ISCR Case 16-03710.h1

Case Headnote

ISCR Case No. 16-03710.h1

grantedNov 30, 2018· Hon. John Bayard Glendon· hearing

Summary

A 68-year-old federal contractor with a long history of security clearance was granted his clearance despite allegations under Guideline F (Financial Considerations). The Statement of Reasons detailed multiple delinquent debts, including two credit card judgments totaling approximately $16,389, with one judgment for $10,667 entered while the applicant was deployed overseas. Additional allegations included five delinquent credit card accounts in collection totaling $22,618, other delinquent credit card debts, a $453 delinquent cellphone account, a $1,959 home equity loan, three medical bills totaling $485, and a $188 delinquent TV account.

Furthermore, the applicant was cited for failing to file federal and state income tax returns from 2011 through 2015. Disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a), (c), and (f) were raised.

However, the judge applied mitigating conditions under AG ¶ 20(a), (b), and (c), finding that the applicant had taken significant steps to resolve his financial issues. He demonstrated a proactive approach by establishing a structured debt repayment plan and filed all outstanding tax returns in compliance with IRS regulations. Substantial character evidence also supported his reliability and trustworthiness, leading to the security clearance being granted.

Why the Applicant Prevailed

The applicant demonstrated a proactive approach to managing his debts through a structured repayment plan.
He filed his tax returns in compliance with IRS regulations, mitigating concerns about his financial responsibility.
Substantial character evidence supported the applicant's reliability and trustworthiness.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
AG ¶ 19(f)raisedFailure to File . . . or Pay Annual Federal, State, or Local Income Tax as Required

Mitigating

AG ¶ 20(a)appliedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
AG ¶ 20(c)appliedReceived or Is Receiving Financial Counseling From a Legitimate and Credible Source

Key Rule Quoted

“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”

Procedural Posture

SOR issuedJan 25, 2017
Answer filedMar 22, 2017
Hearing heldAug 8, 2018
Decision dateNov 30, 2018

Cite For

Mitigating Conditions Under Guideline F for Financial Considerations
Proactive Debt Management and Compliance with Tax Obligations
Character Evidence Supporting Reliability and Trustworthiness

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	two judgments on delinquent credit-card accounts with a total indebtedness of about $16,389. The January 2014 judgment in the amount of $5,722 was obtained by a law firm that represented Applicant in his prior DOHA security clearance proceeding. $5,722	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur	Documented Debt Paid in Full
1.b	a judgment against Applicant in the amount of $10,667. It was entered when Applicant was deployed overseas. $10,667	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur	Documented Debt Paid in Full
1.c	five delinquent credit-card accounts in collection with a total balance of $22,618. The circumstances surrounding the credit-card collection account alleged in SOR ¶ 1.c for $7,602 is factually similar to those underlying the judgment on the credit-card account alleged in SOR ¶ 1.b. $7,602	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur	Claimed Debt Paid in Full
1.d	delinquent credit card-$6,025 arose for the same reason and are being paid in the same manner. $6,025	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur	Claimed Debt Paid in Full
1.e	delinquent credit card-$3,895 arose for the same reason and are being paid in the same manner. $3,895	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur	Claimed Debt Paid in Full
1.f	delinquent cellphone account in collection with a balance of $453. This debt arose in 2015 when Applicant terminated his account with one cellphone service provider to switch to another with cheaper international rates. $453	For Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur	Claimed Debt Paid in Full
1.g	delinquent credit card-$3,137 arose for the same reason and are being paid in the same manner. $3,137	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur	Claimed Debt Paid in Full
1.h	home equity loan-$1,959 arose for the same reason and are being paid in the same manner. $1,959	For Applicant	Mortgage or Home Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur	Claimed Debt Paid in Full
1.i	three medical bills in collection with a total balance of $485. Applicant was unaware of these three outstanding bills for medical co-payments that should have been paid by his secondary insurance. $485	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur	Claimed Debt Paid in Full
1.j	delinquent TV account in collection with a balance of $188. In 2010, Applicant terminated a TV account with a provider when he sold his home. $188	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur	Documented Debt Paid in Full
1.k–1.l	2 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)	For Applicant			—	—	—
1.m	failure to file federal and state income tax returns during tax years 2011 through 2015.	For Applicant	Tax Filing Failure	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur	Claimed Other

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

two judgments on delinquent credit-card accounts with a total indebtedness of about $16,389. The January 2014 judgment in the amount of $5,722 was obtained by a law firm that represented Applicant in his prior DOHA security clearance proceeding.

$5,722

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

Documented

Debt Paid in Full

1.b

a judgment against Applicant in the amount of $10,667. It was entered when Applicant was deployed overseas.

$10,667

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

Documented

Debt Paid in Full

1.c

five delinquent credit-card accounts in collection with a total balance of $22,618. The circumstances surrounding the credit-card collection account alleged in SOR ¶ 1.c for $7,602 is factually similar to those underlying the judgment on the credit-card account alleged in SOR ¶ 1.b.

$7,602

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

Claimed

Debt Paid in Full

1.d

delinquent credit card-$6,025 arose for the same reason and are being paid in the same manner.

$6,025

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

Claimed

Debt Paid in Full

1.e

delinquent credit card-$3,895 arose for the same reason and are being paid in the same manner.

$3,895

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

Claimed

Debt Paid in Full

1.f

delinquent cellphone account in collection with a balance of $453. This debt arose in 2015 when Applicant terminated his account with one cellphone service provider to switch to another with cheaper international rates.

$453

For Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

Claimed

Debt Paid in Full

1.g

delinquent credit card-$3,137 arose for the same reason and are being paid in the same manner.

$3,137

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

Claimed

Debt Paid in Full

1.h

home equity loan-$1,959 arose for the same reason and are being paid in the same manner.

$1,959

For Applicant

Mortgage or Home Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

Claimed

Debt Paid in Full

1.i

three medical bills in collection with a total balance of $485. Applicant was unaware of these three outstanding bills for medical co-payments that should have been paid by his secondary insurance.

$485

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

Claimed

Debt Paid in Full

1.j

delinquent TV account in collection with a balance of $188. In 2010, Applicant terminated a TV account with a provider when he sold his home.

$188

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

Documented

Debt Paid in Full

1.k–1.l

2 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)

For Applicant

—

1.m

failure to file federal and state income tax returns during tax years 2011 through 2015.

For Applicant

Tax Filing Failure

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

Claimed

Other

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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

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES