ISCR Case 08-04378.h1

Case Headnote

ISCR Case No. 08-04378.h1

deniedMay 27, 2009· Hon. Carol G. Ricciardello· hearing

Summary

A 59-year-old manufacturing process engineer was denied a security clearance under Guideline F (Financial Considerations) due to multiple unresolved delinquent debts totaling $11,857. The Statement of Reasons detailed several specific financial issues. These included an admitted unpaid judgment, an $88 charge on a closed savings account, and an $89 debt to a gas company from a residence vacated in 2000-2001, which was paid in July 2008.

Further allegations involved a $1,981 loan from the late 1990s, of which the applicant claimed no knowledge during an OPM interview, and a $298 final telephone bill from his former State A residence, paid in December 2008. Disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and ¶ 19(c) were raised, while mitigating conditions AG ¶ 20(b) and ¶ 20(d) were considered.

The denial was based on the applicant's failure to resolve his significant delinquent debts despite having the financial capacity to do so. His explanations were deemed evasive and not credible, and he was found not to have acted in good faith, delaying payments until shortly before the hearing.

Why the Applicant Was Denied

Applicant has multiple delinquent debts totaling $11,857 that remain unpaid despite having the financial means to resolve them.
Applicant's explanations regarding his financial situation were found to be evasive and not credible.
Applicant did not act in good faith to resolve his debts, delaying payments until just before the hearing.

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(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile the applicant experienced unemployment, he has had the means to pay his debts since 2006 but has not done so.
AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue CreditorsThe applicant's actions indicate a lack of good faith in addressing his debts.

Key Rule Quoted

“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”

Procedural Posture

SOR issuedNov 28, 2008
Answer filedJan 12, 2009
Hearing heldApr 28, 2009
Decision dateMay 27, 2009

Cite For

Failure to Mitigate Financial Considerations Under Guideline F
Credibility Issues Impacting Financial Responsibility
Disqualifying Conditions Related to Financial Obligations

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 admitted the unpaid judgment in SOR ¶ 1.a in his answer. $11,857	Against Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	The delinquent debt in SOR 1.b ($88) Applicant stated is for a charge on a savings account that was closed. $88	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	The debt in SOR 1.c ($89) is to the gas company. Appellant had a residence in State A that he vacated in 2000-2001, however his daughter remained in the house. The house was sold in 2006. He paid this debt on July 28, 2008. $89	For Applicant	Utility or Phone Debt	Denied	—	—	Documented Debt Paid in Full
1.d	The debt in SOR 1.d ($1,981) is for a loan that Applicant believed was from sometime around 1996 to 1998. During his interview with OPM he stated he had no knowledge of the debt. $1,981	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	Applicant stated that the debt in SOR 1.e ($298) was for his last telephone bill from his house in State A. He testified he moved in 2000-2001. He paid the debt in December 2008. $298	For Applicant	Utility or Phone Debt	Denied	—	—	Documented Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant admitted the unpaid judgment in SOR ¶ 1.a in his answer.

$11,857

Against Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

The delinquent debt in SOR 1.b ($88) Applicant stated is for a charge on a savings account that was closed.

$88

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.c

The debt in SOR 1.c ($89) is to the gas company. Appellant had a residence in State A that he vacated in 2000-2001, however his daughter remained in the house. The house was sold in 2006. He paid this debt on July 28, 2008.

$89

For Applicant

Utility or Phone Debt

Denied

—

Documented

Debt Paid in Full

1.d

The debt in SOR 1.d ($1,981) is for a loan that Applicant believed was from sometime around 1996 to 1998. During his interview with OPM he stated he had no knowledge of the debt.

$1,981

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

Applicant stated that the debt in SOR 1.e ($298) was for his last telephone bill from his house in State A. He testified he moved in 2000-2001. He paid the debt in December 2008.

$298

For Applicant

Utility or Phone Debt

Denied

—

Documented

Debt Paid in Full

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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