ISCR Case 16-01303.h1

Case Headnote

ISCR Case No. 16-01303.h1

grantedOct 16, 2017· Hon. Noreen A. Lynch· hearing

Summary

A 59-year-old defense contractor driver was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). These concerns arose from past financial difficulties, primarily due to a period of unemployment and a stroke.

The applicant successfully mitigated these issues by demonstrating proactive debt management. For instance, he paid an $864 medical debt after confirming his responsibility and provided documentation. He also satisfied a 2010 judgment in 2013 and provided proof, and resolved another account four years prior to the review. Furthermore, he provided documentation proving he did not owe money on a separate alleged debt.

The decision to grant the clearance was based on several mitigating factors: his financial problems stemmed from circumstances largely beyond his control, he made good-faith efforts to resolve his debts, and the majority of the alleged debts were resolved. His current financial situation was deemed not to pose a security risk.

Why the Applicant Prevailed

The applicant's financial problems were primarily due to circumstances beyond his control, including unemployment and a medical condition.
He made good-faith efforts to address and resolve his debts, demonstrating responsibility and reliability.
The majority of the alleged debts were resolved, and his current financial situation does not raise security concerns.

Conditions Referenced

Disqualifying

AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(a)appliedBehavior Occurred so Long Ago or Under Circumstances Unlikely to Recur
AG ¶ 20(b)appliedConditions Resulting in Financial Problems Were Largely Beyond the Person's Control
AG ¶ 20(d)appliedIndividual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors

Key Rule Quoted

“The presence of delinquent debt can raise the Guideline F security concern, which is explained at AG ¶ 18: Failure to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness, and ability to protect classified or sensitive information.”
— AG ¶ 18

Procedural Posture

SOR issuedSep 21, 2016
Answer filed—Applicant requested a decision on the administrative record.
Hearing held—Decision made based on written record.
Decision dateOct 16, 2017

Cite For

Mitigation of Financial Issues Under Guideline F Due to Medical Circumstances
Good-faith Efforts to Resolve Debts as a Mitigating Factor
Impact of Unemployment on Financial Obligations and Security Clearance Eligibility

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 denied owing the medical account in SOR 1.a, but he researched the issue and learned from the insurance company that he was responsible for the debt. He paid the $864 and provided a letter. $864	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b–1.h	7 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant			—	—	—
1.i	He satisfied a 2010 judgment in 2013 and provided documentation.	For Applicant	Judgment Against Applicant	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.j–1.m	4 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant			—	—	—
1.n	He researched the alleged debt in 1.n, and provided documentation that he does not owe any money on the account.	For Applicant	Unspecified Financial	Denied	—	—	—
1.o	This account has been resolved for four years.	For Applicant	Unspecified Financial	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 denied owing the medical account in SOR 1.a, but he researched the issue and learned from the insurance company that he was responsible for the debt. He paid the $864 and provided a letter.

$864

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.b–1.h

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

For Applicant

—

1.i

He satisfied a 2010 judgment in 2013 and provided documentation.

For Applicant

Judgment Against Applicant

Admitted

—

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

Documented

Debt Paid in Full

1.j–1.m

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

For Applicant

—

1.n

He researched the alleged debt in 1.n, and provided documentation that he does not owe any money on the account.

For Applicant

Unspecified Financial

Denied

—

1.o

This account has been resolved for four years.

For Applicant

Unspecified Financial

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

ANALYSIS

FORMAL FINDINGS

CONCLUSION

FOOTNOTES