ISCR Case 16-02686.h1

Case Headnote

ISCR Case No. 16-02686.h1

grantedAug 25, 2017· Hon. Mark W. Harvey· hearing

Summary

A 34-year-old network administrator and U.S. Army Reserve staff sergeant was granted a security clearance despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons (SOR) alleged eight delinquent debts totaling $28,439, including five student loans, a $664 debt, and two medical debts. Additionally, the SOR claimed the applicant omitted these delinquent debts from his June 18, 2015 security clearance application.

The applicant demonstrated financial responsibility by paying three of the alleged debts and entering a payment plan for his student loans. The $664 debt was confirmed by the creditor as paid in full on January 28, 2016, with no outstanding balance. The applicant also stated that the two medical debts were paid.

The judge found that the applicant's financial difficulties were largely due to circumstances beyond his control, specifically unemployment and divorce. His credible belief that his student loans were deferred also mitigated personal conduct concerns. Given these mitigating factors and the applicant's demonstrated efforts to resolve his financial issues, the security clearance was granted.

Why the Applicant Prevailed

The applicant established financial responsibility by paying off some debts and entering a payment plan for student loans.
The applicant's financial issues were largely due to unemployment and divorce, which were beyond his control.
The applicant's credible belief that his student loans were deferred contributed to mitigating personal conduct concerns.

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

Mitigating

AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors

Key Rule Quoted

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

Procedural Posture

SOR issuedJan 3, 2017
Answer filedJan 26, 2017
Hearing heldJun 7, 2017via video teleconference
Decision dateAug 25, 2017

Cite For

Mitigation of Financial Considerations Under AG ¶ 20
Credibility of Applicant's Belief Regarding Student Loan Deferment
Good Faith Efforts in Resolving Delinquent 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	Conduct	Concealed Issue	Response	Disqualifying (¶16)	Mitigating applied (¶17)	Mitigation
2.a	Applicant omitted delinquent debts on his June 18, 2015 Questionnaire for National Security Positions (SF 86) or security clearance application (SCA).	For Applicant	Omission or Failure to DiscloseNOT DELIBERATE	Financial	Denied	—	(b) omission/refusal followed advice of counsel; later cooperated fully	Claimed Explanation of Omission Credible

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant omitted delinquent debts on his June 18, 2015 Questionnaire for National Security Positions (SF 86) or security clearance application (SCA).

For Applicant

Omission or Failure to DiscloseNOT DELIBERATE

Financial

Denied

—

(b) omission/refusal followed advice of counsel; later cooperated fully

Claimed

Explanation of Omission Credible

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	SOR ¶ 1.a alleges five delinquent student loan debts for $9,635; $6,885, $5,372; $421; and $5,166.	For Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full Documented Payment Plan with Creditor Claimed Other
1.b–1.c	2 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)	For Applicant			—	—	—
1.d	SOR ¶ 1.d alleges Applicant owes a delinquent debt for $664. The creditor advised Applicant that the debt was paid in full on January 28, 2016, and the creditor’s records do not show that Applicant owes any debt. $664	For Applicant	Unspecified Financial	Admitted	—	(a) behavior happened long ago / infrequent / unlikely to recur	Documented Debt Paid in Full
1.e–1.f	2 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)	For Applicant			—	—	—
1.g	SOR ¶ 1.g alleges delinquent medical debts for $193 and $103. Applicant said the two debts are paid.	For Applicant	Medical Debt	Admitted	—	—	Claimed Debt Paid in Full
1.h	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

SOR ¶ 1.a alleges five delinquent student loan debts for $9,635; $6,885, $5,372; $421; and $5,166.

For Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

(b) conditions largely beyond the person’s control; acted responsibly

(d) good-faith effort to repay or otherwise resolve debts

Claimed

Debt Paid in Full

Documented

Payment Plan with Creditor

Claimed

Other

1.b–1.c

2 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)

For Applicant

—

1.d

SOR ¶ 1.d alleges Applicant owes a delinquent debt for $664. The creditor advised Applicant that the debt was paid in full on January 28, 2016, and the creditor’s records do not show that Applicant owes any debt.

$664

For Applicant

Unspecified Financial

Admitted

—

(a) behavior happened long ago / infrequent / unlikely to recur

Documented

Debt Paid in Full

1.e–1.f

2 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)

For Applicant

—

1.g

SOR ¶ 1.g alleges delinquent medical debts for $193 and $103. Applicant said the two debts are paid.

For Applicant

Medical Debt

Admitted

—

Claimed

Debt Paid in Full

1.h

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

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Case Profile

Summary

Why the Applicant Prevailed

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

STATEMENT OF CASE

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES