ISCR Case 08-07352.h1

Case Headnote

ISCR Case No. 08-07352.h1

deniedMay 14, 2009· Hon. Paul J. Mason· hearing

Summary

A 45-year-old former Air Force member was denied a security clearance under Guideline F (Financial Considerations) due to significant and long-standing financial delinquencies totaling over $50,000. The judge determined that the applicant's failure to manage these debts, which largely predated his overseas employment, demonstrated a lack of responsibility and undermined his credibility.

The Statement of Reasons detailed twelve specific financial allegations. These included multiple credit card debts, with individual balances ranging from $646 to $14,755, and last activities as far back as February 2003. Other debts included a $1,483 deficiency balance from a repossessed car, a $543 unidentified debt, and smaller amounts for telephone and satellite television services. While some debts were resolved, such as a $166 telephone account, a $255 debt, a $503 satellite television bill, and a $103 insufficient funds check, the majority of the credit card and deficiency debts remained unpaid.

The denial was based on the applicant's failure to responsibly manage his substantial delinquent debts. The judge found his claims of ignorance regarding these financial obligations to be not credible, noting his awareness of them before his overseas employment. Ultimately, the applicant did not provide sufficient evidence of a good-faith effort to resolve his debts or demonstrate that his financial problems were under control.

Why the Applicant Was Denied

The applicant had significant delinquent debts totaling over $50,000, which he failed to manage responsibly.
The applicant's claims of ignorance regarding his debts were not credible, as he was aware of them before leaving for overseas employment.
The applicant did not provide sufficient evidence of a good-faith effort to resolve his debts or that his financial problems were under control.

Conditions Referenced

Disqualifying

FC DC ¶ 19.araisedInability or Unwillingness to Satisfy Debts
FC DC ¶ 19.craisedA History of Not Meeting Financial Obligations

Mitigating

FC MC ¶ 20.arejectedBehavior Happened Long Ago or InfrequentlySeveral debts are recent and the applicant's financial irresponsibility is ongoing.
FC MC ¶ 20.brejectedConditions Largely Beyond the Person's ControlThe applicant was aware of his debts and did not act responsibly.
FC MC ¶ 20.crejectedReceived Counseling for the ProblemNo evidence of effective financial management or counseling was provided.
FC MC ¶ 20.drejectedGood-faith Effort to Repay DebtsThe applicant waited too long to take action on his debts.

Key Rule Quoted

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

Procedural Posture

SOR issuedJan 23, 2009
Answer filedFeb 20, 2009
Hearing heldMar 25, 2009
Decision dateMay 14, 2009

Cite For

Financial Irresponsibility as a Disqualifying Factor Under Guideline F
Credibility Issues Related to Financial Management Claims
The Importance of Proactive Debt Management in Security Clearance Evaluations

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	credit card ($12,009). The last activity or last payment on this account was in July 2003 (GE 3). Applicant still owes this debt. $12,009	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	credit card ($11,852). The last activity on this account was June 2003 (GE 3). Applicant still owes this account. $11,852	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	credit card ($856). The last activity on this account was October 2005. The debt remains unpaid. $856	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	telephone account ($166). The last activity on this account was in December 2007. On March 30, 2009, Applicant was notified his payment of $167.47 paid the account in full (AE G). $166	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.e	deficiency balance ($1,483). The last payment on this debt was December 2002 (GE 3). Applicant indicated under question 27b. of his SCA (GE 1) that his car was repossessed in December 2003. Applicant is responsible for the account. $1,483	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	($255). The last activity on this account was December 2003 (GE 3). On March 27, 2009, Applicant paid this $255 (AE E) in full satisfaction of this creditor. $255	For Applicant	Unspecified Financial	Admitted	—	—	—
1.g	satellite television ($503). The last activity on this account was in March 2008, and the account became delinquent in November 2008 (GE 3). Applicant testified he was disputing the debt, and referred to the documentation from the debt consolidation firm (Tr. 47; AE C). On March 29, 2009, Applicant paid the creditor $503 by credit card to eliminate the delinquent amount, and on March 30, 2009, Applicant was advised his account was zero (AE F). $503	For Applicant	Unspecified Financial	Admitted	—	—	—
1.h	credit card ($646). The last activity on this account was in November 2005. Applicant owes this debt. $646	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	credit card ($14,755). The last activity on this account was August 2003. Applicant still owes the debt. $14,755	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.j	insufficient funds check ($103). The check was paid by Applicant’s wife in 2008 (AE H). The account is resolved in Applicant’s favor. $103	For Applicant	Unspecified Financial	Admitted	—	—	—
1.k	credit card ($7,071). The last activity on this account was February 2003. $7,071	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.l	unidentified ($543). The last activity on this account was in June 2006. Applicant is responsible for this debt. $543	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

credit card ($12,009). The last activity or last payment on this account was in July 2003 (GE 3). Applicant still owes this debt.

$12,009

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

credit card ($11,852). The last activity on this account was June 2003 (GE 3). Applicant still owes this account.

$11,852

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

credit card ($856). The last activity on this account was October 2005. The debt remains unpaid.

$856

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

telephone account ($166). The last activity on this account was in December 2007. On March 30, 2009, Applicant was notified his payment of $167.47 paid the account in full (AE G).

$166

For Applicant

Utility or Phone Debt

Admitted

—

1.e

deficiency balance ($1,483). The last payment on this debt was December 2002 (GE 3). Applicant indicated under question 27b. of his SCA (GE 1) that his car was repossessed in December 2003. Applicant is responsible for the account.

$1,483

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

($255). The last activity on this account was December 2003 (GE 3). On March 27, 2009, Applicant paid this $255 (AE E) in full satisfaction of this creditor.

$255

For Applicant

Unspecified Financial

Admitted

—

1.g

satellite television ($503). The last activity on this account was in March 2008, and the account became delinquent in November 2008 (GE 3). Applicant testified he was disputing the debt, and referred to the documentation from the debt consolidation firm (Tr. 47; AE C). On March 29, 2009, Applicant paid the creditor $503 by credit card to eliminate the delinquent amount, and on March 30, 2009, Applicant was advised his account was zero (AE F).

$503

For Applicant

Unspecified Financial

Admitted

—

1.h

credit card ($646). The last activity on this account was in November 2005. Applicant owes this debt.

$646

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i

credit card ($14,755). The last activity on this account was August 2003. Applicant still owes the debt.

$14,755

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.j

insufficient funds check ($103). The check was paid by Applicant’s wife in 2008 (AE H). The account is resolved in Applicant’s favor.

$103

For Applicant

Unspecified Financial

Admitted

—

1.k

credit card ($7,071). The last activity on this account was February 2003.

$7,071

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.l

unidentified ($543). The last activity on this account was in June 2006. Applicant is responsible for this debt.

$543

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

FORMAL FINDINGS

CONCLUSION

FOOTNOTES