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ISCR Case 15-03570.h1 — CASE

ISCR Case 15-03570.h1granted

Case Headnote

ISCR Case No. 15-03570.h1

grantedJan 6, 2017· Hon. Edward W. Loughran· hearing

Summary

A security clearance was granted to a pro se applicant despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons cited five outstanding medical debts and two charged-off mortgage loans.

However, the applicant successfully mitigated these concerns. All five medical debts were paid off, and both the first and second mortgage loans were resolved through a short sale that resulted in no deficiency.

The decision to grant the clearance was based on the applicant's demonstrated resolution of all cited financial issues and their currently sound financial standing, satisfying mitigating conditions AG ¶ 20(a), AG ¶ 20(c), and AG ¶ 20(d).

Why the Applicant Prevailed

Applicant paid off medical debts.
Mortgage loans were resolved through a short sale with no deficiency.
Current finances are sound.

Conditions Referenced

Mitigating

AG ¶ 20(a)appliedThe Behavior Was Not Recent and the Applicant Has Demonstrated a Change in Circumstances.
AG ¶ 20(c)appliedThe Applicant Has Received Financial Counseling or Has Taken Other Steps to Correct the Financial Problems.
AG ¶ 20(d)appliedThe Applicant Has Established a Good Track Record of Financial Responsibility.

Key Rule Quoted

“The concerns over Applicant’s history of financial problems do not create doubt about her current reliability, trustworthiness, good judgment, and ability to protect classified information.”

Procedural Posture

SOR issuedNov 16, 2015
Answer filedDec 1, 2015Applicant elected for a written record decision.
Government's case submittedMar 9, 2016
Case assigned to judgeNov 2, 2016
Proposed summary dispositionDec 16, 2016Department Counsel did not object.
Decision dateJan 6, 2017

Cite For

Mitigation of Financial Issues Under Guideline F
Importance of Current Financial Stability in Security Clearance Decisions
Consideration of Whole-person Concept in Adjudication

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 resolved her financial issues, including five medical debts that were paid and mortgage loans that were settled through a short sale without deficiency. The judge concluded that the applicant's current financial situation was sound and that the security concerns were mitigated, resulting in a decision to grant her security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	five medical debts	For Applicant	Medical Debt	Admitted	—	(c) received/receiving counseling; problem being resolved	Documented Debt Paid in Full
1.b	charged-off first mortgage loan	For Applicant	Unspecified Financial	Admitted	—	(c) received/receiving counseling; problem being resolved	Documented Debt Paid in Full
1.c	charged-off second mortgage loan	For Applicant	Unspecified Financial	Admitted	—	(c) received/receiving counseling; problem being resolved	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

DEPARTMENT OF DEFENSE DEFENSE OFFICE OF HEARINGS AND APPEALS

In the matter of: ) ) ) ISCR Case No. 15-03570 ) Applicant for Security Clearance )

Appearances

For Government: Candace L. Garcia, Esq., Department Counsel For Applicant: Pro se

01/06/2017 ______________

Decision

______________

LOUGHRAN, Edward W., Administrative Judge:

On November 16, 2015, 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 December 1, 2015, and elected to have the case decided on the written record in lieu of a hearing. The Government’s written case was submitted on March 9, 2016. Applicant responded with a series of documents. The case was assigned to me on November 2, 2016. On December 16, 2016, I proposed to the parties that this case was appropriate for a summary disposition in Applicant’s favor. Department Counsel did not object.

The SOR alleges five medical debts and charged-off first and second mortgage loans. Applicant paid the medical debts, and the mortgage loans were resolved by a short sale with no evidence of a deficiency. Her current finances are sound. Based on the record evidence as a whole, I conclude that the security concerns are mitigated under the following mitigating conditions: AG ¶¶ 20(a), 20(c), and 20(d).

The concerns over Applicant’s history of financial problems do not create doubt about her 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 she met her ultimate burden of persuasion to show that it is clearly consistent with the national interest to grant her eligibility for access to classified information. This case is decided for Applicant.

________________________ Edward W. Loughran Administrative Judge