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ISCR Case 15-04801.h1 — CASE

ISCR Case 15-04801.h1granted

Case Headnote

ISCR Case No. 15-04801.h1

grantedMar 24, 2017· Hon. Robert E. Coacher· hearing

Summary

This case concerns an applicant whose security clearance was initially questioned under Guideline F (Financial Considerations) due to approximately $89,000 in outstanding debts. The Statement of Reasons detailed six specific debts, most of which were incurred by the applicant's son using his father's credit information. The applicant had initially attempted to resolve these issues by filing two Chapter 7 bankruptcy petitions, both of which were ultimately dismissed.

Following the dismissal of his second bankruptcy petition, the applicant was advised to resolve the debts himself. He subsequently paid or settled all six of the listed debts, demonstrating a significant improvement in his financial standing.

The judge applied several mitigating conditions, noting that the applicant had accepted responsibility for the debts and successfully resolved them. Despite the initial financial concerns and the circumstances surrounding how the debts were incurred, the applicant's current financial responsibility and resolution of all outstanding obligations led to the security clearance being GRANTED.

Why the Applicant Prevailed

Applicant paid or settled all debts listed in the SOR, totaling approximately $89,000.
Most debts were incurred by his son using the applicant's credit information.
Applicant accepted responsibility for the debts and demonstrated good financial standing.

Conditions Referenced

Mitigating

AG ¶ 20(a)appliedThe Behavior Was Not Recent.
AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problems Were Largely Beyond the Person's Control.
AG ¶ 20(c)notedThe Person Has Received or Is Receiving Counseling for the Problem.
AG ¶ 20(d)appliedThe Person Has a Reasonable Basis to Expect to Be Able to Satisfy Debts.
AG ¶ 20(e)appliedThe Person Is Now in a Good Financial Position.

Key Rule Quoted

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

Procedural Posture

SOR issuedMar 19, 2016
Answer filedApr 18, 2016
Hearing heldMar 16, 2017
Decision dateMar 24, 2017Proposed summary disposition in Applicant’s favor on 03/21/2017.

Cite For

Mitigation of Financial Issues Under Guideline F
Whole-person Concept in Security Clearance Decisions
Responsibility for Debts Incurred by Family Members

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 all financial debts totaling approximately $89,000, which were primarily incurred by his son using the applicant's credit information. The judge concluded that the applicant's financial issues were mitigated, and granted the security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant paid or settled all six of the debts listed in the SOR, totaling approximately $89,000. $89,000	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	—
1.b	Applicant's son incurred most of the debts by using his father’s credit information.	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	—
1.c	Applicant initially filed a Pro se Chapter 7 bankruptcy petition that was dismissed.	For Applicant	Bankruptcy Filing	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	—
1.d	Applicant then hired an attorney to file a Chapter 7 petition, which was also dismissed after he was advised to resolve the debts himself.	For Applicant	Bankruptcy Filing	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	—

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. 15-04801 ) Applicant for Security Clearance )

Appearances

For Government: Robert Kilmartin, Esq., Department Counsel For Applicant: Ryan C. Nerney, Esq.

03/24/2017 ______________

Decision

______________

COACHER, Robert E., Administrative Judge:

On March 19, 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 April 18, 2016, and requested a hearing before an administrative judge. I was assigned the case on January 27, 2017. The hearing was held as scheduled on March 16, 2017. On March 21, 2017, I proposed that this case was appropriate for a summary disposition in Applicant’s favor. Department Counsel did not object.

Applicant established through documentation that he paid or settled all six of the debts listed in the SOR, totaling approximately $89,000. His son, who has the same name as Applicant, incurred most of the debts by using his father’s credit information. Initially, Applicant filed a Pro se Chapter 7 bankruptcy petition that was dismissed. He then hired an attorney to file a Chapter 7 petition. That action was also dismissed after Applicant was advised he would be better off resolving the debts himself. Applicant accepted responsibility for the debts and paid or settled all the obligations. Applicant’s evidence established that he is in good financial standing. Based on the record evidence as a whole, I conclude that the security concerns are mitigated under the following mitigating conditions: AG ¶¶ 20(a) through 20(e).

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 whether 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 his eligibility for access to classified information. This case is decided for Applicant.

________________________ Robert E. Coacher Administrative Judge