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ISCR Case 16-03384.h1 — CASE

ISCR Case 16-03384.h1granted

Case Headnote

ISCR Case No. 16-03384.h1

grantedJul 14, 2017· Hon. Edward W. Loughran· hearing

Summary

A defense contractor’s security clearance was granted despite initial concerns under Guideline F (Financial Considerations) stemming from various outstanding debts. The Statement of Reasons detailed a $6,080 defaulted student loan, a $4,711 deficiency from an auto loan repossession, and $5,226 owed to apartment complexes due to broken leases. Additionally, the applicant had ten medical debts totaling $2,083 and two telecommunications debts amounting to $948.

The applicant successfully mitigated these concerns by resolving approximately two-thirds of the alleged debts. He provided credible testimony regarding his ongoing efforts to manage his financial situation and presented a viable plan for continued financial responsibility.

The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d), concluding that the applicant's financial issues did not raise doubts about his reliability or trustworthiness. Consequently, the security clearance was granted.

Why the Applicant Prevailed

The applicant resolved about two thirds of the debts alleged in the SOR.
He credibly testified about his ongoing efforts to address his financial problems.
The judge found that the applicant's financial issues did not create doubt about his reliability and trustworthiness.

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 Person's Control.
AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem.
AG ¶ 20(d)appliedThe Person Has Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts.

Key Rule Quoted

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

Procedural Posture

SOR issuedDec 8, 2016
Answer filedJan 17, 2017
Hearing heldJun 30, 2017
Decision dateJul 13, 2017Proposed summary disposition in favor of applicant.

Cite For

Mitigation of Financial Issues Under Guideline F
Significant Action Taken to Resolve Debts
Whole-person Concept in Security Clearance Determinations

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 several financial issues, including a defaulted student loan, an auto loan deficiency, broken lease debts, medical debts, and telecommunications debts. However, the applicant demonstrated significant efforts to resolve these debts, leading the judge to conclude that the financial concerns were mitigated and granted the security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	$6,080 defaulted student loan $6,080	For Applicant	Student Loan Debt	Unknown	—	(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	—
1.b	$4,711 owed for the deficiency on an auto loan after the car was repossessed $4,711	For Applicant	Auto Loan Debt	Unknown	—	(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	—
1.c	$5,226 owed to apartment complexes after broken leases $5,226	For Applicant	Unspecified Financial	Unknown	—	(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	—
1.d	ten medical debts totaling $2,083 $2,083	For Applicant	Medical Debt	Unknown	—	(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	—
1.e	two telecommunications debts totaling $948 $948	For Applicant	Utility or Phone Debt	Unknown	—	(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	—

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. 16-03384 ) Applicant for Security Clearance )

For Government: Bryan J. Olmos Esq., Department Counsel For Applicant: Pro se

07/14/2017 ______________

DECISION

______________

LOUGHRAN, Edward W., Administrative Judge:

On December 8, 2016, the Department of Defense (DOD) issued a Statement of Reasons (SOR) to Applicant detailing security concerns under Guideline F, financial considerations.1 Applicant responded to the SOR on January 17, 2017, and requested a hearing before an administrative judge. The case was assigned to me on May 12, 2017. The hearing was held as scheduled on June 30, 2017. On July 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 had periods of unemployment and underemployment. He decided that his best option for correcting his financial issues was to return to school and learn the skills that enabled him to be hired by a defense contractor in March 2014. The Statement of Reasons (SOR) alleges a $6,080 defaulted student loan; $4,711 owed for the deficiency on an auto loan after the car was repossessed; $5,226 owed to apartment complexes after broken leases; ten medical debts totaling $2,083; and two telecommunications debts totaling $948. Since he obtained his current job, he has paid, settled, or otherwise resolved about two thirds of the debts alleged in the SOR. He credibly testified that he will continue his efforts to resolve his financial problems. He still has work to do, but 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), and 20(d).

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.