ISCR Case 08-04229.h1

Case Headnote

ISCR Case No. 08-04229.h1

deniedJan 21, 2009· Hon. Noreen A. Lynch· hearing

Summary

A 27-year-old defense contractor employee was denied a security clearance under Guideline F, Financial Considerations, due to approximately $19,647 in delinquent debts. The Statement of Reasons detailed numerous unpaid collection accounts, including $958 for a cell phone, $358 for a telephone account used by his parents, $640 for an unknown account, $179 for a water bill, $14,245 for a truck purchased for his parents, $589 for a girlfriend's cell phone, and $449 for his girlfriend's sister's cell phone. Additionally, a $1,135 collection account was unknown to the applicant.

While some minor debts were resolved, such as a $100 account settled for $30 and a $79 account that was paid, and $106 was paid on one of three cable company accounts, the majority remained unpaid. The applicant's financial issues largely stemmed from allowing family and friends to use his credit without effective management.

Despite a positive work record and recommendations, the applicant failed to provide a concrete repayment plan or sufficient evidence of financial counseling. The decision concluded that the applicant's financial irresponsibility and lack of a clear path to resolve the significant outstanding debts did not mitigate the security concerns, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant has numerous delinquent debts totaling approximately $19,647 and has not acted responsibly in resolving them.
The applicant did not provide sufficient evidence of a repayment plan or financial counseling to mitigate the concerns raised by his financial situation.
The applicant's financial issues stemmed from allowing family and friends to use his credit, which he did not manage effectively.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant's financial problems are ongoing and not infrequent.
AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not act responsibly in identifying and resolving his debts.
AG ¶ 20(c)rejectedReceived Counseling for the ProblemThe applicant has not received financial counseling.
AG ¶ 20(d)rejectedGood-faith Effort to Repay CreditorsThe applicant has not made sufficient efforts to resolve his financial issues.
AG ¶ 20(e)rejectedDispute Legitimacy of Past Due DebtThe applicant acknowledged responsibility for the debts.

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 30, 2008
Answer filedAug 6, 2008
Hearing heldDec 10, 2008
Decision dateJan 21, 2009

Cite For

Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
Importance of Demonstrating Responsible Financial Management for Security Clearance Eligibility
Impact of Ongoing Delinquent Debts on Security Clearance Decisions

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	SOR ¶ 1.a is a collection account in the amount of $958 for a cell phone. This account is unpaid. $958	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	SOR ¶ 1.b is a collection account in the amount of $100. Applicant settled this account for $30 (AE D). $100	For Applicant	Unspecified Financial	Admitted	—	—	—
1.c	SOR ¶ 1.c are three separate collection accounts with the same cable company. Applicant paid $106 on one account. The other two accounts are unpaid (Tr. 44).	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	SOR ¶ 1.d is a collection account for a telephone account in collection for $358. Applicant’s parents used the phone but did not pay the bills. This account remains unpaid. $358	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	SOR ¶ 1.e is a collection account for $640. Applicant does not know the origin of this account. The account is unpaid. $640	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	SOR ¶ 1.f is for a telephone account in collection for $358. Applicant’s parents used the phone but did not pay the bills. This account remains unpaid. $358	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	SOR ¶ 1.g is a collection account for $640. Applicant does not know the origin of this account. The account is unpaid. $640	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	SOR ¶ 1.i is an account in the amount of $79. The account is paid (AE C). $79	For Applicant	Unspecified Financial	Admitted	—	—	—
1.j	SOR ¶ 1.j is a collection account for a water bill in the amount of $179. The account remains unpaid. $179	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.k	SOR ¶ 1.k is a collection account for the truck purchased for his parents in the amount of $14,245. This is unpaid. $14,245	Against Applicant	Auto Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.l	SOR ¶ 1.l is a collection account for a cell phone that belonged to Applicant’s girlfriend. The account for $589 is unpaid. $589	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.m	SOR ¶ 1.m is for a collection account in the amount of $1,135. Applicant has no knowledge of this account. $1,135	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.n	SOR ¶ 1.n is for another cell phone account that belonged to his girlfriend’s sister in the amount of $449 which is unpaid. $449	Against Applicant	Unspecified Financial	Admitted	(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

SOR ¶ 1.a is a collection account in the amount of $958 for a cell phone. This account is unpaid.

$958

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

SOR ¶ 1.b is a collection account in the amount of $100. Applicant settled this account for $30 (AE D).

$100

For Applicant

Unspecified Financial

Admitted

—

1.c

SOR ¶ 1.c are three separate collection accounts with the same cable company. Applicant paid $106 on one account. The other two accounts are unpaid (Tr. 44).

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

SOR ¶ 1.d is a collection account for a telephone account in collection for $358. Applicant’s parents used the phone but did not pay the bills. This account remains unpaid.

$358

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

SOR ¶ 1.e is a collection account for $640. Applicant does not know the origin of this account. The account is unpaid.

$640

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

SOR ¶ 1.f is for a telephone account in collection for $358. Applicant’s parents used the phone but did not pay the bills. This account remains unpaid.

$358

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

SOR ¶ 1.g is a collection account for $640. Applicant does not know the origin of this account. The account is unpaid.

$640

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i

SOR ¶ 1.i is an account in the amount of $79. The account is paid (AE C).

$79

For Applicant

Unspecified Financial

Admitted

—

1.j

SOR ¶ 1.j is a collection account for a water bill in the amount of $179. The account remains unpaid.

$179

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.k

SOR ¶ 1.k is a collection account for the truck purchased for his parents in the amount of $14,245. This is unpaid.

$14,245

Against Applicant

Auto Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.l

SOR ¶ 1.l is a collection account for a cell phone that belonged to Applicant’s girlfriend. The account for $589 is unpaid.

$589

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.m

SOR ¶ 1.m is for a collection account in the amount of $1,135. Applicant has no knowledge of this account.

$1,135

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.n

SOR ¶ 1.n is for another cell phone account that belonged to his girlfriend’s sister in the amount of $449 which is unpaid.

$449

Against Applicant

Unspecified Financial

Admitted

(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