ISCR Case 15-04772.h1

Case Headnote

ISCR Case No. 15-04772.h1

deniedJan 5, 2017· Hon. LeRoy F. Foreman· hearing

Summary

A 42-year-old defense contractor and former U.S. Navy petty officer was denied a security clearance under Guideline F (Financial Considerations) due to numerous delinquent debts totaling over $200,000. The Statement of Reasons detailed multiple outstanding obligations, including a foreclosed home mortgage with an unpaid balance of $195,000. Other debts included several past-due student loans, a time-share property with a balance of $10,461, and various collection accounts for cell phone, telecommunications, credit cards, medical bills, and a travel club, some dating back to 2008.

Disqualifying conditions under Guideline F were raised, citing a history of not meeting financial obligations and an inability or unwillingness to satisfy debts. While several mitigating conditions were considered, such as the debts not being recent or the result of circumstances beyond the applicant's control, these were ultimately insufficient.

The denial was based on the applicant's failure to resolve or adequately address numerous delinquent debts. He did not provide sufficient documentary evidence to support claims of making payments and failed to demonstrate a consistent pattern of responsible financial behavior, leading to concerns about his reliability and trustworthiness.

Why the Applicant Was Denied

The applicant has numerous delinquent debts that he has not resolved or adequately addressed.
He failed to provide documentary evidence supporting his claims of making payments on debts.
The applicant did not demonstrate a consistent pattern of responsible financial behavior.

Conditions Referenced

Disqualifying

AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to Recur
AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile some conditions were beyond his control, he did not act responsibly to address his debts.
AG ¶ 20(c)rejectedReceived Counseling for the ProblemThe applicant did not seek or obtain financial counseling.
AG ¶ 20(d)appliedInitiated Good-faith Effort to Repay Overdue CreditorsOnly for one debt; not for the majority of debts.
AG ¶ 20(e)rejectedReasonable Basis to Dispute Legitimacy of Past-due DebtThe applicant did not provide sufficient evidence to support his disputes.

Key Rule Quoted

“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”

Procedural Posture

SOR issuedJan 17, 2016
Answer filedFeb 3, 2016
Hearing heldNov 15, 2016
Decision dateJan 5, 2017

Cite For

Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
Importance of Providing Documentary Evidence for Claims of Debt Resolution
Evaluation of Financial Responsibility in Security Clearance Determinations

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	cell phone account, delinquent since December 2011, placed for collection of $320 in March 2014. $320	Against Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	telecommunications account, delinquent in August 2014, placed for collection of $300 in October 2014. $300	For Applicant	Utility or Phone Debt	Denied	—	—	—
1.c	credit card account, sold to another lender and placed for collection of $512 in January 2011. $512	Against Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	student loans, past due for $112 with balance of $1,858; past due for $194 with balance of $3,210; past due for $237 with balance of $3,455; and past due for $109 with balance of $1,845.	For Applicant	Student Loan Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.e–1.h	4 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)	Against Applicant			—	—	—
1.i	time-share property, past due for $1,668, last payment in August 2010, balance due of $10,461. (low confidence)	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.j	credit card account, placed for collection of $762 in July 2008. $762	Against Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.k	telecommunications account, placed for collection of $572 in July 2011. $572	For Applicant	Utility or Phone Debt	Unknown	—	(d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Paid in Full
1.l	delinquent medical bill for $110. $110	For Applicant	Medical Debt	Denied	—	—	—
1.m	foreclosed home mortgage, with unpaid balance of $195,000. $195,000	For Applicant	Mortgage or Home Loan Debt	Unknown	—	—	—
1.n	travel club, placed for collection of $1,103 in September 2012. (low confidence) $1,103	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.o	delinquent medical bill, placed for collection of $886 in April 2010. $886	Against Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

cell phone account, delinquent since December 2011, placed for collection of $320 in March 2014.

$320

Against Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

telecommunications account, delinquent in August 2014, placed for collection of $300 in October 2014.

$300

For Applicant

Utility or Phone Debt

Denied

—

1.c

credit card account, sold to another lender and placed for collection of $512 in January 2011.

$512

Against Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

student loans, past due for $112 with balance of $1,858; past due for $194 with balance of $3,210; past due for $237 with balance of $3,455; and past due for $109 with balance of $1,845.

For Applicant

Student Loan Debt

Admitted

—

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

Claimed

Debt Paid in Full

1.e–1.h

4 sub-charges — specific text not stated in this decision (against the applicant). (low confidence)

Against Applicant

—

1.i

time-share property, past due for $1,668, last payment in August 2010, balance due of $10,461. (low confidence)

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.j

credit card account, placed for collection of $762 in July 2008.

$762

Against Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.k

telecommunications account, placed for collection of $572 in July 2011.

$572

For Applicant

Utility or Phone Debt

Unknown

—

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

Claimed

Debt Paid in Full

1.l

delinquent medical bill for $110.

$110

For Applicant

Medical Debt

Denied

—

1.m

foreclosed home mortgage, with unpaid balance of $195,000.

$195,000

For Applicant

Mortgage or Home Loan Debt

Unknown

—

1.n

travel club, placed for collection of $1,103 in September 2012. (low confidence)

$1,103

Against Applicant

Unspecified Financial

Unknown

—

1.o

delinquent medical bill, placed for collection of $886 in April 2010.

$886

Against Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

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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

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES