ISCR Case 15-06645.h1

Case Headnote

ISCR Case No. 15-06645.h1

grantedApr 20, 2017· Hon. Stephanie C. Hess· hearing

Summary

A 59-year-old self-employed carpenter was granted a security clearance despite concerns under Guideline F (Financial Considerations) stemming from delinquent debts and two arrests. The Statement of Reasons detailed several financial issues, including a $2,400 past-due mortgage, an $11,802 charged-off vehicle loan, and a $1,796 charged-off credit card debt. Other debts included a $958 utility bill, a $202 charged-off credit card, and a $180 credit card debt. Two judgments were also cited: a $1,236 judgment from 2007, which was paid, and an unresolved $12,043 judgment. A $4,800 delinquent mortgage account was also noted.

The applicant also faced scrutiny for a 2007 arrest for issuing worthless checks, which he resolved by paying the checks and closing his business checking account. A 2014 arrest for failure to pay child support was also raised, but the applicant has since maintained current payments.

The judge determined that the applicant's financial difficulties were largely beyond his control, citing a significant income reduction and family obligations. The applicant demonstrated responsible efforts to mitigate these concerns, including hiring a credit-repair firm, resolving several debts before the Statement of Reasons was issued, and maintaining current child support payments. Based on these mitigating factors, the applicant was granted eligibility for a security clearance.

Why the Applicant Prevailed

The applicant acted responsibly to address his financial difficulties, including hiring a credit-repair firm and resolving several debts before the SOR was issued.
He has maintained current child support payments and has not incurred recent delinquent debt.
The circumstances leading to his financial issues were largely beyond his control, including a significant reduction in income and family obligations.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(a)appliedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
AG ¶ 20(b)appliedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
AG ¶ 20(d)appliedIndividual Initiated a Good-faith Effort to Repay Overdue Creditors or Resolve Debts

Key Rule Quoted

“A security clearance adjudication is an evaluation of a person’s judgment, reliability, and trustworthiness. It is not a debt-collection procedure.”

Procedural Posture

SOR issuedApr 13, 2016
Answer filedMay 19, 2016
Hearing heldSep 14, 2016
Decision dateApr 20, 2017

Cite For

Mitigation of Financial Issues Under Guideline F Due to Circumstances Beyond Control
Good Faith Efforts to Resolve Debts as a Mitigating Factor
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	$2,400 past-due mortgage account due to Applicant’s daughter’s failure to pay the account. Applicant paid the past-due balance and the account is current. $2,400	For Applicant	Mortgage or Home 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 Paid in Full
1.b	$11,802 charged-off account for a vehicle loan. The account is now current with a balance of $6,450 as of September 2016. $11,802	For Applicant	Auto 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 Paid in Full
1.c	$1,796 charged-off credit-card debt for purchases and interest. The account has been sold, and Applicant will pay the debt when he identifies the new creditor. $1,796	For Applicant	Credit Card 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 (e) reasonable, documented basis to dispute the debt	Claimed Debt Disputed with Creditor
1.d	$958 natural gas utility bill incurred by Applicant’s daughter. Applicant will pay this account. $958	For Applicant	Utility or Phone 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	Claimed Debt Paid in Full
1.e	$202 charged-off credit card account. Applicant paid the past-due balance and the account is current. $202	For Applicant	Credit Card 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 Paid in Full
1.f	$180 credit-card debt. Applicant paid the past-due balance and the account is current. $180	For Applicant	Credit Card 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 Paid in Full
1.g	$1,236 judgment. Applicant paid the judgment the day it was entered in 2007. It has been removed from his CBR. $1,236	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.h	$12,043 judgment has not been resolved. Applicant is actively trying to settle this debt. $12,043	For Applicant	Judgment Against Applicant	Denied	(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	Claimed Debt Disputed with Creditor
1.i	$4,800 delinquent mortgage account has been paid and removed from Applicant’s CBR. $4,800	For Applicant	Mortgage or Home 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 Paid in Full
1.j	2007 arrest for issuing worthless checks. Applicant paid the checks and he no longer maintains a business checking account.	For Applicant	Financial Fraud or Check Kiting	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	Claimed Other
1.k	2014 arrest for failure to pay child support. Applicant has remained current with his child support payments since that time.	For Applicant	Child Support 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	Claimed Other

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

$2,400 past-due mortgage account due to Applicant’s daughter’s failure to pay the account. Applicant paid the past-due balance and the account is current.

$2,400

For Applicant

Mortgage or Home 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 Paid in Full

1.b

$11,802 charged-off account for a vehicle loan. The account is now current with a balance of $6,450 as of September 2016.

$11,802

For Applicant

Auto 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 Paid in Full

1.c

$1,796 charged-off credit-card debt for purchases and interest. The account has been sold, and Applicant will pay the debt when he identifies the new creditor.

$1,796

For Applicant

Credit Card 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

(e) reasonable, documented basis to dispute the debt

Claimed

Debt Disputed with Creditor

1.d

$958 natural gas utility bill incurred by Applicant’s daughter. Applicant will pay this account.

$958

For Applicant

Utility or Phone 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

Claimed

Debt Paid in Full

1.e

$202 charged-off credit card account. Applicant paid the past-due balance and the account is current.

$202

For Applicant

Credit Card 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 Paid in Full

1.f

$180 credit-card debt. Applicant paid the past-due balance and the account is current.

$180

For Applicant

Credit Card 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 Paid in Full

1.g

$1,236 judgment. Applicant paid the judgment the day it was entered in 2007. It has been removed from his CBR.

$1,236

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.h

$12,043 judgment has not been resolved. Applicant is actively trying to settle this debt.

$12,043

For Applicant

Judgment Against Applicant

Denied

(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

Claimed

Debt Disputed with Creditor

1.i

$4,800 delinquent mortgage account has been paid and removed from Applicant’s CBR.

$4,800

For Applicant

Mortgage or Home 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 Paid in Full

1.j

2007 arrest for issuing worthless checks. Applicant paid the checks and he no longer maintains a business checking account.

For Applicant

Financial Fraud or Check Kiting

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

Claimed

Other

1.k

2014 arrest for failure to pay child support. Applicant has remained current with his child support payments since that time.

For Applicant

Child Support 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

Claimed

Other

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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