ISCR Case 06-15533.h1

Case Headnote

ISCR Case No. 06-15533.h1

grantedAug 27, 2007· Hon. Philip S. Howe· hearing

Summary

A 47-year-old divorced mother of four, working as a claims processor for a government contractor, was granted a public trust position despite initial concerns under Guidelines E (Personal Conduct), F (Financial Considerations), and J (Criminal Conduct). These concerns stemmed from a history of financial difficulties, including six arrests for issuing worthless checks, multiple bankruptcy filings in 1997, 2002, 2004, and 2005, and an unpaid landlord judgment from 2006. Additionally, a 2005 theft charge from a business, related to a 2004 incident after her employer discharged her, raised questions about her criminal conduct.

The judge found that the applicant successfully mitigated these concerns. She demonstrated a commitment to financial responsibility by consulting a debt counselor and effectively managing her finances following past issues. The judge determined that her previous financial problems were infrequent and occurred under circumstances unlikely to recur, addressing reliability concerns.

Furthermore, the theft charge against the applicant was dismissed, and the judge concluded that the allegations were not substantiated. This, combined with her demonstrated truthfulness during the security clearance process, led to the decision to grant her eligibility for the public trust position.

Why the Applicant Prevailed

The applicant demonstrated a commitment to financial responsibility by consulting with a debt counselor and managing her finances effectively after past issues.
The judge found that the applicant's past financial issues were infrequent and occurred under circumstances unlikely to recur, mitigating concerns about her current reliability.
The theft charge against the applicant was dismissed, and the judge concluded that the allegations were not substantiated, further supporting her trustworthiness.

Conditions Referenced

Disqualifying

FDC 19.araisedInability or Unwillingness to Satisfy Debts
FDC 19.craisedA History of Not Meeting Financial Obligations
FDC 19.draisedDeceptive or Illegal Financial Practices Such as Employee Theft, Check Fraud, and Expense Account Fraud

Mitigating

FMC 20.aappliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good Judgment
FMC 20.bappliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control (e.g., Loss of Employment, a Business Downturn, Unexpected Medical Emergency, or a Death, Divorce or Separation), and the Individual Acted Responsibly Under the Circumstances
FMC 20.cappliedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control

Key Rule Quoted

“An applicant has the ultimate burden of demonstrating that it is clearly consistent with the national interest to grant or continue his trustworthiness determination.”
— Directive ¶ E3.1.15

Procedural Posture

SOR issuedDec 26, 2006
Answer filedJan 22, 2007
Hearing heldJun 27, 2007Applicant requested additional time to submit exhibits.
Decision dateAug 27, 2007

Cite For

Mitigation of Financial Issues Under Guideline F Due to Proactive Financial Management
Dismissal of Theft Charges and Its Impact on Trustworthiness Under Guideline J
Consideration of Personal Circumstances Affecting Financial Conduct Under Guideline E

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

¶	Allegation	Finding	Conduct	Concealed Issue	Response	Disqualifying (¶16)	Mitigating applied (¶17)	Mitigation
2.a–2.d	4 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant		—		—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a–2.d

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

For Applicant

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant has six arrests for issuing or writing worthless checks, that is, checks for which she had insufficient funds to pay them when the merchant to whom she wrote them tried to collect on them.	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations (d) deceptive or illegal financial practices	(b) conditions largely beyond the person’s control; acted responsibly	Documented Financial Counseling
1.b	Applicant filed Chapter 7 bankruptcy in July 1997. She and her husband were discharged in bankruptcy in October 1997.	For Applicant	Bankruptcy Filing	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly	Documented Chapter 7 Bankruptcy
1.c	Applicant filed a new bankruptcy action, a Chapter 13 bankruptcy, on April 13, 2002. Her liabilities at that time were $68,641.09. $68,641	For Applicant	Bankruptcy Filing	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly	Documented Chapter 13 Bankruptcy
1.d	Applicant filed a Chapter 7 bankruptcy action on June 18, 2004, with liabilities of $14,078. The bankruptcy court dismissed this action on November 19, 2004, after Applicant failed to pay the filing fees. $14,078	For Applicant	Bankruptcy Filing	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly	Documented Chapter 7 Bankruptcy
1.e	Applicant again filed a Chapter 7 bankruptcy on April 8, 2005, when her liabilities were $19,150. This bankruptcy case was discharged on July 28, 2005, and her liabilities were eliminated. $19,150	For Applicant	Bankruptcy Filing	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly	Documented Chapter 7 Bankruptcy
1.f	Applicant had not paid rent for several months when she decided to move out. The landlord sued in small claims court for the rent until he rented the apartment again. The settlement amount was $1,297, half to be paid by Applicant and half by her former husband. The amount has not been paid. $1,297	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Financial Counseling
1.g	The landlord obtained a judgment against Applicant in April 2006. While this debt remained unpaid, Applicant was able to find $1,500 to finance the eighth grade trip of her youngest child to Washington, D.C.	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Financial Counseling
1.h	Applicant was charged in 2005 for theft from a business in 2004 after being discharged by her employer.	For Applicant	Judgment Against Applicant	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i–1.l	4 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant			—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant has six arrests for issuing or writing worthless checks, that is, checks for which she had insufficient funds to pay them when the merchant to whom she wrote them tried to collect on them.

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(d) deceptive or illegal financial practices

(b) conditions largely beyond the person’s control; acted responsibly

Documented

Financial Counseling

1.b

Applicant filed Chapter 7 bankruptcy in July 1997. She and her husband were discharged in bankruptcy in October 1997.

For Applicant

Bankruptcy Filing

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

Documented

Chapter 7 Bankruptcy

1.c

Applicant filed a new bankruptcy action, a Chapter 13 bankruptcy, on April 13, 2002. Her liabilities at that time were $68,641.09.

$68,641

For Applicant

Bankruptcy Filing

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

Documented

Chapter 13 Bankruptcy

1.d

Applicant filed a Chapter 7 bankruptcy action on June 18, 2004, with liabilities of $14,078. The bankruptcy court dismissed this action on November 19, 2004, after Applicant failed to pay the filing fees.

$14,078

For Applicant

Bankruptcy Filing

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

Documented

Chapter 7 Bankruptcy

1.e

Applicant again filed a Chapter 7 bankruptcy on April 8, 2005, when her liabilities were $19,150. This bankruptcy case was discharged on July 28, 2005, and her liabilities were eliminated.

$19,150

For Applicant

Bankruptcy Filing

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

Documented

Chapter 7 Bankruptcy

1.f

Applicant had not paid rent for several months when she decided to move out. The landlord sued in small claims court for the rent until he rented the apartment again. The settlement amount was $1,297, half to be paid by Applicant and half by her former husband. The amount has not been paid.

$1,297

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Claimed

Financial Counseling

1.g

The landlord obtained a judgment against Applicant in April 2006. While this debt remained unpaid, Applicant was able to find $1,500 to finance the eighth grade trip of her youngest child to Washington, D.C.

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Claimed

Financial Counseling

1.h

Applicant was charged in 2005 for theft from a business in 2004 after being discharged by her employer.

For Applicant

Judgment Against Applicant

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i–1.l

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

For Applicant

—

¶	Allegation	Finding	Offense	Criminal disposition	Response	Disqualifying (¶31)	Mitigating applied (¶32)	Mitigation
3.a	Applicant has six arrests for issuing or writing worthless checks, that is, checks for which she had insufficient funds to pay them when the merchant to whom she wrote them tried to collect on them.	For Applicant	Theft or Larceny	Conduct No Charge	Admitted	—	—	—

Allegation

Finding

Offense

Criminal disposition

Response

Disqualifying (¶31)

Mitigating applied (¶32)

Mitigation

3.a

Applicant has six arrests for issuing or writing worthless checks, that is, checks for which she had insufficient funds to pay them when the merchant to whom she wrote them tried to collect on them.

For Applicant

Theft or Larceny

Conduct No Charge

Admitted

—

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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

SYNOPSIS

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

CONCLUSION

WHOLE PERSON ANALYSIS

FORMAL FINDINGS

DECISION

FOOTNOTES

APPEARANCES