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ISCR Case 17-01063.h1 — CASE

ISCR Case 17-01063.h1granted

Case Headnote

ISCR Case No. 17-01063.h1

grantedAug 11, 2017· Hon. Edward W. Loughran· hearing

Summary

This security clearance decision involved a former U.S. military member whose eligibility was initially questioned under Guideline F (Financial Considerations). The Statement of Reasons cited a history of financial problems, including periods of unemployment and underemployment following her military discharge, and the financial strain of a costly child custody battle.

However, the applicant demonstrated substantial mitigating factors. She had actively paid, settled, or otherwise resolved a number of the debts outlined in the Statement of Reasons. Furthermore, she provided credible testimony regarding her ongoing plan to manage her remaining financial obligations.

Ultimately, the judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), and AG ¶ 20(d), concluding that the applicant's financial issues did not undermine her reliability or trustworthiness. Based on her significant efforts to resolve her debts and her credible plan for future financial stability, the applicant was granted her security clearance.

Why the Applicant Prevailed

The applicant demonstrated significant efforts to resolve her financial debts.
She provided credible testimony about her plan to continue addressing her financial issues.
The judge found that her financial problems did not create doubt about her 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 Applicant's Control.
AG ¶ 20(d)appliedThe Applicant 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 issuedMay 2, 2017
Answer filedMay 30, 2017
Hearing heldJul 20, 2017
Decision dateAug 11, 2017Proposed summary disposition in favor of applicant.

Cite For

Mitigation of Financial Issues Under Guideline F
Whole-person Concept in Security Clearance Decisions
Good-faith Efforts to Resolve 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 a history of financial problems but had taken significant steps to resolve them. The judge concluded that the security concerns were mitigated and granted the applicant's request for a security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant has a history of financial problems.	For Applicant	Unspecified Financial	Unknown	—	(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	—
1.b	Applicant has periods of unemployment and underemployment after her discharge.	For Applicant	Unspecified Financial	Unknown	—	(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	—
1.c	Applicant was involved in a costly custody battle for her child.	For Applicant	Unspecified Financial	Unknown	—	(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	—
1.d	Applicant has paid, settled, or otherwise resolved a number of the debts in the Statement of Reasons.	For Applicant	Unspecified Financial	Unknown	—	(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	—

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. 17-01063 ) Applicant for Security Clearance )

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

08/11/2017 ______________

DECISION

______________

LOUGHRAN, Edward W., Administrative Judge:

On May 2, 2017, 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 May 30, 2017, and requested a hearing before an administrative judge. The case was assigned to me on July 10, 2017. The hearing was held as scheduled on July 20, 2017. On August 1, 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 2008 to 2013. She had periods of unemployment and underemployment after her discharge. She was also involved in a costly custody battle for her child. Since she obtained her current job in March 2016, she has paid, settled, or otherwise resolved a number of the debts in the Statement of Reasons. She credibly testified that she will continue her efforts to resolve her financial problems. She still has work to do, but I am satisfied that she has a plan to resolve her financial problems, and that she 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), and 20(d).

The concerns over Applicant’s history of financial problems do not create doubt about her 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 she met her ultimate burden of persuasion to show that it is clearly consistent with the national interest to grant her 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.