ISCR Case 16-01026.h1

Case Headnote

ISCR Case No. 16-01026.h1

grantedMar 8, 2017· Hon. Shari Dam· hearing

Summary

This case concerns a 31-year-old defense contractor whose eligibility for a public trust position was initially questioned under Guideline F (Financial Considerations) due to delinquent debts and unfiled state tax returns. The Statement of Reasons detailed several specific financial issues.

These included the late filing of state income tax returns for 2009, 2010, 2011, and 2012, all submitted on September 28, 2016, with payments of $262, $238, $238, and $206 respectively. Additionally, a 2010 judgment for an unpaid medical debt of $377 was resolved in August 2016 with a $457 payment. Two smaller debts, an $86 utility bill and a $49 cable bill, were paid in October 2015 after the applicant became aware of them during a background interview. All these specific issues were resolved.

The applicant successfully mitigated the initial concerns by resolving all delinquent debts prior to the hearing. The applicant demonstrated responsibility for past financial issues, committed to timely future tax filings, and established a stable financial situation with savings and a plan for expense management. Consequently, eligibility for the public trust position was GRANTED.

Why the Applicant Prevailed

All delinquent debts were resolved prior to the hearing.
The applicant took responsibility for past financial issues and demonstrated a commitment to timely filing tax returns going forward.
The applicant's financial situation is now stable, with savings and a plan for managing expenses.

Conditions Referenced

Disqualifying

F.1.araisedInability or Unwillingness to Satisfy Debts
F.1.craisedA History of Not Meeting Financial Obligations
F.1.graisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required

Mitigating

F.2.aappliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
F.2.bappliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
F.2.cappliedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
F.2.dappliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“A person who seeks a position of public trust enters into a fiduciary relationship with the Government predicated upon trust and confidence.”

Procedural Posture

SOR issuedSep 3, 2016
Answer filedSep 27, 2016
Hearing heldNov 17, 2016
Decision dateMar 8, 2017

Cite For

Mitigation of Financial Issues Under Guideline F
Resolution of Delinquent Debts as a Factor in Trustworthiness
Impact of Personal Circumstances on Financial Obligations

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 filed his 2009 state income tax return on September 28, 2016 and included a payment of $262. It is resolved. $262	For Applicant	Tax Filing Failure	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	Applicant filed his 2010 state income tax return on September 28, 2016, and included a payment of $238. It is resolved. $238	For Applicant	Tax Filing Failure	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	Applicant filed his 2011 state income tax return on September 28, 2016, and included a payment of $238. It is resolved. $238	For Applicant	Tax Filing Failure	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.d	Applicant filed his 2012 state income tax return on September 28, 2016, and included a payment of $206. It is resolved. $206	For Applicant	Tax Filing Failure	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.e	The 2010 judgment for $377 arose from an unpaid medical debt, which was not covered by insurance. Applicant paid the creditor $457 in August 2016. It is resolved. $377	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.f	The $86 utility bill was paid in October 2015. Applicant was unaware of it until he had a background interview in 2015. It is resolved. $86	For Applicant	Utility or Phone Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.g	The $49 cable bill was paid in October 2015. Applicant was unaware of it until he had a background interview in 2015. It is resolved. $49	For Applicant	Utility or Phone Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant filed his 2009 state income tax return on September 28, 2016 and included a payment of $262. It is resolved.

$262

For Applicant

Tax Filing Failure

Admitted

—

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

Documented

Debt Paid in Full

1.b

Applicant filed his 2010 state income tax return on September 28, 2016, and included a payment of $238. It is resolved.

$238

For Applicant

Tax Filing Failure

Admitted

—

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

Documented

Debt Paid in Full

1.c

Applicant filed his 2011 state income tax return on September 28, 2016, and included a payment of $238. It is resolved.

$238

For Applicant

Tax Filing Failure

Admitted

—

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

Documented

Debt Paid in Full

1.d

Applicant filed his 2012 state income tax return on September 28, 2016, and included a payment of $206. It is resolved.

$206

For Applicant

Tax Filing Failure

Admitted

—

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

Documented

Debt Paid in Full

1.e

The 2010 judgment for $377 arose from an unpaid medical debt, which was not covered by insurance. Applicant paid the creditor $457 in August 2016. It is resolved.

$377

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.f

The $86 utility bill was paid in October 2015. Applicant was unaware of it until he had a background interview in 2015. It is resolved.

$86

For Applicant

Utility or Phone Debt

Admitted

—

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

Documented

Debt Paid in Full

1.g

The $49 cable bill was paid in October 2015. Applicant was unaware of it until he had a background interview in 2015. It is resolved.

$49

For Applicant

Utility or Phone Debt

Admitted

—

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

Documented

Debt Paid in Full

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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