ISCR Case 15-00934.h1

Case Headnote

ISCR Case No. 15-00934.h1

grantedJan 26, 2017· Hon. Noreen A. Lynch· hearing

Summary

A 50-year-old defense contractor and retired U.S. Air Force member was granted a security clearance despite allegations under Guideline F (Financial Considerations). The applicant faced concerns regarding 17 delinquent debts totaling approximately $16,286, including collection accounts, a cellular bill, education accounts, a cable account, and past-due IRS taxes from 2009 and 2010. Specific allegations included a $3,357 collection account, a $3,258 collection account, a $504 cellular bill from 2010, education collection accounts of $487, $267, and $811, a $403 cable account, and IRS tax debts of $1,869 (2009) and $4,081.05 (2010).

The applicant admitted to the debts but provided evidence of payments and disputes, demonstrating a commitment to resolving his financial issues. His financial difficulties were attributed to circumstances beyond his control, specifically unemployment and his wife's serious health issues.

The judge found that the applicant had mitigated the security concerns by addressing his financial obligations and maintaining a long history of responsible financial behavior. The applicant's significant progress in resolving his debts, coupled with his history of honoring financial obligations, led to the granting of his security clearance.

Why the Applicant Prevailed

The applicant admitted to the debts but provided evidence of payments and disputes, demonstrating a commitment to resolving financial issues.
The applicant's financial difficulties were largely due to circumstances beyond his control, including unemployment and his wife's serious health issues.
The applicant has a long history of honoring his financial obligations and has made significant progress in addressing his 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)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedOct 30, 2015
Answer filed—Timely response requested a decision based on the written record.
Hearing held—No hearing; decision based on written record.
Decision dateJan 26, 2017

Cite For

Mitigation of Financial Issues Under Guideline F Due to Circumstances Beyond Control
Good-faith Efforts to Resolve Debts
Importance of a Long History of Responsible Financial Behavior in Security Clearance Determinations

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 collection account in the amount of $3,357 $3,357	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts (e) reasonable, documented basis to dispute the debt	Documented Debt Paid in Full
1.b	a collection account in the amount of $3,258 $3,258	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts (e) reasonable, documented basis to dispute the debt	Documented Debt Paid in Full
1.c	for a 2010 cellular bill in the amount of $504 $504	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts (e) reasonable, documented basis to dispute the debt	Documented Debt Paid in Full
1.d	for an education collection account in the amount of $487 $487	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts (e) reasonable, documented basis to dispute the debt	Documented Debt Paid in Full
1.e	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—
1.f	for an education account in collection in the amount of $267 $267	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts (e) reasonable, documented basis to dispute the debt	Documented Debt Paid in Full
1.g–1.k	5 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)	For Applicant			—	—	—
1.l	for another education account in the amount of $811 $811	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts (e) reasonable, documented basis to dispute the debt	Documented Debt Paid in Full
1.m	for a cable account in the amount of $403 $403	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts (e) reasonable, documented basis to dispute the debt	Documented Debt Paid in Full
1.n–1.o	2 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)	For Applicant			—	—	—
1.p	for past-due tax (2009) in the amount of $1,869 to the IRS $1,869	For Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts (e) reasonable, documented basis to dispute the debt	Documented Payment Plan with IRS
1.q	for past-due tax (2010) in the amount of $4,081.05 to the IRS $4,081	For Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts (e) reasonable, documented basis to dispute the debt	Documented Payment Plan with IRS

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

a collection account in the amount of $3,357

$3,357

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

(e) reasonable, documented basis to dispute the debt

Documented

Debt Paid in Full

1.b

a collection account in the amount of $3,258

$3,258

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

(e) reasonable, documented basis to dispute the debt

Documented

Debt Paid in Full

1.c

for a 2010 cellular bill in the amount of $504

$504

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

(e) reasonable, documented basis to dispute the debt

Documented

Debt Paid in Full

1.d

for an education collection account in the amount of $487

$487

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

(e) reasonable, documented basis to dispute the debt

Documented

Debt Paid in Full

1.e

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

1.f

for an education account in collection in the amount of $267

$267

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

(e) reasonable, documented basis to dispute the debt

Documented

Debt Paid in Full

1.g–1.k

5 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)

For Applicant

—

1.l

for another education account in the amount of $811

$811

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

(e) reasonable, documented basis to dispute the debt

Documented

Debt Paid in Full

1.m

for a cable account in the amount of $403

$403

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

(e) reasonable, documented basis to dispute the debt

Documented

Debt Paid in Full

1.n–1.o

2 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)

For Applicant

—

1.p

for past-due tax (2009) in the amount of $1,869 to the IRS

$1,869

For Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

(e) reasonable, documented basis to dispute the debt

Documented

Payment Plan with IRS

1.q

for past-due tax (2010) in the amount of $4,081.05 to the IRS

$4,081

For Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

(e) reasonable, documented basis to dispute the debt

Documented

Payment Plan with IRS

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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

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES