ISCR Case 09-05021.h1

Case Headnote

ISCR Case No. 09-05021.h1

grantedDec 29, 2009· Hon. Henry Lazzaro· hearing

Summary

A 31-year-old aircraft structural mechanic and former Marine Corps member was granted a security clearance despite concerns under Guideline F (Financial Considerations). The applicant's financial difficulties, including delinquent accounts, arose primarily after a medical discharge from the Marine Corps, leading to unemployment and medical issues.

The Statement of Reasons detailed several debts. A $14,406 judgment resulted from an automobile accident. Other debts stemmed from a hospitalization. The applicant successfully disputed one debt, with the creditor acknowledging an error regarding unreturned cable equipment. Several allegations were identified as duplicate entries of other listed debts.

To mitigate concerns, the applicant demonstrated substantial progress. He provided verification at the hearing that he had satisfied multiple debts. For another debt, he is currently making $150 monthly payments. The applicant's financial issues were deemed to be largely due to circumstances beyond his control, and he provided evidence of regular payments and successful disputes. Based on these mitigating factors, the security clearance was granted.

Why the Applicant Prevailed

The applicant demonstrated substantial steps taken to resolve delinquent accounts.
The applicant's financial issues were primarily due to circumstances beyond his control, including medical issues and unemployment.
The applicant provided evidence of regular payments and disputes regarding certain debts.

Conditions Referenced

Disqualifying

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

Mitigating

MC 20(a)appliedThe Behavior Occurred Under Such Circumstances That It Is Unlikely to Recur
MC 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
MC 20(c)appliedClear Indications That the Problem Is Being Resolved or Is Under Control
MC 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors
MC 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt

Key Rule Quoted

“The sole purpose of a security clearance decision is to decide if it is clearly consistent with the national interest to grant or continue a security clearance for an applicant.”
— Egan, 484 U.S. at 531

Procedural Posture

SOR issuedAug 10, 2009
Answer filedAug 25, 2009
Hearing heldOct 23, 2009
Decision dateDec 29, 2009

Cite For

Mitigation of Financial Issues Under Guideline F
Impact of Medical Issues on Financial Stability
Evidence of Good-faith Efforts to Resolve Debts

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	The debt listed in SOR subparagraph 1.a is a $14,406 judgment that was entered against Applicant as the result of an automobile accident. $14,306	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 (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	Applicant submitted verification at the hearing that he has satisfied the debts listed in SOR subparagraphs 1.b, 1.c, 1.h, 1.l, and 1.m.	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	Applicant submitted verification at the hearing that he has satisfied the debts listed in SOR subparagraphs 1.b, 1.c, 1.h, 1.l, and 1.m.	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.d	Applicant successfully disputed the debt listed in SOR subparagraph 1.d when the creditor agreed it had erred in claiming that he had failed to return cable television equipment.	For Applicant	Unspecified Financial	Denied	—	—	Documented Debt Disputed with Creditor
1.e	The debts listed in SOR subparagraphs 1.e, 1.f, 1.g all arose from this hospitalization.	For Applicant	Medical Debt	Admitted	—	—	Documented Debt Paid in Full
1.f	The debts listed in SOR subparagraphs 1.e, 1.f, 1.g all arose from this hospitalization.	For Applicant	Medical Debt	Admitted	—	—	Documented Debt Paid in Full
1.g	The debts listed in SOR subparagraphs 1.e, 1.f, 1.g all arose from this hospitalization.	For Applicant	Medical Debt	Admitted	—	—	Documented Debt Paid in Full
1.h	Applicant submitted verification at the hearing that he has satisfied the debts listed in SOR subparagraphs 1.b, 1.c, 1.h, 1.l, and 1.m.	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full
1.i	The debt listed in SOR subparagraph 1.i is a duplicate entry of the debt listed in SOR subparagraph 1.b.	For Applicant	Unspecified Financial	Unknown	—	—	—
1.j	The debts listed in SOR subparagraphs 1.j and 1.k are duplicate entries of the debts alleged in SOR subparagraphs 1.e, 1.f and 1.g.	For Applicant	Unspecified Financial	Unknown	—	—	—
1.k	The debts listed in SOR subparagraphs 1.j and 1.k are duplicate entries of the debts alleged in SOR subparagraphs 1.e, 1.f and 1.g.	For Applicant	Unspecified Financial	Unknown	—	—	—
1.l	Applicant submitted verification at the hearing that he has satisfied the debts listed in SOR subparagraphs 1.b, 1.c, 1.h, 1.l, and 1.m.	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full
1.m	Applicant submitted verification at the hearing that he has satisfied the debts listed in SOR subparagraphs 1.b, 1.c, 1.h, 1.l, and 1.m.	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full
1.n	Applicant is currently making $150 monthly payments to satisfy the debt listed in SOR subparagraph 1.n.	For Applicant	Unspecified Financial	Admitted	—	—	Documented Payment Plan with Creditor

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The debt listed in SOR subparagraph 1.a is a $14,406 judgment that was entered against Applicant as the result of an automobile accident.

$14,306

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

(c) received/receiving counseling; problem being resolved

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

Documented

Debt Paid in Full

1.b

Applicant submitted verification at the hearing that he has satisfied the debts listed in SOR subparagraphs 1.b, 1.c, 1.h, 1.l, and 1.m.

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Debt Paid in Full

1.c

Applicant submitted verification at the hearing that he has satisfied the debts listed in SOR subparagraphs 1.b, 1.c, 1.h, 1.l, and 1.m.

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Debt Paid in Full

1.d

Applicant successfully disputed the debt listed in SOR subparagraph 1.d when the creditor agreed it had erred in claiming that he had failed to return cable television equipment.

For Applicant

Unspecified Financial

Denied

—

Documented

Debt Disputed with Creditor

1.e

The debts listed in SOR subparagraphs 1.e, 1.f, 1.g all arose from this hospitalization.

For Applicant

Medical Debt

Admitted

—

Documented

Debt Paid in Full

1.f

The debts listed in SOR subparagraphs 1.e, 1.f, 1.g all arose from this hospitalization.

For Applicant

Medical Debt

Admitted

—

Documented

Debt Paid in Full

1.g

The debts listed in SOR subparagraphs 1.e, 1.f, 1.g all arose from this hospitalization.

For Applicant

Medical Debt

Admitted

—

Documented

Debt Paid in Full

1.h

Applicant submitted verification at the hearing that he has satisfied the debts listed in SOR subparagraphs 1.b, 1.c, 1.h, 1.l, and 1.m.

For Applicant

Unspecified Financial

Admitted

—

Documented

Debt Paid in Full

1.i

The debt listed in SOR subparagraph 1.i is a duplicate entry of the debt listed in SOR subparagraph 1.b.

For Applicant

Unspecified Financial

Unknown

—

1.j

The debts listed in SOR subparagraphs 1.j and 1.k are duplicate entries of the debts alleged in SOR subparagraphs 1.e, 1.f and 1.g.

For Applicant

Unspecified Financial

Unknown

—

1.k

The debts listed in SOR subparagraphs 1.j and 1.k are duplicate entries of the debts alleged in SOR subparagraphs 1.e, 1.f and 1.g.

For Applicant

Unspecified Financial

Unknown

—

1.l

Applicant submitted verification at the hearing that he has satisfied the debts listed in SOR subparagraphs 1.b, 1.c, 1.h, 1.l, and 1.m.

For Applicant

Unspecified Financial

Admitted

—

Documented

Debt Paid in Full

1.m

Applicant submitted verification at the hearing that he has satisfied the debts listed in SOR subparagraphs 1.b, 1.c, 1.h, 1.l, and 1.m.

For Applicant

Unspecified Financial

Admitted

—

Documented

Debt Paid in Full

1.n

Applicant is currently making $150 monthly payments to satisfy the debt listed in SOR subparagraph 1.n.

For Applicant

Unspecified Financial

Admitted

—

Documented

Payment Plan with Creditor

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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

FORMAL FINDINGS

CONCLUSION

FOOTNOTES