ISCR Case 14-05767.h1

Case Headnote

ISCR Case No. 14-05767.h1

deniedOct 21, 2016· Hon. Wilford H. Ross· hearing

Summary

A 46-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved debts exceeding $18,000. The applicant acknowledged some of these debts, attributing them to job loss and divorce, but failed to provide evidence of responsible financial management or concrete efforts to resolve the outstanding amounts.

The Statement of Reasons detailed nine specific allegations of past-due debts. These included admitted debts ranging from $46 to $10,218, with some attributed to job loss or a divorce settlement. Other debts, including amounts of $604, $112, $4,730, and $94, were either denied or disputed by the applicant, despite evidence supporting their existence. In one instance, the applicant stated, "I will pay," for a $46 debt, but no further action was documented.

Ultimately, the clearance was denied because the applicant's financial difficulties had persisted for several years without resolution, and no evidence was presented to demonstrate a commitment to addressing the outstanding obligations. This raised concerns about the applicant's reliability and trustworthiness.

Why the Applicant Was Denied

The applicant has unresolved debts totaling over $18,000, raising concerns about financial reliability.
The applicant did not provide evidence of responsible financial management or efforts to resolve debts.
The applicant's financial difficulties have persisted for several years without resolution.

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 Unlikely to RecurThe applicant's financial difficulties have been ongoing for several years.
AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlNo evidence was provided showing responsible actions taken regarding debts.
AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsNo evidence of effective action taken to resolve debts was presented.

Key Rule Quoted

“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”
— AG ¶ 18

Procedural Posture

SOR issuedDec 5, 2014
Answer filedJan 12, 2015Applicant requested a decision without a hearing.
Hearing held—Decision made without a hearing.
Decision dateOct 21, 2016

Cite For

Denial of Security Clearance Due to Unresolved Financial Obligations
Impact of Financial Irresponsibility on Security Clearance Eligibility
Lack of Evidence for Mitigating Financial Concerns Under Guideline F

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 admitted that he was indebted to a creditor for a past-due debt in the amount of $46. Applicant went on to state, “I will pay.” No further information was provided. This debt has not been resolved. $46	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.b	Applicant denied that he was indebted to a creditor for a past-due debt in the amount of $604. Support for the existence of this debt is found in Item 6. No further information was provided. This debt is not resolved. $604	Against Applicant	Unspecified Financial	Denied	—	—	—
1.c	Applicant denied that he owed a past-due debt to a collection agent in the amount of $112. He went on to state in Item 2, ‘I don’t know where this account [is] located.” Support for the existence of this debt is found in Item 6. No further information was provided. This debt is not resolved. $112	Against Applicant	Unspecified Financial	Denied	—	—	—
1.d	Applicant admitted that he owed a past-due debt to a collection agent in the amount of $527. No further information was submitted. This debt is not resolved. $527	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.e	Applicant admitted that he owed a past-due debt to a collection agent in the amount of $1,606. He went on to state in Item 2, “did not pay due to lost my job.” No further information was submitted. This debt is not resolved. $1,606	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.f	Applicant denied that he owed a past-due debt to a collection agent in the amount of $4,730. He went on to state in Item 2, ‘I think this is a vehicle repo due to co-sign.” Support for the existence of this debt is found in Item 6, Applicant Exhibit A, and Judge Exhibit I. No further information was provided. This debt is not resolved. $4,730	Against Applicant	Unspecified Financial	Denied	—	—	—
1.g	Applicant denied that he owed a past-due debt in the amount of $94. He went on to state in Item 2, “this account is paid.” (See 1.h, below.) $94	For Applicant	Unspecified Financial	Denied	—	—	—
1.h	Applicant admitted that he owed a past-due debt in the amount of $94 to the same creditor as 1.g. Item 6, Applicant Exhibit A, and Judge Exhibit I show only one account to this creditor, with a past-due balance of $94. Given the state of the record, I find allegation 1.g for Applicant. I also find that the debt in this allegation is not resolved. $94	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.i	Applicant admitted that he owed a collection agent a past-due debt in the amount of $10,218. He went on to state in Item 2, “This was a divorce account of marriage.” No further information was provided. This debt is not resolved. $10,218	Against Applicant	Unspecified Financial	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant admitted that he was indebted to a creditor for a past-due debt in the amount of $46. Applicant went on to state, “I will pay.” No further information was provided. This debt has not been resolved.

$46

Against Applicant

Unspecified Financial

Admitted

—

1.b

Applicant denied that he was indebted to a creditor for a past-due debt in the amount of $604. Support for the existence of this debt is found in Item 6. No further information was provided. This debt is not resolved.

$604

Against Applicant

Unspecified Financial

Denied

—

1.c

Applicant denied that he owed a past-due debt to a collection agent in the amount of $112. He went on to state in Item 2, ‘I don’t know where this account [is] located.” Support for the existence of this debt is found in Item 6. No further information was provided. This debt is not resolved.

$112

Against Applicant

Unspecified Financial

Denied

—

1.d

Applicant admitted that he owed a past-due debt to a collection agent in the amount of $527. No further information was submitted. This debt is not resolved.

$527

Against Applicant

Unspecified Financial

Admitted

—

1.e

Applicant admitted that he owed a past-due debt to a collection agent in the amount of $1,606. He went on to state in Item 2, “did not pay due to lost my job.” No further information was submitted. This debt is not resolved.

$1,606

Against Applicant

Unspecified Financial

Admitted

—

1.f

Applicant denied that he owed a past-due debt to a collection agent in the amount of $4,730. He went on to state in Item 2, ‘I think this is a vehicle repo due to co-sign.” Support for the existence of this debt is found in Item 6, Applicant Exhibit A, and Judge Exhibit I. No further information was provided. This debt is not resolved.

$4,730

Against Applicant

Unspecified Financial

Denied

—

1.g

Applicant denied that he owed a past-due debt in the amount of $94. He went on to state in Item 2, “this account is paid.” (See 1.h, below.)

$94

For Applicant

Unspecified Financial

Denied

—

1.h

Applicant admitted that he owed a past-due debt in the amount of $94 to the same creditor as 1.g. Item 6, Applicant Exhibit A, and Judge Exhibit I show only one account to this creditor, with a past-due balance of $94. Given the state of the record, I find allegation 1.g for Applicant. I also find that the debt in this allegation is not resolved.

$94

Against Applicant

Unspecified Financial

Admitted

—

1.i

Applicant admitted that he owed a collection agent a past-due debt in the amount of $10,218. He went on to state in Item 2, “This was a divorce account of marriage.” No further information was provided. This debt is not resolved.

$10,218

Against Applicant

Unspecified Financial

Admitted

—

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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

FOOTNOTES