ISCR Case 08-11549.h1

Case Headnote

ISCR Case No. 08-11549.h1

deniedJul 29, 2009· Hon. Mark W. Harvey· hearing

Summary

A 28-year-old defense contractor employee was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from unresolved debts totaling approximately $31,800, which raised questions about his reliability and trustworthiness.

Specifically, the applicant had several outstanding debts. An education loan of $7,312, delinquent since 2008, lacked proof of claimed payments. Another education loan for $5,603 remained unresolved, with the applicant confused about a settlement offer and no recent payments made. A significant debt of $18,065 had only two payments of $265 each in early 2009, with no further payments in the 90 days preceding the hearing despite discussions of a payment plan. Additionally, a telecommunications debt of $188 was unresolved, with no post-hearing documentation provided.

While some debts were paid, including a credit card debt of $1,213, medical debts totaling $157 and $142, and a utility debt of $425, the judge found that the applicant failed to resolve five significant debts. The applicant did not present a credible plan to address his delinquent financial obligations, and his ongoing financial issues indicated poor self-control and judgment, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant failed to resolve five significant debts totaling about $31,800.
The applicant did not demonstrate a credible plan to address his delinquent debts.
The applicant's financial issues were ongoing and indicated poor self-control and judgment.

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 ControlThe applicant's financial problems initially resulted from unemployment and underemployment.
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant made some payments on several debts and resolved seven debts.

Key Rule Quoted

“Eligibility for a security clearance is predicated upon the Applicant meeting the criteria contained in the revised adjudicative guidelines (AG).”

Procedural Posture

SOR issuedMar 5, 2009
Answer filedMar 22, 2009
Hearing heldJun 30, 2009
Decision dateJul 29, 2009

Cite For

Denial Based on Unresolved Financial Obligations Under Guideline F
Impact of Ongoing Financial Mismanagement on Security Clearance Eligibility
Consideration of Personal Conduct in Relation to Financial Issues 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	specific text not stated in this decision	For Applicant	Unspecified Personal Conduct	—	Unknown	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

specific text not stated in this decision

For Applicant

Unspecified Personal Conduct

—

Unknown

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	SOR ¶ 1.a ($7,312)—Unresolved. Applicant said this was an education loan. The account became delinquent in 2008, and he said he began making payments in 2009. He thought the monthly payment was $150. He said he was sure he made at least one payment. However, he did not provide proof of any payments. $7,312	Against Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	SOR ¶ 1.b ($1,213)—Paid. A letter, dated July 2, 2009, indicated this credit card debt in the amount of $905 was paid. $1,213	For Applicant	Credit Card Debt	Admitted	—	—	—
1.c	SOR ¶ 1.c ($5,603)—Unresolved. This is an education loan. He said the creditor offered to settle the debt for two, $250 payments and that he made the two payments. I conclude he was confused about this settlement offer. He did not make any payments to this creditor in the last six months. $5,603	Against Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	SOR ¶ 1.e ($157)—Paid. These four medical debts are owed to the same creditor. Applicant made a $116 payment on March 20, 2009, and a $116 payment on May 27, 2009. $157	For Applicant	Medical Debt	Admitted	—	—	—
1.g	SOR ¶ 1.g ($18,065)—Unresolved. On January 20, 2009, he paid $265, and on March 16, 2009, he paid $265. At the hearing, he said he discussed payment arrangements of $150 a month; however, he did not make any $150 payments. He has not made any payments in the 90 days preceding his hearing. $18,065	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	SOR ¶ 1.h ($142)—Paid. Applicant made a $116 payment on March 20, 2009, and a $116 payment on May 27, 2009. $142	For Applicant	Medical Debt	Admitted	—	—	—
1.k	SOR ¶ 1.k ($188)—Unresolved. This is a telecommunications debt. He was unsure about whether he had paid this debt. If he had paid it, it was in February 2009. He averred that if he paid it, he could provide supporting documentation. He did not provide any post-hearing documentation on this debt. $188	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.l	SOR ¶ 1.l ($425)—Paid. Applicant paid $205 on May 13, 2009, and $278 on January 6, 2009, bringing his utilities to current status. $425	For Applicant	Utility or Phone Debt	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

SOR ¶ 1.a ($7,312)—Unresolved. Applicant said this was an education loan. The account became delinquent in 2008, and he said he began making payments in 2009. He thought the monthly payment was $150. He said he was sure he made at least one payment. However, he did not provide proof of any payments.

$7,312

Against Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

SOR ¶ 1.b ($1,213)—Paid. A letter, dated July 2, 2009, indicated this credit card debt in the amount of $905 was paid.

$1,213

For Applicant

Credit Card Debt

Admitted

—

1.c

SOR ¶ 1.c ($5,603)—Unresolved. This is an education loan. He said the creditor offered to settle the debt for two, $250 payments and that he made the two payments. I conclude he was confused about this settlement offer. He did not make any payments to this creditor in the last six months.

$5,603

Against Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

SOR ¶ 1.e ($157)—Paid. These four medical debts are owed to the same creditor. Applicant made a $116 payment on March 20, 2009, and a $116 payment on May 27, 2009.

$157

For Applicant

Medical Debt

Admitted

—

1.g

SOR ¶ 1.g ($18,065)—Unresolved. On January 20, 2009, he paid $265, and on March 16, 2009, he paid $265. At the hearing, he said he discussed payment arrangements of $150 a month; however, he did not make any $150 payments. He has not made any payments in the 90 days preceding his hearing.

$18,065

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

SOR ¶ 1.h ($142)—Paid. Applicant made a $116 payment on March 20, 2009, and a $116 payment on May 27, 2009.

$142

For Applicant

Medical Debt

Admitted

—

1.k

SOR ¶ 1.k ($188)—Unresolved. This is a telecommunications debt. He was unsure about whether he had paid this debt. If he had paid it, it was in February 2009. He averred that if he paid it, he could provide supporting documentation. He did not provide any post-hearing documentation on this debt.

$188

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.l

SOR ¶ 1.l ($425)—Paid. Applicant paid $205 on May 13, 2009, and $278 on January 6, 2009, bringing his utilities to current status.

$425

For Applicant

Utility or Phone Debt

Admitted

—

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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

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES