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ISCR Case 22-01343 — CASE

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ISCR Case 22-01343

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

Case Profile
Decision Date5/24/2024
Statusgranted
LevelHEARING
TypeSTANDARD ISCR
Related decisionSee the appeal decision (Case 22-01343) →
Participants
Applicant Representation: Pro Se
Judge: Robert Robinson Gales
Government Counsel: Andrea M. Corrales
Case Summary
Applicant, a 58-year-old communications technician employed by a defense contractor since July 2021, sought a security clearance after previously holding various clearances, including top secret. The Defense Counterintelligence and Security Agency issued a Statement of Reasons (SOR) citing security concerns under Guideline F (financial considerations), primarily due to Applicant's significant financial issues, including multiple bankruptcy filings and numerous accounts in collections totaling approximately $136,354.
During the proceedings, Applicant admitted to the financial allegations outlined in the SOR, explaining that his financial troubles began after he attempted to start a restaurant business, which ultimately failed. He acknowledged his involvement in a Chapter 13 bankruptcy and subsequent conversions to Chapter 11 and Chapter 7, but he also indicated efforts to mitigate his debts, including taking on additional employment and engaging a debt relief program. Despite some payments made through the bankruptcy process, many debts remained unresolved, and Applicant struggled to provide verifiable evidence of his financial recovery efforts.
The administrative judge ruled in favor of Applicant, concluding that he had sufficiently mitigated the security concerns related to his financial issues. The judge noted that Applicant's proactive steps to address his debts, including timely payments and engagement with creditors, demonstrated a commitment to financial responsibility. As a result, the judge granted eligibility for a security clearance, determining that it was consistent with the national interest.
Guidelines Evaluated
- Guideline FFinancial Considerations · For Applicant
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Case Headnote

ISCR Case No. 22-01343

grantedMay 24, 2024· Hon. Robert Robinson Gales· hearing

Summary

A 58-year-old defense contractor employee was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant admitted to all factual allegations related to his financial history, which included multiple bankruptcy filings stemming from a failed business venture. These issues raised disqualifying conditions under Adjudicative Guidelines Paragraphs 19(a) and 19(c).

However, the applicant demonstrated significant mitigating factors. He engaged in a debt relief program in January 2017, agreeing to monthly payments of $2,604 for 53 months, and voluntarily filed for Chapter 13 bankruptcy. His efforts to resolve his debts were described as positive and extremely favorable, leading to a significant reduction in delinquent accounts and an improved financial position.

The administrative judge concluded that the applicant's sustained actions and improvements since 2016 no longer cast doubt on his reliability, trustworthiness, or good judgment. Mitigating conditions under Adjudicative Guidelines Paragraphs 20(a), 20(b), 20(c), and 20(d) were applied, and the clearance was granted, aligning with national security interests.

Why the Applicant Prevailed

The applicant admitted all allegations regarding financial difficulties and demonstrated a commitment to resolving his debts.
He made substantial payments towards his debts and engaged in financial counseling.
The applicant's financial issues were largely due to circumstances beyond his control, such as a failed business venture.

Conditions Referenced

Disqualifying

AG ¶ 19(a)appliedInability to Satisfy Debts
AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(a)appliedBehavior Happened Long Ago or Infrequently
AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
AG ¶ 20(c)appliedReceived Financial Counseling
AG ¶ 20(d)appliedGood-faith Effort to Repay Debts

Key Rule Quoted

“An applicant needs only to establish a plan to resolve financial problems and take significant actions to implement the plan.”

Procedural Posture

SOR issuedSep 26, 2022
Answer filedundatedApplicant responded to the SOR and requested a hearing.
Hearing heldFeb 28, 2024Hearing conducted via Microsoft Teams.
Decision dateMay 24, 2024

Cite For

Mitigation of Financial Concerns Under Guideline F
Good-faith Efforts to Resolve Debts
Impact of Circumstances Beyond Control on Financial Issues

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's financial issues, including a Chapter 13 bankruptcy filing and engagement in a debt relief program, were sufficiently mitigated by his positive track record in addressing these debts. The applicant's current financial situation was deemed stable, leading to a decision to grant the security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant admitted all the factual allegations pertaining to financial considerations.	For Applicant	Unspecified Financial	Admitted	—	—	—
1.b	The SOR alleged security concerns under Guideline F (financial considerations).	For Applicant	Unspecified Financial	Unknown	—	—	—
1.c	The SOR recommended referral to an administrative judge to determine whether a clearance should be granted, continued, denied, or revoked.	For Applicant	Unspecified Financial	Unknown	—	—	—
1.d	Applicant engaged the professional services of a debt relief program under which he agreed to make monthly payments of $2,604 for a period of 53 months commencing in January 2017. $2,604	For Applicant	Unspecified Financial	Unknown	—	—	—
1.e	Applicant voluntarily filed for bankruptcy under Chapter 13 of the U.S. Bankruptcy Code. $667,512	For Applicant	Bankruptcy Filing	Unknown	—	—	—
1.f	Applicant's new bankruptcy attorney purportedly followed the Chapter 11 bankruptcy process, but at one point suggested to Applicant that they should convert the process to Chapter 7.	For Applicant	Unspecified Financial	Unknown	—	—	—
1.g	Applicant's actions for such a long period between 2016 and today, under the circumstances, no longer cast doubt on his current reliability, trustworthiness, and good judgment.	For Applicant	Unspecified Financial	Unknown	—	—	—
1.h	Applicant's track record of claimed or verifiable efforts to resolve his debts is positive and extremely favorable.	For Applicant	Unspecified Financial	Unknown	—	—	—
1.i	Applicant is currently in a better position financially than he had been as he has a small monthly remainder and his delinquent debts have been reduced significantly.	For Applicant	Unspecified Financial	Unknown	—	—	—
1.j	Applicant's actions for such a long period between 2016 and today, under the circumstances, no longer cast doubt on his current reliability, trustworthiness, and good judgment.	For Applicant	Unspecified Financial	Unknown	—	—	—
1.k	Applicant's unlisted and unalleged delinquent accounts will be considered only for the five purposes listed above.	For Applicant	Unspecified Financial	Unknown	—	—	—
1.l	Applicant's actions for such a long period between 2016 and today, under the circumstances, no longer cast doubt on his current reliability, trustworthiness, and good judgment.	For Applicant	Unspecified Financial	Unknown	—	—	—
1.m	Applicant's actions for such a long period between 2016 and today, under the circumstances, no longer cast doubt on his current reliability, trustworthiness, and good judgment.	For Applicant	Unspecified Financial	Unknown	—	—	—

Descriptive standardized rendering of a decided public case (Guideline F). The verbatim source decision is shown in full below.

Full decision

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