ISCR Case 23-00229

Case Headnote

ISCR Case No. 23-00229

deniedJul 30, 2024· Hon. Paul J. Mason· hearing

Summary

A 46-year-old senior cybersecurity engineer was denied a security clearance due to unresolved financial issues under Guideline F (Financial Considerations). The applicant had delinquent debts totaling $53,259 across eight accounts. These included a credit card with a $9,001 charge-off from February 2021, and several lines of credit and credit cards that became delinquent between June 2020 and January 2024. The applicant attributed some delinquencies to a January 2020 theft of her computer and credit cards.

While some debts were addressed, such as a line of credit satisfied in September 2023 and a credit card settled in January 2024, others remained unresolved. For instance, one flexible spending account from December 2018, delinquent since September 2020, was intended for resolution in July or August 2024. Another credit card from April 2019 was also projected for satisfaction around July or August 2024, as the applicant aimed to live within her means. A computer store credit card from May 2016, delinquent since June 2022, was in litigation with a projected settlement in May 2024. Additionally, an older credit card from August 2010, delinquent since August 2011, was believed by the applicant to be paid and time-barred.

The denial was based on the applicant's failure to demonstrate a consistent effort to manage her financial obligations, with the judge concluding that her financial distress raised concerns about her reliability and trustworthiness.

Why the Applicant Was Denied

The applicant has unresolved delinquent debts totaling $53,259.
The applicant failed to demonstrate a consistent effort to manage her financial obligations.
The judge found that the applicant's financial distress raised concerns about her reliability and trustworthiness.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlThe theft of her credit cards and computer and the impact of COVID-19 were considered.
AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant has not provided sufficient evidence of a sustained track record of payments to resolve debts.

Key Rule Quoted

“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”
— AG ¶ 2(d)

Procedural Posture

SOR issuedMar 29, 2023
Answer filed—
Hearing heldApr 10, 2024via Teams video teleconference
Decision dateJul 30, 2024

Cite For

Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
Insufficient Evidence of Financial Management Efforts
Impact of External Factors on Financial Obligations

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	This was a credit card-account opened in June 2018. The first major delinquency on the account was on February 20, 2021. As posted in the SOR, the charge-off amount was $9,001. $9,001	Against Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	This account was a line of credit that became delinquent in June 2020. Applicant used the line for minor purchases and car rentals. The account and all the other listed accounts became delinquent because of the theft that occurred in January 2020. Included in her post-hearing exhibits, there is a letter from a collection agency indicating that the SOR 1.b account was satisfied on September 7, 2023 $0	For Applicant	Unspecified Financial	Denied	—	—	—
1.c	This was a line of credit that Applicant used as a safeguard for car payments or making payments to reduce other accounts. The account became delinquent in August 2020. She surmised that her line of credit information was removed from her computer during the robbery of her computer and other credit cards in January 2020. $0	For Applicant	Unspecified Financial	Denied	—	—	—
1.d	This flexible spending credit-card account was opened in December 2018 and became delinquent in September 2020. Applicant testified that because she had not received information from the creditor, she was unable to provide information regarding the account. In her post-hearing documentation, she indicated that she had not acted on the debt but intended to resolve the account in July or August 2024 $0	Against Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts	—	—
1.e	This credit-card account was opened in January 2014 and became delinquent in January 2024. On March 26, 2024, the account posted a zero balance. The second page of Applicant’s documentation posts the last four digits of the complete account number. Applicant settled this account on January 11, 2024. $0	For Applicant	Credit Card Debt	Denied	—	—	—
1.f	This computer store credit-card account was opened in May 2016, and became delinquent in June 2022. Applicant testified the account was in litigation with the next court date on May 14, 2024. She claimed that her post-hearing documentation indicated that the case would be settled on May 15, 2024, as set forth in the journal entry. $0	Against Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts	—	—
1.g	This credit-card account was opened in April 2019. Applicant testified that she had not addressed the account. She confirmed that position in her post-hearing documentation as she was trying to live within her means and not stretch her budget. She estimated the account would be satisfied in July or August 2024. $0	Against Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts	—	—
1.h	This credit-card account was opened in August 2010, and became delinquent in August 2011. Applicant believes that she paid the debt and the debt was removed from her credit report. Based on her claim that the debt is no longer enforceable because it is time-barred and no longer appears in her credit report, Applicant appears to be relying on a statute of limitations to support her claim that she is no longer responsible for this delinquent debt. $0	Against Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

This was a credit card-account opened in June 2018. The first major delinquency on the account was on February 20, 2021. As posted in the SOR, the charge-off amount was $9,001.

$9,001

Against Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

This account was a line of credit that became delinquent in June 2020. Applicant used the line for minor purchases and car rentals. The account and all the other listed accounts became delinquent because of the theft that occurred in January 2020. Included in her post-hearing exhibits, there is a letter from a collection agency indicating that the SOR 1.b account was satisfied on September 7, 2023

For Applicant

Unspecified Financial

Denied

—

1.c

This was a line of credit that Applicant used as a safeguard for car payments or making payments to reduce other accounts. The account became delinquent in August 2020. She surmised that her line of credit information was removed from her computer during the robbery of her computer and other credit cards in January 2020.

For Applicant

Unspecified Financial

Denied

—

1.d

This flexible spending credit-card account was opened in December 2018 and became delinquent in September 2020. Applicant testified that because she had not received information from the creditor, she was unable to provide information regarding the account. In her post-hearing documentation, she indicated that she had not acted on the debt but intended to resolve the account in July or August 2024

Against Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

—

1.e

This credit-card account was opened in January 2014 and became delinquent in January 2024. On March 26, 2024, the account posted a zero balance. The second page of Applicant’s documentation posts the last four digits of the complete account number. Applicant settled this account on January 11, 2024.

For Applicant

Credit Card Debt

Denied

—

1.f

This computer store credit-card account was opened in May 2016, and became delinquent in June 2022. Applicant testified the account was in litigation with the next court date on May 14, 2024. She claimed that her post-hearing documentation indicated that the case would be settled on May 15, 2024, as set forth in the journal entry.

Against Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

—

1.g

This credit-card account was opened in April 2019. Applicant testified that she had not addressed the account. She confirmed that position in her post-hearing documentation as she was trying to live within her means and not stretch her budget. She estimated the account would be satisfied in July or August 2024.

Against Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

—

1.h

This credit-card account was opened in August 2010, and became delinquent in August 2011. Applicant believes that she paid the debt and the debt was removed from her credit report. Based on her claim that the debt is no longer enforceable because it is time-barred and no longer appears in her credit report, Applicant appears to be relying on a statute of limitations to support her claim that she is no longer responsible for this delinquent debt.

Against Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

—

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Case Profile

Summary

Why the Applicant Was Denied

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION