problems, including a Chapter 7 bankruptcy filed in September 2012 and several delinquent debts totaling approximately $57,877.
The applicant admitted to having a history of financial issues, including the bankruptcy and various delinquent debts, but claimed to have resolved some debts through payment plans. He attributed his financial difficulties to being young and spending lavishly, as well as his wife's debilitating medical conditions that affected her ability to work. Despite settling some debts, the applicant still owed significant amounts on several accounts, and he expressed intentions to pay these debts in the future. However, the administrative judge found that the applicant did not demonstrate a responsible approach to managing his financial obligations.
The administrative judge ruled against the applicant, concluding that he did not mitigate the financial considerations security concerns. The judge noted that the applicant's ongoing financial issues raised doubts about his reliability and trustworthiness, and that intentions to resolve debts were insufficient without a proven track record of repayment. Consequently, the applicant's eligibility for access to classified information was denied.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
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Case Headnote

ISCR Case No. 23-00916

deniedDec 5, 2023· Hon. Edward W. Loughran· hearing

Summary

A 37-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The Statement of Reasons (SOR) alleged a Chapter 7 bankruptcy and seven delinquent debts totaling approximately $57,877. Specific allegations included a $4,225 defaulted loan, a $3,943 debt, a $2,809 debt, a $20,033 charged-off auto loan, and a $10,398 charged-off auto loan.

The denial was based on the applicant's failure to demonstrate a good-faith effort to repay remaining debts. Although some debts were settled, ongoing financial distress and a lack of a solid repayment track record raised concerns about reliability and trustworthiness.

The applicant's financial problems were recent and unresolved, failing to meet mitigating conditions. Consequently, the applicant was denied eligibility for access to classified information.

Why the Applicant Was Denied

The applicant did not demonstrate a good-faith effort to repay remaining debts.
Ongoing financial issues raised doubts about the applicant's reliability and trustworthiness.
The applicant's financial problems were recent and unresolved, failing to meet mitigating conditions.

Conditions Referenced

Disqualifying

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

Key Rule Quoted

“Intentions to resolve financial problems in the future are not a substitute for a track record of debt repayment or other responsible approaches.”
— ISCR Case No. 11-14570 at 3 (App. Bd. Oct. 23, 2013)

Procedural Posture

SOR issuedJun 12, 2023
Answer filedJul 6, 2023Requested decision based on written record.
Hearing held—
Decision dateDec 5, 2023

Cite For

Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
Importance of a Repayment Track Record in Mitigating Financial Concerns
Consideration of the Whole-person Concept in Security Clearance Decisions.

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 that the applicant had a history of financial problems, including a Chapter 7 bankruptcy and several delinquent debts totaling approximately $57,877. Despite some debts being resolved, the overall financial situation was deemed insufficiently mitigated, leading to a denial of eligibility for access to classified information.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	specific text not stated in this decision	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.b	$4,225 defaulted loan (SOR ¶ 1.b) $4,225	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full
1.c	$3,943 (SOR ¶ 1.c) $3,943	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full
1.d	$2,809 (SOR ¶ 1.d) $2,809	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full
1.e	SOR ¶ 1.e alleges a charged-off auto loan of $20,033 $20,033	Against Applicant	Auto Loan Debt	Unknown	—	—	—
1.f	$10,398 charged-off auto loan alleged in SOR ¶ 1.f $10,398	Against Applicant	Auto Loan Debt	Unknown	—	—	—
1.g	specific text not stated in this decision	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.h	Chapter 7 bankruptcy case and seven delinquent debts totaling about $57,877 $57,877	Against Applicant	Bankruptcy Filing	Unknown	—	—	—

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.