ISCR Case 09-06206.h1

Case Headnote

ISCR Case No. 09-06206.h1

deniedMar 8, 2011· Hon. Wilford H. Ross· hearing

Summary

A 62-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to approximately $70,000 in unresolved debts. The applicant admitted to numerous delinquent debts, ranging from $654 to $25,893, with several showing no recent payments or evidence of payment arrangements. While he claimed to be attempting payment arrangements for some debts, he provided no documentation of payments made or current balances.

The applicant's financial issues included a 1992 bankruptcy, which was deemed to have no current security significance. He also admitted to delinquent federal and state tax filings for several years due to a job-related move, but provided evidence that all back taxes were filed and paid or being paid, resolving these concerns. One alleged debt of $588 was found in the applicant's favor due to inconsistent credit reporting, and two other denied debts of $765 and $1,001 lacked supporting documentation for his claims of full payment.

Despite acknowledging some debts and citing medical hardships, the applicant failed to demonstrate a consistent effort to resolve his financial obligations or provide a clear plan for improvement. The judge concluded that the applicant's persistent financial difficulties posed an unacceptable risk to national security, leading to the denial of the security clearance.

Why the Applicant Was Denied

The applicant has approximately $70,000 in unresolved debts, indicating financial overextension.
The applicant failed to provide sufficient evidence of a good-faith effort to pay off debts or a plan to resolve financial issues.
The applicant's financial difficulties have persisted for several years without evidence of improvement.

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 so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's financial difficulties are ongoing and have not improved.
AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not provide sufficient evidence to support claims of medical issues affecting his ability to pay debts.
AG ¶ 20(c)rejectedClear Indications That the Problem Is Being Resolved or Is Under ControlThe applicant's debts remain unresolved with no evidence of consistent payments.
AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant has not demonstrated a consistent effort to pay off creditors.

Key Rule Quoted

“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”

Procedural Posture

SOR issuedApr 14, 2010
Answer filedJun 4, 2010
Hearing held—Decision made without a hearing.
Decision dateMar 8, 2011

Cite For

Financial Overextension as a Disqualifying Condition Under Guideline F
Insufficient Evidence of Good-faith Efforts to Resolve Debts
Impact of Ongoing Financial Difficulties on 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 that he filed bankruptcy in 1992, and that it was discharged in 1993. This occurred almost 20 years ago, none of the debts alleged in the SOR are that old, and there is no allegation of fraud or illegality by Applicant. This action has no current security significance.	For Applicant	Bankruptcy Filing	Admitted	—	—	—
1.b	Applicant admits that he is indebted to a creditor for a delinquent debt in the amount of $10,337. He indicated in his November 2009 Interrogatories that he was making a payment arrangement with the collection agent handling the account. However, Applicant submitted no additional information as to how many payments may have been made, or the amount of his current balance. This debt is unresolved. $10,337	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.c	Applicant admits that he is indebted to a creditor for a delinquent debt in the amount of $654. He indicated in his November 2009 Interrogatories that he has not yet contacted the collection agent handling the account. In his Answer, Applicant states he made a voluntary payment on this account in December 2009 to another collection agent, but that he had no further contact with the creditor or collection agents. This debt is unresolved. $654	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.d	Applicant admits that he is indebted to a creditor for a delinquent debt in the amount of $6,187. The Applicant has made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt. $6,187	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.e	Applicant admits that he is indebted to a creditor for a delinquent debt in the amount of $4,961. He indicated in his November 2009 answers to Interrogatories that he was attempting to make a payment arrangement with the collection agent handling the account. However, Applicant submitted no information as to how many payments may have been made, or the amount of his current balance. This debt is unresolved. $4,961	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.f	Applicant admits that he is indebted to a creditor for a delinquent debt in the amount of $25,893. The Applicant has made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt. $25,893	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.g	Applicant admits that he is indebted to a creditor for a delinquent debt in the amount of $2,494. Applicant has made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt. $2,494	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.h	Applicant admits that he is indebted to a creditor for a delinquent debt in the amount of $13,189. He indicated in his November 2009 answers to Interrogatories and in his Answer that he was attempting to make a payment arrangement with the collection agent handling the account. However, Applicant submitted no information as to how many payments may have been made, or the amount of his current balance. This debt is unresolved. $13,189	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.i	Applicant admits that he is indebted to a creditor for a delinquent debt in the amount of $2,520. Applicant has had no recent contact with the creditor, made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt. $2,520	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.j	Applicant denies that he is indebted to a creditor in the amount of $588. He states in his Answer, “This bill was paid through arrangements of my Auto Insurance agency and [Creditor’s] Total Loss department due to an accident. Account paid in full.” A review of the available credit reports show irreconcilable inconsistencies in reporting the account in the period from May 2009 to December 2009. Under the particular circumstances of this case, I cannot find that Applicant continues to owe this debt, and the subparagraph is found for Applicant. $588	For Applicant	Unspecified Financial	Denied	—	—	—
1.k	Applicant admits that he is indebted to a creditor for a delinquent debt in the amount of $2,687. He indicated in his November 2009 answers to Interrogatories and in his Answer that he was attempting to make a payment arrangement with the collection agent handling the account. However, Applicant submitted no information as to how many payments may have been made, or the amount of his current balance. This debt is unresolved. $2,687	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.l	Applicant admits that he is indebted to a creditor for a delinquent debt in the amount of $1,890. He indicated in his November 2009 answers to Interrogatories and in his Answer that he was attempting to make a payment arrangement with the collection agent handling the account. However, Applicant submitted no information as to how many payments may have been made, or the amount of his current balance. This debt is unresolved. $1,890	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.m	Applicant denies that he is indebted to a creditor for a delinquent debt in the amount of $765. He indicated in his Answer that he had made a full payment to the collection agent handling the account. However, Applicant submitted no documentary evidence to support his statement. This debt is unresolved. $765	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts	—	—
1.n	Applicant denies that he is indebted to a creditor for a delinquent debt in the amount of $1,001. He indicated in his Answer that he had made a full payment to the collection agent handling the account. However, Applicant submitted no documentary evidence to support his statement. This debt is unresolved. $1,001	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts	—	—
1.o	Applicant admits that, because of a job-related move, he did not file his 2005, 2006 and 2007 Federal income tax forms in a timely manner. He supplied documentary information showing that he has filed all the appropriate taxes, all back taxes have been paid, and he received a refund. Under the particular circumstances of this case, this act has no current security significance and the allegation is found for Applicant.	For Applicant	Tax Filing Failure	Admitted	—	—	—
1.p	Applicant admits that, because of a job-related move, he did not file his 2006 and 2007 state income tax forms in a timely manner. He supplied documentary information showing that he has filed all the appropriate taxes, and his back taxes are being paid to the satisfaction of the state. Under the particular circumstances of this case, this act has no current security significance and the allegation is found for Applicant.	For Applicant	Tax Filing Failure	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant admits that he filed bankruptcy in 1992, and that it was discharged in 1993. This occurred almost 20 years ago, none of the debts alleged in the SOR are that old, and there is no allegation of fraud or illegality by Applicant. This action has no current security significance.

For Applicant

Bankruptcy Filing

Admitted

—

1.b

Applicant admits that he is indebted to a creditor for a delinquent debt in the amount of $10,337. He indicated in his November 2009 Interrogatories that he was making a payment arrangement with the collection agent handling the account. However, Applicant submitted no additional information as to how many payments may have been made, or the amount of his current balance. This debt is unresolved.

$10,337

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

1.c

Applicant admits that he is indebted to a creditor for a delinquent debt in the amount of $654. He indicated in his November 2009 Interrogatories that he has not yet contacted the collection agent handling the account. In his Answer, Applicant states he made a voluntary payment on this account in December 2009 to another collection agent, but that he had no further contact with the creditor or collection agents. This debt is unresolved.

$654

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

1.d

Applicant admits that he is indebted to a creditor for a delinquent debt in the amount of $6,187. The Applicant has made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt.

$6,187

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

1.e

Applicant admits that he is indebted to a creditor for a delinquent debt in the amount of $4,961. He indicated in his November 2009 answers to Interrogatories that he was attempting to make a payment arrangement with the collection agent handling the account. However, Applicant submitted no information as to how many payments may have been made, or the amount of his current balance. This debt is unresolved.

$4,961

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

1.f

Applicant admits that he is indebted to a creditor for a delinquent debt in the amount of $25,893. The Applicant has made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt.

$25,893

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

1.g

Applicant admits that he is indebted to a creditor for a delinquent debt in the amount of $2,494. Applicant has made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt.

$2,494

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

1.h

Applicant admits that he is indebted to a creditor for a delinquent debt in the amount of $13,189. He indicated in his November 2009 answers to Interrogatories and in his Answer that he was attempting to make a payment arrangement with the collection agent handling the account. However, Applicant submitted no information as to how many payments may have been made, or the amount of his current balance. This debt is unresolved.

$13,189

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

1.i

Applicant admits that he is indebted to a creditor for a delinquent debt in the amount of $2,520. Applicant has had no recent contact with the creditor, made no recent payments on this debt, and there is no evidence that he is going to make payments on this debt.

$2,520

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

1.j

Applicant denies that he is indebted to a creditor in the amount of $588. He states in his Answer, “This bill was paid through arrangements of my Auto Insurance agency and [Creditor’s] Total Loss department due to an accident. Account paid in full.” A review of the available credit reports show irreconcilable inconsistencies in reporting the account in the period from May 2009 to December 2009. Under the particular circumstances of this case, I cannot find that Applicant continues to owe this debt, and the subparagraph is found for Applicant.

$588

For Applicant

Unspecified Financial

Denied

—

1.k

Applicant admits that he is indebted to a creditor for a delinquent debt in the amount of $2,687. He indicated in his November 2009 answers to Interrogatories and in his Answer that he was attempting to make a payment arrangement with the collection agent handling the account. However, Applicant submitted no information as to how many payments may have been made, or the amount of his current balance. This debt is unresolved.

$2,687

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

1.l

Applicant admits that he is indebted to a creditor for a delinquent debt in the amount of $1,890. He indicated in his November 2009 answers to Interrogatories and in his Answer that he was attempting to make a payment arrangement with the collection agent handling the account. However, Applicant submitted no information as to how many payments may have been made, or the amount of his current balance. This debt is unresolved.

$1,890

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

1.m

Applicant denies that he is indebted to a creditor for a delinquent debt in the amount of $765. He indicated in his Answer that he had made a full payment to the collection agent handling the account. However, Applicant submitted no documentary evidence to support his statement. This debt is unresolved.

$765

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

—

1.n

Applicant denies that he is indebted to a creditor for a delinquent debt in the amount of $1,001. He indicated in his Answer that he had made a full payment to the collection agent handling the account. However, Applicant submitted no documentary evidence to support his statement. This debt is unresolved.

$1,001

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

—

1.o

Applicant admits that, because of a job-related move, he did not file his 2005, 2006 and 2007 Federal income tax forms in a timely manner. He supplied documentary information showing that he has filed all the appropriate taxes, all back taxes have been paid, and he received a refund. Under the particular circumstances of this case, this act has no current security significance and the allegation is found for Applicant.

For Applicant

Tax Filing Failure

Admitted

—

1.p

Applicant admits that, because of a job-related move, he did not file his 2006 and 2007 state income tax forms in a timely manner. He supplied documentary information showing that he has filed all the appropriate taxes, and his back taxes are being paid to the satisfaction of the state. Under the particular circumstances of this case, this act has no current security significance and the allegation is found for Applicant.

For Applicant

Tax Filing Failure

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