ISCR Case 12-11993.h1

Case Headnote

ISCR Case No. 12-11993.h1

deniedAug 10, 2016· Hon. Jennifer I. Goldstein· hearing

Summary

A 58-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to a long history of financial difficulties. The Statement of Reasons (SOR) detailed nine specific financial allegations. These included a federal tax lien from 2011 for $42,186, stemming from unpaid federal income taxes from 2006-2009, which had been reduced to approximately $12,532 under an IRS installment agreement since 2013.

Other allegations included a $142 utility debt from 2014, paid in full in April 2016, and a resolved judgment for a delinquent credit card account totaling $6,416. However, the applicant remained indebted on six other delinquent accounts, ranging from $598 to $16,866, with delinquencies dating back to at least 2009 and 2012.

The denial was based on the applicant's persistent financial instability, with only two of the nine alleged debts fully resolved. The judge determined that the applicant's recent payment efforts were insufficient and did not demonstrate a good-faith commitment to resolving the outstanding debts or responsible financial management.

Why the Applicant Was Denied

Applicant has a long history of financial difficulties, including a federal tax lien and multiple delinquent debts.
Only two of the nine debts listed in the SOR were fully resolved, indicating ongoing financial issues.
The applicant's recent efforts to make payments were deemed insufficient and not indicative of a good-faith effort to resolve debts.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurApplicant's financial problems are ongoing and have not been resolved.
AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlApplicant failed to demonstrate responsible action under the circumstances.
AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the ProblemNo documentation supporting completion of formal financial counseling was provided.
AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsPayments made were minor and not sustainable given the applicant's financial status.
AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtApplicant did not provide evidence of any formal dispute or basis for one.

Key Rule Quoted

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

Procedural Posture

SOR issuedAug 23, 2015
Answer filedFeb 18, 2016
Hearing heldMay 9, 2016Hearing convened as scheduled.
Decision dateAug 10, 2016

Cite For

Denial of Security Clearance Due to Unresolved Financial Obligations
Insufficient Evidence of Financial Responsibility Under Guideline F
Ongoing Financial Difficulties Impacting Security Clearance Eligibility

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 was indebted to a utility company in the amount of $142, as alleged in SOR ¶ 1.a. This debt became delinquent in approximately 2014. Applicant paid this delinquent debt in full on April 15, 2016. This debt is resolved. $142	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.b	Applicant is indebted on a tax lien entered against him in 2011, in the amount of $42,186, as alleged in SOR ¶ 1.b. Applicant failed to file and pay his 2006 through 2009 Federal income taxes in a timely manner. Applicant has had an installment agreement with the IRS since 2013. His balance owed has been reduced to approximately $12,532. Applicant is resolving this debt. $42,186	Against Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	Applicant was indebted on a judgment against him for a delinquent credit card account in the amount of $6,416, as alleged in SOR ¶ 1.c. This debt is resolved. $6,416	For Applicant	Credit Card Debt	Admitted	—	—	—
1.d	Applicant is indebted on a delinquent account in the amount of $16,866, as alleged in SOR ¶ 1.d. This debt has been delinquent since at least 2012. $16,866	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	Applicant is indebted on a delinquent account in the amount of $598, as alleged in SOR ¶ 1.e. This debt has been delinquent since at least 2009. $598	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	Applicant is indebted on a delinquent account in the amount of $702, as alleged in SOR ¶ 1.f. This debt has been delinquent since at least 2012. $702	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	Applicant is indebted on a delinquent account in the amount of $1,708, as alleged in SOR ¶ 1.g. This debt has been delinquent since at least 2012. $1,708	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	Applicant is indebted on a delinquent account in the amount of $1,479, as alleged in SOR ¶ 1.h. This debt has been delinquent since at least 2012. $1,479	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	Applicant is indebted on a delinquent account in the amount of $1,168, as alleged in SOR ¶ 1.i. This debt has been delinquent since at least 2012. $1,168	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant was indebted to a utility company in the amount of $142, as alleged in SOR ¶ 1.a. This debt became delinquent in approximately 2014. Applicant paid this delinquent debt in full on April 15, 2016. This debt is resolved.

$142

For Applicant

Utility or Phone Debt

Admitted

—

1.b

Applicant is indebted on a tax lien entered against him in 2011, in the amount of $42,186, as alleged in SOR ¶ 1.b. Applicant failed to file and pay his 2006 through 2009 Federal income taxes in a timely manner. Applicant has had an installment agreement with the IRS since 2013. His balance owed has been reduced to approximately $12,532. Applicant is resolving this debt.

$42,186

Against Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

Applicant was indebted on a judgment against him for a delinquent credit card account in the amount of $6,416, as alleged in SOR ¶ 1.c. This debt is resolved.

$6,416

For Applicant

Credit Card Debt

Admitted

—

1.d

Applicant is indebted on a delinquent account in the amount of $16,866, as alleged in SOR ¶ 1.d. This debt has been delinquent since at least 2012.

$16,866

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

Applicant is indebted on a delinquent account in the amount of $598, as alleged in SOR ¶ 1.e. This debt has been delinquent since at least 2009.

$598

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

Applicant is indebted on a delinquent account in the amount of $702, as alleged in SOR ¶ 1.f. This debt has been delinquent since at least 2012.

$702

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

Applicant is indebted on a delinquent account in the amount of $1,708, as alleged in SOR ¶ 1.g. This debt has been delinquent since at least 2012.

$1,708

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

Applicant is indebted on a delinquent account in the amount of $1,479, as alleged in SOR ¶ 1.h. This debt has been delinquent since at least 2012.

$1,479

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i

Applicant is indebted on a delinquent account in the amount of $1,168, as alleged in SOR ¶ 1.i. This debt has been delinquent since at least 2012.

$1,168

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

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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