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ISCR Case 15-03656.h1 — CASE

ISCR Case 15-03656.h1granted

Case Headnote

ISCR Case No. 15-03656.h1

grantedMay 3, 2017· Hon. Edward W. Loughran· hearing

Summary

This security clearance decision involved a U.S. military veteran, rated 50% disabled, whose eligibility was initially questioned under Guideline F (Financial Considerations). The Statement of Reasons cited a multitude of delinquent debts, including at least 40 medical accounts, though it also noted that the applicant's student loans were deferred, paid, or otherwise resolved.

The applicant demonstrated substantial efforts to address these financial concerns. He paid or settled a majority of his non-medical debts and a number of his medical debts. The judge applied mitigating conditions, specifically AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d), recognizing these actions.

Ultimately, the clearance was GRANTED. The decision highlighted the applicant's significant actions to resolve his financial problems and his credible testimony regarding ongoing debt management. The judge concluded that the financial issues did not impact the applicant's reliability or trustworthiness.

Why the Applicant Prevailed

The applicant took significant action to resolve his financial problems.
He credibly testified about his ongoing efforts to manage his debts.
The judge found that the applicant's financial issues did not affect his reliability or trustworthiness.

Conditions Referenced

Mitigating

AG ¶ 20(b)appliedThe Individual Has Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts.
AG ¶ 20(c)appliedThe Conditions That Resulted in the Financial Problems Were Largely Beyond the Person's Control.
AG ¶ 20(d)appliedThe Individual Has Received or Is Receiving Counseling for the Financial Problems.

Key Rule Quoted

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

Procedural Posture

SOR issuedMay 12, 2016
Answer filedJun 7, 2016
Hearing heldJan 25, 2017
Decision dateMay 1, 2017Proposed summary disposition in Applicant’s favor.

Cite For

Mitigation of Financial Issues Under Guideline F
Good-faith Efforts to Resolve Debts
Consideration of the Whole-person Concept in Security Clearance Decisions.

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 a history of financial problems, including multiple delinquent debts, but noted that many of these debts were medical in nature. The applicant demonstrated significant efforts to resolve his financial issues, leading to a decision in his favor under Guideline F.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant has a multitude of delinquent debts, including at least 40 medical accounts.	For Applicant	Medical Debt	Unknown	—	(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	—
1.b	Applicant's student loans are deferred, paid, or otherwise resolved.	For Applicant	Unspecified Financial	Unknown	—	(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	—
1.c	Applicant has paid or settled a majority of the non-medical debts and a number of the medical debts.	For Applicant	Unspecified Financial	Unknown	—	(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	—

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

DEPARTMENT OF DEFENSE DEFENSE OFFICE OF HEARINGS AND APPEALS

In the matter of: ) ) ) ISCR Case No. 15-03656 ) Applicant for Security Clearance )

Appearances

For Government: Bryan J. Olmos Esq., Department Counsel For Applicant: Pro se

05/03/2017 ______________

Decision

______________

LOUGHRAN, Edward W., Administrative Judge:

On May 12, 2016, the Department of Defense (DOD) issued a Statement of Reasons (SOR) to Applicant detailing security concerns under Guideline F, financial considerations. The action was taken under Executive Order (EO) 10865, Safeguarding Classified Information within Industry (February 20, 1960), as amended; DOD Directive 5220.6, Defense Industrial Personnel Security Clearance Review Program (January 2, 1992), as amended (Directive); and the adjudicative guidelines (AG) implemented by the DOD on September 1, 2006.

Applicant responded to the SOR on June 7, 2016, and requested a hearing before an administrative judge. The case was assigned to me on December 1, 2016. The hearing was held as scheduled on January 25, 2017. On May 1, 2017, I proposed to the parties that this case was appropriate for a summary disposition in Applicant’s favor. Department Counsel did not object.

Applicant was honorably discharged from the U.S. military in 2002. He is rated as 50% disabled by the Department of Veterans Affairs, but that determination was not granted until October 2015 because of paperwork and other problems. Applicant's finances were adversely affected by medical issues, unemployment, underemployment, and taking care of a large family with special-needs children.

The SOR alleged a multitude of delinquent debts, but there are several duplicate accounts, and at least 40 of the debts are medical accounts. Applicant started paying his debts before the SOR was issued. His student loans are deferred, paid, or otherwise resolved. He paid or settled a majority of the non-medical debts and a number of the medical debts. He credibly testified that he will continue his efforts to resolve his financial problems. He still has work to do, but I am satisfied that he has a plan to resolve his financial problems, and that he has taken significant action to implement that plan. Based on the record evidence as a whole, I conclude that the security concerns are mitigated under the following mitigating conditions: AG ¶¶ 20(b), 20(c), and 20(d).

The concerns over Applicant’s history of 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. I also gave due consideration to the whole-person concept. Accordingly, I conclude that he met his ultimate burden of persuasion to show that it is clearly consistent with the national interest to grant him eligibility for access to classified information. This case is decided for Applicant.

________________________ Edward W. Loughran Administrative Judge