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ISCR Case 24-01544 — CASE

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ISCR Case 24-01544

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

Case Profile
Decision Date3/17/2025
Statusgranted
LevelHEARING
TypeSTANDARD ISCR
Participants
Judge: Richard A. Cefola
Government Counsel: Tara R. Karoian
Applicant's Counsel: Grant Couch
Case Summary
The applicant in this case was a 52-year-old employee of a defense contractor with a background that included 22 years of service in the U.S. Navy. The Department of Defense issued a Statement of Reasons (SOR) citing security concerns under Guideline F (Financial Considerations), alleging that the applicant had significant past-due debts totaling approximately $24,000. The applicant admitted to several debts but denied others, attributing his financial difficulties to a bout with cancer in 2022-2023.
During the proceedings, the applicant provided evidence of his efforts to address his financial issues, including payment plans for some debts and disputing others with the help of a fiscal intermediary. He demonstrated that he had settled one debt and was making regular payments on others. The administrative judge found that the applicant's financial problems were largely due to circumstances beyond his control and that he had taken responsible steps to resolve his debts.
Ultimately, the administrative judge ruled in favor of the applicant, concluding that he had mitigated the security concerns related to his financial situation. The judge emphasized the applicant's honorable military service and current standing in his civilian job, determining that granting the applicant national security eligibility for a security clearance was consistent with the national interest.
Guidelines Evaluated
- Guideline FFinancial Considerations · For Applicant
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Case Headnote

ISCR Case No. 24-01544

grantedMar 17, 2025· Hon. Richard A. Cefola· hearing

Summary

A 52-year-old defense contractor and retired Navy Chief Petty Officer was granted a security clearance despite allegations under Guideline F (Financial Considerations). The Statement of Reasons detailed several past-due debts, including approximately $25,222 to Creditor A, $5,128 to Creditor B, $3,847 to Creditor C, and $12,026 to Creditor H, which resulted from a voluntary motorcycle repossession. Other debts included about $1,292 to Creditor D and $729 to Creditor E, which was settled in full. The applicant denied debts to Creditor F (about $700) and Creditor G (about $361), stating they had zero balance or were paid.

The judge found that the applicant's financial difficulties were primarily caused by a recent cancer diagnosis, a circumstance beyond his control. Disqualifying conditions AG ¶ 19(a) and AG ¶ 19(c) were raised, but mitigating conditions AG ¶ 20(b), AG ¶ 20(d), and AG ¶ 20(e) were applied.

Ultimately, the judge concluded that the applicant had made a good-faith effort to address and resolve his debts, and his financial situation showed signs of improvement, making recurrence unlikely. Based on these factors, the security concerns were mitigated, and eligibility for a security clearance was granted.

Why the Applicant Prevailed

The applicant's financial issues were attributed to a recent cancer diagnosis, which was beyond his control.
The applicant demonstrated a good-faith effort to address and resolve his debts.
The applicant's financial situation showed signs of improvement and was unlikely to recur.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(b)appliedConditions Beyond the Person's Control
AG ¶ 20(d)appliedGood-faith Effort to Repay Debts
AG ¶ 20(e)appliedDispute of Legitimacy of Past-due Debt

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedSep 17, 2024
Answer filedOct 16, 2024
Hearing heldFeb 27, 2025
Decision dateMar 17, 2025

Cite For

Mitigation of Financial Issues Due to Medical Emergencies Under Guideline F
Good-faith Efforts to Resolve Debts as a Mitigating Factor
Impact of Personal Circumstances on Financial Reliability Assessments

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: granted

The judge found that the applicant admitted to several past-due debts but demonstrated efforts to address them, including payment plans and settlements. Ultimately, the judge concluded that the applicant mitigated the financial concerns due to his proactive measures and the impact of his recent cancer diagnosis on his financial situation.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant admitted this alleged past-due debt in the amount of about $25,222 to Creditor A, thinking it was for a repossessed motorcycle. $25,222	For Applicant	Unspecified Financial	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Documented Other
1.b	Applicant admits a past-due debt to Creditor B in the amount of about $5,128. $5,128	For Applicant	Unspecified Financial	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Documented Payment Plan with Creditor
1.c	Applicant admits a past-due debt to Creditor C in the amount of about $3,847. $3,847	For Applicant	Unspecified Financial	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Documented Payment Plan with Creditor
1.d	Applicant initially admitted this alleged past-due debt in the amount of about $1,292 to Creditor D. $1,292	For Applicant	Unspecified Financial	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Documented Debt Disputed with Creditor
1.e	Applicant admits a past-due debt to Creditor E in the amount of about $729, which was settled in full. $729	For Applicant	Unspecified Financial	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Documented Debt Paid in Full
1.f	Applicant denies a past-due debt to Creditor F in the amount of about $700, stating it has a balance of $0.00. $700	For Applicant	Unspecified Financial	Denied	—	—	—
1.g	Applicant denies a past-due debt to Creditor G in the amount of about $361, stating this debt has been paid. $361	For Applicant	Unspecified Financial	Denied	—	—	—
1.h	Applicant admits a past-due debt to Creditor H in the amount of about $12,026, as the result of a voluntary repossession of his motorcycle. $12,026	For Applicant	Unspecified Financial	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly	Documented Other

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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