ISCR Case 07-12094.h1

Case Headnote

ISCR Case No. 07-12094.h1

grantedJul 1, 2007· Hon. Claude R. Heiny II· hearing

Summary

A 57-year-old technical support specialist was granted a security clearance despite initial concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant's Statement of Reasons detailed approximately $42,000 in financial delinquencies, including several credit card judgments and collection agency accounts ranging from $446 to $12,419, dating back to a default judgment in September 2006.

Additionally, the applicant's e-QIP contained incorrect answers regarding delinquent debts, though this was not deemed a deliberate failure to disclose. A separate concern involved his employment between 1985 and 1994 with a company investigated by the U.S. Naval Criminal Investigative Service for alleged overcharges on a labor contract.

The clearance was granted because all listed debts were paid, demonstrating a good-faith effort to resolve financial obligations. The applicant was unaware of his ex-wife's financial mismanagement and bankruptcy, which contributed to his financial issues. Furthermore, no criminal or civil action resulted from the investigation into his former employer, and he was not disciplined.

Why the Applicant Prevailed

All debts listed in the SOR have been paid, demonstrating a good-faith effort to resolve financial obligations.
The applicant was unaware of his ex-wife's financial mismanagement and bankruptcy, which contributed to his financial issues.
No criminal or civil action resulted from the investigation into the applicant's former employer, and he was not disciplined.

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

Key Rule Quoted

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

Procedural Posture

SOR issuedAug 5, 2009
Answer filedSep 14, 2009
Hearing heldJan 27, 2010
Decision dateMar 27, 2010

Cite For

Mitigation of Financial Issues Due to Ex-spouse's Actions
No Criminal or Civil Action Resulting From Workplace Investigation
Good-faith Efforts to Resolve Debts Leading to Favorable Outcome

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

¶	Allegation	Finding	Conduct	Concealed Issue	Response	Disqualifying (¶16)	Mitigating applied (¶17)	Mitigation
2.a	When Applicant completed his e-QIP, his answers related to debts being more than 180 days delinquent were incorrect, but this does not prove Applicant deliberately failed to disclose information about his finances.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATE	Financial	Denied	—	(b) omission/refusal followed advice of counsel; later cooperated fully (c) offense is minor, long ago, infrequent, or unique circumstances (d) acknowledged the behavior; counseling/positive steps taken	Claimed Other
2.b	Between 1985 and 1994, Applicant worked for a company that was investigated by the U.S. Naval Criminal Investigative Service for false, fictitious, or fraudulent claims related to alleged overcharges on a labor contract.	For Applicant	Unspecified Personal Conduct	—	Admitted	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

When Applicant completed his e-QIP, his answers related to debts being more than 180 days delinquent were incorrect, but this does not prove Applicant deliberately failed to disclose information about his finances.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATE

Financial

Denied

—

(b) omission/refusal followed advice of counsel; later cooperated fully

(c) offense is minor, long ago, infrequent, or unique circumstances

(d) acknowledged the behavior; counseling/positive steps taken

Claimed

Other

2.b

Between 1985 and 1994, Applicant worked for a company that was investigated by the U.S. Naval Criminal Investigative Service for false, fictitious, or fraudulent claims related to alleged overcharges on a labor contract.

For Applicant

Unspecified Personal Conduct

—

Admitted

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	In September 2006, a $12,419 default judgment was entered. $12,419	For Applicant	Judgment Against Applicant	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	Credit card judgment of $7,521. $7,521	For Applicant	Judgment Against Applicant	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	Credit card debt judgment of $3,558. $3,558	For Applicant	Judgment Against Applicant	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.d	Collection agency collecting for gasoline credit card, $446. $446	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.e	Collection agency collecting for credit card account, $5,778. $5,778	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.f	Collection agency, $521. $521	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.g	Collection agency collecting for credit card account, $8,903. $8,903	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.h	LVNVFUNDG placed for collection, $2,722. $2,722	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(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

In September 2006, a $12,419 default judgment was entered.

$12,419

For Applicant

Judgment Against Applicant

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.b

Credit card judgment of $7,521.

$7,521

For Applicant

Judgment Against Applicant

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.c

Credit card debt judgment of $3,558.

$3,558

For Applicant

Judgment Against Applicant

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.d

Collection agency collecting for gasoline credit card, $446.

$446

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.e

Collection agency collecting for credit card account, $5,778.

$5,778

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.f

Collection agency, $521.

$521

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.g

Collection agency collecting for credit card account, $8,903.

$8,903

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.h

LVNVFUNDG placed for collection, $2,722.

$2,722

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(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

FOOTNOTES