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ISCR Case 22-01375 — CASE

Case record

ISCR Case 22-01375

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

Case Profile
Decision Date3/5/2024
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Darlene Lokey Anderson
Government Counsel: Aubrey M. De Angelis
Case Summary
the applicant, including the nature and seriousness of the conduct, the circumstances surrounding it, and the applicant's age and experience.
The applicant, a 59-year-old Facility Lead/Senior Manager with a Master’s degree in Business Administration, faced allegations under Guideline F, Financial Considerations, due to significant delinquent debts exceeding $88,415, a Chapter 13 Bankruptcy filing, and termination from a previous defense contractor for misuse of company funds. The applicant denied the allegations, asserting that many debts were incurred through a fraudulent partnership with a woman who misused his credit to open accounts without his knowledge. He claimed to have been a victim of a Ponzi scheme and provided explanations for his financial decisions, including efforts to mitigate his debts by selling a home and negotiating settlements.
The administrative judge ruled against the applicant, concluding that the evidence demonstrated a lack of financial responsibility and poor judgment, which raised concerns about his reliability and trustworthiness. The judge noted that the applicant's explanations did not sufficiently mitigate the financial issues, particularly given his acknowledgment of prior debts and the circumstances surrounding his employment termination. The judge emphasized the importance of financial stability in determining eligibility for a security clearance, ultimately finding that the applicant had not met the burden of proof required to overcome the disqualifying conditions.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against 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. 22-01375

deniedMar 5, 2024· Hon. Darlene Lokey Anderson· hearing

Summary

A 59-year-old Facility Lead/Senior Manager with a Master's degree in Business Administration was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved financial issues. The applicant's Statement of Reasons detailed a Chapter 13 Bankruptcy filing in approximately April 2020, which was later dismissed.

Additionally, the applicant was indebted to multiple creditors for charged-off or collection accounts, totaling over $88,415. These debts included $18,244 to Creditor A, $7,602 and $4,913 to Creditor B, $23,751 to Creditor C, $13,548 to Creditor D, and $20,357 to Creditor E. A further allegation noted that in March 2016, the applicant ordered appliances for personal use from a subcontractor, which were then billed to a defense contractor when the applicant failed to pay.

The denial was based on the applicant's significant delinquent debts, failure to resolve them, and a lack of demonstrated good faith effort to repay creditors. The judge concluded that the applicant's financial irresponsibility and poor judgment, including the misuse of company funds and involvement in a fraudulent business scheme, raised serious concerns about reliability and trustworthiness.

Why the Applicant Was Denied

The applicant has significant delinquent debts totaling over $88,415, which he failed to resolve.
The applicant's financial irresponsibility and poor judgment were evident in his actions, including misuse of company funds and involvement in a fraudulent business scheme.
The applicant did not demonstrate a good faith effort to repay overdue creditors or resolve his debts.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
AG ¶ 19(d)raisedDeceptive or Illegal Financial Practices

Key Rule Quoted

“A person who seeks access to classified information enters into a fiduciary relationship with the government predicated upon trust and confidence.”

Procedural Posture

SOR issuedAug 17, 2023
Answer filedAug 25, 2023
Hearing heldJan 17, 2024
Decision dateMar 5, 2024

Cite For

Financial Irresponsibility and Its Impact on Security Clearance Eligibility
The Importance of Resolving Delinquent Debts for Security Clearance
The Fiduciary Relationship Required for Access to Classified Information

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 multiple financial concerns against the applicant, including several charged-off accounts and a Chapter 13 bankruptcy filing that was dismissed. The applicant's claims of mitigating circumstances were not accepted, leading to a decision against the applicant on all allegations under Guideline F.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant filed for Chapter 13 Bankruptcy in about April 2020. The Bankruptcy was dismissed as described above.	Against Applicant	Bankruptcy Filing	Denied	—	—	—
1.b	Applicant is indebted to CREDITOR A for an account that was charged off in the amount of $18,244. $18,244	Against Applicant	Unspecified Financial	Denied	—	—	—
1.c	Applicant is indebted to CREDITOR B for an account that was charged off in the amount of $7,602. $7,602	Against Applicant	Unspecified Financial	Denied	—	—	—
1.d	Applicant is indebted to CREDITOR B for another account that was placed for collection in the amount of $4,913. $4,913	Against Applicant	Unspecified Financial	Denied	—	—	—
1.e	Applicant is indebted to CREDITOR C for an account that was charged off in the amount of $23,751. $23,751	Against Applicant	Unspecified Financial	Denied	—	—	—
1.f	Applicant is indebted to CREDITOR D for an account that was placed for collection in the amount of $13,548. $13,548	Against Applicant	Unspecified Financial	Denied	—	—	—
1.g	Applicant is indebted to CREDITOR E for an account that was charged off in the amount of $20,357. $20,357	Against Applicant	Unspecified Financial	Denied	—	—	—
1.h	In March 2016, Applicant ordered appliances for personal use from a subcontractor for defense contractor B. The appliances were billed to defense contractor B when Applicant failed to pay for them.	Against Applicant	Unspecified Financial	Denied	—	—	—

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.