ISCR Case 17-01409.h1

Case Headnote

ISCR Case No. 17-01409.h1

deniedAug 1, 2018· Hon. Richard A. Cefola· hearing

Summary

A 48-year-old defense contractor and retired Army Staff Sergeant was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved past-due debts. The applicant admitted to owing over $12,000 in various debts, including approximately $10,339 from an automobile repossession, about $2,116 to Creditor B, roughly $463 to Creditor D, and around $353 to Creditor E. Additionally, the applicant acknowledged delinquent state income taxes totaling approximately $32,130, and other past-due amounts to Creditor G (about $2,035), Creditor H (about $922 for medical debts), and Creditor I (about $594).

Disqualifying conditions were raised, citing a history of not meeting financial obligations, an inability or unwillingness to satisfy debts, and a pattern of financial irresponsibility. While some mitigating conditions were considered, such as the debts not being recent and some efforts to resolve certain obligations, these were insufficient to overcome the concerns.

The denial was based on the applicant's failure to demonstrate a consistent effort to address all financial obligations. Despite some debts being settled, significant past-due amounts remained unresolved, and the applicant did not provide evidence of efforts to settle multiple admitted debts. This ongoing pattern of financial problems raised doubts about his reliability and trustworthiness, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant has significant past-due debts totaling over $12,000 that remain unresolved.
The applicant did not provide evidence of efforts to settle multiple admitted debts despite having time to do so.
The applicant's financial problems are ongoing, raising doubts about his reliability and trustworthiness.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(f)appliedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those Arrangements
AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not demonstrate a consistent effort to address all debts.
AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's financial issues were not shown to be beyond his control.

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedMay 23, 2017
Answer filedJul 7, 2017
Hearing heldSep 13, 2017
Decision dateAug 1, 2018

Cite For

Evaluation of Financial Considerations Under Guideline F
Impact of Unresolved Debts on Security Clearance Eligibility
Application of the 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.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant admits that he owes a past-due debt to Creditor A, as the result of an automobile repossession, in the amount of about $10,339. $10,339	Against Applicant	Auto Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	Applicant admits that he owed two past-due debts to Creditor B in an amount totaling about $2,116. $2,116	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full
1.c	Applicant admits that he owed two past-due debts to Creditor B in an amount totaling about $2,116. $2,116	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full
1.d	Applicant admits that he owes a past-due debt to Creditor D in the amount of about $463. $463	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	Applicant admits that he owes a past-due debt to Creditor E in the amount of about $353. $353	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	Applicant admits that he owes delinquent state income taxes in the amount of about $32,130. $32,130	For Applicant	Tax Unpaid	Admitted	—	(g) arrangements made with the tax authority; in compliance	Documented Payment Plan with IRS
1.g	Applicant admits that he owed a past-due debt to Creditor G in an amount totaling about $2,035. $2,035	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full
1.h	Applicant admits that he owes two past-due medical debts to Creditor H in an amount totaling about $922. $922	Against Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	Applicant admits that he owed two past-due debts to Creditor I in an amount totaling about $594. $594	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full
1.j	Applicant admits that he owes two past-due medical debts to Creditor H in an amount totaling about $922. $922	Against Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.k	Applicant admits that he owed two past-due debts to Creditor I in an amount totaling about $594. $594	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant admits that he owes a past-due debt to Creditor A, as the result of an automobile repossession, in the amount of about $10,339.

$10,339

Against Applicant

Auto Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

Applicant admits that he owed two past-due debts to Creditor B in an amount totaling about $2,116.

$2,116

For Applicant

Unspecified Financial

Admitted

—

Documented

Debt Paid in Full

1.c

Applicant admits that he owed two past-due debts to Creditor B in an amount totaling about $2,116.

$2,116

For Applicant

Unspecified Financial

Admitted

—

Documented

Debt Paid in Full

1.d

Applicant admits that he owes a past-due debt to Creditor D in the amount of about $463.

$463

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

Applicant admits that he owes a past-due debt to Creditor E in the amount of about $353.

$353

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

Applicant admits that he owes delinquent state income taxes in the amount of about $32,130.

$32,130

For Applicant

Tax Unpaid

Admitted

—

(g) arrangements made with the tax authority; in compliance

Documented

Payment Plan with IRS

1.g

Applicant admits that he owed a past-due debt to Creditor G in an amount totaling about $2,035.

$2,035

For Applicant

Unspecified Financial

Admitted

—

Documented

Debt Paid in Full

1.h

Applicant admits that he owes two past-due medical debts to Creditor H in an amount totaling about $922.

$922

Against Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i

Applicant admits that he owed two past-due debts to Creditor I in an amount totaling about $594.

$594

For Applicant

Unspecified Financial

Admitted

—

Documented

Debt Paid in Full

1.j

Applicant admits that he owes two past-due medical debts to Creditor H in an amount totaling about $922.

$922

Against Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.k

Applicant admits that he owed two past-due debts to Creditor I in an amount totaling about $594.

$594

For Applicant

Unspecified Financial

Admitted

—

Documented

Debt Paid in Full

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Case Profile

Summary

Why the Applicant Was Denied

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