ISCR Case 09-02646.h1

Case Headnote

ISCR Case No. 09-02646.h1

deniedNov 30, 2010· Hon. Wilford H. Ross· hearing

Summary

A 54-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to significant financial difficulties. The applicant had 29 delinquent debts totaling approximately $39,217, which raised concerns about his reliability and trustworthiness.

Specific allegations included numerous past-due medical debts, an unpaid cable television bill, and several other outstanding debts for which the applicant promised payment or evidence of resolution but failed to provide documentation. While the applicant did provide evidence of resolving one judgment and making payments on an automobile credit account and his mortgage, these actions were insufficient to mitigate the overall pattern of financial irresponsibility.

The denial was based on the applicant's financial overextension, his failure to provide a budget or proof of promised payments, and the persistence of his financial difficulties since 2006. The applicant's inability to demonstrate a clear plan for resolving his debts ultimately led to the denial of his security clearance.

Why the Applicant Was Denied

The applicant has 29 delinquent debts totaling approximately $39,217, indicating financial overextension.
The applicant failed to provide evidence of a budget or proof of payments promised after the hearing.
The applicant's financial difficulties have persisted since 2006, raising concerns about his reliability 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)rejectedConditions Largely Beyond the Person's ControlWhile the applicant's financial issues were impacted by personal circumstances, he did not demonstrate how these affected his ability to pay debts.
AG ¶ 20(d)rejectedGood-faith Effort to Pay Off CreditorsThe applicant has not established a track record of making payments despite claims of intent.

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 17, 2009
Answer filedAug 20, 2009
Hearing heldFeb 4, 2010
Decision dateNov 30, 2010

Cite For

Financial Overextension as a Disqualifying Factor Under Guideline F
Insufficient Evidence of Financial Responsibility Leading to Denial of Clearance
Impact of Personal Circumstances on Financial Obligations and Their Limited Mitigating Effect

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 this past due medical debt in the amount of $2,258. He stated that it has not been paid because he is in a dispute with his medical insurer. He further stated he would submit evidence supporting the dispute. Such evidence was not provided. $2,258	Against Applicant	Medical Debt	Admitted	—	—	—
1.b	Applicant admits this past due medical debt in the amount of $816. He stated that it has not been paid, but would be paid by the end of March 2010. No evidence was submitted showing this debt to be paid. $816	Against Applicant	Medical Debt	Admitted	—	—	—
1.c	Applicant admits this past due debt in the amount of $1,348. He testified that this debt had not been paid, but would be paid within 60 days of the hearing. No evidence was submitted showing this debt to be paid. $1,348	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.d	Applicant admits this past due debt in the amount of $664. He testified that this debt had not been paid, but would be paid within 60 days of the hearing. No evidence was submitted showing this debt to be paid. $664	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.e	Applicant admits this past due debt in the amount of $917. He testified that this debt had not been paid, but would be paid within 60 days of the hearing. No evidence was submitted showing this debt to be paid. $917	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.f	Applicant admits this past due debt in the amount of $658. He testified that this debt had not been paid, but would be paid within 60 days of the hearing. No evidence was submitted showing this debt to be paid. Applicant also stated that this was a duplicate of the debt in 1.e., but submitted no evidence in support of this point. $658	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.g	Applicant admits this past due debt in the amount of $539. He testified that this debt had not been paid, but would be paid within 60 days of the hearing. No evidence was submitted showing this debt to be paid. $539	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.h	Applicant admits this past due debt in the amount of $49. He testified that this debt had been paid in November 2009, and he would submit evidence to support that fact. He submitted a letter on March 2, 2010, indicating that he had “received substantiation” from the law firm handling this debt. The “substantiation” was not submitted. $49	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.i	Applicant admits this past due debt in the amount of $45. He testified that this debt had been paid in November 2009, and he would submit evidence to support that fact. He submitted a letter on March 2, 2010, indicating that he had “received substantiation” from the law firm handling this debt. The “substantiation” was not submitted. $45	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.j	Applicant admits this past due debt in the amount of $87. He testified that he had no knowledge of this debt, owed to a cable television company. Applicant has hired a law firm to help him clear his credit report. He intends to contact the cable company, or have the law firm contact them, to resolve this situation. The most recent credit report in the record, dated February 4, 2010, continues to show this debt as unpaid. $87	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.k	Applicant admits this past due debt in the amount of $410. He testified that this debt had not been paid, but would be paid within 60 days of the hearing. No evidence was submitted showing this debt to be paid. $410	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.l	Applicant admits that he owed this judgment in the amount of $3,840. He submitted documentary evidence showing that he paid this judgment in October 2009 and received a Release of Lien. $3,840	For Applicant	Judgment Against Applicant	Admitted	—	—	—
1.m	Applicant admits this allegation, but submits that it is a duplicate of 1.l. The two entries in the credit reports involving these debts have the same case number, and the Applicant has submitted a Release of Lien from the plaintiff, who also states, “You [Applicant] have no further obligation on the . . . account and this matter will be settled and satisfied.” $3,840	For Applicant	Judgment Against Applicant	Admitted	—	—	—
1.n	Applicant admits this past due debt in the amount of $535. He testified that this debt had not been paid, but would be paid within 60 days of the hearing. No evidence was submitted showing this debt to be paid. $535	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.o	Applicant admits that his account was past due with an automobile credit company in the amount of $652. He submitted evidence showing that he had made a payment to this company in February 2010. $652	For Applicant	Auto Loan Debt	Admitted	—	—	—
1.p	Applicant admits that he owes a past due debt to this creditor in the amount of $867. He submits that it is a duplicate of another debt in the SOR, but was unable to support this statement. Applicant stated that he would submit evidence to prove this point, but no evidence was provided. $867	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.q	Applicant admits owing a past due debt in the amount of $5,081. He has made a payment arrangement with this creditor to pay $3,000 to resolve this debt. As of the date of the hearing $1,500 had been paid. The second payment was to be made February 20, 2010, and the Applicant testified he would submit evidence showing that it had been made. No evidence was provided. $5,081	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.r	Applicant admits owing a past due debt in the amount of $1,216. He has made a payment arrangement with this creditor to pay $686.80 to resolve this debt. As of the date of the hearing he stated $300 had been paid. The second payment was to be made February 20, 2010. Applicant testified he would submit evidence showing that both payments had been made. No evidence was provided. $1,216	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.s	Applicant admits this debt, but submits that it is a duplicate of 1.r., above. Applicant stated that he would submit evidence to prove this point, but no evidence was provided. $1,216	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.t	Applicant admits that he owes a past due debt to this creditor, but denies that the amount he owes is $7,732. Rather, he states that he has been making payments and has lowered the amount owed to approximately $6,000. He stated that he would pay this debt within 60 days of the hearing. No evidence was submitted showing this debt to have been paid. $7,732	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.u	Applicant admits this past due debt in the amount of $933. He testified that this debt had not been paid, but would be paid within 60 days of the hearing. No evidence was submitted showing this debt to be paid. $933	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.v	Applicant admits that he was several months past due on his mortgage. His mortgage payments have been reduced, and he submitted evidence showing he double-paid his mortgage in February to bring it current. $0	For Applicant	Mortgage or Home Loan Debt	Admitted	—	—	—
1.w	Applicant admits this past due debt in the amount of $1,546. He testified that this debt had not been paid, but would be paid within 60 days of the hearing. No evidence was submitted showing this debt to be paid. $1,546	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.x	Applicant admits this past due debt in the amount of $109. He testified that this debt had not been paid, but would be paid within 60 days of the hearing. No evidence was submitted showing this debt to be paid. $109	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.y	Applicant admits this past due debt in the amount of $2,096. He testified that this debt had not been paid, and that he believed it to be a duplicate of another debt in the SOR. No evidence was submitted showing this debt to be paid, or that it is a duplicate debt. $2,096	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.z	Applicant is deemed to deny that he owes a past due debt in the amount of $3,164. This debt is only found in the oldest credit report, dated May 17, 2008. There is no further evidence concerning the current status of this debt. The Government did not meet its burden of showing that the Applicant still owes this debt, and the subparagraph is found for Applicant. $3,164	For Applicant	Unspecified Financial	Unknown	—	—	—
1.a.a	Applicant is deemed to deny that he owes a past due debt in the amount of $518. This debt is only found in the oldest credit report, dated May 17, 2008. There is no further evidence concerning the current status of this debt. The Government did not meet its burden of showing that the Applicant still owes this debt, and the subparagraph is found for Applicant. $518	For Applicant	Unspecified Financial	Unknown	—	—	—
1.a.b	Applicant is deemed to deny that he owes a past due debt in the amount of $353. This debt is only found in the oldest credit report, dated May 17, 2008. There is no further evidence concerning the current status of this debt. The Government did not meet its burden of showing that the Applicant still owes this debt, and the subparagraph is found for Applicant. $353	For Applicant	Unspecified Financial	Unknown	—	—	—
1.a.c	Applicant is deemed to deny that he owes a past due debt in the amount of $139. This debt is only found in the oldest credit report, dated May 17, 2008. There is no further evidence concerning the current status of this debt. The Government did not meet its burden of showing that the Applicant still owes this debt, and the subparagraph is found for Applicant. $139	For Applicant	Unspecified Financial	Unknown	—	—	—
1.a.d	Applicant is deemed to deny that he owes a past due debt in the amount of $1,019. The records state that this account was “purchased by another lender.” Applicant no longer owes this creditor and the subparagraph is found for Applicant. $1,019	For Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant admits this past due medical debt in the amount of $2,258. He stated that it has not been paid because he is in a dispute with his medical insurer. He further stated he would submit evidence supporting the dispute. Such evidence was not provided.

$2,258

Against Applicant

Medical Debt

Admitted

—

1.b

Applicant admits this past due medical debt in the amount of $816. He stated that it has not been paid, but would be paid by the end of March 2010. No evidence was submitted showing this debt to be paid.

$816

Against Applicant

Medical Debt

Admitted

—

1.c

Applicant admits this past due debt in the amount of $1,348. He testified that this debt had not been paid, but would be paid within 60 days of the hearing. No evidence was submitted showing this debt to be paid.

$1,348

Against Applicant

Unspecified Financial

Admitted

—

1.d

Applicant admits this past due debt in the amount of $664. He testified that this debt had not been paid, but would be paid within 60 days of the hearing. No evidence was submitted showing this debt to be paid.

$664

Against Applicant

Unspecified Financial

Admitted

—

1.e

Applicant admits this past due debt in the amount of $917. He testified that this debt had not been paid, but would be paid within 60 days of the hearing. No evidence was submitted showing this debt to be paid.

$917

Against Applicant

Unspecified Financial

Admitted

—

1.f

Applicant admits this past due debt in the amount of $658. He testified that this debt had not been paid, but would be paid within 60 days of the hearing. No evidence was submitted showing this debt to be paid. Applicant also stated that this was a duplicate of the debt in 1.e., but submitted no evidence in support of this point.

$658

Against Applicant

Unspecified Financial

Admitted

—

1.g

Applicant admits this past due debt in the amount of $539. He testified that this debt had not been paid, but would be paid within 60 days of the hearing. No evidence was submitted showing this debt to be paid.

$539

Against Applicant

Unspecified Financial

Admitted

—

1.h

Applicant admits this past due debt in the amount of $49. He testified that this debt had been paid in November 2009, and he would submit evidence to support that fact. He submitted a letter on March 2, 2010, indicating that he had “received substantiation” from the law firm handling this debt. The “substantiation” was not submitted.

$49

Against Applicant

Unspecified Financial

Admitted

—

1.i

Applicant admits this past due debt in the amount of $45. He testified that this debt had been paid in November 2009, and he would submit evidence to support that fact. He submitted a letter on March 2, 2010, indicating that he had “received substantiation” from the law firm handling this debt. The “substantiation” was not submitted.

$45

Against Applicant

Unspecified Financial

Admitted

—

1.j

Applicant admits this past due debt in the amount of $87. He testified that he had no knowledge of this debt, owed to a cable television company. Applicant has hired a law firm to help him clear his credit report. He intends to contact the cable company, or have the law firm contact them, to resolve this situation. The most recent credit report in the record, dated February 4, 2010, continues to show this debt as unpaid.

$87

Against Applicant

Unspecified Financial

Admitted

—

1.k

Applicant admits this past due debt in the amount of $410. He testified that this debt had not been paid, but would be paid within 60 days of the hearing. No evidence was submitted showing this debt to be paid.

$410

Against Applicant

Unspecified Financial

Admitted

—

1.l

Applicant admits that he owed this judgment in the amount of $3,840. He submitted documentary evidence showing that he paid this judgment in October 2009 and received a Release of Lien.

$3,840

For Applicant

Judgment Against Applicant

Admitted

—

1.m

Applicant admits this allegation, but submits that it is a duplicate of 1.l. The two entries in the credit reports involving these debts have the same case number, and the Applicant has submitted a Release of Lien from the plaintiff, who also states, “You [Applicant] have no further obligation on the . . . account and this matter will be settled and satisfied.”

$3,840

For Applicant

Judgment Against Applicant

Admitted

—

1.n

Applicant admits this past due debt in the amount of $535. He testified that this debt had not been paid, but would be paid within 60 days of the hearing. No evidence was submitted showing this debt to be paid.

$535

Against Applicant

Unspecified Financial

Admitted

—

1.o

Applicant admits that his account was past due with an automobile credit company in the amount of $652. He submitted evidence showing that he had made a payment to this company in February 2010.

$652

For Applicant

Auto Loan Debt

Admitted

—

1.p

Applicant admits that he owes a past due debt to this creditor in the amount of $867. He submits that it is a duplicate of another debt in the SOR, but was unable to support this statement. Applicant stated that he would submit evidence to prove this point, but no evidence was provided.

$867

Against Applicant

Unspecified Financial

Admitted

—

1.q

Applicant admits owing a past due debt in the amount of $5,081. He has made a payment arrangement with this creditor to pay $3,000 to resolve this debt. As of the date of the hearing $1,500 had been paid. The second payment was to be made February 20, 2010, and the Applicant testified he would submit evidence showing that it had been made. No evidence was provided.

$5,081

Against Applicant

Unspecified Financial

Admitted

—

1.r

Applicant admits owing a past due debt in the amount of $1,216. He has made a payment arrangement with this creditor to pay $686.80 to resolve this debt. As of the date of the hearing he stated $300 had been paid. The second payment was to be made February 20, 2010. Applicant testified he would submit evidence showing that both payments had been made. No evidence was provided.

$1,216

Against Applicant

Unspecified Financial

Admitted

—

1.s

Applicant admits this debt, but submits that it is a duplicate of 1.r., above. Applicant stated that he would submit evidence to prove this point, but no evidence was provided.

$1,216

Against Applicant

Unspecified Financial

Admitted

—

1.t

Applicant admits that he owes a past due debt to this creditor, but denies that the amount he owes is $7,732. Rather, he states that he has been making payments and has lowered the amount owed to approximately $6,000. He stated that he would pay this debt within 60 days of the hearing. No evidence was submitted showing this debt to have been paid.

$7,732

Against Applicant

Unspecified Financial

Admitted

—

1.u

Applicant admits this past due debt in the amount of $933. He testified that this debt had not been paid, but would be paid within 60 days of the hearing. No evidence was submitted showing this debt to be paid.

$933

Against Applicant

Unspecified Financial

Admitted

—

1.v

Applicant admits that he was several months past due on his mortgage. His mortgage payments have been reduced, and he submitted evidence showing he double-paid his mortgage in February to bring it current.

For Applicant

Mortgage or Home Loan Debt

Admitted

—

1.w

Applicant admits this past due debt in the amount of $1,546. He testified that this debt had not been paid, but would be paid within 60 days of the hearing. No evidence was submitted showing this debt to be paid.

$1,546

Against Applicant

Unspecified Financial

Admitted

—

1.x

Applicant admits this past due debt in the amount of $109. He testified that this debt had not been paid, but would be paid within 60 days of the hearing. No evidence was submitted showing this debt to be paid.

$109

Against Applicant

Unspecified Financial

Admitted

—

1.y

Applicant admits this past due debt in the amount of $2,096. He testified that this debt had not been paid, and that he believed it to be a duplicate of another debt in the SOR. No evidence was submitted showing this debt to be paid, or that it is a duplicate debt.

$2,096

Against Applicant

Unspecified Financial

Admitted

—

1.z

Applicant is deemed to deny that he owes a past due debt in the amount of $3,164. This debt is only found in the oldest credit report, dated May 17, 2008. There is no further evidence concerning the current status of this debt. The Government did not meet its burden of showing that the Applicant still owes this debt, and the subparagraph is found for Applicant.

$3,164

For Applicant

Unspecified Financial

Unknown

—

1.a.a

Applicant is deemed to deny that he owes a past due debt in the amount of $518. This debt is only found in the oldest credit report, dated May 17, 2008. There is no further evidence concerning the current status of this debt. The Government did not meet its burden of showing that the Applicant still owes this debt, and the subparagraph is found for Applicant.

$518

For Applicant

Unspecified Financial

Unknown

—

1.a.b

Applicant is deemed to deny that he owes a past due debt in the amount of $353. This debt is only found in the oldest credit report, dated May 17, 2008. There is no further evidence concerning the current status of this debt. The Government did not meet its burden of showing that the Applicant still owes this debt, and the subparagraph is found for Applicant.

$353

For Applicant

Unspecified Financial

Unknown

—

1.a.c

Applicant is deemed to deny that he owes a past due debt in the amount of $139. This debt is only found in the oldest credit report, dated May 17, 2008. There is no further evidence concerning the current status of this debt. The Government did not meet its burden of showing that the Applicant still owes this debt, and the subparagraph is found for Applicant.

$139

For Applicant

Unspecified Financial

Unknown

—

1.a.d

Applicant is deemed to deny that he owes a past due debt in the amount of $1,019. The records state that this account was “purchased by another lender.” Applicant no longer owes this creditor and the subparagraph is found for Applicant.

$1,019

For Applicant

Unspecified Financial

Unknown

—

Loading case…

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