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ISCR Case 16-03620.h1 — CASE

ISCR Case 16-03620.h1granted

Case Headnote

ISCR Case No. 16-03620.h1

grantedMar 29, 2018· Hon. Michael H. Leonard· hearing

Summary

A certified nursing assistant was granted a security clearance despite financial considerations raised under Guideline F. The applicant's financial difficulties stemmed primarily from an unexpected job loss in 2010 due to a reduction-in-force, followed by a substantial period of unemployment. During this time, she relocated across the country to be near family and pursue further education to enhance her career prospects.

To address her indebtedness, the applicant initially sought a debt-management plan in 2017. She is now resolving her financial obligations through a court-approved Chapter 13 bankruptcy payment plan. Additionally, before the Statement of Reasons was issued, she filed past-due federal income tax returns for 2010, 2013, and 2014, and a state income tax return for 2010.

The judge determined that the applicant's financial problems were largely beyond her control and that she demonstrated responsible efforts to resolve her debts. These mitigating factors, including her good-faith attempts to manage her finances and her proactive filing of past-due tax returns, led to the favorable decision to grant the clearance.

Why the Applicant Prevailed

The applicant's financial problems were largely caused by circumstances beyond her control.
She made a good-faith effort to resolve her indebtedness through a debt-management plan and a court-approved Chapter 13 bankruptcy payment plan.
She filed past-due federal and state income tax returns before the SOR was issued.

Conditions Referenced

Mitigating

AG ¶ 20(b)appliedThe Conditions That Resulted in the Applicant's Financial Difficulties Were Largely Beyond Her Control.
AG ¶ 20(d)appliedThe Applicant Acted Responsibly Under the Circumstances.
AG ¶ 20(g)appliedThe Applicant Has Made a Good-faith Effort to Resolve Her Financial Issues.

Key Rule Quoted

“The applicant has met her ultimate burden of persuasion to show that it is clearly consistent with the national interest to grant her eligibility to occupy a position of public trust.”

Procedural Posture

SOR issuedJan 9, 2017
Answer filed—Applicant's answers were mixed with admissions and denials.
Hearing heldJan 31, 2018
Decision dateMar 27, 2018Proposed summary disposition in Applicant’s favor.

Cite For

Mitigating Conditions Under Guideline F for Financial Considerations
Impact of Circumstances Beyond an Applicant's Control on Financial Issues
Good-faith Efforts to Resolve Indebtedness 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.

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 financial issues were primarily due to circumstances beyond her control, including job loss and subsequent unemployment. The applicant demonstrated a good-faith effort to resolve her debts through a Chapter 13 bankruptcy plan and by filing past-due tax returns. Ultimately, the judge concluded that the trustworthiness concerns were mitigated and granted the applicant eligibility for a public trust position.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant had an unexpected job loss due to a reduction-in-force in 2010.	For Applicant	Unspecified Financial	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts (g) arrangements made with the tax authority; in compliance	—
1.b	Applicant was unemployed for a substantial period, during which time she moved across the country to be near family and obtain further education to improve her job prospects.	For Applicant	Unspecified Financial	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts (g) arrangements made with the tax authority; in compliance	—
1.c	Applicant sought to resolve her indebtedness through a debt-management plan in 2017.	For Applicant	Unspecified Financial	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts (g) arrangements made with the tax authority; in compliance	—
1.d	Applicant is now resolving her indebtedness in a more structured way via a court-approved Chapter 13 bankruptcy payment plan.	For Applicant	Bankruptcy Filing	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts (g) arrangements made with the tax authority; in compliance	—
1.e	Applicant filed past-due federal income tax returns for 2010, 2013, and 2014, and a state income tax return for 2010 before the SOR was issued in this case.	For Applicant	Tax Filing Failure	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts (g) arrangements made with the tax authority; in compliance	—

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: ) ) ------------------------------------ ) ADP Case No. 16-03620 ) ) Applicant for Public Trust Position

For Government: Robert B. Blazewick, Esq., Department Counsel For Applicant: Harris S. Ammerman, Esq.

03/29/2018 ______________

DECISION

______________

LEONARD, Michael H., Administrative Judge:

Applicant completed and submitted a Questionnaire for National Security Positions (SF 86 format) on August 17, 2015. She submitted the application to obtain eligibility to occupy a position of public trust for her job responsibilities. Eligibility is necessary because her job involves access to sensitive but unclassified information, such as personally identifiable information (PII) or protected health information (PHI).1

On January 9, 2017, after reviewing the application and the information gathered during a background investigation, the Department of Defense Consolidated Adjudications Facility, Fort Meade, Maryland, sent Applicant a statement of reasons (SOR), which is similar to a complaint, detailing a trustworthiness concern under Guideline F for financial considerations. Applicant timely answered the SOR; her answers were mixed with admissions and denials; and she requested a hearing.

Position (AG), effective June 8, 2017. The case was assigned to me November 9, 2017. The hearing was held as scheduled on January 31, 2018. The hearing transcript was received on February 8, 2018. Applicant timely submitted post-hearing matters on February 23, 2018. Thereafter, on March 27, 2018, I proposed to the parties that this case was appropriate for a summary disposition in Applicant’s favor.2 Both parties had ten days to consider the matter and lodge an objection to a summary disposition, but neither party objected.

The evidence establishes that Applicant’s financial problems were caused by circumstances largely beyond her control. She had an unexpected job loss due to a reduction-in-force in 2010. She was then unemployed for a substantial period, during which time she moved across the country to be near family and obtain further education to improve her job prospects. She qualified as a certified nursing assistant in 2013. She had a series of lower-paying jobs until she relocated to her previous location in 2015. She has since been gainfully employed. She sought to resolve her indebtedness through a debt-management plan in 2017, but with the advice and assistance of her current counsel, she is now resolving her indebtedness in a more structured way via a court-approved Chapter 13 bankruptcy payment plan. She also filed past-due federal income tax returns for 2010, 2013, and 2014, and a state income tax return for 2010 before the SOR was issued in this case.

Applicant presented clear and substantial evidence that the conditions that resulted in her indebtedness were largely beyond her control. Moreover, she acted responsibly under the circumstances by making a good-faith effort to resolve her indebtedness, initially through a debt-management plan and now through a court- approved Chapter 13 payment plan. Based on the evidence as a whole, I conclude that Department Counsel presented sufficient evidence to establish the facts alleged in the SOR under Guideline F. I also conclude that the trustworthiness concerns are resolved under the following mitigating conditions: AG ¶¶ 20(b), (d), and (g). 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 to occupy a position of public trust. This case is decided for Applicant.

Michael H. Leonard Administrative Judge

are no foreseeable appellate issues.

FOOTNOTES

1 This case is adjudicated under Department of Defense Directive 5220.6, Defense Industrial Personnel Security Review Program (Jan. 2, 1992), as amended (Directive); and the National Security Adjudicative Guidelines for Determining Eligibility for Access to Classified Information or Eligibility to Hold a Sensitive 2 A summary disposition is simply a procedural device that allows for a speedy, more streamlined decision when the undisputed evidence justifies a favorable clearance decision for an applicant and there