ISCR Case 09-07749.h1

Case Headnote

ISCR Case No. 09-07749.h1

grantedJul 1, 2009· Hon. Philip S. Howe· hearing

Summary

A 46-year-old married man with four children, seeking a public trust position, was granted a security clearance despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant faced allegations of 30 delinquent debts totaling $89,703 accumulated between 2001 and 2010, including unpaid state and federal taxes, medical bills, and credit card debt. Additionally, he failed to disclose state and federal tax liens on his January 2009 SF-85P.

The applicant had two unresolved debts by April 2011, which he disputed due to a lack of creditor information for one and a claim of not owing the other. However, he had established a payment agreement with the IRS to address $5,299.03 in outstanding taxes, including monthly payments and seizure of tax refunds. He also paid seven hospital bills in December 2010.

The judge found that the applicant had taken significant steps to resolve his debts, including completing a financial planning course and actively repaying obligations. He provided credible explanations for his past financial mismanagement, citing reliance on his wife for financial matters and substantial adoption-related expenses. Given his stable current financial situation, good income, and clear plan to eliminate remaining debts, the security clearance was granted.

Why the Applicant Prevailed

The applicant demonstrated a commitment to resolving his financial issues through a financial planning course and ongoing debt repayment efforts.
He provided credible explanations for his past financial mismanagement, including reliance on his wife for financial matters and significant expenses related to adoption.
The applicant's current financial situation was stable, with a good income and a plan to eliminate remaining debts.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
AG ¶ 16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant Facts

Mitigating

AG ¶ 20(c)appliedEvidence of Receiving Counseling for the Problem and Indications That the Problem Is Being Resolved
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors or Resolve Debts
AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Contest Debts

Key Rule Quoted

“The standard that must be met for . . . assignment to sensitive duties is that, based on all available information, the person’s loyalty, reliability, and trustworthiness are such that . . . assigning the person to sensitive duties is clearly consistent with the interests of national security.”

Procedural Posture

SOR issuedJun 24, 2010
Answer filedAug 13, 2010
Hearing heldFeb 23, 2011Originally scheduled for December 13, 2010, but canceled due to weather.
Decision dateApr 27, 2011

Cite For

Mitigating Conditions for Financial Considerations Under Guideline F
Personal Conduct Issues Related to Omissions in Security Clearance Applications
The Importance of Demonstrating a Commitment to Resolving Financial Issues for Public Trust Positions

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

¶	Allegation	Finding	Conduct	Concealed Issue	Response	Disqualifying (¶16)	Mitigating applied (¶17)	Mitigation
2.a	Applicant did not disclose his state and federal tax liens on his SF-85P completed in January 12, 2009.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATE	Criminal Conduct	Denied	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant did not disclose his state and federal tax liens on his SF-85P completed in January 12, 2009.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATE

Criminal Conduct

Denied

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant accumulated 30 delinquent debts totaling $89,703 from 2001 to 2010. These debts included unpaid state and federal income taxes, medical debts for treatments rendered to family members, and three credit card debts. $89,703	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts (e) reasonable, documented basis to dispute the debt	Documented Financial Counseling Claimed Debt Paid in Full Documented Payment Plan with IRS
1.b	Applicant has two debts that he has not resolved by April 15, 2011, which are the $605 debt in Paragraph 1.i and the insurance debt for $152 in Paragraph 1.y. Applicant disputes both debts because the first debt, a medical account, has no creditor listed whom he could contact to discuss payments and the second debt is not owed by him because he had auto insurance with another company in 2003 when this debt allegedly originated. $605	For Applicant	Unspecified Financial	Denied	—	—	—
1.c	Applicant has a payment agreement with the Internal Revenue Service (IRS) to allow them to seize his federal and state income tax refunds and for him to pay $500 monthly until the remaining balance of taxes owed of $5,299.03 is paid this year. $5,299	For Applicant	Tax Unpaid	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with IRS
1.d	Applicant paid seven hospital bills on December 10, 2010, with cash and obtained receipts.	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant accumulated 30 delinquent debts totaling $89,703 from 2001 to 2010. These debts included unpaid state and federal income taxes, medical debts for treatments rendered to family members, and three credit card debts.

$89,703

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(c) received/receiving counseling; problem being resolved

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

(e) reasonable, documented basis to dispute the debt

Documented

Financial Counseling

Claimed

Debt Paid in Full

Documented

Payment Plan with IRS

1.b

Applicant has two debts that he has not resolved by April 15, 2011, which are the $605 debt in Paragraph 1.i and the insurance debt for $152 in Paragraph 1.y. Applicant disputes both debts because the first debt, a medical account, has no creditor listed whom he could contact to discuss payments and the second debt is not owed by him because he had auto insurance with another company in 2003 when this debt allegedly originated.

$605

For Applicant

Unspecified Financial

Denied

—

1.c

Applicant has a payment agreement with the Internal Revenue Service (IRS) to allow them to seize his federal and state income tax refunds and for him to pay $500 monthly until the remaining balance of taxes owed of $5,299.03 is paid this year.

$5,299

For Applicant

Tax Unpaid

Admitted

—

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

Documented

Payment Plan with IRS

1.d

Applicant paid seven hospital bills on December 10, 2010, with cash and obtained receipts.

For Applicant

Medical Debt

Admitted

—

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

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

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION