ISCR Case 08-03512.h1

Case Headnote

ISCR Case No. 08-03512.h1

deniedFeb 9, 2009· Hon. Joseph Testan· hearing

Summary

A 65-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial delinquencies. The Statement of Reasons detailed several outstanding debts, including two California state tax liens from 1995 and 1996 for approximately $8,164.00 and $1,012.00, respectively.

Additionally, the applicant was indebted to Applied Credit Bank for approximately $2,835.00, with this credit card debt delinquent since at least 2002. Other collection accounts included Verizon Wireless for approximately $1,364.00. While an IRS tax lien from 1994 for approximately $4,854.00 was released in 2003, and a Providian debt of approximately $4,500.00 was settled for $2,375.00 in August 2008, other issues remained. An AT&T debt of approximately $455.00 was partially paid with a receipt showing $385.62 in August 2008.

The judge found that the applicant's financial issues were recent and ongoing, and he failed to provide sufficient evidence to mitigate these concerns. The applicant also did not request a hearing to present further evidence, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant has a history of financial delinquencies, including multiple tax liens and unpaid debts.
The applicant failed to provide sufficient evidence to demonstrate that his financial problems were under control or that he acted responsibly in addressing them.
The applicant did not request a hearing to present additional evidence that could have clarified his financial situation.

Conditions Referenced

Disqualifying

AG ¶ 19.aappliedInability or Unwillingness to Satisfy Debts
AG ¶ 19.cappliedHistory of Not Meeting Financial Obligations

Mitigating

AG ¶ 20.arejectedBehavior Happened Long Ago or InfrequentlyThe applicant's financial difficulties are recent and ongoing.
AG ¶ 20.brejectedConditions Largely Beyond the Person's ControlThe applicant failed to provide sufficient details to support his claims regarding the causes of his financial problems.
AG ¶ 20.crejectedCounseling Received or Problem Under ControlThe applicant's financial problems are not under control.
AG ¶ 20.drejectedGood-faith Effort to Repay CreditorsThe applicant did not initiate a good-faith effort to resolve his debts.
AG ¶ 20.erejectedReasonable Basis to Dispute Legitimacy of DebtThe applicant provided no documentation to substantiate his dispute of the tax debts.

Key Rule Quoted

“"Any doubt as to whether access to classified information is clearly consistent with national security will be resolved in favor of the national security."”
— Directive, Paragraph E2.2.2.

Procedural Posture

SOR issuedJul 21, 2008
Answer filedAug 26, 2008
Hearing held—Decision based on written record.
Decision dateFeb 9, 2009

Cite For

Denial of Security Clearance Due to Financial Delinquencies Under Guideline F
Insufficient Evidence to Mitigate Ongoing Financial Issues
Importance of Presenting Evidence in a Hearing to Clarify Financial Circumstances

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	Applicant is indebted to the State of California in the approximate amount of $1,012.00 as evidenced by a State tax lien filed against him in 1996. $1,012	Against Applicant	Tax Unpaid	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	Applicant is indebted to the State of California in the approximate amount of $8,164.00 as evidenced by a State tax lien filed against him in 1995. $8,164	Against Applicant	Tax Unpaid	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	Applicant was indebted to the IRS in the approximate amount of $4,854.00. Because the only evidence of this debt was a tax lien filed against him in 1994, and Exhibit 7 indicates the lien was released in 2003, I find applicant is no longer indebted to the IRS. $4,854	For Applicant	Tax Unpaid	Unknown	—	—	—
1.d	Applicant admits he is indebted to Applied Credit Bank in the approximate amount of $2,835.00. This credit card debt has been delinquent since at least 2002, and was placed for collection. $2,835	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	Applicant was indebted to Providian on an account that went delinquent and was placed for collection with Palisades Collection in the approximate amount of $4,500.00. Applicant settled the debt for $2,375.00 and made the $2,375.00 payment in August 2008. $4,500	For Applicant	Credit Card Debt	Unknown	—	—	—
1.f	Applicant is indebted to Verizon Wireless on an account that went delinquent and was referred to Pinnacle Credit for collection in the approximate amount of $1,364.00. $1,364	Against Applicant	Utility or Phone Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	Applicant was indebted to AT&T on an account that went delinquent and was turned over to NCO Financial for collection in the approximate amount of $455.00. In his response to the SOR, applicant stated 'the AT&T bill has been paid in full, for the original amount, documentation included.' He attached a copy of a receipt from AT&T, dated August 26, 2008, which shows a payment of $385.62. $455	For Applicant	Utility or Phone Debt	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant is indebted to the State of California in the approximate amount of $1,012.00 as evidenced by a State tax lien filed against him in 1996.

$1,012

Against Applicant

Tax Unpaid

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

Applicant is indebted to the State of California in the approximate amount of $8,164.00 as evidenced by a State tax lien filed against him in 1995.

$8,164

Against Applicant

Tax Unpaid

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

Applicant was indebted to the IRS in the approximate amount of $4,854.00. Because the only evidence of this debt was a tax lien filed against him in 1994, and Exhibit 7 indicates the lien was released in 2003, I find applicant is no longer indebted to the IRS.

$4,854

For Applicant

Tax Unpaid

Unknown

—

1.d

Applicant admits he is indebted to Applied Credit Bank in the approximate amount of $2,835.00. This credit card debt has been delinquent since at least 2002, and was placed for collection.

$2,835

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

Applicant was indebted to Providian on an account that went delinquent and was placed for collection with Palisades Collection in the approximate amount of $4,500.00. Applicant settled the debt for $2,375.00 and made the $2,375.00 payment in August 2008.

$4,500

For Applicant

Credit Card Debt

Unknown

—

1.f

Applicant is indebted to Verizon Wireless on an account that went delinquent and was referred to Pinnacle Credit for collection in the approximate amount of $1,364.00.

$1,364

Against Applicant

Utility or Phone Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

Applicant was indebted to AT&T on an account that went delinquent and was turned over to NCO Financial for collection in the approximate amount of $455.00. In his response to the SOR, applicant stated 'the AT&T bill has been paid in full, for the original amount, documentation included.' He attached a copy of a receipt from AT&T, dated August 26, 2008, which shows a payment of $385.62.

$455

For Applicant

Utility or Phone Debt

Unknown

—

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Summary

Why the Applicant Was Denied

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision