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ISCR Case 24-01306 — CASE

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ISCR Case 24-01306

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

Case Profile
Decision Date6/23/2025
Statusdenied
LevelHEARING
TypeSTANDARD ISCR
Participants
Judge: Pamela C. Benson
Government Counsel: Andre M. Gregorian
Applicant's Counsel: Alan V. Edmunds
Case Summary
The applicant in this case was a 57-year-old individual seeking a security clearance, who had previously filed for Chapter 7 bankruptcy in 2017. The Statement of Reasons (SOR) issued by the Defense Counterintelligence and Security Agency (DCSA) cited financial considerations under Guideline F, detailing 13 delinquent accounts totaling approximately $31,345. The applicant admitted to all allegations in the SOR, attributing his financial difficulties to his divorce and unemployment, while also providing financial assistance to a girlfriend in Mexico.
During the proceedings, the applicant did not submit any documentation to demonstrate responsible actions taken to resolve his financial issues. Although he promised to contact creditors and arrange payment plans during a background interview, he failed to provide evidence of any payments or arrangements made. The administrative judge ruled against the applicant, concluding that he did not sufficiently mitigate the financial concerns raised by the government. The judge noted that the applicant's circumstances, while challenging, did not excuse his lack of responsible action regarding his debts, leading to the denial of his security clearance.
Guidelines Evaluated
- Guideline FFinancial Considerations · Against Applicant
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Case Headnote

ISCR Case No. 24-01306

deniedJun 23, 2025· Hon. Pamela C. Benson· hearing

Summary

A 57-year-old male applicant was denied a security clearance under Guideline F, Financial Considerations, due to unresolved financial delinquencies and a prior Chapter 7 bankruptcy. The applicant admitted to the allegations but failed to provide sufficient evidence of responsible actions to mitigate his financial concerns, which were deemed ongoing and not under control.

The Statement of Reasons detailed a Chapter 7 bankruptcy filed in November 2017 and discharged in February 2018, with estimated liabilities between $100,000 and $500,000. Additionally, the applicant was indebted to multiple creditors for charged-off accounts, accounts placed for collection, and delinquent accounts. These included OLIPHSNT USA ($6,288), MIDLAND CREDIT MANAGEMENT ($5,689), PROGRESO FINANCIERO ($4,799), NCB CREDIT MANAGEMENT SERVICES ($4,525), MOBILOANS ($2,781), SECURITY CREDIT SYSTEMS ($2,268), LOANME ($4,060), UPSTART NETWORK ($1,026), COMENITY CAPITAL BANK ($868), CREDIT ONE BANK ($627), FIRST NATIONAL BANK ($518), FIRST SAVINGS BANK ($477), and IC SYSTEM ($171). The total amount of these specific unresolved financial delinquencies was approximately $31,345.

The denial was based on the applicant's failure to demonstrate responsible actions to address these delinquencies or provide evidence of efforts to resolve the accounts. The financial troubles were considered recent, ongoing, and not isolated, raising disqualifying conditions under Adjudicative Guidelines ¶ 19(a) and ¶ 19(c).

Why the Applicant Was Denied

Applicant failed to demonstrate responsible actions to address financial delinquencies.
He did not provide evidence of efforts to resolve the delinquent accounts.
Financial troubles were recent, ongoing, and not isolated.

Conditions Referenced

Disqualifying

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

Key Rule Quoted

“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”

Procedural Posture

SOR issuedSep 18, 2024
Answer filedNov 13, 2024
Hearing held—Decision based on administrative record.
Decision dateJun 23, 2025

Cite For

Denial of Security Clearance Due to Unresolved Financial Delinquencies
Importance of Demonstrating Responsible Financial Behavior
Criteria for Evaluating Financial Considerations Under Guideline F

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: Decision on RecordDecided: denied

The judge found multiple financial concerns under Guideline F, including a Chapter 7 bankruptcy and numerous delinquent accounts totaling approximately $31,345. The judge ruled against the applicant on all allegations, citing a lack of responsible action to resolve the debts and insufficient evidence to mitigate the financial security concerns.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant filed for Chapter 7 Bankruptcy in November 2017, discharged in February 2018, with estimated liabilities of $100,000-$500,000.	Against Applicant	Bankruptcy Filing	Admitted	—	—	—
1.b	Indebted to OLIPHSNT USA for an account charged off in the amount of $6,288. $6,288	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.c	Indebted to MIDLAND CREDIT MANAGEMENT for an account placed for collection in the amount of $5,689. $5,689	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.d	Indebted to PROGRESO FINANCIERO for an account charged off in the amount of $4,799. $4,799	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.e	Indebted to NCB CREDIT MANAGEMENT SERVICES for an account placed for collection in the amount of $4,525. $4,525	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.f	Indebted to MOBILOANS for an account charged off in the amount of $2,781. $2,781	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.g	Indebted to SECURITY CREDIT SYSTEMS for an account placed for collection in the amount of $2,268. $2,268	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.h	Indebted to FIRST NATIONAL BANK for an account charged off in the amount of $518. $518	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.i	Indebted to FIRST SAVINGS BANK for an account charged off in the amount of $477. $477	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.j	Indebted to IC SYSTEM for an account placed for collection in the amount of $171. $171	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.k	Indebted to COMENITY CAPITAL BANK for an account charged off in the amount of $868. $868	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.l	Indebted to UPSTART NETWORK for an account charged off in the amount of $1,026. $1,026	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.m	Indebted to CREDIT ONE BANK for a delinquent account in the amount of $627. $627	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.n	Indebted to LOANME for a delinquent account in the amount of $4,060. $4,060	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

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