CASE · Clearance Adjudication Search EngineCASE

Loading case…

ISCR Case 16-01883.h1 — CASE

ISCR Case 16-01883.h1granted

Case Headnote

ISCR Case No. 16-01883.h1

grantedSep 28, 2017· Hon. Edward W. Loughran· hearing

Summary

This case concerns a former U.S. military member whose security clearance was initially questioned under Guideline F (Financial Considerations) due to various financial issues. The Statement of Reasons (SOR) cited delayed federal tax filings for tax years 2011 through 2013, with a specific debt of $717 for 2012 that has since been paid. Additionally, the SOR alleged 22 medical debts totaling approximately $11,000 and six miscellaneous delinquent debts amounting to about $7,000.

However, the applicant demonstrated substantial mitigating factors. He filed all overdue tax returns before the SOR was issued and has since paid, settled, or resolved a majority of the debts listed. The applicant also provided credible testimony regarding his ongoing commitment to resolving his remaining financial obligations.

Based on these efforts and the established plan for financial stability, the security clearance was GRANTED. The decision applied several mitigating conditions under Adjudicative Guideline Paragraph 20, acknowledging the applicant's proactive steps to address the financial concerns.

Why the Applicant Prevailed

Applicant filed all overdue tax returns before the SOR was issued.
He has paid, settled, or resolved a majority of the debts listed in the SOR.
Applicant credibly testified about his ongoing efforts to resolve his financial problems.

Conditions Referenced

Mitigating

AG ¶ 20(a)appliedThe Behavior Was Not Recent.
AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problems Were Largely Beyond the Applicant's Control.
AG ¶ 20(c)appliedThe Applicant Has Received Financial Counseling.
AG ¶ 20(d)appliedThe Applicant Has Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts.
AG ¶ 20(e)appliedThe Applicant Has a Reasonable Plan for Financial Repayment or Resolution.
AG ¶ 20(g)appliedThe Applicant Has Taken Significant Steps to Address His Financial Issues.

Key Rule Quoted

“I also gave due consideration to the whole-person concept.”

Procedural Posture

SOR issuedAug 29, 2016
Answer filedOct 7, 2016
Hearing heldJul 19, 2017
Decision dateSep 28, 2017Proposed summary disposition in Applicant’s favor on September 13, 2017.

Cite For

Mitigation of Financial Issues Under Guideline F
Consideration of Whole-person Concept in Security Clearance Decisions
Applicant's Proactive Steps in Resolving Financial Problems

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: granted

The judge found that the applicant had significant financial issues, including unpaid medical debts and a tax obligation, but he demonstrated a proactive approach to resolving these issues. The judge concluded that the applicant's financial concerns were mitigated, leading to a decision in favor of granting the security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	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.	For Applicant	Tax Filing Failure	Unknown	—	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts (e) reasonable, documented basis to dispute the debt (g) arrangements made with the tax authority; in compliance	—
1.b	He owed $717 for the 2012 tax year, which has been paid. $717	For Applicant	Tax Unpaid	Unknown	—	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts (e) reasonable, documented basis to dispute the debt (g) arrangements made with the tax authority; in compliance	—
1.c	The SOR alleges 22 medical debts totaling about $11,000. $11,000	For Applicant	Medical Debt	Unknown	—	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts (e) reasonable, documented basis to dispute the debt (g) arrangements made with the tax authority; in compliance	—
1.d	The SOR alleges 6 miscellaneous delinquent debts totaling about $7,000. $7,000	For Applicant	Unspecified Financial	Unknown	—	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts (e) reasonable, documented basis to dispute the debt (g) arrangements made with the tax authority; in compliance	—

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.

Decision text, by section

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

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 ______________

DECISION

______________

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

FOOTNOTES

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.