ISCR Case 08-09381.h1

Case Headnote

ISCR Case No. 08-09381.h1

grantedSep 4, 2009· Hon. Wilford H. Ross· hearing

Summary

A 43-year-old retired Navy chief petty officer sought a security clearance, which was reviewed under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons alleged the Applicant made false statements to the Department of Defense and detailed several outstanding debts. These included two $2,500 debts to a collection agency, one of which the Applicant disputed as a duplicate. Other admitted debts included a $2,503 past-due credit card bill, a $1,418 debt, a $2,500 returned check, and a $1,721 debt to a collection agency. Additionally, the Applicant owed a credit union $10,064 for a charged-off account.

The judge found that the Applicant's financial difficulties were largely due to circumstances beyond his control. The Applicant demonstrated a proactive approach to resolving these issues, having paid off or settled a significant portion of his debts and beginning payments on others. The judge also determined that the Applicant did not intentionally falsify his clearance application, as he had disclosed his bankruptcy and was unaware of the full extent of his debts at the time of application.

Given the Applicant's stable current financial situation and his efforts to address his debts, the judge concluded that the mitigating conditions outweighed the disqualifying conditions. Consequently, the security clearance was GRANTED.

Why the Applicant Prevailed

The Applicant demonstrated a proactive approach to resolving his financial issues, having paid off or settled a significant portion of his debts.
The judge found that the Applicant did not intentionally falsify his questionnaire, as he had disclosed his bankruptcy and was unaware of the extent of his debts at the time of application.
The Applicant's current financial situation was stable, and he had begun making payments on past due debts.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations

Mitigating

AG ¶ 20(a)appliedBehavior Happened Long Ago or Infrequently
AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
AG ¶ 20(c)appliedReceiving Counseling or Indications That the Problem Is Under Control
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors
AG ¶ 20(e)appliedReasonable Basis to Dispute Legitimacy of Past-due Debt

Key Rule Quoted

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

Procedural Posture

SOR issuedFeb 2, 2009
Answer filedMar 2, 2009
Hearing heldMay 21, 2009
Decision dateSep 4, 2009

Cite For

Mitigation of Financial Difficulties Under Guideline F
Credibility of Applicant's Testimony Regarding Intent in Personal Conduct Under Guideline E
Whole Person Concept in Security Clearance Determinations

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	The Government alleges in this paragraph that the Applicant is ineligible for clearance because he has made false statements to the Department of Defense during the clearance screening process.	For Applicant	Falsification Security FormNOT DELIBERATE	Financial	Denied	—	(b) omission/refusal followed advice of counsel; later cooperated fully (c) offense is minor, long ago, infrequent, or unique circumstances (e) positive steps to reduce vulnerability to exploitation	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

The Government alleges in this paragraph that the Applicant is ineligible for clearance because he has made false statements to the Department of Defense during the clearance screening process.

For Applicant

Falsification Security FormNOT DELIBERATE

Financial

Denied

—

(b) omission/refusal followed advice of counsel; later cooperated fully

(c) offense is minor, long ago, infrequent, or unique circumstances

(e) positive steps to reduce vulnerability to exploitation

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	The Applicant admitted that he owed $2,500 for a used car to a collection agency. He has also consistently disputed the validity of the debt. $2,500	For Applicant	Auto Loan Debt	Admitted	—	(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 (e) reasonable, documented basis to dispute the debt	Claimed Debt Disputed with Creditor
1.b	The Applicant admitted this allegation, which stated he owed another $2,500 debt to the same collection agency. However, he also states that it is a duplicate of the debt set forth in 1.a., above. $2,500	For Applicant	Unspecified Financial	Admitted	—	(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 (e) reasonable, documented basis to dispute the debt	Claimed Debt Disputed with Creditor
1.d	The Applicant admitted that he owes a collection agency at least $2,503 for a past due credit card bill. This debt had not yet been paid as of the date of the hearing. $2,503	For Applicant	Credit Card Debt	Admitted	—	(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	Claimed Payment Plan with Creditor
1.f	The Applicant admitted that he owed a collection agency $1,418 for a past due debt. He testified that he was negotiating with the creditor and would have them paid off before the end of May 2009. $1,418	For Applicant	Unspecified Financial	Admitted	—	(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	Claimed Payment Plan with Creditor
1.g	The Applicant admitted that he owes this account, but not for the reason stated in his Answer. The evidence shows that this was a returned check for $2,500. $2,500	For Applicant	Unspecified Financial	Admitted	—	(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	Claimed Payment Plan with Creditor
1.k	The Applicant admitted owing this debt to a collection agency in the amount of $1,721. He testified that his plan was to pay this debt off before the end of June 2009. $1,721	For Applicant	Unspecified Financial	Admitted	—	(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	Claimed Payment Plan with Creditor
1.l	The Applicant admitted owing a credit union $10,064 for a charged off account. He has not paid anything on this debt, but hopes to pay this debt through a debt resolution company in the near future. $10,064	For Applicant	Unspecified Financial	Admitted	—	(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	Claimed Debt Settlement

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The Applicant admitted that he owed $2,500 for a used car to a collection agency. He has also consistently disputed the validity of the debt.

$2,500

For Applicant

Auto Loan Debt

Admitted

—

(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

(e) reasonable, documented basis to dispute the debt

Claimed

Debt Disputed with Creditor

1.b

The Applicant admitted this allegation, which stated he owed another $2,500 debt to the same collection agency. However, he also states that it is a duplicate of the debt set forth in 1.a., above.

$2,500

For Applicant

Unspecified Financial

Admitted

—

(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

(e) reasonable, documented basis to dispute the debt

Claimed

Debt Disputed with Creditor

1.d

The Applicant admitted that he owes a collection agency at least $2,503 for a past due credit card bill. This debt had not yet been paid as of the date of the hearing.

$2,503

For Applicant

Credit Card Debt

Admitted

—

(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

Claimed

Payment Plan with Creditor

1.f

The Applicant admitted that he owed a collection agency $1,418 for a past due debt. He testified that he was negotiating with the creditor and would have them paid off before the end of May 2009.

$1,418

For Applicant

Unspecified Financial

Admitted

—

(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

Claimed

Payment Plan with Creditor

1.g

The Applicant admitted that he owes this account, but not for the reason stated in his Answer. The evidence shows that this was a returned check for $2,500.

$2,500

For Applicant

Unspecified Financial

Admitted

—

(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

Claimed

Payment Plan with Creditor

1.k

The Applicant admitted owing this debt to a collection agency in the amount of $1,721. He testified that his plan was to pay this debt off before the end of June 2009.

$1,721

For Applicant

Unspecified Financial

Admitted

—

(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

Claimed

Payment Plan with Creditor

1.l

The Applicant admitted owing a credit union $10,064 for a charged off account. He has not paid anything on this debt, but hopes to pay this debt through a debt resolution company in the near future.

$10,064

For Applicant

Unspecified Financial

Admitted

—

(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

Claimed

Debt Settlement

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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