ISCR Case 17-03279.h1

Case Headnote

ISCR Case No. 17-03279.h1

deniedJul 1, 2017· Hon. Carol G. Ricciardello· hearing

Summary

A 37-year-old high school graduate employed by a federal contractor was denied a security clearance under Guideline F (Financial Considerations) due to 12 delinquent debts totaling approximately $14,301. The applicant acknowledged three significant apartment-related debts, stating he was establishing payment plans. He was also aware of a $675 charged-off store credit card and a $590 personal loan.

For some smaller debts, the applicant demonstrated limited efforts toward resolution. He provided a money order from February 2018 for $143 toward a $289 cell phone debt and another money order from February 2018 for an $186 insurance debt. He also submitted money orders from February 2018 for two utility debts, one for $211 (last activity August 2016) and another for $89 (last activity November 2015). Additionally, he reported contacting creditors for three older debts—a $260 medical debt (last activity 2010) and two cable debts of $223 (last activity 2011) and $193 (last activity 2013)—and was informed no records existed.

Despite these actions, the applicant failed to provide sufficient evidence of a comprehensive plan to address the larger outstanding debts or demonstrate overall financial stability. The denial was based on the numerous unresolved delinquent debts, which began accumulating in 2010, and the applicant's failure to provide evidence of current income, expenses, or a budget, ultimately casting doubt on his reliability and trustworthiness.

Why the Applicant Was Denied

Applicant has numerous unresolved delinquent debts that began accumulating in 2010.
Applicant did not provide evidence of current income, expenses, or a budget.
Applicant's failure to pay financial obligations casts doubt on his reliability and trustworthiness.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(a)rejectedBehavior Unlikely to RecurApplicant's financial issues are ongoing and not resolved.
AG ¶ 20(b)rejectedConditions Beyond ControlChild support obligations do not constitute circumstances beyond his control.
AG ¶ 20(c)rejectedFinancial CounselingNo evidence of financial counseling was provided.
AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsPayments made after receiving the SOR do not demonstrate a good-faith effort.

Key Rule Quoted

“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”

Procedural Posture

SOR issuedOct 12, 2017
Answer filedNov 7, 2017Applicant elected to proceed without a hearing.
Hearing held—Decided on the written record.
Decision dateJul 2, 2018

Cite For

Failure to Mitigate Financial Obligations Under Guideline F
Impact of Child Support on Financial Stability
Insufficient Evidence of Good-faith Efforts to Resolve Debts

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 stated that the debts in SOR ¶¶ 1.a ($5,429), 1.b ($3,938) and 1.c ($2,218) are owed to apartments he rented. He said he was setting up payment plans to resolve the balances. $5,429	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.b	Applicant stated that the debts in SOR ¶¶ 1.a ($5,429), 1.b ($3,938) and 1.c ($2,218) are owed to apartments he rented. He said he was setting up payment plans to resolve the balances. $3,938	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.c	Applicant stated that the debts in SOR ¶¶ 1.a ($5,429), 1.b ($3,938) and 1.c ($2,218) are owed to apartments he rented. He said he was setting up payment plans to resolve the balances. $2,218	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.d	Applicant told the investigator that he was aware of the debt in SOR ¶ 1.d ($675), which was a store credit card that was charged off. $675	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.e	Applicant provided a copy of a money order from February 2018 for $143 sent to the cell phone creditor in SOR ¶ 1.e ($289). $289	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.f	Applicant provided copies of money orders to the same utility creditor from February 2018 for the debts in SOR ¶¶.1.f ($211-last activity noted on credit report was August 2016) and 1.l ($89-last activity noted on credit report was November 2015). $211	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.g	Applicant also told the investigator that he was aware of the debt in SOR ¶ 1.g ($590), which was a personal loan. $590	For Applicant	Personal Loan Debt	Admitted	—	—	—
1.h	Applicant stated that he contacted the creditors for the debts in SOR ¶¶ 1.h (medical - $260 - last activity on credit report was 2010), 1.i (cable - $223 - last activity on credit report was 2011), and 1.j (cable - $193 - last activity on credit report was 2013) and was told there were no records for the accounts. $260	Against Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.i	Applicant stated that he contacted the creditors for the debts in SOR ¶¶ 1.h (medical - $260 - last activity on credit report was 2010), 1.i (cable - $223 - last activity on credit report was 2011), and 1.j (cable - $193 - last activity on credit report was 2013) and was told there were no records for the accounts. $223	Against Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.j	Applicant stated that he contacted the creditors for the debts in SOR ¶¶ 1.h (medical - $260 - last activity on credit report was 2010), 1.i (cable - $223 - last activity on credit report was 2011), and 1.j (cable - $193 - last activity on credit report was 2013) and was told there were no records for the accounts. $193	Against Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.k	Applicant provided a copy of a money order from February 2018 for the insurance debt in SOR ¶ 1.k ($186). $186	For Applicant	Unspecified Financial	Admitted	—	—	—
1.l	Applicant provided copies of money orders to the same utility creditor from February 2018 for the debts in SOR ¶¶.1.f ($211-last activity noted on credit report was August 2016) and 1.l ($89-last activity noted on credit report was November 2015). $89	For Applicant	Unspecified Financial	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant stated that the debts in SOR ¶¶ 1.a ($5,429), 1.b ($3,938) and 1.c ($2,218) are owed to apartments he rented. He said he was setting up payment plans to resolve the balances.

$5,429

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.b

Applicant stated that the debts in SOR ¶¶ 1.a ($5,429), 1.b ($3,938) and 1.c ($2,218) are owed to apartments he rented. He said he was setting up payment plans to resolve the balances.

$3,938

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.c

Applicant stated that the debts in SOR ¶¶ 1.a ($5,429), 1.b ($3,938) and 1.c ($2,218) are owed to apartments he rented. He said he was setting up payment plans to resolve the balances.

$2,218

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.d

Applicant told the investigator that he was aware of the debt in SOR ¶ 1.d ($675), which was a store credit card that was charged off.

$675

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.e

Applicant provided a copy of a money order from February 2018 for $143 sent to the cell phone creditor in SOR ¶ 1.e ($289).

$289

For Applicant

Utility or Phone Debt

Admitted

—

1.f

Applicant provided copies of money orders to the same utility creditor from February 2018 for the debts in SOR ¶¶.1.f ($211-last activity noted on credit report was August 2016) and 1.l ($89-last activity noted on credit report was November 2015).

$211

For Applicant

Utility or Phone Debt

Admitted

—

1.g

Applicant also told the investigator that he was aware of the debt in SOR ¶ 1.g ($590), which was a personal loan.

$590

For Applicant

Personal Loan Debt

Admitted

—

1.h

Applicant stated that he contacted the creditors for the debts in SOR ¶¶ 1.h (medical - $260 - last activity on credit report was 2010), 1.i (cable - $223 - last activity on credit report was 2011), and 1.j (cable - $193 - last activity on credit report was 2013) and was told there were no records for the accounts.

$260

Against Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.i

$223

Against Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.j

$193

Against Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.k

Applicant provided a copy of a money order from February 2018 for the insurance debt in SOR ¶ 1.k ($186).

$186

For Applicant

Unspecified Financial

Admitted

—

1.l

$89

For Applicant

Unspecified Financial

Admitted

—

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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