ISCR Case 08-08644.h1

Case Headnote

ISCR Case No. 08-08644.h1

grantedJun 9, 2009· Hon. Edward W. Loughran· hearing

Summary

A 43-year-old defense contractor and retired Navy chief petty officer was granted a security clearance despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons detailed a history of financial difficulties, including a Chapter 7 bankruptcy and multiple delinquent debts. These included judgments from March 2007 for $1,361 and May 2008 for $1,173, along with various other outstanding debts ranging from $25 to $2,884 owed to credit card companies, collection agencies, a university, and service providers.

The judge found that the applicant had taken significant steps to address these financial issues. He demonstrated a proactive approach to resolving his debts, making good-faith efforts to pay them off, and had achieved a stable financial situation by the time of the hearing. Furthermore, the judge determined that the applicant did not intentionally falsify his security clearance application.

Mitigating conditions were applied, including evidence of good-faith efforts to resolve the debts and a stable financial outlook. Character references also supported the applicant's reliability and trustworthiness. Based on these factors, the applicant was granted eligibility for access to classified information.

Why the Applicant Prevailed

The applicant demonstrated a proactive approach to resolving his financial issues after becoming aware of them.
He made good-faith efforts to pay off delinquent debts and had a stable financial situation at the time of the hearing.
The applicant's character references supported his reliability and trustworthiness.

Conditions Referenced

Disqualifying

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

Mitigating

F.20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
F.20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
F.20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
E.16(a)rejectedDeliberate Omission, Concealment, or Falsification of Relevant FactsThe applicant did not intentionally omit financial information from his SF 86.

Key Rule Quoted

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

Procedural Posture

SOR issuedJan 22, 2009
Answer filedFeb 19, 2009
Hearing heldMay 18, 2009via video teleconference
Decision dateJun 9, 2009

Cite For

Mitigation of Financial Issues Under Guideline F
Consideration of Personal Conduct in Security Clearance Evaluations
Good-faith Efforts to Resolve Debts as a Mitigating Factor

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–2.b	2 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant	NOT DELIBERATE	Financial		—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a–2.b

2 sub-charges — specific text not stated in this decision (for the applicant).

For Applicant

NOT DELIBERATE

Financial

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—
1.b	a judgment of $1,361, plus court costs and interest, entered against Applicant on behalf of a collection company in March 2007 $1,872	For Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	a credit card company obtained a default judgment of $1,173, plus court costs, fees, and interest, against Applicant in May 2008 $2,099	For Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.d	the delinquent debt of $312 to a collection company, on behalf of a telephone services company $312	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full
1.e	delinquent debts of $1,853 owed to the same credit card company that obtained the judgment against Applicant alleged in SOR ¶ 1.c $1,853	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	delinquent debts of $2,884 owed to the same credit card company that obtained the judgment against Applicant alleged in SOR ¶ 1.c $2,884	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	delinquent debts of $1,257 owed to the same collection company collecting on behalf of the same financial institution $1,257	For Applicant	Unspecified Financial	Unknown	—	—	—
1.h	the delinquent debt of $1,303 to a university $1,303	For Applicant	Student Loan Debt	Unknown	—	—	Documented Payment Plan with Creditor
1.i	delinquent debts of $681 owed to the same collection company collecting on behalf of the same financial institution $681	For Applicant	Unspecified Financial	Unknown	—	—	—
1.j	a $144 debt to a collection company on behalf of a cable television provider $144	For Applicant	Unspecified Financial	Denied with Explanation	—	—	Claimed Debt Disputed with Creditor
1.k	a $25 delinquent debt $25	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full
1.l	a $100 delinquent debt $100	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

1.b

a judgment of $1,361, plus court costs and interest, entered against Applicant on behalf of a collection company in March 2007

$1,872

For Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.c

a credit card company obtained a default judgment of $1,173, plus court costs, fees, and interest, against Applicant in May 2008

$2,099

For Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

Documented

Debt Paid in Full

1.d

the delinquent debt of $312 to a collection company, on behalf of a telephone services company

$312

For Applicant

Unspecified Financial

Admitted

—

Documented

Debt Paid in Full

1.e

delinquent debts of $1,853 owed to the same credit card company that obtained the judgment against Applicant alleged in SOR ¶ 1.c

$1,853

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

delinquent debts of $2,884 owed to the same credit card company that obtained the judgment against Applicant alleged in SOR ¶ 1.c

$2,884

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

delinquent debts of $1,257 owed to the same collection company collecting on behalf of the same financial institution

$1,257

For Applicant

Unspecified Financial

Unknown

—

1.h

the delinquent debt of $1,303 to a university

$1,303

For Applicant

Student Loan Debt

Unknown

—

Documented

Payment Plan with Creditor

1.i

delinquent debts of $681 owed to the same collection company collecting on behalf of the same financial institution

$681

For Applicant

Unspecified Financial

Unknown

—

1.j

a $144 debt to a collection company on behalf of a cable television provider

$144

For Applicant

Unspecified Financial

Denied with Explanation

—

Claimed

Debt Disputed with Creditor

1.k

a $25 delinquent debt

$25

For Applicant

Unspecified Financial

Admitted

—

Documented

Debt Paid in Full

1.l

a $100 delinquent debt

$100

For Applicant

Unspecified Financial

Admitted

—

Documented

Debt Paid in Full

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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