ISCR Case 17-00569.h1

Case Headnote

ISCR Case No. 17-00569.h1

grantedFeb 5, 2018· Hon. Robert Robinson Gales· hearing

Summary

A 47-year-old computer specialist and former U.S. Marine Corps Reserve member was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant's financial difficulties stemmed from job loss and family obligations, leading to several outstanding debts.

Specific allegations included a home mortgage that resulted in foreclosure in 2015, a charged-off home improvement loan with an unpaid balance of $43,581, and a defaulted student loan with an unpaid balance of $34,297. Other debts included a second charged-off home improvement loan for $21,268, two charged-off credit cards with unpaid balances of $10,571 and $2,545 respectively, and a credit card with an unpaid balance of $1,538. Additionally, the applicant had a child support account with a past due balance of $3,753 and a medical account with an unpaid balance of $601.

The clearance was granted because the applicant demonstrated significant progress in addressing his debts, including establishing repayment plans and resolving several accounts. His financial difficulties were largely attributed to circumstances beyond his control, such as job loss and family health issues. The applicant stabilized his finances, avoided further delinquencies, and showed responsible financial behavior by resolving or actively working to resolve most of his debts.

Why the Applicant Prevailed

The applicant made significant progress in stabilizing his finances and avoiding further delinquencies.
Most of the applicant's debts were either resolved or in the process of being resolved, demonstrating responsible financial behavior.
The applicant's financial difficulties were largely due to circumstances beyond his control, such as job loss and family health issues.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(a)appliedBehavior Occurred Long Ago or Infrequently
AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control

Key Rule Quoted

“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
— Department of the Navy v. Egan, 484 U.S. 518, 528 (1988)

Procedural Posture

SOR issuedMar 23, 2017
Answer filedApr 17, 2017Applicant elected for a written record decision.
Hearing held—No hearing; decision based on written record.
Decision dateFeb 5, 2018

Cite For

Mitigation of Financial Concerns Under Guideline F
Impact of Personal Circumstances on Financial Stability
Criteria for Evaluating Financial Responsibility 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	a home mortgage with a high credit of $54,920 that was sold to a mortgage servicing company, and because of an unpaid balance, the house went into foreclosure in 2015.	For Applicant	Mortgage or Home Loan Debt	Admitted	—	—	—
1.b	a home improvement loan from a credit union with a high credit of $52,162 and an unpaid and past due balance of $43,581 that was charged off.	For Applicant	Personal Loan Debt	Admitted	—	—	—
1.c	a student loan with a high credit of $53,164 and an unpaid and past due balance of $34,297 that went into a default status.	For Applicant	Student Loan Debt	Admitted	—	—	—
1.d	a home improvement loan from a credit union with an unpaid and past due balance of $21,268 that was charged off.	For Applicant	Personal Loan Debt	Admitted	—	—	—
1.e	a credit card from a credit union with a $10,000 credit limit and an unpaid and past due balance of $10,571 that was charged off.	For Applicant	Credit Card Debt	Admitted	—	—	—
1.f	a child support account that was purportedly initially past due in the amount of $4,259, but later reduced to $3,753.	For Applicant	Child Support Debt	Admitted	—	—	—
1.g	a bank credit card with a $2,300 credit limit and an unpaid and past due balance of $2,545 that was charged off.	For Applicant	Credit Card Debt	Admitted	—	—	—
1.h	a bank credit card with a $1,500 credit limit and an unpaid balance of $1,538.	For Applicant	Credit Card Debt	Admitted	—	—	—
1.i	a medical account with an unidentified provider with a reported unpaid balance of $601.	For Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

a home mortgage with a high credit of $54,920 that was sold to a mortgage servicing company, and because of an unpaid balance, the house went into foreclosure in 2015.

For Applicant

Mortgage or Home Loan Debt

Admitted

—

1.b

a home improvement loan from a credit union with a high credit of $52,162 and an unpaid and past due balance of $43,581 that was charged off.

For Applicant

Personal Loan Debt

Admitted

—

1.c

a student loan with a high credit of $53,164 and an unpaid and past due balance of $34,297 that went into a default status.

For Applicant

Student Loan Debt

Admitted

—

1.d

a home improvement loan from a credit union with an unpaid and past due balance of $21,268 that was charged off.

For Applicant

Personal Loan Debt

Admitted

—

1.e

a credit card from a credit union with a $10,000 credit limit and an unpaid and past due balance of $10,571 that was charged off.

For Applicant

Credit Card Debt

Admitted

—

1.f

a child support account that was purportedly initially past due in the amount of $4,259, but later reduced to $3,753.

For Applicant

Child Support Debt

Admitted

—

1.g

a bank credit card with a $2,300 credit limit and an unpaid and past due balance of $2,545 that was charged off.

For Applicant

Credit Card Debt

Admitted

—

1.h

a bank credit card with a $1,500 credit limit and an unpaid balance of $1,538.

For Applicant

Credit Card Debt

Admitted

—

1.i

a medical account with an unidentified provider with a reported unpaid balance of $601.

For Applicant

Unspecified Financial

Unknown

—

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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

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES