ISCR Case 09-01684.h1

Case Headnote

ISCR Case No. 09-01684.h1

grantedMar 29, 2010· Hon. Michael H. Leonard· hearing

Summary

A 30-year-old federal contractor employee was granted a security clearance under Guideline F (Financial Considerations) despite a history of financial difficulties. The Statement of Reasons (SOR) detailed several delinquent debts, including collection accounts for $1,029 from an oil and gas company credit card, $582 from a woman’s clothing store credit card, and $2,153 from another clothing store credit card. The applicant also denied responsibility for a $177 unpaid judgment.

Disqualifying conditions under Adjudicative Guideline (AG) ¶ 19 were raised. However, mitigating conditions under AG ¶ 20(a), (b), (d), and (e) were applied. The applicant demonstrated good-faith efforts to resolve the delinquent debts, having paid two and actively working to settle two others.

The financial problems were largely attributed to circumstances beyond the applicant's control, specifically business failures and her husband's unemployment. The applicant's current employment and financial stability were considered strong indicators that the past issues were unlikely to recur, leading to the favorable decision to grant the clearance.

Why the Applicant Prevailed

The applicant made good-faith efforts to resolve delinquent debts, with two debts paid and two in the process of settlement.
The financial problems were largely due to circumstances beyond the applicant's control, including business failures and her husband's unemployment.
The applicant's current employment and financial stability indicate a low likelihood of recurrence of past issues.

Conditions Referenced

Disqualifying

AG ¶ 19raisedFinancial ConsiderationsThe applicant has a history of financial problems and excessive indebtedness.

Mitigating

AG ¶ 20(a)appliedMitigating Condition 20(a)The financial problems occurred under circumstances unlikely to recur.
AG ¶ 20(b)appliedMitigating Condition 20(b)The financial problems were largely beyond the applicant's control.
AG ¶ 20(d)appliedMitigating Condition 20(d)The applicant initiated good-faith efforts to repay overdue creditors.
AG ¶ 20(e)appliedMitigating Condition 20(e)The applicant provided evidence to dispute the legitimacy of one past-due debt.

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 issuedJul 27, 2009
Answer filedTimely
Hearing heldNov 17, 2009
Decision dateMar 29, 2010

Cite For

Good-faith Efforts to Resolve Financial Issues Under Guideline F
Mitigating Conditions Applicable to Financial Difficulties
Impact of Family Support on Financial Stability in Security Clearance Cases

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	The collection account for $1,029 in SOR ¶ 1.a stems from a credit card account issued by an oil and gas company. $1,029	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full Documented Debt Settlement
1.b	The collection account for $582 in SOR ¶ 1.b stems from a credit card account issued by a woman’s clothing store. $582	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	The collection account for $2,153 in SOR ¶ 1.c stems from a credit card account issued by a clothing store. $2,153	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Claimed Debt Settlement
1.d–1.e	2 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)	For Applicant			—	—	—
1.f	Applicant denies responsibility for the $177 unpaid judgment alleged in SOR ¶ 1.f. $177	For Applicant	Judgment Against Applicant	Denied	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	(b) conditions largely beyond the person’s control; acted responsibly (e) reasonable, documented basis to dispute the debt	Documented Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The collection account for $1,029 in SOR ¶ 1.a stems from a credit card account issued by an oil and gas company.

$1,029

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(b) conditions largely beyond the person’s control; acted responsibly

(d) good-faith effort to repay or otherwise resolve debts

Documented

Debt Paid in Full

Documented

Debt Settlement

1.b

The collection account for $582 in SOR ¶ 1.b stems from a credit card account issued by a woman’s clothing store.

$582

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(b) conditions largely beyond the person’s control; acted responsibly

(d) good-faith effort to repay or otherwise resolve debts

Documented

Debt Paid in Full

1.c

The collection account for $2,153 in SOR ¶ 1.c stems from a credit card account issued by a clothing store.

$2,153

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(b) conditions largely beyond the person’s control; acted responsibly

(d) good-faith effort to repay or otherwise resolve debts

Claimed

Debt Settlement

1.d–1.e

2 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)

For Applicant

—

1.f

Applicant denies responsibility for the $177 unpaid judgment alleged in SOR ¶ 1.f.

$177

For Applicant

Judgment Against Applicant

Denied

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(b) conditions largely beyond the person’s control; acted responsibly

(e) reasonable, documented basis to dispute the debt

Documented

Debt Paid in Full

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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

FORMAL FINDINGS

CONCLUSION

FOOTNOTES