ISCR Case 15-00529.h1

Case Headnote

ISCR Case No. 15-00529.h1

deniedAug 19, 2016· Hon. Wilford H. Ross· hearing

Summary

A 60-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to approximately $25,525 in unresolved debts. The applicant faced seven specific allegations regarding outstanding financial obligations, including four judgments from 2011 and 2012, and three past-due accounts.

For several debts, the applicant claimed in his Answer to have made payments or resolved the accounts in early 2015, or stated that payments were ongoing. In one instance, he asserted a debt belonged to his wife and was paid in full. However, he provided no supporting documentation or further information to substantiate any of these claims, failing to prove that any of the debts were resolved.

The denial was based on the applicant's failure to provide evidence of debt resolution, financial counseling, or a budget, despite being given the opportunity. This lack of demonstrated financial responsibility led to the conclusion that he posed a potential risk to national security.

Why the Applicant Was Denied

The applicant has unresolved debts totaling approximately $25,525, which he did not prove to be resolved.
The applicant failed to provide evidence of financial counseling or a budget to demonstrate financial responsibility.
The applicant did not submit any documentation to support his claims of debt resolution despite being given the opportunity.

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 Long Ago or InfrequentlyThe applicant's financial difficulties have been ongoing for several years.
AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not provide evidence of responsible actions taken to mitigate his financial issues.
AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not submit evidence of efforts to resolve debts.
AG ¶ 20(c)rejectedClear Indications That the Problem Is Being ResolvedThe applicant's financial situation remains unresolved.

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 issuedAug 17, 2015
Answer filedSep 10, 2015Applicant requested a decision without a hearing.
FORM submittedOct 22, 2015
Decision dateAug 19, 2016

Cite For

Denial of Security Clearance Due to Unresolved Financial Obligations
Failure to Provide Evidence of Financial Responsibility
Impact of Financial Issues on Security Clearance Eligibility

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 denied that he was indebted for a judgment entered against him in 2012 in the amount of $3,531. He stated in his Answer that he had paid this account in February 2015. No further information was provided to support this statement. Applicant did not prove that this debt is resolved. $3,531	Against Applicant	Judgment Against Applicant	Denied	—	—	—
1.b	Applicant admitted that he was indebted for a judgment entered against him in 2011 in the amount of $6,710. He stated in his Answer that he was making payments on this account. No further information was provided to support this statement. Applicant did not prove that this debt is resolved. $6,710	Against Applicant	Judgment Against Applicant	Admitted	—	—	—
1.c	Applicant denied that he was indebted for a judgment entered against him in 2011 in the amount of $2,270. He stated in his Answer that he had paid this account in February 2015. No further information was provided to support this statement. Applicant did not prove that this debt is resolved. $2,270	Against Applicant	Judgment Against Applicant	Denied	—	—	—
1.d	Applicant denied that he was indebted for a judgment entered against him in 2011 in the amount of $5,236. He stated in his Answer that he had paid this account in March 2015. No further information was provided to support this statement. Applicant did not prove that this debt is resolved. $5,236	Against Applicant	Judgment Against Applicant	Denied	—	—	—
1.e	Applicant admitted being indebted to a bank for a past-due account in the amount of $6,071. He stated in his Answer that he was making payments to a collection agent. No further information was provided to support this statement. Applicant did not prove that this debt is resolved. $6,071	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.f	Applicant denied that he was indebted for a past-due account in the amount of $1,677. He stated in his Answer that he had paid this account in February 2015. No further information was provided to support this statement. Applicant did not prove that this debt is resolved. $1,677	Against Applicant	Unspecified Financial	Denied	—	—	—
1.g	Applicant denied that he was indebted for a past-due account in the amount of $40. He stated in his Answer that this was his wife’s account, and that it had been paid in full. No further information was provided to support these statements. Applicant did not prove that this debt is resolved. $40	Against Applicant	Unspecified Financial	Denied	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant denied that he was indebted for a judgment entered against him in 2012 in the amount of $3,531. He stated in his Answer that he had paid this account in February 2015. No further information was provided to support this statement. Applicant did not prove that this debt is resolved.

$3,531

Against Applicant

Judgment Against Applicant

Denied

—

1.b

Applicant admitted that he was indebted for a judgment entered against him in 2011 in the amount of $6,710. He stated in his Answer that he was making payments on this account. No further information was provided to support this statement. Applicant did not prove that this debt is resolved.

$6,710

Against Applicant

Judgment Against Applicant

Admitted

—

1.c

Applicant denied that he was indebted for a judgment entered against him in 2011 in the amount of $2,270. He stated in his Answer that he had paid this account in February 2015. No further information was provided to support this statement. Applicant did not prove that this debt is resolved.

$2,270

Against Applicant

Judgment Against Applicant

Denied

—

1.d

Applicant denied that he was indebted for a judgment entered against him in 2011 in the amount of $5,236. He stated in his Answer that he had paid this account in March 2015. No further information was provided to support this statement. Applicant did not prove that this debt is resolved.

$5,236

Against Applicant

Judgment Against Applicant

Denied

—

1.e

Applicant admitted being indebted to a bank for a past-due account in the amount of $6,071. He stated in his Answer that he was making payments to a collection agent. No further information was provided to support this statement. Applicant did not prove that this debt is resolved.

$6,071

Against Applicant

Unspecified Financial

Admitted

—

1.f

Applicant denied that he was indebted for a past-due account in the amount of $1,677. He stated in his Answer that he had paid this account in February 2015. No further information was provided to support this statement. Applicant did not prove that this debt is resolved.

$1,677

Against Applicant

Unspecified Financial

Denied

—

1.g

Applicant denied that he was indebted for a past-due account in the amount of $40. He stated in his Answer that this was his wife’s account, and that it had been paid in full. No further information was provided to support these statements. Applicant did not prove that this debt is resolved.

$40

Against Applicant

Unspecified Financial

Denied

—

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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