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ISCR Case 15-05244.h1 — CASE

ISCR Case 15-05244.h1granted

Case Headnote

ISCR Case No. 15-05244.h1

grantedJan 19, 2017· Hon. Edward W. Loughran· hearing

Summary

A single parent applicant was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons detailed multiple financial issues, including two wage garnishments totaling $23,939 for defaulted student loans, thirteen medical debts, a $757 judgment, two telecommunications debts totaling $229, and approximately $10,000 owed on a repossessed car loan.

The applicant's financial difficulties were largely attributed to circumstances beyond her control, specifically medical issues and periods of unemployment. Despite these challenges, the applicant presented a credible plan for managing and resolving her outstanding debts once the wage garnishments were lifted.

The judge applied mitigating conditions, concluding that the applicant's past financial problems did not undermine her current reliability and trustworthiness. The applicant's demonstrated commitment to addressing her financial obligations and the external factors contributing to her debt led to the favorable decision, and the security clearance was granted.

Why the Applicant Prevailed

Applicant credibly testified about her plan to manage and pay off her debts after garnishments were lifted.
The judge found that the applicant's financial issues were primarily due to circumstances beyond her control, such as medical problems and unemployment.
The applicant's history of financial problems did not create doubt about her current reliability and trustworthiness.

Conditions Referenced

Mitigating

AG ¶ 20(b)appliedThe Conditions That Led to the Financial Difficulties Were Beyond the Applicant's Control.
AG ¶ 20(c)appliedThe Applicant Has Shown a Good Faith Effort to Resolve Her Financial Issues.

Key Rule Quoted

“The favorable evidence outweighed the unfavorable evidence.”

Procedural Posture

SOR issuedMar 25, 2016
Answer filedJun 2, 2016
Hearing heldSep 20, 2016
Decision dateJan 19, 2017Proposed summary disposition in applicant's favor on 12/29/2016.

Cite For

Mitigation of Financial Issues Under Guideline F
Consideration of Circumstances Beyond the Applicant's Control in Financial Cases
The Whole-person Concept 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.

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 several financial issues, including wage garnishments for student loans, medical debts, a judgment, telecommunications debts, and an auto loan debt. However, the judge concluded that the applicant's financial concerns were mitigated, allowing for the granting of the security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	2 wage garnishments totaling $23,939 for defaulted student loans $23,939	For Applicant	Student Loan Debt	Admitted	—	—	—
1.b	13 medical debts	For Applicant	Medical Debt	Admitted	—	—	—
1.c	a $757 judgment $757	For Applicant	Judgment Against Applicant	Admitted	—	—	—
1.d	2 telecommunications debts totaling $229 $229	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.e	about $10,000 owed on the loan for a repossessed car $10,000	For Applicant	Auto Loan Debt	Admitted	—	—	—

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. 15-05244 ) Applicant for Security Clearance )

Appearances

For Government: Bryan J. Olmos Esq., Department Counsel For Applicant: Pro se

01/19/2017 ______________

Decision

______________

LOUGHRAN, Edward W., Administrative Judge:

On March 25, 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 June 2, 2016, and requested a hearing before an administrative judge. The case was assigned to me on July 28, 2016. The hearing was held as scheduled on September 20, 2016. On December 29, 2016, I proposed to the parties that this case was appropriate for a summary disposition in Applicant’s favor. Department Counsel did not object.

Applicant’s finances were adversely affected by medical issues, unemployment, underemployment, and being a single parent. The Statement of Reasons alleges 2 wage garnishments totaling $23,939 for defaulted student loans, 13 medical debts, a $757 judgment, 2 telecommunications debts totaling $229, and about $10,000 owed on the loan for a repossessed car. Applicant admitted responsibility for all the debts.

The wage garnishments of 25% of her income prevented Applicant from paying her other debts, but she resisted seeking an amendment to the garnishments because she knew the forced payments would reduce her debts quickly. She planned to pay her other debts after the garnishments were lifted. From December 2015 through December 9, 2016, her wages were garnished $9,659. One garnishment was released because the loan was paid. Applicant appealed the second garnishment, and it was either lowered or released. Applicant credibly testified that she will use the freed-up income to pay her debts. Based on the record evidence as a whole, I conclude that the security concerns are mitigated under the following mitigating conditions: AG ¶¶ 20(b) and 20(c).

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