ISCR Case 08-06283.h1

Case Headnote

ISCR Case No. 08-06283.h1

deniedAug 3, 2009· Hon. Richard A. Cefola· hearing

Summary

A 48-year-old Data Management Analyst was denied a security clearance due to concerns under Guideline F (Financial Considerations) and Guideline G (Alcohol Consumption). The applicant had filed for Chapter 7 bankruptcy in November 2007, with most debts discharged by March 2008. However, significant tax debts remained, including $11 for tax year 2006, $7,481 for 2007, and $11,723 for 2008, totaling over $19,000. Additionally, the applicant was indebted for approximately $6,564 in municipal property taxes and about $412 in county supplemental taxes.

Financial issues were compounded by a history of compulsive gambling, for which the applicant received counseling from May to November 2007. Prior to bankruptcy, the applicant used gambling and credit card cash advances to address financial problems, and last gambled three weeks before the hearing.

Regarding alcohol consumption, the applicant had a history of drinking to intoxication and blackouts, receiving counseling for alcohol abuse from May to November 2007. While attending Alcoholics Anonymous meetings from May to July 2007, the applicant abstained from alcohol but resumed consumption two days after receiving a 60-day sobriety chip. The judge found insufficient evidence of responsible behavior and rehabilitation, noting unresolved tax debts, the impact of compulsive gambling, and continued alcohol consumption up to the night before the hearing.

Why the Applicant Was Denied

The applicant has unresolved tax debts totaling over $19,000, which were not discharged in bankruptcy.
The applicant's history of compulsive gambling contributed to financial instability and poor judgment.
The applicant continued to consume alcohol up to the night before the hearing, indicating a lack of rehabilitation.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
AG ¶ 19(f)raisedFinancial Problems Linked to Gambling
AG ¶ 21(d)raisedDiagnosis of Alcohol Abuse

Mitigating

AG ¶ 20(b)rejectedActed Responsibly Under the CircumstancesThe applicant used credit cards to fund gambling despite financial distress.
AG ¶ 20(d)appliedGood-faith Effort to Repay DebtsThe applicant has set up a payment plan with the IRS for tax debts.

Key Rule Quoted

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

Procedural Posture

SOR issuedMar 19, 2009
Answer filedApr 8, 2009
Hearing heldMay 29, 2009
Decision dateAug 3, 2009

Cite For

Insufficient Evidence of Financial Responsibility Under Guideline F
Ongoing Alcohol Consumption as a Disqualifying Factor Under Guideline G
Impact of Gambling on Financial Stability and Security Clearance Eligibility

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	In November of 2007, the Applicant filed for the protection of a Chapter 7 Bankruptcy; and as a result, most of her indebtedness was discharged by way of bankruptcy, in March of 2008.	For Applicant	Bankruptcy Filing	Admitted	—	—	—
1.b	The Applicant is indebted to the Internal Revenue Service (IRS) for unpaid taxes in the following amounts: for tax year 2006, $11; for tax year 2007, $7,481; and for tax year 2008, $11,723. $19,715	For Applicant	Tax Unpaid	Denied	(a) inability to satisfy debts	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with IRS
1.c	It is alleged that the Applicant was indebted to a municipality for unpaid property taxes in the amount of about $6,564. $6,564	For Applicant	Unspecified Financial	Denied	—	—	—
1.d	It is alleged that the Applicant was indebted to a county for unpaid supplemental taxes in the amount of about $412. $412	For Applicant	Unspecified Financial	Denied	—	—	—
1.e	In the past, the Applicant’s father had expressed concern about her gambling.	Against Applicant	Gambling Losses	Unknown	(f) failure to file / fraudulent filing of tax returns or unpaid tax (i) concealing gambling losses or problems	—	—
1.f	In part, as a result, she received counseling for compulsive gambling from May through November of 2007.	Against Applicant	Gambling Losses	Unknown	(f) failure to file / fraudulent filing of tax returns or unpaid tax (i) concealing gambling losses or problems	—	—
1.g	Prior to filing for the protection of bankruptcy in November of 2007, the Applicant attempted to acquire money through her gambling, in order to help with her financial problems.	Against Applicant	Gambling Losses	Unknown	(f) failure to file / fraudulent filing of tax returns or unpaid tax (i) concealing gambling losses or problems	—	—
1.h	She would also use credit cards to obtain cash advances to fund her gambling.	Against Applicant	Gambling Losses	Unknown	(f) failure to file / fraudulent filing of tax returns or unpaid tax (i) concealing gambling losses or problems	—	—
1.i	She last gambled just 'three weeks' prior to her hearing.	Against Applicant	Gambling Losses	Unknown	(f) failure to file / fraudulent filing of tax returns or unpaid tax (i) concealing gambling losses or problems	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

In November of 2007, the Applicant filed for the protection of a Chapter 7 Bankruptcy; and as a result, most of her indebtedness was discharged by way of bankruptcy, in March of 2008.

For Applicant

Bankruptcy Filing

Admitted

—

1.b

The Applicant is indebted to the Internal Revenue Service (IRS) for unpaid taxes in the following amounts: for tax year 2006, $11; for tax year 2007, $7,481; and for tax year 2008, $11,723.

$19,715

For Applicant

Tax Unpaid

Denied

(a) inability to satisfy debts

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

Documented

Payment Plan with IRS

1.c

It is alleged that the Applicant was indebted to a municipality for unpaid property taxes in the amount of about $6,564.

$6,564

For Applicant

Unspecified Financial

Denied

—

1.d

It is alleged that the Applicant was indebted to a county for unpaid supplemental taxes in the amount of about $412.

$412

For Applicant

Unspecified Financial

Denied

—

1.e

In the past, the Applicant’s father had expressed concern about her gambling.

Against Applicant

Gambling Losses

Unknown

(f) failure to file / fraudulent filing of tax returns or unpaid tax

(i) concealing gambling losses or problems

—

1.f

In part, as a result, she received counseling for compulsive gambling from May through November of 2007.

Against Applicant

Gambling Losses

Unknown

(f) failure to file / fraudulent filing of tax returns or unpaid tax

(i) concealing gambling losses or problems

—

1.g

Prior to filing for the protection of bankruptcy in November of 2007, the Applicant attempted to acquire money through her gambling, in order to help with her financial problems.

Against Applicant

Gambling Losses

Unknown

(f) failure to file / fraudulent filing of tax returns or unpaid tax

(i) concealing gambling losses or problems

—

1.h

She would also use credit cards to obtain cash advances to fund her gambling.

Against Applicant

Gambling Losses

Unknown

(f) failure to file / fraudulent filing of tax returns or unpaid tax

(i) concealing gambling losses or problems

—

1.i

She last gambled just 'three weeks' prior to her hearing.

Against Applicant

Gambling Losses

Unknown

(f) failure to file / fraudulent filing of tax returns or unpaid tax

(i) concealing gambling losses or problems

—

¶	Allegation	Finding	Incident	Response	Disqualifying (¶22)	Mitigating applied (¶23)	Mitigation
2.a	The applicant consumed alcohol to the point of intoxication and blackouts.	Against Applicant	Binge or Intoxication Pattern	Admitted	—	—	—
2.b	The applicant received counseling for alcohol abuse from May through November of 2007.	Against Applicant	Alcohol Use Disorder Diagnosed	Admitted	(d) diagnosis of alcohol use disorder by a qualified professional	—	—
2.c	The applicant abstained from the use of alcohol while attending Alcoholics Anonymous meetings from May to July of 2007.	Against Applicant	Continued Use After Treatment	Admitted	—	—	—
2.d	The applicant started to consume alcohol again two days after receiving a 60-day sobriety chip from AA.	Against Applicant	Continued Use After Treatment	Admitted	—	—	—

Allegation

Finding

Incident

Response

Disqualifying (¶22)

Mitigating applied (¶23)

Mitigation

2.a

The applicant consumed alcohol to the point of intoxication and blackouts.

Against Applicant

Binge or Intoxication Pattern

Admitted

—

2.b

The applicant received counseling for alcohol abuse from May through November of 2007.

Against Applicant

Alcohol Use Disorder Diagnosed

Admitted

(d) diagnosis of alcohol use disorder by a qualified professional

—

2.c

The applicant abstained from the use of alcohol while attending Alcoholics Anonymous meetings from May to July of 2007.

Against Applicant

Continued Use After Treatment

Admitted

—

2.d

The applicant started to consume alcohol again two days after receiving a 60-day sobriety chip from AA.

Against Applicant

Continued Use After Treatment

Admitted

—

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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