ISCR Case 06-20728.h1

Case Headnote

ISCR Case No. 06-20728.h1

grantedAug 30, 2007· Hon. Elizabeth M. Matchinski· hearing

Summary

A 57-year-old janitor was granted a security clearance despite concerns under Guideline F (Financial Considerations) related to $9,894.72 in undisputed delinquent debt. The Statement of Reasons detailed several outstanding debts, including medical bills of $54 and $80, a $54 cellular telephone debt, and two charged-off VISA accounts totaling $1,079 and $1,645.26. Additionally, a MasterCard account was charged off for $1,457, and a $6,000 installment loan for a spouse's headstone had a $5,205.72 balance charged off. An automobile loan, initially given to his daughter, became delinquent by $225 before the applicant satisfied the debt.

The judge found that the applicant's financial difficulties were largely attributable to circumstances beyond his control, specifically job layoffs and the unexpected death of his spouse. Although a Chapter 7 bankruptcy was discharged in December 1996, and his 1999 earnings were $13,387, the applicant demonstrated responsible financial behavior by living within his means and maintaining current payments on recent debts.

Given these mitigating factors, the judge determined that the applicant's financial issues did not pose an unacceptable security risk. Consequently, the security clearance was granted.

Why the Applicant Prevailed

The applicant's financial difficulties were largely due to circumstances beyond his control, including job layoffs and the death of his spouse.
The applicant demonstrated responsible financial behavior by living within his means and maintaining current payments on recent 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(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control

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 issuedJan 30, 2007
Answer filedFeb 20, 2007
Hearing heldJun 20, 2007
Decision dateAug 30, 2007

Cite For

Mitigating Circumstances Under Guideline F Due to Job Loss and Personal Tragedy
Financial Responsibility Despite Outstanding Debts
Consideration of Living Within Means 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	A $54 medical debt was placed for collection in or about December 2000 $54	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly	—
1.b	An unpaid medical debt of $80 in collection $80	For Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly	—
1.c	A $54 cellular telephone debt was placed for collection in or about December 2000 $54	For Applicant	Utility or Phone Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	A VISA card account opened in November 1999 with the same lender as the MasterCard account above was charged off in May 2002 in the amount of $1,079 due to nonpayment since sometime in 2000 $1,079	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly	—
1.e	A MasterCard account opened in August 1997 was charged off in the amount of $1,457 in March 2002 after there had been no activity on the account since July 2001 $1,457	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly	—
1.f	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—
1.g	In August 2000, Applicant took out an installment loan of $6,000 to be repaid at $149 per month for five years. The loan was to pay for the headstone on his spouse’s grave. He made no payments after October 2001, and a $5,205.72 debt balance was charged off in May 2002 $5,205	For Applicant	Personal Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly	—
1.h	A VISA card account, opened in November 1999, with a credit limit of $1,500, was charged off in February 2002 in the amount of $1,645.26 $1,645	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly	—
1.i	(Duplicate of 1.h) (low confidence)	For Applicant	Unspecified Financial	Unknown	—	—	—
1.j	The debt in ¶ 1.j is his oldest son’s (low confidence)	For Applicant	Unspecified Financial	Denied	—	—	—
1.k	As of December 2001, Applicant had an automobile loan that was seriously delinquent in the amount of $225. He had given the vehicle to his daughter on her promise that she would pay the remaining balance of the loan. When he learned that she had not paid it and the account had been charged off, he satisfied the debt $225	For Applicant	Auto Loan Debt	Admitted	—	—	—
1.l	Following a Chapter 7 bankruptcy discharge in December 1996	For Applicant	Bankruptcy Filing	Admitted	—	—	—
1.m	Applicant indicated on his security clearance application (e-QIP) that he was consistently employed from August 1997 to October 1999. His earnings for 1999 were only $13,387 (low confidence)	For Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

A $54 medical debt was placed for collection in or about December 2000

$54

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

—

1.b

An unpaid medical debt of $80 in collection

$80

For Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

—

1.c

A $54 cellular telephone debt was placed for collection in or about December 2000

$54

For Applicant

Utility or Phone Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

A VISA card account opened in November 1999 with the same lender as the MasterCard account above was charged off in May 2002 in the amount of $1,079 due to nonpayment since sometime in 2000

$1,079

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

—

1.e

A MasterCard account opened in August 1997 was charged off in the amount of $1,457 in March 2002 after there had been no activity on the account since July 2001

$1,457

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

—

1.f

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

1.g

In August 2000, Applicant took out an installment loan of $6,000 to be repaid at $149 per month for five years. The loan was to pay for the headstone on his spouse’s grave. He made no payments after October 2001, and a $5,205.72 debt balance was charged off in May 2002

$5,205

For Applicant

Personal Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

—

1.h

A VISA card account, opened in November 1999, with a credit limit of $1,500, was charged off in February 2002 in the amount of $1,645.26

$1,645

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

—

1.i

(Duplicate of 1.h) (low confidence)

For Applicant

Unspecified Financial

Unknown

—

1.j

The debt in ¶ 1.j is his oldest son’s (low confidence)

For Applicant

Unspecified Financial

Denied

—

1.k

As of December 2001, Applicant had an automobile loan that was seriously delinquent in the amount of $225. He had given the vehicle to his daughter on her promise that she would pay the remaining balance of the loan. When he learned that she had not paid it and the account had been charged off, he satisfied the debt

$225

For Applicant

Auto Loan Debt

Admitted

—

1.l

Following a Chapter 7 bankruptcy discharge in December 1996

For Applicant

Bankruptcy Filing

Admitted

—

1.m

Applicant indicated on his security clearance application (e-QIP) that he was consistently employed from August 1997 to October 1999. His earnings for 1999 were only $13,387 (low confidence)

For Applicant

Unspecified Financial

Unknown

—

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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

SYNOPSIS

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

CONCLUSION

WHOLE PERSON CONCEPT

FORMAL FINDINGS

DECISION

FOOTNOTES

APPEARANCES