ISCR Case 06-18900.h1

Case Headnote

ISCR Case No. 06-18900.h1

grantedDec 31, 2007· Hon. Roger C. Wesley· hearing

Summary

A 40-year-old office assistant for a defense contractor was granted eligibility for a public trust position despite concerns under Guideline F (Financial Considerations) and Guideline J (Criminal Conduct). The applicant had accumulated over $27,000 in delinquent debts, primarily from medical issues, a 1999 landlord judgment for $1,411, and a $17,000 deficiency balance from a 2001 car repossession. Additionally, she was convicted of DUI and endangerment in January 2000, resulting in probation, $9,381 in restitution, and $2,342.50 in fees. Her probation was reinstated and extended in March 2004 after a violation.

The judge found that the applicant's financial difficulties were largely due to medical issues and limited income. Most of her debts, including the landlord judgment and car deficiency, were deemed time-barred by Arizona's statute of limitations, mitigating their impact. Although she had not sought financial counseling or bankruptcy, she acknowledged past poor judgment and pledged to resolve her debts.

Regarding criminal conduct, the applicant demonstrated compliance with her probation conditions and a commitment to addressing her outstanding restitution obligations. These mitigating factors, combined with the extenuating circumstances surrounding her financial issues, led to the decision to grant her security clearance.

Why the Applicant Prevailed

Applicant established extenuating circumstances related to her financial difficulties, including medical issues and limited income.
Most of the debts were time-barred by Arizona's statute of limitations, reducing their impact on trustworthiness.
Applicant demonstrated compliance with probation conditions and a commitment to addressing her restitution obligations.

Conditions Referenced

Disqualifying

DC 19(a)raisedInability or Unwillingness to Satisfy Debts
DC 19(c)raisedA History of Not Meeting Financial Obligations
DC 31(d)raisedIndividual Is Currently on Parole or Probation
DC 31(e)raisedViolation of Parole or Probation, or Failure to Complete a Court-mandated Rehabilitation Program

Mitigating

MC 20(b)appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person’s Control
MC 32(d)appliedThere Is Evidence of Successful Rehabilitation

Key Rule Quoted

“A decision to grant or continue an Applicant's application for a trustworthiness determination may be made only upon a threshold finding that to do so is clearly consistent with the national interest.”

Procedural Posture

SOR issuedMar 30, 2007
Answer filedApr 17, 2007
Hearing heldNov 1, 2007
Decision dateDec 31, 2007

Cite For

Mitigation of Financial Concerns Under Guideline F Due to Extenuating Circumstances
Successful Rehabilitation in Criminal Conduct Cases Under Guideline J
Impact of Statutes of Limitations on Financial Obligations 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	Applicant has accumulated a number of debts, most of them medical-related.	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly	Claimed Other
1.b	Applicant is indebted to a landlord on an apartment she rented in 1999 from a co-worker on a month-to-month basis for about two months time. This landlord obtained a judgment against her in October 1999 in the sum of $1,411.00. $1,411	For Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly	Claimed Debt Paid in Full
1.c	Applicant's largest debt, by far, is a deficiency balance on a car she purchased in 1999 for about $24,000.00. The car was repossessed in 2001 and reportedly sold at public auction. After being advised by the creditor of a $17,000.00 deficiency balance, she made payment arrangements with the creditor and made one payment before suspending payments altogether. $17,000	For Applicant	Auto Loan Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly	Claimed Other
1.d	Applicant was ordered to pay $9,362.00 in restitution for the damage caused to the rental car (not insured) and $2,342.50 in fees. $9,362	For Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly	Claimed Debt Paid in Full
1.e	Applicant has accumulated numerous delinquent debts that exceed $27,000.00 in total. $27,000	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly	Claimed Other
1.f	Applicant disputes each of the listed medical debts, which she believes should have been discharged long ago by her medical insurance.	For Applicant	Medical Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly	Claimed Other
1.g	Applicant has not been able to make much headway in addressing any of her debts (disputed or otherwise).	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly	Claimed Other
1.h	Applicant's debts appear to have been placed in collection before 2002, and are likely barred by Arizona’s controlling statute of limitations.	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly	Claimed Other
1.i	Applicant has not sought financial counseling or initiated constructive steps (such as petitioning for bankruptcy) to discharge or otherwise resolve her debts.	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly	Claimed Other
1.j	Applicant is currently on probation due to her still outstanding restitution.	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly	Claimed Other
1.k	Applicant acknowledges poor judgment in the past and pledges to do the best she can in resolving her debts.	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly	Claimed Other
1.l	Applicant has a history of delinquent debts that stem mostly from a car repossession, restitution that was court-ordered in connection with an alcohol-related conviction, and medical debts associated with a series of hospitalizations.	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly	Claimed Other

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant has accumulated a number of debts, most of them medical-related.

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Claimed

Other

1.b

Applicant is indebted to a landlord on an apartment she rented in 1999 from a co-worker on a month-to-month basis for about two months time. This landlord obtained a judgment against her in October 1999 in the sum of $1,411.00.

$1,411

For Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Claimed

Debt Paid in Full

1.c

Applicant's largest debt, by far, is a deficiency balance on a car she purchased in 1999 for about $24,000.00. The car was repossessed in 2001 and reportedly sold at public auction. After being advised by the creditor of a $17,000.00 deficiency balance, she made payment arrangements with the creditor and made one payment before suspending payments altogether.

$17,000

For Applicant

Auto Loan Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Claimed

Other

1.d

Applicant was ordered to pay $9,362.00 in restitution for the damage caused to the rental car (not insured) and $2,342.50 in fees.

$9,362

For Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Claimed

Debt Paid in Full

1.e

Applicant has accumulated numerous delinquent debts that exceed $27,000.00 in total.

$27,000

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Claimed

Other

1.f

Applicant disputes each of the listed medical debts, which she believes should have been discharged long ago by her medical insurance.

For Applicant

Medical Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Claimed

Other

1.g

Applicant has not been able to make much headway in addressing any of her debts (disputed or otherwise).

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Claimed

Other

1.h

Applicant's debts appear to have been placed in collection before 2002, and are likely barred by Arizona’s controlling statute of limitations.

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Claimed

Other

1.i

Applicant has not sought financial counseling or initiated constructive steps (such as petitioning for bankruptcy) to discharge or otherwise resolve her debts.

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Claimed

Other

1.j

Applicant is currently on probation due to her still outstanding restitution.

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Claimed

Other

1.k

Applicant acknowledges poor judgment in the past and pledges to do the best she can in resolving her debts.

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Claimed

Other

1.l

Applicant has a history of delinquent debts that stem mostly from a car repossession, restitution that was court-ordered in connection with an alcohol-related conviction, and medical debts associated with a series of hospitalizations.

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Claimed

Other

¶	Allegation	Finding	Offense	Criminal disposition	Response	Disqualifying (¶31)	Mitigating applied (¶32)	Mitigation
2.a	Applicant was arrested for driving under the influence (DUI) and endangerment in January 2000, for which she was convicted, sentenced to probation, and ordered $9,381.00 in restitution and $2,342.50 in fees.	For Applicant	DUI or DWI Criminal	Convicted	Admitted	(d) violation of parole/probation or failure to complete a court program (e) discharge or dismissal from the Armed Forces under less than honorable conditions	(d) evidence of successful rehabilitation (time, restitution, employment, etc.)	Credited Acknowledgment and Remorse
2.b	Applicant was arrested in March 2004 for violating the terms of her probation, for which the court reinstated and extended her probationary period by three years, and ordered her to complete a community service requirement, pay restitution, and attend an alcohol education class.	For Applicant	Probation or Court Order Violation	Convicted	Admitted	(d) violation of parole/probation or failure to complete a court program (e) discharge or dismissal from the Armed Forces under less than honorable conditions	(d) evidence of successful rehabilitation (time, restitution, employment, etc.)	Credited Acknowledgment and Remorse
2.c	Applicant is currently on probation due to her still outstanding restitution.	For Applicant	Probation or Court Order Violation	Conduct No Charge	Admitted	(d) violation of parole/probation or failure to complete a court program (e) discharge or dismissal from the Armed Forces under less than honorable conditions	(d) evidence of successful rehabilitation (time, restitution, employment, etc.)	Credited Acknowledgment and Remorse

Allegation

Finding

Offense

Criminal disposition

Response

Disqualifying (¶31)

Mitigating applied (¶32)

Mitigation

2.a

Applicant was arrested for driving under the influence (DUI) and endangerment in January 2000, for which she was convicted, sentenced to probation, and ordered $9,381.00 in restitution and $2,342.50 in fees.

For Applicant

DUI or DWI Criminal

Convicted

Admitted

(d) violation of parole/probation or failure to complete a court program

(e) discharge or dismissal from the Armed Forces under less than honorable conditions

(d) evidence of successful rehabilitation (time, restitution, employment, etc.)

Credited

Acknowledgment and Remorse

2.b

Applicant was arrested in March 2004 for violating the terms of her probation, for which the court reinstated and extended her probationary period by three years, and ordered her to complete a community service requirement, pay restitution, and attend an alcohol education class.

For Applicant

Probation or Court Order Violation

Convicted

Admitted

(d) violation of parole/probation or failure to complete a court program

(e) discharge or dismissal from the Armed Forces under less than honorable conditions

(d) evidence of successful rehabilitation (time, restitution, employment, etc.)

Credited

Acknowledgment and Remorse

2.c

Applicant is currently on probation due to her still outstanding restitution.

For Applicant

Probation or Court Order Violation

Conduct No Charge

Admitted

(d) violation of parole/probation or failure to complete a court program

(e) discharge or dismissal from the Armed Forces under less than honorable conditions

(d) evidence of successful rehabilitation (time, restitution, employment, etc.)

Credited

Acknowledgment and Remorse

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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

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES