ISCR Case 15-05084.h1

Case Headnote

ISCR Case No. 15-05084.h1

grantedFeb 17, 2017· Hon. Noreen A. Lynch· hearing

Summary

This case concerns a 40-year-old network senior specialist, continuously cleared since 1997, whose security clearance was reviewed under Guideline F (Financial Considerations) due to delinquent debts and tax issues. The Statement of Reasons detailed several financial concerns, including a 2009 judgment for $644 and a 2006 state tax lien for $588, both satisfied in 2014. Additionally, a charged-off account for $11,115 was cancelled, and student loans totaling $20,229 were consolidated. The applicant disputed other debts, including a charged-off account, a $1,599 state university collection, and a $210 debt that no longer appears on his credit report.

A significant concern involved $11,585 in unpaid federal taxes for 2008, 2009, and 2010, for which the applicant has maintained an IRS repayment plan since 2010. The applicant successfully demonstrated that his financial difficulties stemmed largely from caring for his ill mother and periods of unemployment.

The judge found that the applicant had mitigated the government's concerns. Evidence showed resolution of past debts, a stable employment situation, and a commitment to financial responsibility through budgeting and counseling. Considering these factors, the security clearance was GRANTED.

Why the Applicant Prevailed

The applicant provided evidence of resolving past debts, including satisfied judgments and a repayment plan with the IRS.
He demonstrated a stable employment situation and a commitment to financial responsibility through budgeting and financial counseling.
The applicant's personal circumstances, including caring for an ill mother, were considered in the context of his financial difficulties.

Conditions Referenced

Disqualifying

FC DC AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
FC DC AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations

Mitigating

FC MC AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
FC MC AG ¶ 20(b)appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person’s Control
FC MC AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
FC MC AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedJan 27, 2016
Answer filed—
Hearing heldDec 13, 2016
Decision dateFeb 17, 2017

Cite For

Mitigation of Financial Issues Under Guideline F Due to Personal Circumstances
Importance of Demonstrating Financial Responsibility and Stability
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.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant provided documentation that the 2009 judgment in the amount of $644 was satisfied in 2014. $644	For Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	Applicant had a 2006 state tax lien for $588, which was satisfied in 2014. $588	For Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	A charged-off account in the amount of $11,115, which shows a cancellation of the debt. $11,115	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.d	Applicant's collection accounts for student loans for a total amount of $20,229 have been consolidated. $20,229	For Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Settlement
1.e–1.g	3 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)	For Applicant			—	—	—
1.h	For an account that was charged off, Applicant has disputed the debt. $617	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i–1.n	6 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)	For Applicant			—	—	—
1.o	A collection account in an amount of $1,599, for a state university, Applicant denied the debt. $1,599	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.p	In an amount of $210, Applicant disputed the debt and it does not appear on his credit report. $210	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.q	In the amount of $11,585 for unpaid federal taxes for tax years 2008, 2009, and 2010, Applicant has been in a repayment plan with the IRS since 2010. $11,585	For Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with IRS

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant provided documentation that the 2009 judgment in the amount of $644 was satisfied in 2014.

$644

For Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Debt Paid in Full

1.b

Applicant had a 2006 state tax lien for $588, which was satisfied in 2014.

$588

For Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Debt Paid in Full

1.c

A charged-off account in the amount of $11,115, which shows a cancellation of the debt.

$11,115

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Debt Paid in Full

1.d

Applicant's collection accounts for student loans for a total amount of $20,229 have been consolidated.

$20,229

For Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Debt Settlement

1.e–1.g

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

For Applicant

—

1.h

For an account that was charged off, Applicant has disputed the debt.

$617

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i–1.n

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

For Applicant

—

1.o

A collection account in an amount of $1,599, for a state university, Applicant denied the debt.

$1,599

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.p

In an amount of $210, Applicant disputed the debt and it does not appear on his credit report.

$210

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.q

In the amount of $11,585 for unpaid federal taxes for tax years 2008, 2009, and 2010, Applicant has been in a repayment plan with the IRS since 2010.

$11,585

For Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Payment Plan with IRS

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Case Profile

Summary

Why the Applicant Prevailed

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES