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ISCR Case 17-00871.h1 — CASE

ISCR Case 17-00871.h1granted

Case Headnote

ISCR Case No. 17-00871.h1

grantedMar 1, 2018· Hon. Nichole L. Noel· hearing

Summary

A long-time security clearance holder was initially flagged under Guideline F (Financial Considerations) due to alleged debts totaling approximately $88,762. The Statement of Reasons specifically cited an $85,328 past-due balance on two mortgage loans from a single creditor, along with other alleged debts totaling about $1,927. These concerns raised disqualifying conditions under Adjudicative Guidelines Paragraphs 19(a) and 19(c).

However, the applicant successfully mitigated these financial concerns. She provided evidence demonstrating that the reported debts were inaccurate, stemming from incorrect credit bureau reporting. The creditor for the mortgage loans confirmed that these accounts were current and not in foreclosure. The remaining alleged debts, totaling $1,927, were also shown to have been paid.

The judge determined that the applicant's financial history did not create doubt regarding her reliability and trustworthiness. Consequently, the security clearance was GRANTED, with mitigating conditions under Adjudicative Guidelines Paragraphs 20(d) and 20(e) being applied.

Why the Applicant Prevailed

The applicant provided evidence that the alleged debts were based on incorrect reporting by the credit bureau.
The creditor confirmed that the mortgage loans were current and not in foreclosure status.
The applicant's financial history did not create doubt about her reliability and trustworthiness.

Conditions Referenced

Disqualifying

AG ¶ 19 (a)raisedInability to Satisfy Debts
AG ¶ 19 (c)raisedHistory of Financial Problems

Mitigating

AG ¶ 20 (d)appliedThe Individual Has Received Counseling for the Problem and Has Made a Good Faith Effort to Repay the Debts.
AG ¶ 20 (e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Debt.

Key Rule Quoted

“The applicant has met her ultimate burden of production and persuasion to show that it is clearly consistent with the national interest to grant her continued eligibility for access to classified information.”

Procedural Posture

SOR issuedMay 1, 2017
Answer filed—
Hearing heldFeb 15, 2018
Decision dateMar 1, 2018

Cite For

Mitigation of Financial Concerns Under Guideline F
Disputing the Legitimacy of Debts
Whole-person Concept in Security Clearance Evaluations

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 had a history of financial problems but provided evidence that mitigated the concerns. The largest debt was incorrectly reported, and the applicant demonstrated that her remaining debts were paid, leading to a decision in her favor.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	The largest remaining debt for $85,328, is the past-due balance on two mortgage loans held by one creditor. $85,328	For Applicant	Mortgage or Home Loan Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts (e) reasonable, documented basis to dispute the debt	Claimed Other
1.b	The remaining alleged debts total approximately $1,927 and have been paid. $1,927	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts (e) reasonable, documented basis to dispute the debt	Documented Debt Paid in Full

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: ) ) ) ISCR Case No. 17-00871 ) Applicant for Security Clearance )

For Government: Robert Blazewick, Esq., Department Counsel For Applicant: Pro se

03/01/2018 ______________

DECISION

______________

NOEL, Nichole, Administrative Judge:

On May 1, 2017, the Department of Defense (DOD) issued a Statement of Reasons (SOR) detailing security concerns under the financial considerations guideline.1 DOD adjudicators were unable to find that it is clearly consistent with the national interest to continue Applicant’s security clearance and recommended that the case be submitted to an administrative judge to determine whether to revoke her security clearance. Applicant timely responded to the SOR and requested a hearing.

The hearing was held on February 15, 2018. After the close of the record, I proposed to the parties that this case was appropriate for a summary disposition in Applicant’s favor. Neither party objected.2 The SOR alleged that Applicant was indebted to six creditors for approximately $88,762. The Government withdrew SOR allegation 1.c ($1,507). The largest remaining debt for $85,328, is the past-due balance on two mortgage loans held by one creditor. According to the May 2016 credit report obtained by the Government, one of the mortgage accounts was 120 days past due and in foreclosure status. Relying on this information, the Government had a good-faith basis for the SOR allegation and established a prima facie case that Applicant exhibited a history of financial problems and an inability to repay her creditors. AG ¶¶ 19 (a) and (c) apply. However, Applicant provided evidence to mitigate the alleged financial concerns. The allegation related to the mortgage loans was based on incorrect reporting by the credit bureau. The creditor confirmed that over the history of the loans, neither has been $88,000 in arrears nor in foreclosure status. Both loans are current and in good standing. The remaining alleged debts total approximately $1,927 and have been paid. AG ¶¶ 20 (d) and (e) apply.

Applicant’s financial history does not create doubt about her current reliability, trustworthiness, good judgment, and ability to protect classified information. I also gave due consideration to the whole-person concept. Applicant has held a security clearance continuously since 1998, without incident. She has met her ultimate burden of production and persuasion to show that it is clearly consistent with the national interest to grant her continued eligibility for access to classified information.

Nichole L. Noel Administrative Judge

FOOTNOTES

1 The DOD acted under Executive Order (EO) 10865, Safeguarding Classified Information within Industry, signed by President Eisenhower on February 20, 1960, as amended; as well as DOD Directive 5220.6, Defense Industrial Personnel Security Clearance Review Program, dated January 2, 1992, as amended (Directive), and the Adjudicative Guidelines for Determining Eligibility for Access to Classified Information, implemented on September 1, 2006.

2 Hearing Exhibit III.