ISCR Case 09-04092.h1

Case Headnote

ISCR Case No. 09-04092.h1

grantedJun 15, 2010· Hon. Juan J. Rivera· hearing

Summary

A 47-year-old physical security officer was granted a security clearance despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons detailed several financial issues, including a $139 medical debt from 2004, paid in October 2009, and a $7,000 delinquent debt settled for $4,000 and paid in December 2009. An alleged $92 telephone service debt from 1997 was disputed, with the applicant paying $91 to the original creditor in March 2010 after believing an earlier payment fulfilled his obligation.

A $12,000 debt stemmed from an uninsured car accident in 2006, which the applicant stopped paying after a job suspension. He began making $50 payments towards this debt by his hearing date. Initially, his August 2009 financial statement showed he was overextended, but updated information at the hearing demonstrated a monthly net remainder exceeding $1,000 for him and his wife.

The judge found that the applicant had established and implemented a plan to resolve his financial problems, demonstrating good faith efforts by settling three of the four alleged debts. His financial situation had substantially improved, and he provided evidence of responsible budgeting and debt repayment, leading to the clearance being granted.

Why the Applicant Prevailed

The applicant established a plan to resolve his financial problems and took significant actions to implement it.
He demonstrated good faith efforts in addressing his delinquent debts, settling three of the four debts alleged in the SOR.
The applicant's financial situation improved substantially, and he provided evidence of responsible budgeting and debt repayment.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
AG ¶ 16(c)raisedCredible Adverse Information in Several Adjudicative Issue Areas
AG ¶ 16(e)raisedPersonal Conduct That Creates a Vulnerability to Exploitation

Mitigating

AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem
AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors
AG ¶ 17(c)appliedThe Offense Is so Minor or Occurred Under Unique Circumstances
AG ¶ 17(d)appliedThe Individual Has Acknowledged the Behavior and Taken Positive Steps to Alleviate the Stressors
AG ¶ 17(g)appliedAssociation with Persons Involved in Criminal Activity Has Ceased

Key Rule Quoted

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

Procedural Posture

SOR issuedNov 6, 2009
Answer filedDec 22, 2009Undated answer received by DOHA.
Hearing heldMar 17, 2010Hearing convened as scheduled.
Decision dateJun 15, 2010

Cite For

Mitigation of Financial Considerations Under Guideline F Due to Proactive Debt Resolution Efforts
Application of Personal Conduct Mitigating Conditions for Past Minor Offenses
Importance of Demonstrating a Viable Plan for Financial Stability 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	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–1.b	2 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant			—	—	—
1.c	$139 alleged a collection account for medical services Applicant received in January 2004. He claimed he overlooked the debt. The debt was paid in October 2009 $139	For Applicant	Medical Debt	Denied	—	—	—
1.d	$7,000 concerns a delinquent debt that he settled for $4,000 and paid in December 2009 $7,000	For Applicant	Unspecified Financial	Admitted	—	—	—
1.e	$92 alleged a collection account for telephone services Applicant received in 1997. Applicant paid $245 and believed that payment fulfilled his obligation. Later, he found he still owed $85. He disputed the account and claimed he was told it was removed from his credit report. He was not able find documentary evidence to show the debt was deleted from his credit report. He paid $91 to the original creditor in March 2010 $92	For Applicant	Utility or Phone Debt	Denied	—	—	—
1.f	$12,000 originates from an uninsured car Applicant owned and his wife totaled in an accident. In 2006, he was suspended from his job because of the arrest alleged in SOR ¶ 2.d, and he stopped paying the debt. Applicant elected to start paying his small delinquent debts first and then pay this debt. He contacted the creditor to settle the debt. As of his hearing date, has made three $50 payments towards his debt $12,000	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 (d) good-faith effort to repay or otherwise resolve debts (e) reasonable, documented basis to dispute the debt	—
1.g	based on Applicant’s August 2009 personal financial statement he was financially overextended. At his hearing, Applicant provided updated information showing he and his wife now have a monthly net remainder in excess of $1,000	For Applicant	Unspecified Financial	Denied	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a–1.b

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

For Applicant

—

1.c

$139 alleged a collection account for medical services Applicant received in January 2004. He claimed he overlooked the debt. The debt was paid in October 2009

$139

For Applicant

Medical Debt

Denied

—

1.d

$7,000 concerns a delinquent debt that he settled for $4,000 and paid in December 2009

$7,000

For Applicant

Unspecified Financial

Admitted

—

1.e

$92 alleged a collection account for telephone services Applicant received in 1997. Applicant paid $245 and believed that payment fulfilled his obligation. Later, he found he still owed $85. He disputed the account and claimed he was told it was removed from his credit report. He was not able find documentary evidence to show the debt was deleted from his credit report. He paid $91 to the original creditor in March 2010

$92

For Applicant

Utility or Phone Debt

Denied

—

1.f

$12,000 originates from an uninsured car Applicant owned and his wife totaled in an accident. In 2006, he was suspended from his job because of the arrest alleged in SOR ¶ 2.d, and he stopped paying the debt. Applicant elected to start paying his small delinquent debts first and then pay this debt. He contacted the creditor to settle the debt. As of his hearing date, has made three $50 payments towards his debt

$12,000

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

(d) good-faith effort to repay or otherwise resolve debts

(e) reasonable, documented basis to dispute the debt

—

1.g

based on Applicant’s August 2009 personal financial statement he was financially overextended. At his hearing, Applicant provided updated information showing he and his wife now have a monthly net remainder in excess of $1,000

For Applicant

Unspecified Financial

Denied

—

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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

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES