ISCR Case 08-07408.h1

Case Headnote

ISCR Case No. 08-07408.h1

deniedJul 1, 2008· Hon. Joan Caton Anthony· hearing

Summary

A 54-year-old government contractor and retired military service member was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial delinquencies. The applicant faced allegations including an $18,056 tax lien owed to the IRS, a $2,373 charged-off debit card debt, and a $5,137 charged-off loan from April 2005. Additional debts included approximately $6,593 for a repossessed automobile, and two medical judgments totaling $1,294 and $1,488. The applicant also owed a $6,575 delinquent debt with a payment plan and disputed a $1,005 debt to a bank.

Disqualifying conditions under Guideline F were raised, specifically AG ¶ 19(a) and AG ¶ 19(c). While mitigating conditions AG ¶ 20(d) and AG ¶ 20(e) were applied, they were insufficient to overcome the government's concerns.

The denial was based on the applicant's failure to mitigate security concerns regarding financial delinquencies. The substantial unresolved tax lien and multiple unpaid debts, coupled with a lack of consistent timely payments or a clear plan to resolve financial issues, led to the determination that the applicant did not demonstrate the necessary financial responsibility, judgment, and reliability.

Why the Applicant Was Denied

The applicant failed to mitigate the government's security concerns regarding financial delinquencies.
The applicant has a substantial unresolved tax lien of over $18,000 and multiple unpaid debts.
The applicant did not demonstrate a consistent track record of timely payments or a plan to resolve his financial issues.

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(d)appliedThe Individual Initiated a Good Faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt

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 issuedJan 30, 2009
Answer filedFeb 27, 2009
Hearing heldMay 13, 2009
Decision dateJun 26, 2009

Cite For

Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
Importance of Demonstrating a Consistent Track Record of Financial Responsibility
Impact of Significant Tax Liens on 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	Applicant owes a tax lien of $18,0561 to the Internal Revenue Service. $18,056	Against Applicant	Tax Unpaid	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	Applicant owes a debt of $2,373 to a creditor for a debit card account that was charged off. $2,373	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	Applicant owed the creditor $5,137 for a loan that was charged off in April 2005. $5,137	For Applicant	Personal Loan Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.d	Applicant owes approximately $6,593 on an automobile debt that was repossessed. $6,593	Against Applicant	Auto Loan Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	Applicant is responsible for a judgment of $1,294 levied by a medical provider. $1,294	For Applicant	Judgment Against Applicant	Denied	—	—	—
1.g	Applicant is responsible for a judgment of $1,488 levied by a medical provider. $1,488	For Applicant	Judgment Against Applicant	Denied	—	—	—
1.h	Applicant owes a delinquent debt of $6,575, for which he has a payment plan. $6,575	For Applicant	Unspecified Financial	Unknown	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.i	Applicant denied he owed a debt of $1,005 to a bank creditor, although he acknowledged he may have owed a credit card with the same name as the bank. $1,005	For Applicant	Unspecified Financial	Denied	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant owes a tax lien of $18,0561 to the Internal Revenue Service.

$18,056

Against Applicant

Tax Unpaid

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

Applicant owes a debt of $2,373 to a creditor for a debit card account that was charged off.

$2,373

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

Applicant owed the creditor $5,137 for a loan that was charged off in April 2005.

$5,137

For Applicant

Personal Loan Debt

Admitted

—

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

Documented

Payment Plan with Creditor

1.d

Applicant owes approximately $6,593 on an automobile debt that was repossessed.

$6,593

Against Applicant

Auto Loan Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

Applicant is responsible for a judgment of $1,294 levied by a medical provider.

$1,294

For Applicant

Judgment Against Applicant

Denied

—

1.g

Applicant is responsible for a judgment of $1,488 levied by a medical provider.

$1,488

For Applicant

Judgment Against Applicant

Denied

—

1.h

Applicant owes a delinquent debt of $6,575, for which he has a payment plan.

$6,575

For Applicant

Unspecified Financial

Unknown

—

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

Documented

Payment Plan with Creditor

1.i

Applicant denied he owed a debt of $1,005 to a bank creditor, although he acknowledged he may have owed a credit card with the same name as the bank.

$1,005

For Applicant

Unspecified Financial

Denied

—

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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