ISCR Case 25-00247

Case Headnote

ISCR Case No. 25-00247

deniedFeb 26, 2026· Hon. Darlene Lokey Anderson· hearing

Summary

A 55-year-old Vice President of Strategic Business Development was denied a security clearance under Guideline F (Financial Considerations) due to significant financial issues. The Statement of Reasons alleged that the applicant's financial decisions indicated poor self-control and judgment, raising questions about his reliability and trustworthiness.

Specific allegations included filing for Chapter 7 Bankruptcy in October 2011, discharging approximately $1,000,000 in debts, including nearly $200,000 in unsecured debt. Additionally, the applicant was indebted for over $367,000 across multiple accounts, including a student loan of approximately $116,826 not included in a Chapter 13 Bankruptcy petition, and numerous charged-off credit cards and microloans. A past-due mortgage debt of approximately $50,736, with a total balance of $790,340, was also cited.

The judge found that the applicant admitted to these financial issues, including multiple bankruptcies and delinquent debts. Although extenuating circumstances such as natural disasters were acknowledged, the applicant's financial management was deemed poor, as he liquidated retirement savings and took out high-interest loans. Ultimately, the applicant failed to demonstrate a sufficient track record of financial responsibility or efforts to mitigate his debts, leading to the denial of the security clearance.

Why the Applicant Was Denied

The applicant admitted to significant financial issues, including multiple bankruptcies and delinquent debts totaling over $367,000.
The applicant's financial management was deemed poor, as he liquidated retirement savings and took out high-interest loans to cover expenses.
Despite extenuating circumstances, the applicant failed to show a track record of financial responsibility or efforts to mitigate his debts.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
AG ¶ 19(e)raisedConsistently Spending Beyond One’s Means

Mitigating

AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant experienced two natural disasters that caused significant financial distress.
AG ¶ 20(d)rejectedGood Faith Effort to Repay Overdue CreditorsThe applicant showed insufficient evidence of a good faith effort to resolve his debts.

Key Rule Quoted

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

Procedural Posture

SOR issuedJun 4, 2025
Answer filedJun 18, 2025
Hearing heldJan 15, 2026
Decision dateFeb 26, 2026

Cite For

Financial Irresponsibility Under Guideline F
Impact of Natural Disasters on Financial Stability
Insufficient Evidence of Good Faith Efforts to Resolve Debts

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	Applicant is ineligible for a clearance because he made financial decisions that indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which raise questions about his reliability, trustworthiness and ability to protect classified information. $367,000	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.b	Applicant filed for Chapter 7 Bankruptcy in October 2011, discharging debts of approximately $1,000,000, including almost $200,000 in unsecured debt. $1,000,000	Against Applicant	Bankruptcy Filing	Admitted	—	—	—
1.c	Applicant is indebted to a creditor on an account placed for collection in the approximate amount of $116,826, which is a student loan not included in the Chapter 13 Bankruptcy petition. $116,826	Against Applicant	Student Loan Debt	Admitted	—	—	—
1.d	Applicant is indebted to a creditor on an account that was charged off in the approximate amount of $44,971, which is a credit card included in the Chapter 13 Bankruptcy petition. $44,971	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.e	Applicant is indebted to a creditor on an account that was charged off in the approximate amount of $30,734, which is a credit card included in the Chapter 13 Bankruptcy petition. $30,734	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.f	Applicant is indebted to a creditor on an account that was charged off in the approximate amount of $28,581, which is a credit card included in the Chapter 13 Bankruptcy petition. $28,581	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.g	Applicant is indebted to a creditor on an account that was charged off in the approximate amount of $26,151, which is a credit card included in the Chapter 13 Bankruptcy petition. $26,151	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.h	Applicant is indebted to a creditor on an account that was charged off in the approximate amount of $18,103, which is a credit card included in the Chapter 13 Bankruptcy petition. $18,103	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.i	Applicant is indebted to a creditor on an account placed for collection in the approximate amount of $14,144, which is a credit card included in the Chapter 13 Bankruptcy petition. $14,144	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.j	Applicant is indebted to a creditor on an account that was charged off in the approximate amount of $7,715, which is a credit card included in the Chapter 13 Bankruptcy petition. $7,715	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.k	Applicant is indebted to a creditor on an account that was charged off in the approximate amount of $6,082, which is a microloan included in the Chapter 13 Bankruptcy petition. $6,082	Against Applicant	Personal Loan Debt	Admitted	—	—	—
1.l	Applicant is indebted to a creditor on an account that was charged off in the approximate amount of $1,145, which is a microloan included in the Chapter 13 Bankruptcy petition. $1,145	Against Applicant	Personal Loan Debt	Admitted	—	—	—
1.m	Applicant is indebted to a creditor on an account that was charged off in the approximate amount of $549, which is a microloan included in the Chapter 13 Bankruptcy petition. $549	Against Applicant	Personal Loan Debt	Admitted	—	—	—
1.n	Applicant is indebted to a creditor on an account that was past due in the amount of approximately $50,736, with a total balance of $790,340, which is his mortgage debt included in the Chapter 13 Bankruptcy petition. $790,340	Against Applicant	Mortgage or Home Loan Debt	Admitted	—	—	—
1.o	Applicant is indebted to a creditor on an account that was charged off in the approximate amount of $21,278, which is a credit card included in the Chapter 13 Bankruptcy petition. $21,278	Against Applicant	Credit Card Debt	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant is ineligible for a clearance because he made financial decisions that indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which raise questions about his reliability, trustworthiness and ability to protect classified information.

$367,000

Against Applicant

Unspecified Financial

Admitted

—

1.b

Applicant filed for Chapter 7 Bankruptcy in October 2011, discharging debts of approximately $1,000,000, including almost $200,000 in unsecured debt.

$1,000,000

Against Applicant

Bankruptcy Filing

Admitted

—

1.c

Applicant is indebted to a creditor on an account placed for collection in the approximate amount of $116,826, which is a student loan not included in the Chapter 13 Bankruptcy petition.

$116,826

Against Applicant

Student Loan Debt

Admitted

—

1.d

Applicant is indebted to a creditor on an account that was charged off in the approximate amount of $44,971, which is a credit card included in the Chapter 13 Bankruptcy petition.

$44,971

Against Applicant

Credit Card Debt

Admitted

—

1.e

Applicant is indebted to a creditor on an account that was charged off in the approximate amount of $30,734, which is a credit card included in the Chapter 13 Bankruptcy petition.

$30,734

Against Applicant

Credit Card Debt

Admitted

—

1.f

Applicant is indebted to a creditor on an account that was charged off in the approximate amount of $28,581, which is a credit card included in the Chapter 13 Bankruptcy petition.

$28,581

Against Applicant

Credit Card Debt

Admitted

—

1.g

Applicant is indebted to a creditor on an account that was charged off in the approximate amount of $26,151, which is a credit card included in the Chapter 13 Bankruptcy petition.

$26,151

Against Applicant

Credit Card Debt

Admitted

—

1.h

Applicant is indebted to a creditor on an account that was charged off in the approximate amount of $18,103, which is a credit card included in the Chapter 13 Bankruptcy petition.

$18,103

Against Applicant

Credit Card Debt

Admitted

—

1.i

Applicant is indebted to a creditor on an account placed for collection in the approximate amount of $14,144, which is a credit card included in the Chapter 13 Bankruptcy petition.

$14,144

Against Applicant

Credit Card Debt

Admitted

—

1.j

Applicant is indebted to a creditor on an account that was charged off in the approximate amount of $7,715, which is a credit card included in the Chapter 13 Bankruptcy petition.

$7,715

Against Applicant

Credit Card Debt

Admitted

—

1.k

Applicant is indebted to a creditor on an account that was charged off in the approximate amount of $6,082, which is a microloan included in the Chapter 13 Bankruptcy petition.

$6,082

Against Applicant

Personal Loan Debt

Admitted

—

1.l

Applicant is indebted to a creditor on an account that was charged off in the approximate amount of $1,145, which is a microloan included in the Chapter 13 Bankruptcy petition.

$1,145

Against Applicant

Personal Loan Debt

Admitted

—

1.m

Applicant is indebted to a creditor on an account that was charged off in the approximate amount of $549, which is a microloan included in the Chapter 13 Bankruptcy petition.

$549

Against Applicant

Personal Loan Debt

Admitted

—

1.n

Applicant is indebted to a creditor on an account that was past due in the amount of approximately $50,736, with a total balance of $790,340, which is his mortgage debt included in the Chapter 13 Bankruptcy petition.

$790,340

Against Applicant

Mortgage or Home Loan Debt

Admitted

—

1.o

Applicant is indebted to a creditor on an account that was charged off in the approximate amount of $21,278, which is a credit card included in the Chapter 13 Bankruptcy petition.

$21,278

Against Applicant

Credit Card Debt

Admitted

—

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Summary

Why the Applicant Was Denied

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision