ISCR Case 08-03198.h1

Case Headnote

ISCR Case No. 08-03198.h1

deniedJan 12, 2010· Hon. Shari Dam· hearing

Summary

A 40-year-old former military service member was denied a security clearance under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to unresolved delinquent debts totaling $20,981 and an alleged falsification on her SF-86. The Statement of Reasons detailed ten specific debts, including medical bills, cellular phone charges, and an automobile loan. While one $180 student loan was paid, and the applicant provided evidence of paying a $355 portion of a $14,088 automobile debt, the majority remained unresolved.

Specific unresolved debts included a $987 medical bill from 2002, a $423 cellular debt from 2002, a $14,088 automobile debt, a $3,945 credit card debt from 2007, and several other medical and cellular debts ranging from $74 to $482, some dating back to 2001. The applicant claimed unfamiliarity with some debts, disputed others, or cited issues with payment processing, but often failed to provide evidence of formal dispute or resolution efforts.

The denial was based on the applicant's history of financial irresponsibility, insufficient evidence of debt resolution efforts or financial counseling, and the negligent omission of delinquent debts on her SF-86. These factors raised concerns about her reliability and trustworthiness, leading to the denial of her security clearance.

Why the Applicant Was Denied

The applicant has a history of unresolved delinquent debts totaling $20,981, indicating financial irresponsibility.
The applicant failed to provide sufficient evidence of efforts to resolve her debts or obtain financial counseling.
The applicant's omission of delinquent debts on her SF 86 was deemed negligent, raising concerns about her reliability and trustworthiness.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant demonstrated a good-faith effort by paying her student loan.
AG ¶ 20(b)rejectedConditions Beyond the Person's ControlWhile some financial issues stemmed from unemployment, the applicant did not act responsibly to resolve her debts.
AG ¶ 20(c)rejectedReceived Counseling for the ProblemThe applicant did not obtain financial counseling or show that her debts were under control.

Key Rule Quoted

“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”

Procedural Posture

SOR issuedJun 16, 2009
Answer filedJul 16, 2009
Hearing heldOct 14, 2009
Decision dateJan 12, 2010

Cite For

Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
Negligent Omission of Debts on Security Clearance Application Under Guideline E
Insufficient Evidence of Financial Responsibility and Mitigation Efforts.

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

¶	Allegation	Finding	Conduct	Concealed Issue	Response	Disqualifying (¶16)	Mitigating applied (¶17)	Mitigation
2.a	The government alleged in SOR ¶ 2.a that Applicant falsified answers to a question on her SF 86, regarding disclosure of debts more than 90 or 180 days delinquent.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATE	Financial	Denied	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

The government alleged in SOR ¶ 2.a that Applicant falsified answers to a question on her SF 86, regarding disclosure of debts more than 90 or 180 days delinquent.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATE

Financial

Denied

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	This $987 medical debt is owed to a hospital for a visit relating to her young son in October 2002 when he broke his arm. Public aid sent a check for more than the amount owed and the hospital would not accept the check. The debt remains unresolved. $987	Against Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	This $423 debt is owed to a cellular telephone company. Applicant denies that she ever used this company. She said she would dispute the debt after the hearing. She did not subsequently submit any evidence that she did so. The debt became delinquent in May 2002 and is unresolved. $423	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	The $180 student loan debt is paid. $180	For Applicant	Student Loan Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full
1.d	Applicant claimed that the $14,088 debt owed to an automobile company was paid. She asserted that her insurance company issued a check for all but $355 of the debt. She submitted evidence that she paid the $355 in 2005, but did not provide evidence that the larger portion of the debt was paid by the insurance company and is resolved. The debt appears on the February 2009 CBR, indicating that it is unresolved. $14,088	Against Applicant	Auto Loan Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	The $3,945 debt owed to a credit card company is unresolved. It became due in July 2007. She believes most of the reported amount is for interest and penalties charges that she cannot afford. She has not contacted the creditor. $3,945	Against Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	Applicant thinks the $407 debt is for medical services her son received in February 2002. She is not certain. She has not contacted the creditor to work out a resolution. It is unresolved. $407	Against Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	Applicant is unfamiliar with the $109 debt owed to her current cellular telephone company. It became delinquent in July 2007. It is unresolved. $109	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	This $482 debt is owed to the landlord of an apartment complex where she lived. It became due in August 2001. She claims she does not owe the debt, but has not taken any action to formally dispute or resolve it. $482	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	This $286 debt is a medical bill owed for her son’s care. It became delinquent in July 2002. It is unresolved. $286	Against Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.j	This $74 debt is owed to her current cellular company. She is unfamiliar with it. It became delinquent in March 2003. It is unresolved. $74	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

This $987 medical debt is owed to a hospital for a visit relating to her young son in October 2002 when he broke his arm. Public aid sent a check for more than the amount owed and the hospital would not accept the check. The debt remains unresolved.

$987

Against Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

This $423 debt is owed to a cellular telephone company. Applicant denies that she ever used this company. She said she would dispute the debt after the hearing. She did not subsequently submit any evidence that she did so. The debt became delinquent in May 2002 and is unresolved.

$423

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

The $180 student loan debt is paid.

$180

For Applicant

Student Loan Debt

Admitted

—

(d) good-faith effort to repay or otherwise resolve debts

Credited

Debt Paid in Full

1.d

Applicant claimed that the $14,088 debt owed to an automobile company was paid. She asserted that her insurance company issued a check for all but $355 of the debt. She submitted evidence that she paid the $355 in 2005, but did not provide evidence that the larger portion of the debt was paid by the insurance company and is resolved. The debt appears on the February 2009 CBR, indicating that it is unresolved.

$14,088

Against Applicant

Auto Loan Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

The $3,945 debt owed to a credit card company is unresolved. It became due in July 2007. She believes most of the reported amount is for interest and penalties charges that she cannot afford. She has not contacted the creditor.

$3,945

Against Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

Applicant thinks the $407 debt is for medical services her son received in February 2002. She is not certain. She has not contacted the creditor to work out a resolution. It is unresolved.

$407

Against Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

Applicant is unfamiliar with the $109 debt owed to her current cellular telephone company. It became delinquent in July 2007. It is unresolved.

$109

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

This $482 debt is owed to the landlord of an apartment complex where she lived. It became due in August 2001. She claims she does not owe the debt, but has not taken any action to formally dispute or resolve it.

$482

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i

This $286 debt is a medical bill owed for her son’s care. It became delinquent in July 2002. It is unresolved.

$286

Against Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.j

This $74 debt is owed to her current cellular company. She is unfamiliar with it. It became delinquent in March 2003. It is unresolved.

$74

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

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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

FOOTNOTES