ISCR Case 08-10460.h1

Case Headnote

ISCR Case No. 08-10460.h1

grantedDec 23, 2009· Hon. Noreen A. Lynch· hearing

Summary

This case concerns a 58-year-old defense contractor whose eligibility for a security clearance was reviewed under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons (SOR) detailed multiple financial allegations, including a $4,097 collection account, a $10,181 debt in repayment, and a $6,753 debt with monthly payments of $257. Other debts included a $4,555 student loan he cosigned, a $19,733 debt from a voluntary repossession, and a $240 credit card account. Additionally, a $651 phone account and medical bills for $145 and $130 were cited. The SOR also noted a $326 debt that was settled and paid, and a $4,200 debt to a former landlord that was paid.

The applicant's financial difficulties stemmed from unemployment and family medical issues. Disqualifying conditions under AG ¶ 19(a), AG ¶ 19(c), and AG ¶ 16(a) were raised. However, mitigating conditions under AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e) were applied.

The judge determined that the applicant had taken responsible steps to address his debts and provided credible explanations for his financial challenges and the actions taken to resolve them. Crucially, there was no finding of intentional falsification on his security clearance application. Consequently, the applicant was granted eligibility for a security clearance.

Why the Applicant Prevailed

The applicant demonstrated responsible management of his financial obligations after a period of unemployment.
He provided credible explanations for his financial difficulties and actions taken to resolve them.
The judge found no intent to falsify information on the security clearance application.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
AG ¶ 16(a)rejectedDeliberate Omission, Concealment, or FalsificationThe applicant did not intentionally falsify his application.

Mitigating

AG ¶ 20(a)appliedBehavior Happened Long Ago or Infrequently
AG ¶ 20(b)appliedConditions Beyond the Person's Control
AG ¶ 20(c)notedReceived Counseling or Evidence of Problem Resolution
AG ¶ 20(d)appliedGood-faith Effort to Repay Debts
AG ¶ 20(e)appliedReasonable Basis to Dispute Legitimacy of Debt

Key Rule Quoted

“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”

Procedural Posture

SOR issuedJun 17, 2009
Answer filedAug 14, 2009
Hearing heldOct 27, 2009
Decision dateDec 23, 2009

Cite For

Mitigation of Financial Difficulties Under Guideline F Due to Circumstances Beyond Control
Resolution of Debts as a Factor in Granting Security Clearance
Non-intentional Falsification of Security Clearance Application Under Guideline E

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		—		—	—	—

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

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	The debt alleged in SOR ¶ 1.a is for a collection account in the amount of $4,097. $4,097	For Applicant	Unspecified Financial	Denied	—	—	—
1.b	Applicant is in repayment status for the alleged debt in SOR ¶ 1.b for $10,181. $10,181	For Applicant	Unspecified Financial	Denied	—	—	—
1.c	Applicant pays $257 monthly on the debt alleged in SOR ¶ 1.c. The balance owed is $6,753. $6,753	For Applicant	Unspecified Financial	Denied	—	—	—
1.d	The debt alleged in SOR ¶ 1.d for $4,555 is a student loan that he cosigned for his son. $4,555	For Applicant	Student Loan Debt	Denied	—	—	—
1.e	The debt alleged in SOR ¶ 1.e for $19,733 is the result of a voluntary repossession. $19,733	For Applicant	Auto Loan Debt	Denied	—	—	—
1.f	The debt alleged in SOR ¶ 1.f for $326 was settled and paid. $326	For Applicant	Unspecified Financial	Denied	—	—	—
1.g	The debt alleged in SOR ¶ 1.g is for $240. This is a credit card account. $240	For Applicant	Credit Card Debt	Denied	—	—	—
1.h	The debt alleged in SOR ¶ 1.h is a phone account for $651. $651	For Applicant	Utility or Phone Debt	Denied	—	—	—
1.i	The debt alleged in SOR ¶ 1.i is a medical bill for $145. $145	For Applicant	Medical Debt	Denied	—	—	—
1.j	The debt alleged in SOR ¶ 1.j is for another medical bill that was paid in full in the amount of $130. $130	For Applicant	Medical Debt	Denied	—	—	—
1.k	The debt alleged in SOR ¶ 1.k for $4,200 is paid. This represented money owed to a former landlord. $4,200	For Applicant	Unspecified Financial	Denied	—	—	—
1.l	The debt alleged in SOR ¶ 1.l refers to the voluntary repossession in allegation 1.e.	For Applicant	Unspecified Financial	Denied	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The debt alleged in SOR ¶ 1.a is for a collection account in the amount of $4,097.

$4,097

For Applicant

Unspecified Financial

Denied

—

1.b

Applicant is in repayment status for the alleged debt in SOR ¶ 1.b for $10,181.

$10,181

For Applicant

Unspecified Financial

Denied

—

1.c

Applicant pays $257 monthly on the debt alleged in SOR ¶ 1.c. The balance owed is $6,753.

$6,753

For Applicant

Unspecified Financial

Denied

—

1.d

The debt alleged in SOR ¶ 1.d for $4,555 is a student loan that he cosigned for his son.

$4,555

For Applicant

Student Loan Debt

Denied

—

1.e

The debt alleged in SOR ¶ 1.e for $19,733 is the result of a voluntary repossession.

$19,733

For Applicant

Auto Loan Debt

Denied

—

1.f

The debt alleged in SOR ¶ 1.f for $326 was settled and paid.

$326

For Applicant

Unspecified Financial

Denied

—

1.g

The debt alleged in SOR ¶ 1.g is for $240. This is a credit card account.

$240

For Applicant

Credit Card Debt

Denied

—

1.h

The debt alleged in SOR ¶ 1.h is a phone account for $651.

$651

For Applicant

Utility or Phone Debt

Denied

—

1.i

The debt alleged in SOR ¶ 1.i is a medical bill for $145.

$145

For Applicant

Medical Debt

Denied

—

1.j

The debt alleged in SOR ¶ 1.j is for another medical bill that was paid in full in the amount of $130.

$130

For Applicant

Medical Debt

Denied

—

1.k

The debt alleged in SOR ¶ 1.k for $4,200 is paid. This represented money owed to a former landlord.

$4,200

For Applicant

Unspecified Financial

Denied

—

1.l

The debt alleged in SOR ¶ 1.l refers to the voluntary repossession in allegation 1.e.

For Applicant

Unspecified Financial

Denied

—

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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