ISCR Case 08-01156.h1

Case Headnote

ISCR Case No. 08-01156.h1

grantedDec 15, 2008· Hon. Wilford H. Ross· hearing

Summary

A 53-year-old defense contractor sought to retain his security clearance, which was challenged under Guideline F (Financial Considerations). The Statement of Reasons alleged several financial issues, including credit card debts totaling approximately $2,793.00, $8,778.00, and $570.00, which the applicant admitted and had been actively addressing. He successfully paid off the $2,793.00 debt for $1,397.00 on February 27, 2008, and the $570.00 debt for $418.78 on April 21, 2008. He also admitted to a $14,000.00 debt related to a spa, on which he had been making payments since May 2004, and an $8,778.00 credit card debt, with consistent payments since October 2007.

The applicant denied responsibility for several other credit card debts totaling approximately $9,700.00, $17,067.00, $13,239.00, and $3,900.00. He consistently asserted these debts were incurred by his estranged wife after their separation and were therefore her separate responsibility.

The judge ultimately GRANTED the security clearance. The decision highlighted that the applicant had made significant efforts to pay off his debts, including fully resolving several. It was also noted that the financial difficulties were largely due to circumstances beyond his control, specifically his wife's actions post-separation. The applicant demonstrated a plan to resolve his remaining debts and was actively fulfilling it.

Why the Applicant Prevailed

The applicant demonstrated a history of making payments on his debts and had paid off several debts in full.
The financial difficulties were largely due to circumstances beyond the applicant's control, including his wife's actions after their separation.
The applicant provided evidence of a plan to resolve his debts and had been fulfilling that plan.

Conditions Referenced

Disqualifying

AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(a)appliedBehavior Occurred Under Circumstances Unlikely to Recur
AG ¶ 20(b)appliedConditions Resulting in Financial Problems Were Largely Beyond the Person's Control
AG ¶ 20(c)appliedClear Indications That the Problem Is Being Resolved or Is Under Control
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors or Resolve Debts

Key Rule Quoted

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

Procedural Posture

SOR issuedApr 9, 2008
Answer filedMay 1, 2008
Hearing heldJul 10, 2008record left open until July 31, 2008 for additional documents
Decision dateDec 15, 2008

Cite For

Mitigation of Financial Issues Under Guideline F
Consideration of Circumstances Beyond the Applicant's Control
Evidence of Good-faith Efforts to Resolve Debts

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	The Applicant admits that he owed approximately $2,793.00 for a credit card. The Applicant successfully paid this debt for a negotiated amount ($1,397.00) on February 27, 2008. $2,793	For Applicant	Credit Card Debt	Admitted	—	—	—
1.b	The Applicant admits that he owed approximately $14,000.00 to a creditor. This debt is related to a spa that was purchased to help his girlfriend’s grandson. The Applicant has been making payments on this account since May 2004. $14,000	For Applicant	Unspecified Financial	Admitted	—	—	—
1.c	The Applicant denies that he owes $9,700.00 on a credit card debt. He has consistently stated that this debt was run up by his wife after the date of the separation, and is therefore her separate debt. $9,700	For Applicant	Unspecified Financial	Denied	—	—	—
1.d	The Applicant denies that he owes $17,067.00 on a credit card debt. He has consistently stated that this debt was run up by his wife after the date of the separation, and is therefore her separate debt. $17,067	For Applicant	Unspecified Financial	Denied	—	—	—
1.e	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—
1.f	The Applicant denies that he owes $13,239.00 on a credit card debt. He has consistently stated that this debt was run up by his wife after the date of the separation, and is therefore her separate debt. $13,239	For Applicant	Unspecified Financial	Denied	—	—	—
1.g	The Applicant admits that he owed $8,778.00 on a credit card debt. The Applicant has been making payments on this account since January 2005, consistently since October 2007. $8,778	For Applicant	Credit Card Debt	Admitted	—	—	—
1.h	The Applicant admits that he owed approximately $570.00 for a credit card. The Applicant successfully paid this debt for a negotiated amount ($418.78) on April 21, 2008. $570	For Applicant	Credit Card Debt	Admitted	—	—	—
1.i	The Applicant denies that he owes $3,900.00 on a credit card debt. He has consistently stated that this debt was run up by his wife after the date of the separation, and is therefore her separate debt. $3,900	For Applicant	Unspecified Financial	Denied	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The Applicant admits that he owed approximately $2,793.00 for a credit card. The Applicant successfully paid this debt for a negotiated amount ($1,397.00) on February 27, 2008.

$2,793

For Applicant

Credit Card Debt

Admitted

—

1.b

The Applicant admits that he owed approximately $14,000.00 to a creditor. This debt is related to a spa that was purchased to help his girlfriend’s grandson. The Applicant has been making payments on this account since May 2004.

$14,000

For Applicant

Unspecified Financial

Admitted

—

1.c

The Applicant denies that he owes $9,700.00 on a credit card debt. He has consistently stated that this debt was run up by his wife after the date of the separation, and is therefore her separate debt.

$9,700

For Applicant

Unspecified Financial

Denied

—

1.d

The Applicant denies that he owes $17,067.00 on a credit card debt. He has consistently stated that this debt was run up by his wife after the date of the separation, and is therefore her separate debt.

$17,067

For Applicant

Unspecified Financial

Denied

—

1.e

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

1.f

The Applicant denies that he owes $13,239.00 on a credit card debt. He has consistently stated that this debt was run up by his wife after the date of the separation, and is therefore her separate debt.

$13,239

For Applicant

Unspecified Financial

Denied

—

1.g

The Applicant admits that he owed $8,778.00 on a credit card debt. The Applicant has been making payments on this account since January 2005, consistently since October 2007.

$8,778

For Applicant

Credit Card Debt

Admitted

—

1.h

The Applicant admits that he owed approximately $570.00 for a credit card. The Applicant successfully paid this debt for a negotiated amount ($418.78) on April 21, 2008.

$570

For Applicant

Credit Card Debt

Admitted

—

1.i

The Applicant denies that he owes $3,900.00 on a credit card debt. He has consistently stated that this debt was run up by his wife after the date of the separation, and is therefore her separate debt.

$3,900

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