ISCR Case 07-14738.h1

Case Headnote

ISCR Case No. 07-14738.h1

deniedJul 31, 2008· Hon. Charles D. Ablard· hearing

Summary

A 28-year-old mobility technician and former Air Force member was denied a security clearance due to financial considerations under Guideline F, stemming from approximately $25,000 in delinquent debts. The Statement of Reasons detailed several outstanding obligations, including a $4,965 disputed debt for a canceled apartment lease, and a $2,200 debt to the Defense Finance and Accounting Service, which was being paid through payroll withdrawals and expected to be resolved by January 2009.

Significant concerns also arose from approximately $9,000 in delinquent child support payments for two children, with monthly obligations of $382 and $264 respectively. While the applicant stated he was making additional payments to resolve these delinquencies, he failed to provide supporting documentation. Other debts included a $2,666 auto loan, a $5,000 Military Star credit card debt, and a $1,231 Citibank credit card debt, which were consolidated by a credit counselor in May 2008, with payments of $240 per month expected to resolve them within three years. Two telephone bills, one for $390 and another unspecified amount, were reported as paid in full.

Despite some efforts to address his debts, the applicant failed to mitigate security concerns. The denial was primarily based on the significant amount of unresolved debt, particularly the child support obligations and the disputed rental debt, and the applicant's failure to provide sufficient evidence of their resolution.

Why the Applicant Was Denied

The applicant failed to mitigate security concerns regarding financial considerations due to unresolved delinquent debts.
Significant amounts of debt remained unpaid, including child support obligations and a disputed rental debt.
The applicant did not provide evidence of the status of his child support payments, which were approximately $9,000 in arrears.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(a)rejectedBehavior Happened so Long Ago or InfrequentNo evidence was offered to show these mitigating conditions.
AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlNo evidence has been offered to show that such facts are applicable.
AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsWhile some debts were being paid, a significant portion remained unresolved.

Key Rule Quoted

“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”

Procedural Posture

SOR issuedJan 30, 2008
Answer filedMar 4, 2008
Hearing heldMay 29, 2008
Decision dateJul 31, 2008

Cite For

Failure to Mitigate Financial Considerations Under Guideline F
Impact of Unresolved Debts on Security Clearance Eligibility
Importance of Providing Evidence of Debt Resolution in Clearance Cases

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	This is for a telephone bill of $390 which has been paid and is duplicated at SOR ¶ 1.i. $390	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.b	This debt of $4,965 is for cancellation of a multi-year lease on an apartment by Applicant from which he moved after a few months. He disputes the amount and is in negotiation with the creditor. $4,965	Against Applicant	Unspecified Financial	Denied	—	—	—
1.c	This debt for $3,141 to the Defense Finance and Accounting Service arose when Applicant left the Air Force and had been paid in excess of what he should have been. It was originally $4,000 and has now been reduced to $2,200 through payroll withdrawals. It should be paid in full by January 2009. $3,141	For Applicant	Unspecified Financial	Admitted	—	—	—
1.d	Telephone bill paid in full in October 2007.	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.e	Delinquent child support monthly payment to state agency of $382 for one child. $382	Against Applicant	Child Support Debt	Denied	—	—	—
1.f	Delinquent child support monthly payment to state agency of $264 for second child. The two child support payments are delinquent in the amount of approximately $9,000. He is now making the payments with an additional $100 a month for each child to resolve the delinquencies. Documentation in support of these obligations was promised by Applicant but not provided even after the close of the record. $264	Against Applicant	Child Support Debt	Denied	—	—	—
1.g	Auto loan of $2,666. This debt and those listed below at 1.h. and 1.j. below have been consolidated by credit counselor in May 2008. Applicant is making payments of $240 per month. The debts will be resolved in three years at the current payment schedule. $2,666	For Applicant	Auto Loan Debt	Admitted	—	—	—
1.h	Debt to Military Star for credit card debt of $5,000. $5,000	For Applicant	Credit Card Debt	Admitted	—	—	—
1.i	Duplicate of SOR & 1.a.	For Applicant	Utility or Phone Debt	Unknown	—	—	—
1.j	Citibank credit card for $1,231. $1,231	For Applicant	Credit Card Debt	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

This is for a telephone bill of $390 which has been paid and is duplicated at SOR ¶ 1.i.

$390

For Applicant

Utility or Phone Debt

Admitted

—

1.b

This debt of $4,965 is for cancellation of a multi-year lease on an apartment by Applicant from which he moved after a few months. He disputes the amount and is in negotiation with the creditor.

$4,965

Against Applicant

Unspecified Financial

Denied

—

1.c

This debt for $3,141 to the Defense Finance and Accounting Service arose when Applicant left the Air Force and had been paid in excess of what he should have been. It was originally $4,000 and has now been reduced to $2,200 through payroll withdrawals. It should be paid in full by January 2009.

$3,141

For Applicant

Unspecified Financial

Admitted

—

1.d

Telephone bill paid in full in October 2007.

For Applicant

Utility or Phone Debt

Admitted

—

1.e

Delinquent child support monthly payment to state agency of $382 for one child.

$382

Against Applicant

Child Support Debt

Denied

—

1.f

Delinquent child support monthly payment to state agency of $264 for second child. The two child support payments are delinquent in the amount of approximately $9,000. He is now making the payments with an additional $100 a month for each child to resolve the delinquencies. Documentation in support of these obligations was promised by Applicant but not provided even after the close of the record.

$264

Against Applicant

Child Support Debt

Denied

—

1.g

Auto loan of $2,666. This debt and those listed below at 1.h. and 1.j. below have been consolidated by credit counselor in May 2008. Applicant is making payments of $240 per month. The debts will be resolved in three years at the current payment schedule.

$2,666

For Applicant

Auto Loan Debt

Admitted

—

1.h

Debt to Military Star for credit card debt of $5,000.

$5,000

For Applicant

Credit Card Debt

Admitted

—

1.i

Duplicate of SOR & 1.a.

For Applicant

Utility or Phone Debt

Unknown

—

1.j

Citibank credit card for $1,231.

$1,231

For Applicant

Credit Card Debt

Admitted

—

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Case Profile

Summary

Why the Applicant Was Denied

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