ISCR Case No. 16-01883.h1

DEPARTMENT OF DEFENSE DEFENSE OFFICE OF HEARINGS AND APPEALS

In the matter of: ) ) ) ISCR Case No. 16-01883 ) Applicant for Security Clearance )

For Government: Jeff A. Nagel, Esq., Department Counsel For Applicant: Pro se

09/28/2017 ______________

______________

LOUGHRAN, Edward W., Administrative Judge:

On August 29, 2016, the Department of Defense (DOD) issued a Statement of Reasons to Applicant detailing security concerns under Guideline F, financial considerations.1 Applicant responded to the SOR on October 7, 2016, and requested a hearing before an administrative judge. The case was assigned to me on June 5, 2017. The hearing was held as scheduled on July 19, 2017. On September 13, 2017, I proposed to the parties that this case was appropriate for a summary disposition in Applicant’s favor. Department Counsel did not object.

Applicant served honorably in the U.S. military from 1985 to 1995. He received custody of his two children after his divorce in 2006. He had major surgery about four years ago. His ex-wife did not pay child support, but she claimed their children as dependents on her tax returns. Applicant delayed filing his federal tax returns for tax years 2011 through 2013 while he obtained the documentation that would satisfy the IRS that he had the right to claim his children as dependents.

Applicant filed his 2011 federal income tax return in April 2014; his 2012 return in February 2016; and his 2013 return in April 2016; all before the SOR was issued. His 2014 through 2016 federal returns have all been filed. His returns indicate that he was due a refund every year with the exception of 2012, when he owed $717, which has been paid.

In addition to his tax issues, the SOR alleges 22 medical debts totaling about $11,000 and 6 miscellaneous delinquent debts totaling about $7,000. Applicant had medical insurance during his surgery, but there were copayments and deductibles, and a number of bills were misdirected because of a bad address. He retained a company to assist him in paying or settling accounts, repairing his credit, and disputing inaccurate items on his credit report. Applicant has paid, settled, or otherwise resolved a majority of the debts in the SOR. He credibly testified that he will continue his efforts to resolve his financial problems. I am satisfied that he has a plan to resolve his financial problems, and that he has taken significant action to implement that plan. Based on the record evidence as a whole, I conclude that the security concerns are mitigated under the following mitigating conditions: AG ¶¶ 20(a), 20(b), 20(c), 20(d), 20(e), and 20(g).

The concerns over Applicant’s history of financial problems do not create doubt about his current reliability, trustworthiness, good judgment, and ability to protect classified information. In reaching this conclusion, I weighed the evidence as a whole and considered if the favorable evidence outweighed the unfavorable evidence. I also gave due consideration to the whole-person concept. Accordingly, I conclude that he met his ultimate burden of persuasion to show that it is clearly consistent with the national interest to grant him eligibility for access to classified information. This case is decided for Applicant.

________________________ Edward W. Loughran Administrative Judge

1 This case is adjudicated under Executive Order (EO) 10865, Safeguarding Classified Information within Industry (February 20, 1960), as amended; DOD Directive 5220.6, Defense Industrial Personnel Security Clearance Review Program (January 2, 1992), as amended (Directive); and the adjudicative guidelines, which became effective on June 8, 2017.