ISCR Case 09-01366.h1

Case Headnote

ISCR Case No. 09-01366.h1

deniedDec 15, 2010· Hon. Wilford H. Ross· hearing

Summary

A 48-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to over $59,000 in delinquent debts. The applicant admitted to filing for Chapter 13 Bankruptcy in June 2005, which was dismissed in September 2005. His debts included a $24,242 obligation to a credit union collection agent, a $19,000 charged-off credit union account, and a $7,454 debt to a state university for unpaid tuition after a late withdrawal.

Other admitted debts included $2,925 and $1,691 owed to collection agents for credit unions and a bank, respectively, both of which were paid in July 2009. A $74 past-due account was paid in April 2009. The applicant also admitted to a $1,028 bank debt, which he claimed to have paid in 2006 without providing evidence, and a $2,801 bank debt he was attempting to verify.

The denial was based on the applicant's significant and ongoing financial difficulties, his failure to demonstrate a good-faith effort to resolve his debts, and the potential for coercion or exploitation stemming from his financial situation. Disqualifying conditions under Guideline F were raised, and while some mitigating conditions were considered, they were insufficient to overcome the security concerns.

Why the Applicant Was Denied

The applicant admitted to over $59,000 in delinquent debts, which raised security concerns.
He failed to provide evidence of a good-faith effort to resolve his financial issues.
The applicant's financial difficulties were recent and ongoing, indicating a lack of control over his financial situation.

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(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant's financial difficulties are recent and ongoing.
AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not demonstrate how his divorce continued to impact his financial situation.
AG ¶ 20(c)rejectedClear Indications That the Problem Is Being ResolvedThe applicant remains significantly in debt with no evidence of resolution.
AG ¶ 20(d)rejectedGood-faith Effort to Pay Off CreditorsThe applicant has not initiated a consistent payment plan for his debts.

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 24, 2009
Answer filedAug 31, 2009
Hearing held—Decision made without a hearing at applicant's request.
Decision dateDec 15, 2010

Cite For

Financial Overextension as a Disqualifying Condition Under Guideline F
Lack of Good-faith Effort to Resolve Debts as a Basis for Denial
Impact of Personal Circumstances on Financial Obligations and Security Clearance Eligibility

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 admits filing for Chapter 13 Bankruptcy in June 2005. The case was dismissed in September 2005. $0	Against Applicant	Bankruptcy Filing	Admitted	—	—	—
1.b	Applicant admits that he was indebted to a collection agent for a credit union in the amount of $24,242. He further claims that this debt is the same debt as 1.d. $24,242	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.c	Applicant admits that he was indebted to a collection agent for a credit union in the amount of $2,925. He submitted evidence showing he paid this account in July 2009. $2,925	For Applicant	Unspecified Financial	Admitted	—	—	—
1.d	Applicant admits that he was indebted to a credit union on a charged off account in the amount of $19,000. He submits that this is the same debt as the one set forth in 1.a. $19,000	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.e	Applicant admits owing a collection agent $74 for a past due account. He stated in his Answers that he had paid this account in April 2009. $74	For Applicant	Unspecified Financial	Admitted	—	—	—
1.f	Applicant admits that he was indebted to a collection agent for a bank in the amount of $1,691. He submitted evidence showing he paid this account in July 2009. $1,691	For Applicant	Unspecified Financial	Admitted	—	—	—
1.g	Applicant admits that he was indebted to a bank in the amount of $1,028. He states that he paid this account in 2006. Applicant submitted no evidence to support this statement. $1,028	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.h	Applicant admits that he was indebted to a bank in the amount of $2,801. He states that he was contacting this creditor to confirm the accuracy of the debt. $2,801	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.i	Applicant admits that he was indebted to a state university in the amount of $7,454. This debt occurred because the Applicant withdrew late from his classes at the university and still owed his tuition. $7,454	Against Applicant	Unspecified Financial	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant admits filing for Chapter 13 Bankruptcy in June 2005. The case was dismissed in September 2005.

Against Applicant

Bankruptcy Filing

Admitted

—

1.b

Applicant admits that he was indebted to a collection agent for a credit union in the amount of $24,242. He further claims that this debt is the same debt as 1.d.

$24,242

Against Applicant

Unspecified Financial

Admitted

—

1.c

Applicant admits that he was indebted to a collection agent for a credit union in the amount of $2,925. He submitted evidence showing he paid this account in July 2009.

$2,925

For Applicant

Unspecified Financial

Admitted

—

1.d

Applicant admits that he was indebted to a credit union on a charged off account in the amount of $19,000. He submits that this is the same debt as the one set forth in 1.a.

$19,000

Against Applicant

Unspecified Financial

Admitted

—

1.e

Applicant admits owing a collection agent $74 for a past due account. He stated in his Answers that he had paid this account in April 2009.

$74

For Applicant

Unspecified Financial

Admitted

—

1.f

Applicant admits that he was indebted to a collection agent for a bank in the amount of $1,691. He submitted evidence showing he paid this account in July 2009.

$1,691

For Applicant

Unspecified Financial

Admitted

—

1.g

Applicant admits that he was indebted to a bank in the amount of $1,028. He states that he paid this account in 2006. Applicant submitted no evidence to support this statement.

$1,028

Against Applicant

Unspecified Financial

Admitted

—

1.h

Applicant admits that he was indebted to a bank in the amount of $2,801. He states that he was contacting this creditor to confirm the accuracy of the debt.

$2,801

Against Applicant

Unspecified Financial

Admitted

—

1.i

Applicant admits that he was indebted to a state university in the amount of $7,454. This debt occurred because the Applicant withdrew late from his classes at the university and still owed his tuition.

$7,454

Against Applicant

Unspecified Financial

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

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES