ISCR Case 15-08273.h1

Case Headnote

ISCR Case No. 15-08273.h1

grantedOct 2, 2018· Hon. John Grattan Metz, Jr.· hearing

Summary

A 59-year-old flight test technician, employed by a U.S. defense contractor since 2013, was granted a security clearance despite concerns under Guideline F (Financial Considerations). The applicant admitted to delinquent debts totaling over $11,000, substantiated by government exhibits. One debt, a medical expense, was unknown to him during his April 2015 interview, but he stated he would investigate and pay it, claiming to have done so without providing corroboration.

The applicant's financial challenges began in August 2011 when his home was damaged by a hurricane, leading to disputes with his insurance company over repair costs and slow housing payments. This resulted in him being approximately $38,000 past due on his mortgage. He disclosed this debt on his March 2015 clearance application and had obtained a mortgage modification, making payments since October 2014.

The judge determined that the applicant's financial difficulties were largely due to circumstances beyond his control, including multiple hurricanes and periods of unemployment or underemployment between 2012 and 2013. The applicant demonstrated responsible actions to address these issues, including retaining counsel to file a Chapter 13 bankruptcy reorganization plan and undergoing required credit counseling. Given these good-faith efforts to resolve his financial problems, the security clearance was granted.

Why the Applicant Prevailed

The applicant's financial difficulties were largely due to circumstances beyond his control, including multiple hurricanes and unemployment.
The applicant demonstrated responsible actions to address his financial issues, including obtaining a mortgage modification and filing for Chapter 13 bankruptcy.
The applicant's ongoing efforts to resolve his financial problems constituted a good-faith effort.

Conditions Referenced

Disqualifying

F.19.araisedInability to Satisfy Debts
F.19.braisedUnwillingness to Satisfy Debts
F.19.craisedA History of Not Meeting Financial Obligations

Mitigating

F.20.bappliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control and the Individual Acted Responsibly Under the Circumstances
F.20.cappliedThe Person Has Received or Is Receiving Counseling for the Problem and There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
F.20.dappliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“The Government must prove, by substantial evidence, controverted facts alleged in the SOR. If it does, the burden shifts to applicant to refute, extenuate, or mitigate the Government’s case.”
— Department of the Navy v. Egan, 484 U.S. 518 (1988)

Procedural Posture

SOR issuedJun 15, 2016
Answer filed—
Hearing heldMay 10, 2017
Decision dateOct 2, 2018

Cite For

Mitigating Conditions for Financial Difficulties Under Guideline F
Impact of Circumstances Beyond Control on Financial Considerations
Good-faith Efforts to Resolve Debts in Security Clearance Cases

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant admitted the SOR financial allegations. He is a 59-year-old flight test technician employed by a U.S. defense contractor since October 2013. He worked in a similar position with a different contractor from January-October 2013. He was unemployed or underemployed from May 2012 to January 2013. The SOR alleges, Government exhibits (Items 1-5) substantiate, and Applicant admits two delinquent debts totaling just over $11,000. Applicant was unaware of the SOR 1.a medical debt at the time of his April 2015 subject interview with a Government investigator (GE 2), but stated he would investigate and pay the debt. He claims to have paid the debt, but provided no corroboration.	For Applicant	Medical Debt	Admitted	—	—	—
1.b	Applicant disclosed SOR debt 1.b on his March 2015 clearance application (GE 1). He stated that he had obtained a mortgage modification and had been making payments since about October 2014. Applicant’s tale of woe begins in August 2011, when his home was damaged in a hurricane. From early on, Applicant was in contention with his insurance company about the amount it would pay for repairs. The repair estimates Applicant obtained were far higher than the company was offering. Moreover, the company was slow with housing payments for Applicant’s dislocation, and would not advance any repair payments until a given portion of repairs was completed and inspected. As of the date of the hearing, Applicant estimated that he was about $38,000 past due on his mortgage. He had retained counsel to file a Chapter 13 reorganization plan (AE A), and had undergone the required credit counseling (AE B). $38,000	For Applicant	Mortgage or Home Loan Debt	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant admitted the SOR financial allegations. He is a 59-year-old flight test technician employed by a U.S. defense contractor since October 2013. He worked in a similar position with a different contractor from January-October 2013. He was unemployed or underemployed from May 2012 to January 2013. The SOR alleges, Government exhibits (Items 1-5) substantiate, and Applicant admits two delinquent debts totaling just over $11,000. Applicant was unaware of the SOR 1.a medical debt at the time of his April 2015 subject interview with a Government investigator (GE 2), but stated he would investigate and pay the debt. He claims to have paid the debt, but provided no corroboration.

For Applicant

Medical Debt

Admitted

—

1.b

Applicant disclosed SOR debt 1.b on his March 2015 clearance application (GE 1). He stated that he had obtained a mortgage modification and had been making payments since about October 2014. Applicant’s tale of woe begins in August 2011, when his home was damaged in a hurricane. From early on, Applicant was in contention with his insurance company about the amount it would pay for repairs. The repair estimates Applicant obtained were far higher than the company was offering. Moreover, the company was slow with housing payments for Applicant’s dislocation, and would not advance any repair payments until a given portion of repairs was completed and inspected. As of the date of the hearing, Applicant estimated that he was about $38,000 past due on his mortgage. He had retained counsel to file a Chapter 13 reorganization plan (AE A), and had undergone the required credit counseling (AE B).

$38,000

For Applicant

Mortgage or Home Loan Debt

Admitted

—

Loading case…

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

FINDINGS OF FACT

POLICIES

ANALYSIS

FORMAL FINDINGS

CONCLUSION

FOOTNOTES