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ISCR Case 15-01764.h1 — CASE

ISCR Case 15-01764.h1granted

Case Headnote

ISCR Case No. 15-01764.h1

grantedDec 9, 2016· Hon. Francisco Mendez· hearing

Summary

A security clearance was granted to an applicant, a graduate student and first-time father, despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons cited several financial issues, including delinquent debt incurred while in graduate school in State A, attempts to cover an ex-spouse's expenses in State B, and unauthorized credit purchases made by the ex-wife post-separation. Additionally, the applicant's financial stability was impacted by a period of unemployment and underemployment after earning a master's degree.

However, the judge determined that these concerns were sufficiently mitigated. The applicant provided documentation demonstrating that past-due debts had been addressed and settled. Furthermore, the applicant has consistently repaid student loans for the past four years.

The applicant's current financial situation is stable, with a combined income exceeding $140,000. Based on the evidence of debt resolution, consistent loan repayments, and improved financial stability, the security clearance was granted.

Why the Applicant Prevailed

Applicant provided documentation showing he addressed and settled past-due debts.
He has been consistently repaying his student loans for four years.
The applicant's current financial situation is stable, with a combined income exceeding $140,000.

Conditions Referenced

Mitigating

AG ¶ 20(a)appliedThe Behavior Was Not Recent.
AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problems Were Beyond the Person's Control.
AG ¶ 20(c)notedThe Person Has Received Counseling for the Problem.
AG ¶ 20(d)appliedThe Person Has Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts.
AG ¶ 20(e)appliedThe Person Has a Reasonable Basis for Disputing the Validity of the Debt.

Key Rule Quoted

“I also gave due consideration to the whole-person concept.”

Procedural Posture

SOR issuedSep 21, 2015
Answer filed—
Hearing heldAug 25, 2016mutually agreed date
Decision dateDec 9, 2016

Cite For

Mitigation of Financial Issues Under Guideline F
Whole-person Concept in Security Clearance Evaluations
Evidence of Financial Stability as a Mitigating Factor

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

Standardized Decision Profile

SEAD-4 Guideline F · descriptive summary of a decided case

Posture: Decision on RecordDecided: granted

The judge found that the applicant had incurred delinquent debt while attending graduate school and supporting his ex-wife, which was exacerbated by unemployment. However, the applicant demonstrated that he has addressed and managed his debts effectively, leading to a decision to grant him a security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	incurred delinquent debt while going to graduate school in State A	For Applicant	Unspecified Financial	Admitted	—	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (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	attempting to pay his former spouse’s expenses while she was residing in State B	For Applicant	Unspecified Financial	Admitted	—	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (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	His ex-wife made unauthorized credit purchases using his information after they were legally separated	For Applicant	Unspecified Financial	Admitted	—	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (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	His financial situation was also negatively impacted by a long period of unemployment and underemployment after attaining his master’s degree	For Applicant	Unspecified Financial	Admitted	—	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (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	He has been repaying his student loans on a consistent monthly basis for the past four years	For Applicant	Student Loan Debt	Admitted	—	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts (e) reasonable, documented basis to dispute the debt	Documented Debt Paid in Full

Descriptive standardized rendering of a decided public case (Guideline F). The verbatim source decision is shown in full below.

Full decision

The complete, official text — footnotes and signatures included — is in the original PDF.

Decision text, by section

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

DEPARTMENT OF DEFENSE DEFENSE OFFICE OF HEARINGS AND APPEALS

In the matter of: ) ) REDACTED ) ISCR Case No. 15-01764 ) ) Applicant for Security Clearance

For Government: Daniel F. Crowley, Esq., Department Counsel For Applicant: Pro se

12/09/2016 ______________

DECISION

______________

MENDEZ, Francisco, Administrative Judge:

On September 21, 2015, the Department of Defense (DOD) Consolidated Adjudications Facility (CAF) sent Applicant a Statement of Reasons (SOR) alleging that his circumstances raised security concerns under the financial considerations guideline.1 Applicant answered the SOR and requested a hearing to establish his eligibility for access to classified information.

On August 25, 2016, a date mutually agreed to by the parties, a hearing was held. After receipt of the transcript and the record closed, I provided written notice to the parties of my intent to resolve the case through a summary disposition in Applicant’s favor. Department Counsel indicated that the Government did not object to my proposed resolution of the matter in this fashion. See Appellate Exhibit I.

Applicant mitigated security concerns raised by his past financial problems. He incurred delinquent debt while going to graduate school in State A, and also attempting to pay his former spouse’s expenses while she was residing in State B. His ex-wife made unauthorized credit purchases using his information after they were legally separated. His financial situation was also negatively impacted by a long period of unemployment and underemployment after attaining his master’s degree.

Applicant presented sufficient evidence, including an ample amount of documentation substantiating his testimony that he addressed, paid, settled, or is currently paying his past-due debts (or, a reasonable basis upon which to dispute the accuracy of the debt). Additionally, he has been repaying his student loans on a consistent monthly basis for the past four years. He is now remarried and his current spouse is gainfully employed. Applicant and his wife earn a combined yearly income exceeding $140,000, and he is in line for a job promotion that will earn him an additional $10,000 to $15,000. As a first-time new father, Applicant has taken fiscally prudent steps to manage his finances going forward, including trading in his former car for a used, four-door sedan that is fully paid. After a thorough review of the record evidence, I find that the mitigating conditions listed at AG ¶¶ 20(a) – 20(e) apply.

The security concerns over Applicant’s past financial problems do not create doubt about his current reliability, trustworthiness, good judgment, and ability to protect classified information. In reaching this conclusion, I weighed the evidence as a whole and considered if the favorable evidence outweighed the unfavorable evidence or vice versa. I also gave due consideration to the whole-person concept. Accordingly, I conclude that Applicant met his burden of persuasion to show that it is clearly consistent with the national interest to grant him eligibility for access to classified information. Applicant’s request for a security clearance is granted.

____________________ Francisco Mendez Administrative Judge

FOOTNOTES

1 This action was taken under Executive Order (E.O.) 10865, Safeguarding Classified Information within Industry (February 20, 1960), as amended; Department of Defense Directive 5220.6, Defense Industrial Personnel Security Clearance Review Program (January 2, 1992), as amended (Directive); and the Adjudicative Guidelines (AG) implemented by the Department of Defense on September 1, 2006.