ISCR Case 15-02972.h1

Case Headnote

ISCR Case No. 15-02972.h1

deniedJul 21, 2017· Hon. Shari Dam· hearing

Summary

A 64-year-old retired Army chief warrant officer was denied a security clearance under Guideline F (Financial Considerations) due to a history of delinquent debts totaling over $96,000. These financial difficulties primarily stemmed from issues related to home construction.

The Statement of Reasons detailed nine specific allegations. While the applicant successfully resolved two credit card debts, one for $2,534 and another for $2,476, and claimed his sister-in-law resolved a $5,729 student loan he co-signed, he did not provide documentation for the latter. For several other significant debts, including amounts of $23,015, $18,000, $18,240, and $5,777, the applicant either denied owing them without sufficient evidence of resolution or admitted the debt but failed to provide proof of payment.

Ultimately, the denial was based on the applicant's failure to provide credible evidence of resolving six of the nine alleged debts, which began in 2008. This lack of substantiated resolution and demonstrated financial reliability raised concerns about his judgment and reliability, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant has a history of delinquent debts that began in 2008 and has not provided credible evidence of resolving six of the nine debts alleged in the SOR.
The applicant did not demonstrate a record of financial reliability and responsibility, as he failed to substantiate claims regarding disputed debts.
The applicant's financial issues raise concerns about his judgment and reliability, which are critical for national security eligibility.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability to Satisfy Debts
AG ¶ 19(b)raisedUnwillingness to Satisfy Debts
AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(a)appliedBehavior Occurred Long Ago or InfrequentlyThe applicant's financial issues began in 2008 due to circumstances beyond his control.
AG ¶ 20(d)appliedGood-faith Effort to Resolve DebtsThe applicant successfully resolved some debts.

Key Rule Quoted

“Failure 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 or sensitive information.”
— AG ¶ 18

Procedural Posture

SOR issuedNov 20, 2015
Answer filedMay 5, 2016
Hearing heldJan 18, 2017
Decision dateJul 21, 2017

Cite For

Denial of Security Clearance Due to Unresolved Financial Obligations
Impact of Financial Irresponsibility on National Security Eligibility
Mitigating Conditions Under Guideline F for Financial Considerations

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	In his 2012 SF 86, Applicant disclosed a delinquent debt owed to a credit card company. That debt was subsequently sold to the creditor referenced in this allegation and appears on his July 2012 and December 2014 CBRs. Applicant admitted owing the $23,015 debt to the original creditor and that it was unpaid. He denied owing it to the SOR listed creditor because he could not validate it as the original debt. The debt does not appear on his 2016 credit reports. There is insufficient evidence to conclude that Applicant responsibly resolved this debt. $23,015	Against Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.c	Applicant paid and resolved the $2,534 credit card debt in December 2014. $2,534	For Applicant	Credit Card Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full
1.e	specific text not stated in this decision	Withdrawn	Unspecified Financial	Unknown	—	—	—
1.f	Applicant denied the charged-off credit card debt for about $18,000 because he has no evidence from the current creditor that it is his debt. It does not appear on his 2016 CBRs, but does appear on his December 2014 CBR. There is insufficient evidence to conclude that Applicant responsibly resolved this debt. $18,000	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.g	specific text not stated in this decision	Withdrawn	Unspecified Financial	Unknown	—	—	—
1.h	In his 2012 SF 86, Applicant disclosed a delinquent debt owed to a credit card company. In response to the SOR, he denied owing the alleged $18,240 debt because it does not appear on his 2016 CBRs. However, it appeared on his July 2012 and December 2014 CBRs. There is insufficient evidence from which to conclude that Applicant responsibly resolved this debt. $18,240	Against Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.i	Applicant admitted owing the $5,777 charged-off debt during an interview with a government investigator. He told an investigator that he intended to make payments on it. He testified that it was paid and agreed to submit documentation verifying that. He did not provide any information. The debt is unresolved. $5,777	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.j	Applicant successfully resolved this $2,476 credit card debt. $2,476	For Applicant	Credit Card Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full
1.k	Applicant disclosed this delinquent student loan for $5,729 in his 2012 SF 86. He co-signed it for his sister-in-law and said she resolved it. He did not provide documentation verifying its resolution. It is unresolved. $5,729	Against Applicant	Student Loan Debt	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.l	specific text not stated in this decision	Withdrawn	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

In his 2012 SF 86, Applicant disclosed a delinquent debt owed to a credit card company. That debt was subsequently sold to the creditor referenced in this allegation and appears on his July 2012 and December 2014 CBRs. Applicant admitted owing the $23,015 debt to the original creditor and that it was unpaid. He denied owing it to the SOR listed creditor because he could not validate it as the original debt. The debt does not appear on his 2016 credit reports. There is insufficient evidence to conclude that Applicant responsibly resolved this debt.

$23,015

Against Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.c

Applicant paid and resolved the $2,534 credit card debt in December 2014.

$2,534

For Applicant

Credit Card Debt

Admitted

—

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

Credited

Debt Paid in Full

1.e

specific text not stated in this decision

Withdrawn

Unspecified Financial

Unknown

—

1.f

Applicant denied the charged-off credit card debt for about $18,000 because he has no evidence from the current creditor that it is his debt. It does not appear on his 2016 CBRs, but does appear on his December 2014 CBR. There is insufficient evidence to conclude that Applicant responsibly resolved this debt.

$18,000

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.g

specific text not stated in this decision

Withdrawn

Unspecified Financial

Unknown

—

1.h

In his 2012 SF 86, Applicant disclosed a delinquent debt owed to a credit card company. In response to the SOR, he denied owing the alleged $18,240 debt because it does not appear on his 2016 CBRs. However, it appeared on his July 2012 and December 2014 CBRs. There is insufficient evidence from which to conclude that Applicant responsibly resolved this debt.

$18,240

Against Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.i

Applicant admitted owing the $5,777 charged-off debt during an interview with a government investigator. He told an investigator that he intended to make payments on it. He testified that it was paid and agreed to submit documentation verifying that. He did not provide any information. The debt is unresolved.

$5,777

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.j

Applicant successfully resolved this $2,476 credit card debt.

$2,476

For Applicant

Credit Card Debt

Admitted

—

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

Credited

Debt Paid in Full

1.k

Applicant disclosed this delinquent student loan for $5,729 in his 2012 SF 86. He co-signed it for his sister-in-law and said she resolved it. He did not provide documentation verifying its resolution. It is unresolved.

$5,729

Against Applicant

Student Loan Debt

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.l

specific text not stated in this decision

Withdrawn

Unspecified Financial

Unknown

—

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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

PROCEDURAL RULINGS

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES