ISCR Case 08-00465.h1

Case Headnote

ISCR Case No. 08-00465.h1

deniedJan 23, 2009· Hon. Paul J. Mason· hearing

Summary

A 41-year-old software developer was denied a security clearance under Guideline F (Financial Considerations) due to significant and ongoing financial issues. The applicant had multiple delinquent debts totaling over $23,000, which raised concerns about his reliability and judgment.

Specific allegations included a $6,920 judgment from October 2007 for a credit card, a $913 judgment from January 2004 for unpaid rent, and a $95 worthless check for food in March 2004. Other outstanding debts included a $2,061 delinquent credit card, a $252 delinquent account for unpaid jewelry, and a $2,253 delinquent credit card. Additionally, a $122 professional services account was reported for collection in February 2001, and a $1,994 electronics account had its last payment in June 2002. The applicant also acknowledged neglecting a $303 car payment.

While one telecommunications account for $234 was paid off in November 2008, the applicant did not demonstrate sufficient evidence of overall financial responsibility or proactive efforts to resolve the majority of his debts. The decision concluded that the applicant's financial issues were not adequately addressed, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant had multiple delinquent debts totaling over $23,000, indicating an inability to manage financial obligations.
The applicant did not demonstrate sufficient evidence of financial responsibility or proactive efforts to resolve debts.
The applicant's financial issues were ongoing and not adequately addressed, raising doubts about his reliability and trustworthiness.

Conditions Referenced

Disqualifying

FC DC 19.aappliedInability or Unwillingness to Satisfy Debts
FC DC 19.cappliedA History of Not Meeting Financial Obligations

Mitigating

FC MC 20.bappliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
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 not timely or sufficient to mitigate concerns.

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 issuedJun 23, 2008
Answer filedUndatedNo date stamp present.
Hearing heldOct 30, 2008
Decision dateJan 23, 2009

Cite For

Financial Irresponsibility as a Disqualifying Factor Under Guideline F
The Importance of Proactive Debt Management in Security Clearance Evaluations
The Impact of Unresolved Financial Obligations on Trustworthiness and Reliability Assessments

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	A judgment was entered against Applicant in October 2007 for $6,920.00, for failure to meet installment payments on a credit card account. $6,920	For Applicant	Judgment Against Applicant	Unknown	—	—	—
1.b	A judgment of $913.00 was entered against Applicant in January 2004 for failing to pay rent. $913	Against Applicant	Judgment Against Applicant	Denied	(a) inability to satisfy debts	—	—
1.c	Applicant purchased $95.00 in food from a supermarket in March 2004 with a worthless check. $95	For Applicant	Financial Fraud or Check Kiting	Unknown	—	—	—
1.d	This account is the same as SOR 1.a. $6,920	For Applicant	Judgment Against Applicant	Unknown	—	—	—
1.e	This telecommunications account for $234.00 was paid off by Applicant on November 3, 2008 by check card. $234	For Applicant	Utility or Phone Debt	Unknown	—	—	—
1.f	This telecommunications account of $138.00 was opened in February 2002, with the last activity on the account occurring in February 2004. $138	For Applicant	Utility or Phone Debt	Unknown	—	—	—
1.g	This credit card account is delinquent in the amount of $2,061.00. $2,061	For Applicant	Credit Card Debt	Unknown	—	—	—
1.h	The delinquent account is $252.00, and according to GE 6, Applicant purchased some jewelry in August 2003 that he did not pay for. $252	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts	—	—
1.i	The account ($1,736.00) was opened in 1995, with the last activity on the account occurring in 2002. $1,736	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts	—	—
1.j	This credit card account has a delinquent amount of $2,253.00. $2,253	Against Applicant	Credit Card Debt	Unknown	(a) inability to satisfy debts	—	—
1.k	This professional services account of $122.00 was reported for collection in February 2001. $122	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts	—	—
1.l	The electronics account of $1,994.00 was opened in 1996, and Applicant’s last payment on the account was June 2002. $1,994	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts	—	—
1.m	Applicant testified the $303.00 represents a car payment he neglected to pay when he was working in the upper northwest part of the United States (U.S.). $303	Against Applicant	Auto Loan Debt	Unknown	(a) inability to satisfy debts	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

A judgment was entered against Applicant in October 2007 for $6,920.00, for failure to meet installment payments on a credit card account.

$6,920

For Applicant

Judgment Against Applicant

Unknown

—

1.b

A judgment of $913.00 was entered against Applicant in January 2004 for failing to pay rent.

$913

Against Applicant

Judgment Against Applicant

Denied

(a) inability to satisfy debts

—

1.c

Applicant purchased $95.00 in food from a supermarket in March 2004 with a worthless check.

$95

For Applicant

Financial Fraud or Check Kiting

Unknown

—

1.d

This account is the same as SOR 1.a.

$6,920

For Applicant

Judgment Against Applicant

Unknown

—

1.e

This telecommunications account for $234.00 was paid off by Applicant on November 3, 2008 by check card.

$234

For Applicant

Utility or Phone Debt

Unknown

—

1.f

This telecommunications account of $138.00 was opened in February 2002, with the last activity on the account occurring in February 2004.

$138

For Applicant

Utility or Phone Debt

Unknown

—

1.g

This credit card account is delinquent in the amount of $2,061.00.

$2,061

For Applicant

Credit Card Debt

Unknown

—

1.h

The delinquent account is $252.00, and according to GE 6, Applicant purchased some jewelry in August 2003 that he did not pay for.

$252

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

—

1.i

The account ($1,736.00) was opened in 1995, with the last activity on the account occurring in 2002.

$1,736

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

—

1.j

This credit card account has a delinquent amount of $2,253.00.

$2,253

Against Applicant

Credit Card Debt

Unknown

(a) inability to satisfy debts

—

1.k

This professional services account of $122.00 was reported for collection in February 2001.

$122

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

—

1.l

The electronics account of $1,994.00 was opened in 1996, and Applicant’s last payment on the account was June 2002.

$1,994

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

—

1.m

Applicant testified the $303.00 represents a car payment he neglected to pay when he was working in the upper northwest part of the United States (U.S.).

$303

Against Applicant

Auto Loan Debt

Unknown

(a) inability to satisfy debts

—

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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