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ISCR Case 23-00123 — CASE

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ISCR Case 23-00123

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

Case Profile
Decision Date4/4/2024
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Applicant Representation: Pro Se
Judge: Edward W. Loughran
Government Counsel: John C. Lynch
Case Summary
The applicant in this case was a 35-year-old individual who served in the U.S. military from 2009 to 2012 and later in the Reserve until approximately 2016. The Department of Defense issued a Statement of Reasons (SOR) citing security concerns under Guidelines E (personal conduct) and F (financial considerations). The core allegations included failure to file federal income tax returns for multiple years and numerous delinquent debts totaling approximately $27,420.
During the proceedings, the applicant admitted to some financial difficulties, including periods of unemployment and underemployment, which contributed to his inability to meet financial obligations. He acknowledged missing tax filings for 2018, 2019, and 2020, but claimed he intended to rectify this and had since filed those returns. The applicant also provided evidence of some debts being paid but failed to mitigate concerns regarding a significant defaulted auto loan and other outstanding debts.
The administrative judge ruled that while the applicant had mitigated some personal conduct concerns, he did not sufficiently address the financial considerations that posed a risk to his eligibility for a security clearance. Consequently, the judge denied the applicant's request for access to classified information, citing ongoing financial instability and unresolved debts as primary reasons for the decision.
Guidelines Evaluated
- Guideline EPersonal Conduct · For Applicant
- Guideline FFinancial Considerations · Against Applicant
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Case Headnote

ISCR Case No. 23-00123

deniedApr 4, 2024· Hon. Edward W. Loughran· hearing

Summary

A 35-year-old male applicant with prior military service was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). While personal conduct issues were mitigated, significant financial problems remained unresolved.

The applicant had multiple delinquent debts totaling approximately $23,250, including a defaulted auto loan of $17,368 and a charged-off debt to a credit union of $4,887. Other debts included amounts owed to collection companies for a college, a utility provider, and a gym, as well as a $470 charged-off bank debt. Additionally, an unpaid judgment of $3,541 from an apartment landlord in 2019 was noted. The applicant also failed to file federal income tax returns for tax years 2017, 2018, 2019, and 2020.

The administrative judge concluded that these unmitigated financial issues raised doubts about the applicant's reliability and trustworthiness, leading to the denial of his security clearance eligibility.

Why the Applicant Prevailed

The applicant mitigated personal conduct concerns under Guideline E.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(c)raisedHistory 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 ControlThe applicant's financial issues were ongoing and not resolved.
AG ¶ 20(g)rejectedArrangements with Tax AuthorityThe applicant failed to file tax returns for 2021 and 2022.

Key Rule Quoted

“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”

Procedural Posture

SOR issuedApr 27, 2023
Answer filedMay 8, 2023
Hearing heldJan 24, 2024
Decision dateApr 4, 2024

Cite For

Failure to Mitigate Financial Considerations Under Guideline F
Impact of Unfiled Tax Returns on Security Clearance Eligibility
Assessment of Personal Conduct Concerns Under Guideline E

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 E (Personal Conduct) · descriptive summary of a decided case

Posture: HearingDecided: denied

The judge found that the applicant's personal conduct concerns were mitigated. Specifically, the applicant's separation from the Reserve was under honorable conditions, and the driver's license suspension was resolved. However, the overall conclusion was that the applicant did not fully mitigate the financial considerations security concerns, leading to a denied outcome.

¶	Allegation	Finding	Conduct	Concealed Issue	Response	Disqualifying (¶16)	Mitigating applied (¶17)	Mitigation
2.a	Separated from the Reserve with a general under honorable conditions discharge for unsatisfactory participation.	For Applicant	Unspecified Personal Conduct	—	Unknown	—	—	—
2.b	Driver's license was suspended for failure to maintain liability insurance.	For Applicant	Unspecified Personal Conduct	—	Unknown	—	—	—

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

Standardized Decision Profile

SEAD-4 Guideline F · descriptive summary of a decided case

Posture: HearingDecided: denied

The judge found multiple financial concerns under Guideline F, including unpaid debts and failure to file tax returns. Ultimately, the judge ruled against the applicant on several allegations, leading to a denied security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Did not file a federal income tax return for tax year 2017.	Against Applicant	Tax Filing Failure	Unknown	—	—	—
1.b	Did not file federal income tax returns for 2018, 2019, and 2020 when they were due.	For Applicant	Tax Filing Failure	Unknown	—	—	—
1.c	Owes a defaulted auto loan of $17,368. $17,368	Against Applicant	Auto Loan Debt	Unknown	—	—	—
1.d	Owes a $996 debt to a collection company on behalf of a college. $996	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.e	Charged-off $470 debt to a bank. $470	For Applicant	Unspecified Financial	Admitted	—	—	—
1.f	Paid $438 to a collection company for a debt. $438	For Applicant	Unspecified Financial	Admitted	—	—	—
1.g	$423 debt to a collection company on behalf of a utility provider. $423	For Applicant	Unspecified Financial	Unknown	—	—	—
1.h	Paid $402 debt to a bank. $402	For Applicant	Unspecified Financial	Admitted	—	—	—
1.i	$307 debt to a collection company on behalf of a gym. $307	For Applicant	Unspecified Financial	Unknown	—	—	—
1.j	Paid $203 debt to a bank. $203	For Applicant	Unspecified Financial	Admitted	—	—	—
1.k	Owes a charged-off debt to a credit union of $4,887. $4,887	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.l	Unpaid judgment of $3,541 awarded to an apartment landlord in 2019. $3,541	Withdrawn	Unspecified Financial	Unknown	—	—	—
1.m	Paid $1,118 to a credit union for a debt. $1,118	Withdrawn	Unspecified Financial	Admitted	—	—	—
1.n	Denied owing a $698 debt placed in collection by the VA. $698	For Applicant	Unspecified Financial	Denied	—	—	—
1.o	Denied owing a $205 delinquent debt to a collection company on behalf of a telecommunications company. $205	For Applicant	Unspecified Financial	Denied	—	—	—
1.p	Denied owing a $1,022 charged-off debt to a bank. $1,022	For Applicant	Unspecified Financial	Denied	—	—	—
1.q	specific text not stated in this decision	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

The complete, official text — footnotes and signatures included — is in the original PDF.