ISCR Case 09-04512.h1

Case Headnote

ISCR Case No. 09-04512.h1

grantedJun 11, 2010· Hon. Thomas M. Crean· hearing

Summary

A 41-year-old medical benefits representative for a defense contractor was granted eligibility for access to sensitive information despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant faced allegations related to delinquent debts totaling approximately $31,326, including a telephone account, a charged-off loan, multiple credit cards in collection or charged off, a charged-off student loan, two bank accounts, and a mail order account. Additionally, a personal conduct concern arose from incomplete answers on her public trust application regarding her finances.

The judge determined that the applicant's financial difficulties stemmed from circumstances beyond her control, specifically job loss and an economic downturn. The applicant demonstrated a good-faith effort to manage and repay her debts, which mitigated the financial concerns.

Ultimately, the past-due debts were found not to cast doubt on her current reliability, trustworthiness, or good judgment. As a result, the applicant's security clearance was granted.

Why the Applicant Prevailed

The applicant's financial difficulties were caused by circumstances beyond her control, including job loss and economic downturn.
She demonstrated a good-faith effort to repay her debts and manage her finances responsibly.
The applicant's past-due debts did not cast doubt on her current reliability, trustworthiness, and good judgment.

Conditions Referenced

Disqualifying

FC DC ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
FC DC ¶ 19(c)raisedA History of Not Meeting Financial Obligations
PC DC AG ¶ 16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant and Material Facts

Mitigating

FC MC ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
FC MC ¶ 20(b)appliedConditions That Resulted in the Financial Problems Were Largely Beyond the Person’s Control
FC MC ¶ 20(d)appliedThe Individual Has Initiated a Good-faith Effort to Repay the Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

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

Procedural Posture

SOR issuedJan 26, 2010
Answer filedFeb 15, 2010
Hearing heldApr 8, 2010
Decision dateJun 11, 2010

Cite For

Mitigating Conditions for Financial Difficulties Under Guideline F
Considerations for Personal Conduct Related to Omissions in Security Clearance Applications
The Impact of Economic Downturn on Financial Responsibility Assessments

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	Applicant's incomplete answers to a questions on her public trust application concerning her finances raises a potential trustworthiness concern under Personal Conduct Disqualifying Condition (PC DC) AG ¶ 16(a) (the deliberate omission, concealment, or falsification of relevant and material facts from any personnel security questionnaire, personal history, or similar form used to conduct investigations, to determine security eligibility or trustworthiness).	For Applicant	Omission or Failure to DiscloseNOT DELIBERATE	Financial	Denied	(a) deliberate omission, concealment, or falsification on a security form	(b) omission/refusal followed advice of counsel; later cooperated fully	Claimed Explanation of Omission Credible

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant's incomplete answers to a questions on her public trust application concerning her finances raises a potential trustworthiness concern under Personal Conduct Disqualifying Condition (PC DC) AG ¶ 16(a) (the deliberate omission, concealment, or falsification of relevant and material facts from any personnel security questionnaire, personal history, or similar form used to conduct investigations, to determine security eligibility or trustworthiness).

For Applicant

Omission or Failure to DiscloseNOT DELIBERATE

Financial

Denied

(a) deliberate omission, concealment, or falsification on a security form

(b) omission/refusal followed advice of counsel; later cooperated fully

Claimed

Explanation of Omission Credible

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	a telephone account placed for collection for $135 $135	For Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.b	a loan charged off for $8,247 $8,247	For Applicant	Personal Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.c	a credit card in collection for $2,130 $2,130	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.d	another credit card charged off for $2,255 $2,255	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.e	a student loan account charged off for $6,205 $6,205	For Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.f	two accounts to the same bank charged off for $2,338 $2,338	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.g	$5,981 $5,981	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.h	a mail order account charged off for $1,340 $1,340	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.i	another credit card account in collection for $2,693 $2,693	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

a telephone account placed for collection for $135

$135

For Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Claimed

Debt Paid in Full

1.b

a loan charged off for $8,247

$8,247

For Applicant

Personal Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Claimed

Debt Paid in Full

1.c

a credit card in collection for $2,130

$2,130

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Claimed

Debt Paid in Full

1.d

another credit card charged off for $2,255

$2,255

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Claimed

Debt Paid in Full

1.e

a student loan account charged off for $6,205

$6,205

For Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Claimed

Debt Paid in Full

1.f

two accounts to the same bank charged off for $2,338

$2,338

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Claimed

Debt Paid in Full

1.g

$5,981

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Claimed

Debt Paid in Full

1.h

a mail order account charged off for $1,340

$1,340

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Claimed

Debt Paid in Full

1.i

another credit card account in collection for $2,693

$2,693

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Claimed

Debt Paid in Full

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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