ISCR Case 09-05650.h1

Case Headnote

ISCR Case No. 09-05650.h1

deniedFeb 3, 2011· Hon. Martin H. Mogul· hearing

Summary

A 40-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to multiple overdue debts totaling over $80,000. The Statement of Reasons (SOR) cited specific debts, including one for $6,499, which the applicant admitted but had not resolved, and another for approximately $10,000 related to a foreclosed mortgage, which also remained unresolved. While the government did not establish a third cited debt of $6,543 as outstanding, the applicant's overall financial situation raised concerns.

The judge acknowledged that the applicant's financial difficulties stemmed primarily from unemployment and medical issues. However, the denial was based on the finding that the applicant had not demonstrated responsible action in addressing his debts. Disqualifying conditions related to significant overdue debts and a history of not meeting financial obligations were raised.

Although a mitigating condition for financial problems largely beyond the applicant's control was considered, it was not sufficient to overcome the concerns. The applicant failed to provide evidence of responsible financial management or repayment, leading to the conclusion that his financial issues raised doubts about his reliability and trustworthiness. Consequently, the security clearance was denied.

Why the Applicant Was Denied

The applicant has significant overdue debts that have not been resolved or reduced.
The applicant failed to provide evidence of responsible financial management or repayment of debts.
The applicant's financial issues raised concerns about his reliability and trustworthiness.

Conditions Referenced

Disqualifying

AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(b)rejectedConditions Beyond ControlThe applicant did not provide evidence of responsible actions regarding his financial issues.

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.”

Procedural Posture

SOR issuedMar 1, 2010
Answer filedMar 24, 2010Applicant requested decision on written record.
Hearing held—No hearing; decision based on written record.
Decision dateFeb 3, 2011

Cite For

Financial Irresponsibility Under Guideline F
Impact of Unresolved Debts on Security Clearance Eligibility
Whole-person Concept in Security Clearance Evaluations

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	This overdue debt is cited in the SOR in the amount of $6,499. Applicant admitted this debt in his RSOR (Item 2), and claimed that he had been making payments of $25 a month since June 2009, but he stopped payments when he received a claim for this debt from another collection agency. No evidence has been introduced to establish that this debt has been resolved or reduced. I find that this debt has not been paid. $6,499	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	This overdue debt is cited in the SOR in the amount of $6,543. Applicant denied this debt in Item 2, stating that he does not know the status of this debt, nor does he believe the amount stated is the actual amount owed. Applicant discussed this debt on his Response to Interrogatories (Item 7), but it is not clear if it is listed on the credit reports. (Items 5, 6, and 9.) The Government has not established that this debt is still outstanding. $6,543	For Applicant	Unspecified Financial	Denied	—	—	—
1.e	This overdue debt is cited in the SOR on a mortgage account that is past due in the approximate amount of $10,000, for a home in foreclosure with a total loan balance of $238,000. Applicant denied this debt in Item 2, stating that he has not been contacted regarding this debt. He wrote, “As the property has long since foreclosed I have no intentions regarding this debt at this time.” Applicant listed this debt on Item 4, and it is also listed on Item 5. No evidence has been introduced to establish that this debt has been resolved. I find that this debt is still outstanding. $10,000	Against Applicant	Mortgage or Home Loan Debt	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

This overdue debt is cited in the SOR in the amount of $6,499. Applicant admitted this debt in his RSOR (Item 2), and claimed that he had been making payments of $25 a month since June 2009, but he stopped payments when he received a claim for this debt from another collection agency. No evidence has been introduced to establish that this debt has been resolved or reduced. I find that this debt has not been paid.

$6,499

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

This overdue debt is cited in the SOR in the amount of $6,543. Applicant denied this debt in Item 2, stating that he does not know the status of this debt, nor does he believe the amount stated is the actual amount owed. Applicant discussed this debt on his Response to Interrogatories (Item 7), but it is not clear if it is listed on the credit reports. (Items 5, 6, and 9.) The Government has not established that this debt is still outstanding.

$6,543

For Applicant

Unspecified Financial

Denied

—

1.e

This overdue debt is cited in the SOR on a mortgage account that is past due in the approximate amount of $10,000, for a home in foreclosure with a total loan balance of $238,000. Applicant denied this debt in Item 2, stating that he has not been contacted regarding this debt. He wrote, “As the property has long since foreclosed I have no intentions regarding this debt at this time.” Applicant listed this debt on Item 4, and it is also listed on Item 5. No evidence has been introduced to establish that this debt has been resolved. I find that this debt is still outstanding.

$10,000

Against Applicant

Mortgage or Home Loan Debt

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