ISCR Case 15-01542.h1

Case Headnote

ISCR Case No. 15-01542.h1

grantedMar 10, 2017· Hon. Robert Robinson Gales· hearing

Summary

A 60-year-old defense contractor employee was granted eligibility for a public trust position despite initial concerns under Guideline F (Financial Considerations). The applicant faced allegations of multiple unpaid and past-due debts, including a bank account with a $27,919 balance, a credit card account for $9,276, and another bank credit card account that resulted in a $5,793 judgment in April 2014. Additionally, a judgment for $1,643 was obtained in October 2012 for another bank account.

Further allegations included unpaid federal income taxes of approximately $6,577 and state income taxes of about $800, both remaining unpaid as of September 27, 2015. The applicant also failed to file federal and state income tax returns for a specific year until no earlier than 2014. These issues were largely attributed to unemployment and the Great Recession.

However, the applicant demonstrated significant mitigating factors. He established repayment plans for outstanding debts and showed consistent efforts to resolve financial issues, reducing 17 identified debts to only five remaining unresolved. Character references and work performance reviews further supported his trustworthiness and reliability, leading to the decision to grant eligibility.

Why the Applicant Prevailed

The applicant established a repayment plan for outstanding debts and demonstrated consistent efforts to resolve financial issues.
The applicant's financial situation showed significant improvement, with only five debts remaining unresolved out of seventeen initially identified.
Character references and work performance reviews supported the applicant's trustworthiness and reliability.

Conditions Referenced

Disqualifying

F.3raisedInability to Satisfy Debts

Mitigating

F.2appliedThe Conditions That Resulted in the Financial Difficulties Were Largely Beyond the Applicant's Control
F.3appliedThe Applicant Has Made a Good Faith Effort to Repay Overdue Creditors
F.4appliedThe Applicant Has Received Financial Counseling

Key Rule Quoted

“The standard that must be met for . . . assignment to sensitive duties is that, based on all available information, the person’s loyalty, reliability, and trustworthiness are such that . . . assigning the person to sensitive duties is clearly consistent with the interests of national security.”
— Regulation ¶ C6.1.1.1.

Procedural Posture

SOR issuedSep 27, 2015
Answer filedOct 26, 2015
Hearing heldMay 16, 2016
Decision dateMar 10, 2017

Cite For

Mitigation of Financial Difficulties Under Guideline F
Good Faith Efforts to Resolve Debts
Impact of External Economic Factors on Financial Stability

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	an unspecified type of bank account, thought to be a line of credit, with an unpaid and past-due balance of $27,919 that was placed for collection $27,919	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	a credit card account with an unpaid and past-due balance of $9,276 that was placed for collection $9,276	For Applicant	Credit Card Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	two snapshots of the same bank credit card account with an unpaid and past-due balance of $3,724, that was initially increased to $4,634 by the credit agent, and eventually to $4,858.84. The collection agent obtained a judgment in the amount of $5,793 in April 2014 $3,724	For Applicant	Credit Card Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	an unspecified type of bank account with a high credit of $1,564 that was placed for collection and a judgment was obtained in the amount of $1,643 in October 2012 $1,564	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.n	failed to pay his federal income taxes in the approximate amount of $6,577, and that as of the date of the SOR (September 27, 2015), the tax debt remained unpaid $6,577	For Applicant	Tax Unpaid	Unknown	(a) inability to satisfy debts (g) unexplained affluence	—	—
1.o	failed to file his federal income tax return for that tax year 'until no earlier than 2014'	For Applicant	Tax Filing Failure	Unknown	(a) inability to satisfy debts (g) unexplained affluence	—	—
1.p	failed to pay his state income taxes in the approximate amount of $800, and that as of the date of the SOR (September 27, 2015), the tax debt remained unpaid $800	For Applicant	Tax Unpaid	Unknown	(a) inability to satisfy debts (g) unexplained affluence	—	—
1.q	failed to file his state income tax return for that tax year 'until no earlier than 2014'	For Applicant	Tax Filing Failure	Unknown	(a) inability to satisfy debts (g) unexplained affluence	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

an unspecified type of bank account, thought to be a line of credit, with an unpaid and past-due balance of $27,919 that was placed for collection

$27,919

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

a credit card account with an unpaid and past-due balance of $9,276 that was placed for collection

$9,276

For Applicant

Credit Card Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

two snapshots of the same bank credit card account with an unpaid and past-due balance of $3,724, that was initially increased to $4,634 by the credit agent, and eventually to $4,858.84. The collection agent obtained a judgment in the amount of $5,793 in April 2014

$3,724

For Applicant

Credit Card Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

an unspecified type of bank account with a high credit of $1,564 that was placed for collection and a judgment was obtained in the amount of $1,643 in October 2012

$1,564

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.n

failed to pay his federal income taxes in the approximate amount of $6,577, and that as of the date of the SOR (September 27, 2015), the tax debt remained unpaid

$6,577

For Applicant

Tax Unpaid

Unknown

(a) inability to satisfy debts

(g) unexplained affluence

—

1.o

failed to file his federal income tax return for that tax year 'until no earlier than 2014'

For Applicant

Tax Filing Failure

Unknown

(a) inability to satisfy debts

(g) unexplained affluence

—

1.p

failed to pay his state income taxes in the approximate amount of $800, and that as of the date of the SOR (September 27, 2015), the tax debt remained unpaid

$800

For Applicant

Tax Unpaid

Unknown

(a) inability to satisfy debts

(g) unexplained affluence

—

1.q

failed to file his state income tax return for that tax year 'until no earlier than 2014'

For Applicant

Tax Filing Failure

Unknown

(a) inability to satisfy debts

(g) unexplained affluence

—

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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