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ISCR Case 24-01106 — CASE

Case record

ISCR Case 24-01106

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

Case Profile
Decision Date9/29/2025
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Judge: Ross D. Hyams
Government Counsel: Carroll J. Connelley
Applicant's Counsel: Patrick K. Korody
Case Summary
The applicant in this case was a 55-year-old self-employed court reporter with approximately thirty years of experience. The Department of Defense issued a Statement of Reasons (SOR) citing security concerns under Guideline F (financial considerations), alleging that the applicant had numerous unresolved debts totaling over $88,000. The applicant admitted to all allegations in the SOR, which included multiple charged-off credit card accounts and collection accounts, but claimed to have been working with a debt relief company that ultimately failed to resolve her debts.
During the hearing, the applicant provided testimony regarding her financial struggles, including a decline in income due to the COVID-19 pandemic and personal family issues. She admitted to having made payments to a debt relief company without satisfactory results and acknowledged her ongoing financial difficulties, including a significant hospital debt and student loans. Despite her efforts to mitigate the situation, such as seeking credit counseling and providing a monthly budget, the administrative judge found that the applicant did not sufficiently demonstrate a plan to resolve her debts or show financial responsibility.
The administrative judge ruled against the applicant, concluding that she failed to mitigate the financial considerations security concerns. The judge emphasized that the applicant's inability to satisfy her debts and her history of financial irresponsibility raised significant questions about her reliability and trustworthiness, which are essential for access to classified information. Consequently, the applicant's eligibility for a security clearance was denied.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
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Case Headnote

ISCR Case No. 24-01106

deniedSep 29, 2025· Hon. Ross D. Hyams· hearing

Summary

A 55-year-old self-employed court reporter was denied a security clearance under Guideline F, Financial Considerations, due to significant unresolved financial issues totaling over $88,000. The applicant admitted to numerous debts, including multiple charged-off credit card accounts and collection accounts from various banks.

Specifically, the Statement of Reasons listed 19 separate allegations, ranging from $306 to $3,576. For 12 of these accounts, the applicant did not provide sufficient evidence of resolution. For the remaining seven, post-hearing efforts included requesting debt verification and making settlement arrangements or payments in mid-to-late June.

Despite the applicant's claims of financial distress and these post-hearing actions, the judge found her efforts insufficient to mitigate concerns regarding her reliability and judgment. The judge concluded that granting clearance was not in the national interest, citing the applicant's failure to provide sufficient evidence of debt resolution and the inadequacy of her post-hearing actions.

Why the Applicant Was Denied

The applicant admitted to multiple debts totaling over $88,000, including charged-off credit cards and collection accounts.
She failed to provide sufficient evidence of resolution for her debts, with many remaining unresolved at the time of the hearing.
Post-hearing efforts to address her debts were deemed insufficient and not credible by the judge.

Conditions Referenced

Disqualifying

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

Key Rule Quoted

“Eligibility for access to classified information is denied.”

Procedural Posture

SOR issuedJul 25, 2024
Answer filedSep 15, 2024
Hearing heldMay 6, 2025Applicant proceeded pro se.
Decision dateSep 29, 2025

Cite For

Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
Insufficient Post-hearing Efforts to Mitigate Financial Concerns
Importance of Demonstrating Responsible Financial Management for Security Clearance Eligibility

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 under Guideline F, primarily involving charged off credit card accounts and collection accounts. The applicant admitted to the debts but failed to provide sufficient evidence of resolution, leading to a decision against her on all allegations.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Charged off credit card account for $3,576. Applicant did not provide sufficient evidence of resolution of this account. $3,576	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.b	Charged off credit card account for $2,747. Applicant did not provide sufficient evidence of resolution. $2,747	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.c	Charged off credit card account for $2,095. Applicant did not provide sufficient evidence of resolution. $2,095	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.d	Charged off credit card account for $1,697. Applicant did not provide sufficient evidence of resolution. $1,697	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.e	Charged off credit card account for $1,618. Applicant did not provide sufficient evidence of resolution. $1,618	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.f	Charged off credit card account for $1,610. Applicant did not provide sufficient evidence of resolution. $1,610	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.g	Collection account for a bank for $1,574. Applicant did not provide sufficient evidence of resolution. $1,574	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.h	Charged off credit card account for $1,389. Post hearing, Applicant requested verification of the debt with the creditor, and in mid-June made a settlement arrangement. $1,389	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.i	Collection account for a bank for $1,267. Applicant did not provide sufficient evidence of resolution. $1,267	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.j	Collection account for a bank for $1,199. Applicant did not provide sufficient evidence of resolution. $1,199	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.k	Charged off credit card account for $1,193. Applicant did not provide sufficient evidence of resolution. $1,193	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.l	Collection account for a bank for $1,153. Applicant did not provide sufficient evidence of resolution. $1,153	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.m	Charged off credit card account for $1,035. Post hearing, Applicant requested verification of the debt with the creditor, and in mid-June made a settlement arrangement. $1,035	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.n	Collection account for a bank for $1,000. Post hearing, Applicant requested verification of the debt with the creditor, and in mid-June made a settlement payment. $1,000	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.o	Collection account for a bank for $997. Post hearing, Applicant requested verification of the debt with the creditor, and in mid-June made a settlement payment. $997	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.p	Charged off credit card account for $915. Post hearing, Applicant requested verification of the debt with the creditor, and in mid-June made a settlement payment. $915	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.q	Collection account for a bank for $825. Post hearing, Applicant requested verification of the debt with the creditor, and in late June made a settlement arrangement. $825	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.r	Collection account for a bank for $791. Post hearing, Applicant requested verification of the debt with the creditor, and in late June made a settlement arrangement. $791	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.s	Collection account for a bank for $306. Applicant did not provide sufficient evidence of resolution. $306	Against Applicant	Unspecified Financial	Admitted	—	—	—

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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