ISCR Case 08-11866.h1

Case Headnote

ISCR Case No. 08-11866.h1

deniedDec 31, 2009· Hon. Paul J. Mason· hearing

Summary

A 45-year-old pilot was denied a Secret security clearance under Guideline F (Financial Considerations) due to multiple unresolved delinquent debts totaling approximately $29,825. The applicant acknowledged owing $3,627 to one creditor, for which a $2,000 settlement was arranged in March 2009. However, after an initial down payment, no subsequent payments were made, leaving the debt outstanding.

Additionally, a $10,005 judgment was entered against the applicant in February 2008, stemming from an account that became delinquent in February 2004. While the applicant planned to contact the collection firm and started a savings account, no further action was taken to resolve this judgment. The applicant also owed $2,488 to a collection agency for a broken apartment lease from April 2004; his claim of an agreement with the apartment manager to terminate the lease was not independently verified.

Finally, the applicant acknowledged a $12,805 delinquent account from November 2004, which was assigned to a collection agency in October 2008. His plan to use property from his father as collateral for repayment had not materialized. The judge found that the applicant's failure to adequately address or resolve these debts, coupled with a lack of substantiated efforts, raised significant concerns about his reliability and trustworthiness, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant has four delinquent debts totaling $29,825, indicating an inability to meet financial obligations.
The applicant failed to provide evidence of substantial efforts to resolve his debts since they became delinquent in 2004.
The applicant's claims regarding disputing one debt were not substantiated with independent verification.

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 experienced marital problems and depression, but limited mitigation was credited due to lack of action on debts.
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant made a partial payment to one creditor but failed to document ongoing efforts.

Key Rule Quoted

“Failure or inability to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness and ability to protect classified information.”

Procedural Posture

SOR issuedJun 30, 2009
Answer filedJul 20, 2009Applicant requested a decision on the record.
Hearing held—No hearing was held; decision made on the record.
Decision dateDec 31, 2009

Cite For

Denial of Security Clearance Due to Unresolved Financial Obligations
Impact of Financial Issues on Reliability and Trustworthiness
Limited Mitigation Available Under Financial Considerations Guideline

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	Applicant acknowledged owing this creditor $3,627. The last date of activity on this account before becoming delinquent was April 2004. Applicant explained that on March 5, 2009, a settlement of $2,000 had been worked out with the creditor. The settlement would be satisfied after Applicant made a down payment of $545, followed by eight monthly payments of 181.88. Documentation from the creditor reflects the down payment was made, but no subsequent payments were made to complete the settlement. Applicant still owes the debt. $3,627	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	Applicant admitted this judgment of $10,005. Before becoming delinquent, the last activity on this account was February 2004, and a judgment (based on this account) was entered against Applicant in February 2008. Applicant planned to contact the collection firm in October 2009. He started a savings account to accumulate funds to pay this judgment. No other action has been taken on this account. The judgment is resolved against Applicant. $10,005	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	Applicant denied he owed the collection agency $2,488. He was renting an apartment in April 2004 when his employer advised him to look for a new job because his employer was being sold. Applicant spoke with his apartment manager about breaking the lease since he had to find another job. The manager told him she understood his predicament, and there would be no problem in terminating the lease because of a waiting list of prospective tenants. No independent verification was produced to substantiate Applicant’s claim. I find Applicant owes the debt. $2,488	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	Applicant acknowledged he owed this delinquent account amounting to $12,805. The last activity on the account occurred in November 2004, and the account was assigned to a collection agency in October 2008. Applicant indicated that because his father anticipated an inheritance of money in September or October 2009, his father decided to give him property he had been renting. Applicant planned to use the property as collateral in the repayment of this debt. The SOR 1.d. account remains Applicant’s responsibility. $12,805	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant acknowledged owing this creditor $3,627. The last date of activity on this account before becoming delinquent was April 2004. Applicant explained that on March 5, 2009, a settlement of $2,000 had been worked out with the creditor. The settlement would be satisfied after Applicant made a down payment of $545, followed by eight monthly payments of 181.88. Documentation from the creditor reflects the down payment was made, but no subsequent payments were made to complete the settlement. Applicant still owes the debt.

$3,627

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

Applicant admitted this judgment of $10,005. Before becoming delinquent, the last activity on this account was February 2004, and a judgment (based on this account) was entered against Applicant in February 2008. Applicant planned to contact the collection firm in October 2009. He started a savings account to accumulate funds to pay this judgment. No other action has been taken on this account. The judgment is resolved against Applicant.

$10,005

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

Applicant denied he owed the collection agency $2,488. He was renting an apartment in April 2004 when his employer advised him to look for a new job because his employer was being sold. Applicant spoke with his apartment manager about breaking the lease since he had to find another job. The manager told him she understood his predicament, and there would be no problem in terminating the lease because of a waiting list of prospective tenants. No independent verification was produced to substantiate Applicant’s claim. I find Applicant owes the debt.

$2,488

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

Applicant acknowledged he owed this delinquent account amounting to $12,805. The last activity on the account occurred in November 2004, and the account was assigned to a collection agency in October 2008. Applicant indicated that because his father anticipated an inheritance of money in September or October 2009, his father decided to give him property he had been renting. Applicant planned to use the property as collateral in the repayment of this debt. The SOR 1.d. account remains Applicant’s responsibility.

$12,805

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

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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

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION