ISCR Case 08-00344.h1

Case Headnote

ISCR Case No. 08-00344.h1

deniedDec 30, 2008· Hon. Paul J. Mason· hearing

Summary

A 42-year-old divorced emergency responder and former Army service member was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The applicant faced allegations concerning multiple delinquent debts, including a credit card account from 2007, another account first reported delinquent in January 2007, and an unspecified past-due amount to a mortgage company as of June 2008. Additional delinquencies included an account from June 2007, which was paid in October 2008, and another from October 2006, paid in full on the same date. The applicant also had a child support garnishment, which he maintained was an automatic state practice and not indicative of delinquency.

Disqualifying conditions related to financial irresponsibility and an inability to satisfy debts were raised. While mitigating conditions acknowledging the debts were not recent, were due to circumstances beyond the applicant's control, or that the applicant had initiated a good-faith effort to resolve them were considered, they were ultimately insufficient.

The denial was based on the applicant's admission of approximately $36,000 in delinquent debts, which raised concerns about his reliability and judgment. His testimony regarding his financial situation was inconsistent and lacked supporting documentation, undermining his credibility. Furthermore, the applicant failed to demonstrate effective measures to resolve his financial issues or prevent future occurrences.

Why the Applicant Was Denied

The applicant admitted to multiple delinquent debts totaling approximately $36,000, which raised concerns about his reliability and judgment.
The applicant's testimony regarding his financial situation was inconsistent and lacked supporting documentation, undermining his credibility.
The applicant failed to demonstrate effective measures taken to resolve his financial issues or prevent future occurrences.

Conditions Referenced

Disqualifying

FC DC 19.araisedInability or Unwillingness to Satisfy Debts
FC DC 19.craisedA History of Not Meeting Financial Obligations

Mitigating

FC MC 20.arejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial issues were recent and ongoing.
FC MC 20.brejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant did not demonstrate that his financial issues were beyond his control.
FC MC 20.crejectedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant had not received any financial counseling.
FC MC 20.drejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant's efforts to repay debts were insufficient and lacked credibility.

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 issuedJul 25, 2008
Answer filedAug 29, 2008
Hearing heldOct 28, 2008
Decision dateDec 30, 2008

Cite For

Evaluation of Financial Considerations Under Guideline F
Impact of Inconsistent Testimony on Credibility
Importance of Demonstrating Financial Stability for 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	This account was reported delinquent in May 2007. Applicant believes this account was for a credit card his former wife used to pay for household items; he estimated the card became delinquent in 2006 or 2007. $29,861	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Debt Paid in Full
1.b	This account was first reported delinquent in January 2007. Applicant initially claimed he had contacted the company who told him the debt had been or would be removed from his credit report. $7,239	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Debt Disputed with Creditor
1.c	This amount appears in GE 3 as past due as of June 2008. The allegation refers to other delinquent debts owed to the cited mortgage company, but does not identify what those debts are. $82,758	For Applicant	Unspecified Financial	Admitted	—	—	—
1.d	This account was first reported delinquent in June 2007. Applicant paid this creditor on October 23, 2008. $263	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full
1.e	This account was first reported delinquent in October 2006. On October 23, 2008, Applicant paid this creditor in full. $320	For Applicant	Utility or Phone Debt	Admitted	—	—	Documented Debt Paid in Full
1.f	According to Applicant, execution of garnishment is an automatic practice that State X imposes when it is determined that child support is owed. Applicant maintains he never was delinquent in paying his child support.	For Applicant	Child Support Debt	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

This account was reported delinquent in May 2007. Applicant believes this account was for a credit card his former wife used to pay for household items; he estimated the card became delinquent in 2006 or 2007.

$29,861

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Claimed

Debt Paid in Full

1.b

This account was first reported delinquent in January 2007. Applicant initially claimed he had contacted the company who told him the debt had been or would be removed from his credit report.

$7,239

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Claimed

Debt Disputed with Creditor

1.c

This amount appears in GE 3 as past due as of June 2008. The allegation refers to other delinquent debts owed to the cited mortgage company, but does not identify what those debts are.

$82,758

For Applicant

Unspecified Financial

Admitted

—

1.d

This account was first reported delinquent in June 2007. Applicant paid this creditor on October 23, 2008.

$263

For Applicant

Unspecified Financial

Admitted

—

Documented

Debt Paid in Full

1.e

This account was first reported delinquent in October 2006. On October 23, 2008, Applicant paid this creditor in full.

$320

For Applicant

Utility or Phone Debt

Admitted

—

Documented

Debt Paid in Full

1.f

According to Applicant, execution of garnishment is an automatic practice that State X imposes when it is determined that child support is owed. Applicant maintains he never was delinquent in paying his child support.

For Applicant

Child Support 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

FORMAL FINDINGS

CONCLUSION

FOOTNOTES