ISCR Case 08-08149.h1

Case Headnote

ISCR Case No. 08-08149.h1

grantedJul 17, 2009· Hon. Marc E. Curry· hearing

Summary

A 53-year-old married Gulf War veteran was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). These concerns arose from financial difficulties, including a pay cut for the applicant and his wife's struggling business.

The Statement of Reasons (SOR) detailed several specific financial allegations. These included a $633 delinquent cell phone bill, which was fully satisfied in March 2009, and an $844 credit card debt, paid off by December 2008. Another credit card account with an approximate $3,800 balance and a $598 past-due payment was addressed in February 2009 through a $200 monthly payment plan. The SOR also listed a bank debt, originally two separate accounts, one a credit card and the other a home equity line used for their son's education. A $2,000 debt to a towing company was determined to be his son's responsibility, not the applicant's. Additionally, a $24,000 tax debt resulted from his wife underestimating tax consequences after withdrawing from her thrift savings plan to finance her new business.

The clearance was granted because the applicant's wife's business became profitable, enabling them to address their financial issues. They either satisfied their delinquent debts or established and adhered to payment plans. The applicant demonstrated responsible financial management and actively sought assistance for his family's financial challenges.

Why the Applicant Prevailed

The applicant's wife's business became profitable, allowing them to address their debts.
They have satisfied or negotiated payment plans for their delinquencies and are adhering to them.
The applicant demonstrated responsible financial management and sought assistance for family 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(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
AG ¶ 20(c)appliedClear Indications That the Problem Is Being Resolved or Is Under Control
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

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

Procedural Posture

SOR issuedFeb 13, 2009
Answer filedMar 1, 2009
Hearing heldMay 5, 2009
Decision dateJul 17, 2009

Cite For

Mitigation of Financial Considerations Under Guideline F
Impact of Spouse's Financial Situation on Applicant's Security Clearance
Whole Person Concept in Evaluating Financial Responsibility

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	SOR subparagraph 1.a is a delinquent cell phone bill in the amount of $633. Applicant satisfied this debt in full in March 2009. $633	For Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full
1.b	SOR subparagraph 1.b is a credit card account with a delinquent balance of approximately $3,800, and a past due monthly payment of $598. In February 2009, Applicant contacted the creditor and arranged a payment plan whereupon he will pay $200 per month until the entire balance is satisfied. $3,800	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.c	SOR subparagraph 1.c is a delinquent debt owed to a credit card company in the amount of $844. By December 19, 2008, Applicant had satisfied this debt entirely through monthly payments. $844	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full
1.d	The bank debt as listed in SOR subparagraphs 1.d and 1.f was originally two separate accounts. SOR subparagraph 1.d was a credit card.	For Applicant	Credit Card Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	SOR 1.e, a $2,000 debt owed to a towing company, is not Applicant’s responsibility. Instead, his son, who shares his name, accrued this debt. $2,000	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Debt Disputed with Creditor
1.f	SOR subparagraph 1.f was a home equity credit line that Applicant and his wife used, among other things, to finance their son’s college education.	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	In 2004, Applicant’s wife retired from her federal government job and began training to be an insurance agent. She financed her start-up costs by withdrawing money from her thrift savings plan. She underestimated the income tax consequences, and incurred a tax debt of approximately $24,000, as listed in SOR subparagraph 1.g. $24,000	For Applicant	Tax Unpaid	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Financial Counseling

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

SOR subparagraph 1.a is a delinquent cell phone bill in the amount of $633. Applicant satisfied this debt in full in March 2009.

$633

For Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

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

Credited

Debt Paid in Full

1.b

SOR subparagraph 1.b is a credit card account with a delinquent balance of approximately $3,800, and a past due monthly payment of $598. In February 2009, Applicant contacted the creditor and arranged a payment plan whereupon he will pay $200 per month until the entire balance is satisfied.

$3,800

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

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

Documented

Payment Plan with Creditor

1.c

SOR subparagraph 1.c is a delinquent debt owed to a credit card company in the amount of $844. By December 19, 2008, Applicant had satisfied this debt entirely through monthly payments.

$844

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

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

Credited

Debt Paid in Full

1.d

The bank debt as listed in SOR subparagraphs 1.d and 1.f was originally two separate accounts. SOR subparagraph 1.d was a credit card.

For Applicant

Credit Card Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

SOR 1.e, a $2,000 debt owed to a towing company, is not Applicant’s responsibility. Instead, his son, who shares his name, accrued this debt.

$2,000

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Claimed

Debt Disputed with Creditor

1.f

SOR subparagraph 1.f was a home equity credit line that Applicant and his wife used, among other things, to finance their son’s college education.

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

In 2004, Applicant’s wife retired from her federal government job and began training to be an insurance agent. She financed her start-up costs by withdrawing money from her thrift savings plan. She underestimated the income tax consequences, and incurred a tax debt of approximately $24,000, as listed in SOR subparagraph 1.g.

$24,000

For Applicant

Tax Unpaid

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Claimed

Financial Counseling

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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

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES