ISCR Case 08-00361.h1

Case Headnote

ISCR Case No. 08-00361.h1

grantedDec 11, 2008· Hon. Philip S. Howe· hearing

Summary

A 58-year-old defense contractor and former U.S. Marine was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant faced allegations regarding seven delinquent debts totaling $11,704. These included $519 to an energy utility, $1,585 to an apartment owner (resolved for $1,319.63), $261 and $494 to telephone companies, and $1,639 to a bank for a credit card, all of which were paid in full between January 2007 and August 2008.

Additionally, the applicant established installment payment agreements for a $2,385 credit card debt, with $154 paid monthly and an expected resolution within 12 months, and a $4,821 debt to a collector (originally a bank debt), with $350 paid monthly, reducing the balance to $3,333.90.

The judge determined that the applicant's financial difficulties stemmed from past unemployment and spousal support obligations, which have since been resolved. The applicant demonstrated responsible financial behavior by addressing all debts and incurring no new debt since re-employment in 2002, indicating a low likelihood of future financial issues. Consequently, the security clearance was granted.

Why the Applicant Prevailed

The applicant resolved all delinquent debts either by full payment or through installment agreements.
The applicant demonstrated responsible financial behavior and has not incurred additional debt since re-employment in 2002.
The circumstances leading to the financial issues were unlikely to recur, indicating good judgment and reliability.

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 or Is Under Control
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 issuedJun 23, 2008
Answer filedJul 24, 2008
Hearing heldOct 16, 2008
Decision dateDec 11, 2008

Cite For

Mitigating Conditions for Financial Considerations Under Guideline F
Demonstrating Responsible Financial Behavior to Mitigate Security Concerns
The Impact of Past Circumstances on Current Financial Reliability

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	$519 owed to an energy utility. He paid it in full in January 2007. $519	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.b	$1,585 owed to an apartment owner. The debt went to judgment. Applicant paid the judgment in full on September 18, 2008, in the amount of $1,319.63. $1,585	For Applicant	Judgment Against Applicant	Admitted	—	—	—
1.c	$261 owed on a telephone company bill. This debt was paid in full on July 18, 2008. $261	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.d	$2,385 owed to a bank on a credit card. There is an installment payment agreement in place. Applicant pays $154 monthly. He will have this debt paid within 12 months. $2,385	For Applicant	Credit Card Debt	Denied	—	—	—
1.e	$1,639 owed to a bank on a credit card. This debt was paid in full on August 25, 2008. $1,639	For Applicant	Credit Card Debt	Admitted	—	—	—
1.f	$494 owed to a telephone company. It was paid in full on January 9, 2007. $494	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.g	$4,821 owed to a collector. The original debt was owed to a bank. Applicant has an installment payment agreement in place with this creditor to pay $350 monthly. The balance owed is $3,333.90. $4,821	For Applicant	Unspecified Financial	Denied	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

$519 owed to an energy utility. He paid it in full in January 2007.

$519

For Applicant

Utility or Phone Debt

Admitted

—

1.b

$1,585 owed to an apartment owner. The debt went to judgment. Applicant paid the judgment in full on September 18, 2008, in the amount of $1,319.63.

$1,585

For Applicant

Judgment Against Applicant

Admitted

—

1.c

$261 owed on a telephone company bill. This debt was paid in full on July 18, 2008.

$261

For Applicant

Utility or Phone Debt

Admitted

—

1.d

$2,385 owed to a bank on a credit card. There is an installment payment agreement in place. Applicant pays $154 monthly. He will have this debt paid within 12 months.

$2,385

For Applicant

Credit Card Debt

Denied

—

1.e

$1,639 owed to a bank on a credit card. This debt was paid in full on August 25, 2008.

$1,639

For Applicant

Credit Card Debt

Admitted

—

1.f

$494 owed to a telephone company. It was paid in full on January 9, 2007.

$494

For Applicant

Utility or Phone Debt

Admitted

—

1.g

$4,821 owed to a collector. The original debt was owed to a bank. Applicant has an installment payment agreement in place with this creditor to pay $350 monthly. The balance owed is $3,333.90.

$4,821

For Applicant

Unspecified Financial

Denied

—

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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