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ISCR Case 16-02733.h1 — CASE

ISCR Case 16-02733.h1granted

Case Headnote

ISCR Case No. 16-02733.h1

grantedFeb 14, 2018· Hon. Francisco Mendez· hearing

Summary

This DOHA security clearance decision resulted in a GRANTED outcome for a cleared federal employee under Guideline F (Financial Considerations). The applicant had experienced significant financial difficulties stemming from a failed business and a period of unemployment, which led to bankruptcy and delinquent debts.

Upon securing new employment in 2013, the applicant took proactive and responsible steps to address these issues. These actions included seeking financial counseling and establishing payment plans to resolve outstanding debts. The applicant also self-reported his financial problems, demonstrating a commitment to resolving them.

The judge determined that the applicant's current financial situation no longer presented a security concern. This was supported by recent credit reports showing timely bill payments and a credit score over 700. Mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were applied, leading to the favorable decision.

Why the Applicant Prevailed

The applicant took responsible actions to resolve his financial issues, including obtaining financial counseling and establishing payment plans.
He self-reported his financial problems and demonstrated a commitment to addressing them.
Recent credit reports indicated timely bill payments and a good credit score over 700.

Conditions Referenced

Mitigating

AG ¶ 20(a)appliedThe Behavior Was Not Recent and Was Caused or Exacerbated by Circumstances Beyond the Person's Control.
AG ¶ 20(b)appliedThe Individual Has Received Counseling or Treatment for the Problem.
AG ¶ 20(c)appliedThe Individual Has Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts.
AG ¶ 20(d)appliedThe Individual Has a Track Record of Responsible Financial Behavior.

Key Rule Quoted

“In evaluating the security concern at issue, I considered the applicable disqualifying and mitigating conditions, as well as the whole-person concept.”

Procedural Posture

SOR issuedOct 29, 2016
Answer filed—
Hearing heldDec 14, 2017
Decision dateFeb 14, 2018Judge informed parties of summary disposition.

Cite For

Mitigating Conditions Under Guideline F for Financial Considerations
Importance of Proactive Measures in Resolving Financial Issues
Consideration of Whole-person Concept in Security Clearance Decisions

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's past financial issues were primarily due to circumstances beyond his control, including a failed business and subsequent unemployment. The applicant took responsible actions to resolve his debts, including financial counseling and timely payments, leading to a favorable ruling on all financial allegations.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a–1.c	3 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant			—	—	—

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: ) ) REDACTED ) ISCR Case No. 16-02733 ) ) Applicant for Security Clearance

For Government: Erin P. Thompson, Esq., Department Counsel For Applicant: Pro se

02/14/2018 ______________

Summary Decision ______________

MENDEZ, Francisco, Administrative Judge:

On October 29, 2016, the Department of Defense (DoD) sent Applicant a Statement of Reasons (SOR) alleging security concerns under the financial considerations guideline. Applicant answered the SOR and requested a hearing. A hearing was held on December 14, 2017. Applicant testified and both parties submitted exhibits for the record. Applicant timely submitted additional evidence post-hearing.

On February 12, 2018, after reviewing all the evidence, I informed the parties that the case appeared appropriate for summary disposition in Applicant’s favor. Department Counsel did not object. (Appellate Exhibit I.)

Findings of Fact and Analysis

Applicant started experiencing financial trouble in 2009, when the small business he had opened a few years earlier failed. He was forced to declare bankruptcy to resolve his business-related debt. Before starting the business, Applicant had worked for many years as a cleared federal employee and contractor. He opened a business in the alternate energy field in State A after his wife’s doctors informed them that her medical condition would be helped if they lived in a warmer climate near the ocean. Applicant, like many others during the recession, was unable to attain gainful employment for many years. He worked low-paying jobs (fast food chain restaurants and large retail stores) to pay his bills, including the high premiums for his wife’s medical insurance. He also withdrew money from his 401(k) retirement account to pay for everyday living expenses. He incurred delinquent debt, including tax-related debt.

In 2013, Applicant was hired by his current employer. He immediately began to address and resolve his delinquent debts. He submitted documentation showing that he received financial counseling and hired a certified public accounting firm, which helped him file overdue tax returns and establish payment plans to satisfy his tax debts. He either paid or is paying his debts. He self-reported the information about his financial issues. Recent credit reports reflect that Applicant pays his bills on time. The credit reports also reflect a good credit score (over 700).

Accordingly, the record evidence reflects that Applicant’s past financial problems were caused or exacerbated by matters beyond his control. He provided documentation showing that he took responsible action to resolve his financial issues and, though he is still in the process of regaining his financial footing, his current financial situation does not raise a security concern. Additionally, the evidence reflects a favorable security record and several work and community references commented favorably about Applicant’s reliability, trustworthiness, extensive volunteer work, and overall good character.

In evaluating the security concern at issue, I considered the applicable disqualifying and mitigating conditions, as well as the whole-person concept. Specifically, I find that the mitigating conditions found in the National Security Adjudicative Guidelines ¶¶ 20(a) – 20(d) apply.1

FORMAL FINDINGS

Paragraph 1, Guideline F (Financial Considerations): FOR APPLICANT

Subparagraphs 1.a – 1.c: For Applicant

CONCLUSION

In light of the record evidence, it is clearly consistent with the interests of national security to grant Applicant initial or continued eligibility for access to classified information. Applicant’s request for a security clearance is granted.

____________________ Francisco Mendez Administrative Judge

FOOTNOTES

1 The guidelines became effective on June 8, 2017, through Security Executive Agent Directive 4. The guidelines are incorporated into the current version of DoD Directive 5220.6, Defense Industrial Personnel Security Clearance Review Program, and are publically available on the DOHA website.