ISCR Case 08-06093.h1

Case Headnote

ISCR Case No. 08-06093.h1

grantedMar 3, 2010· Hon. Robert J. Tuidar· hearing

Summary

A 35-year-old electrician technician was granted a security clearance despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons alleged the applicant failed to disclose a Chapter 13 bankruptcy, a mobile home repossession, two judgments, and debts over 180 days old on his November 2007 e-QIP. Additionally, the applicant had filed for Chapter 13 bankruptcy in November 2000, which was voluntarily dismissed in July 2002.

The applicant successfully mitigated these concerns. Regarding his financial issues, he demonstrated a stable recovery, having paid some debts, made payment arrangements for others, and engaged in good-faith disputes for the remaining obligations. For the alleged omissions on his e-QIP, the applicant provided credible explanations, stating he reasonably believed these events fell outside the seven-year reporting period.

The judge found that the applicant's financial recovery was substantial and his explanations for the application disclosures were reasonable. His reliability and trustworthiness were further supported by character references and a consistent employment history. Consequently, the security clearance was granted.

Why the Applicant Prevailed

The applicant demonstrated a stable financial recovery and made substantial progress in resolving his debts.
He provided credible explanations for the alleged omissions on his e-QIP, believing he was outside the seven-year reporting window.
The applicant's character references and employment history supported his reliability and trustworthiness.

Conditions Referenced

Disqualifying

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

Mitigating

F.20(a)appliedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
F.20(b)appliedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
F.20(d)appliedIndividual Initiated a Good-faith Effort to Repay Overdue Creditors
F.20(c)appliedReceived or Is Receiving Counseling for the Problem
F.20(e)appliedIndividual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt

Key Rule Quoted

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

Procedural Posture

SOR issuedDec 8, 2008
Answer filedJan 7, 2009Applicant's undated response received.
Hearing heldOct 28, 2009
Decision dateMar 3, 2010

Cite For

Mitigation of Financial Issues Under Guideline F Due to Past Circumstances
Reasonable Belief in the Accuracy of Information Provided on Security Clearance Applications
Application of the Whole Person Concept in 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	Conduct	Concealed Issue	Response	Disqualifying (¶16)	Mitigating applied (¶17)	Mitigation
2.a	Applicant failed to disclose events that occurred in the seven years preceding the completion of his November 2007 e-QIP: his Chapter 13 bankruptcy.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATE	Other	Admitted	—	(b) omission/refusal followed advice of counsel; later cooperated fully (d) acknowledged the behavior; counseling/positive steps taken (e) positive steps to reduce vulnerability to exploitation	—
2.b	Applicant failed to disclose events that occurred in the seven years preceding the completion of his November 2007 e-QIP: his mobile home repossession.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATE	Other	Admitted	—	(b) omission/refusal followed advice of counsel; later cooperated fully (d) acknowledged the behavior; counseling/positive steps taken (e) positive steps to reduce vulnerability to exploitation	—
2.c	Applicant failed to disclose events that occurred in the seven years preceding the completion of his November 2007 e-QIP: his two judgments filed against him.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATE	Other	Admitted	—	(b) omission/refusal followed advice of counsel; later cooperated fully (d) acknowledged the behavior; counseling/positive steps taken (e) positive steps to reduce vulnerability to exploitation	—
2.d	Applicant failed to disclose events that occurred in the seven years preceding the completion of his November 2007 e-QIP: debts over 180 days old.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATE	Other	Admitted	—	(b) omission/refusal followed advice of counsel; later cooperated fully (d) acknowledged the behavior; counseling/positive steps taken (e) positive steps to reduce vulnerability to exploitation	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant failed to disclose events that occurred in the seven years preceding the completion of his November 2007 e-QIP: his Chapter 13 bankruptcy.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATE

Other

Admitted

—

(b) omission/refusal followed advice of counsel; later cooperated fully

(d) acknowledged the behavior; counseling/positive steps taken

(e) positive steps to reduce vulnerability to exploitation

—

2.b

Applicant failed to disclose events that occurred in the seven years preceding the completion of his November 2007 e-QIP: his mobile home repossession.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATE

Other

Admitted

—

(b) omission/refusal followed advice of counsel; later cooperated fully

(d) acknowledged the behavior; counseling/positive steps taken

(e) positive steps to reduce vulnerability to exploitation

—

2.c

Applicant failed to disclose events that occurred in the seven years preceding the completion of his November 2007 e-QIP: his two judgments filed against him.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATE

Other

Admitted

—

(b) omission/refusal followed advice of counsel; later cooperated fully

(d) acknowledged the behavior; counseling/positive steps taken

(e) positive steps to reduce vulnerability to exploitation

—

2.d

Applicant failed to disclose events that occurred in the seven years preceding the completion of his November 2007 e-QIP: debts over 180 days old.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATE

Other

Admitted

—

(b) omission/refusal followed advice of counsel; later cooperated fully

(d) acknowledged the behavior; counseling/positive steps taken

(e) positive steps to reduce vulnerability to exploitation

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant filed for Chapter 13 bankruptcy protection on November 29, 2000. He later voluntarily dismissed his petition on July 18, 2002.	For Applicant	Bankruptcy Filing	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(a) behavior happened long ago / infrequent / unlikely to recur (b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Claimed Other
1.b	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—
1.c	Applicant has paid debts alleged in SOR ¶ 1.c.	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.d	Applicant has made payment arrangements or is in the process of making payments for the debts alleged in ¶ 1.d.	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.e	Applicant has paid debts alleged in SOR ¶ 1.e.	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.f	Applicant is engaged in good-faith disputes for debts alleged in SOR ¶¶ 1.f.	For Applicant	Unspecified Financial	Admitted	—	(e) reasonable, documented basis to dispute the debt	Documented Debt Disputed with Creditor
1.g	Applicant has made payment arrangements or is in the process of making payments for the debts alleged in ¶ 1.g.	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.h	Applicant is engaged in good-faith disputes for debts alleged in SOR ¶¶ 1.h.	For Applicant	Unspecified Financial	Admitted	—	(e) reasonable, documented basis to dispute the debt	Documented Debt Disputed with Creditor
1.i	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—
1.j	Applicant has made payment arrangements or is in the process of making payments for the debts alleged in ¶ 1.j.	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant filed for Chapter 13 bankruptcy protection on November 29, 2000. He later voluntarily dismissed his petition on July 18, 2002.

For Applicant

Bankruptcy Filing

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(a) behavior happened long ago / infrequent / unlikely to recur

(b) conditions largely beyond the person’s control; acted responsibly

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

Claimed

Other

1.b

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

1.c

Applicant has paid debts alleged in SOR ¶ 1.c.

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Debt Paid in Full

1.d

Applicant has made payment arrangements or is in the process of making payments for the debts alleged in ¶ 1.d.

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Payment Plan with Creditor

1.e

Applicant has paid debts alleged in SOR ¶ 1.e.

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Debt Paid in Full

1.f

Applicant is engaged in good-faith disputes for debts alleged in SOR ¶¶ 1.f.

For Applicant

Unspecified Financial

Admitted

—

(e) reasonable, documented basis to dispute the debt

Documented

Debt Disputed with Creditor

1.g

Applicant has made payment arrangements or is in the process of making payments for the debts alleged in ¶ 1.g.

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Payment Plan with Creditor

1.h

Applicant is engaged in good-faith disputes for debts alleged in SOR ¶¶ 1.h.

For Applicant

Unspecified Financial

Admitted

—

(e) reasonable, documented basis to dispute the debt

Documented

Debt Disputed with Creditor

1.i

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

1.j

Applicant has made payment arrangements or is in the process of making payments for the debts alleged in ¶ 1.j.

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Payment Plan with Creditor

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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

PROCEDURAL RULINGS

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES