ISCR Case 09-08119.h1

Case Headnote

ISCR Case No. 09-08119.h1

deniedJun 16, 2011· Hon. Joan Caton Anthony· hearing

Summary

A 50-year-old independent contractor was denied a security clearance under Guideline F (Financial Considerations) due to approximately $22,811 in unresolved financial delinquencies. The Statement of Reasons (SOR) detailed multiple allegations, including a $2,137 unpaid debt from April 2010, a $394 delinquent debt to a communications company, and a $4,000 mortgage account 120 days past due as of September 2010. Other allegations included a debt from a vehicle repossession, delinquent medical bills, and a $1,943 delinquent debt.

The applicant admitted to several of these allegations, which remained unsatisfied. However, he denied others, claiming some debts were not his responsibility or that he was making payments. Disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c) were raised, while mitigating conditions AG ¶ 20(d) and AG ¶ 20(b) were applied.

Ultimately, the clearance was denied because the applicant failed to provide sufficient documentation demonstrating a consistent track record of debt payment. His financial situation suggested he was spending more than his income, raising concerns about his reliability and trustworthiness. Furthermore, he did not establish a clear and timely strategy for resolving his delinquent debts.

Why the Applicant Was Denied

The applicant failed to provide sufficient documentation to show a track record of consistent payment of debts over time.
The applicant's financial situation indicated he was spending more than he earned each month, raising concerns about his reliability and trustworthiness.
The applicant did not establish a clear and timely strategy for resolving his delinquent debts.

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(d)rejectedThe Individual Has Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsWhile the applicant made some efforts to negotiate payment plans, he failed to provide sufficient evidence of consistent payments.
AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's financial difficulties were not adequately mitigated by circumstances beyond his control.

Key Rule Quoted

“The Government cannot rely on the possibility that an applicant might resolve his or her outstanding debts at some future date.”
— ISCR Case No. 98-0614 at 5 (App. Bd. Jul. 12, 1999)

Procedural Posture

SOR issuedSep 24, 2010
Answer filedNov 20, 2010Applicant declined a hearing.
Hearing held—Case adjudicated on the written record.
Decision dateJun 16, 2011

Cite For

Failure to Demonstrate Consistent Payment of Debts Under Guideline F
Impact of Financial Instability on Security Clearance Eligibility
Rejection of Mitigating Conditions Due to Lack of Evidence of Resolution Efforts

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 denied a $2,137 debt alleged at SOR ¶ 1.a. The debt is listed as unpaid on his credit report of April 26, 2010. $2,137	Against Applicant	Unspecified Financial	Denied	—	—	—
1.b	Applicant admitted the allegations at SOR ¶ 1.b. which remains unsatisfied.	Against Applicant	Medical Debt	Admitted	—	—	—
1.c	Applicant admitted the allegations at SOR ¶ 1.c. which remains unsatisfied.	Against Applicant	Medical Debt	Admitted	—	—	—
1.d	Applicant denied SOR ¶ 1.d., a $394 delinquent debt to a communications company. He claimed the debt was not his but was his son’s responsibility. $394	Against Applicant	Unspecified Financial	Denied	—	—	—
1.e	Applicant admitted the allegations at SOR ¶ 1.e. which remains unsatisfied.	Against Applicant	Medical Debt	Admitted	—	—	—
1.f	Applicant denied the debt resulting from the vehicle repossession alleged in SOR ¶ 1.f. He asserted that he was paying $100 a month to the creditor. $12,000	Against Applicant	Auto Loan Debt	Denied	—	—	—
1.g	Applicant admitted that delinquent medical bills alleged at SOR ¶ 1.g. remained unsatisfied.	Against Applicant	Medical Debt	Admitted	—	—	—
1.h	Applicant denied SOR ¶ 1.h., which alleged that he was 120 days past due on a mortgage account of $4,000, and the debt remained unpaid as of September 24, 2010. $4,000	For Applicant	Mortgage or Home Loan Debt	Denied	—	—	—
1.i	Applicant admitted the allegations at SOR ¶ 1.i. which remains unsatisfied.	For Applicant	Medical Debt	Admitted	—	—	—
1.j	Applicant admitted the allegations at SOR ¶ 1.j. which remains unsatisfied.	For Applicant	Medical Debt	Admitted	—	—	—
1.k	Applicant admitted the allegations at SOR ¶ 1.k. which remains unsatisfied.	Against Applicant	Medical Debt	Admitted	—	—	—
1.l	Applicant admitted the allegations at SOR ¶ 1.l. which remains unsatisfied.	For Applicant	Medical Debt	Admitted	—	—	—
1.m	Applicant admitted the allegations at SOR ¶ 1.m. which remains unsatisfied.	Against Applicant	Medical Debt	Admitted	—	—	—
1.n	Applicant denied SOR ¶ 1.n., which alleged that he owed a creditor $1,943 on a delinquent debt that remained unpaid as of September 24, 2010. $1,943	Against Applicant	Unspecified Financial	Denied	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant denied a $2,137 debt alleged at SOR ¶ 1.a. The debt is listed as unpaid on his credit report of April 26, 2010.

$2,137

Against Applicant

Unspecified Financial

Denied

—

1.b

Applicant admitted the allegations at SOR ¶ 1.b. which remains unsatisfied.

Against Applicant

Medical Debt

Admitted

—

1.c

Applicant admitted the allegations at SOR ¶ 1.c. which remains unsatisfied.

Against Applicant

Medical Debt

Admitted

—

1.d

Applicant denied SOR ¶ 1.d., a $394 delinquent debt to a communications company. He claimed the debt was not his but was his son’s responsibility.

$394

Against Applicant

Unspecified Financial

Denied

—

1.e

Applicant admitted the allegations at SOR ¶ 1.e. which remains unsatisfied.

Against Applicant

Medical Debt

Admitted

—

1.f

Applicant denied the debt resulting from the vehicle repossession alleged in SOR ¶ 1.f. He asserted that he was paying $100 a month to the creditor.

$12,000

Against Applicant

Auto Loan Debt

Denied

—

1.g

Applicant admitted that delinquent medical bills alleged at SOR ¶ 1.g. remained unsatisfied.

Against Applicant

Medical Debt

Admitted

—

1.h

Applicant denied SOR ¶ 1.h., which alleged that he was 120 days past due on a mortgage account of $4,000, and the debt remained unpaid as of September 24, 2010.

$4,000

For Applicant

Mortgage or Home Loan Debt

Denied

—

1.i

Applicant admitted the allegations at SOR ¶ 1.i. which remains unsatisfied.

For Applicant

Medical Debt

Admitted

—

1.j

Applicant admitted the allegations at SOR ¶ 1.j. which remains unsatisfied.

For Applicant

Medical Debt

Admitted

—

1.k

Applicant admitted the allegations at SOR ¶ 1.k. which remains unsatisfied.

Against Applicant

Medical Debt

Admitted

—

1.l

Applicant admitted the allegations at SOR ¶ 1.l. which remains unsatisfied.

For Applicant

Medical Debt

Admitted

—

1.m

Applicant admitted the allegations at SOR ¶ 1.m. which remains unsatisfied.

Against Applicant

Medical Debt

Admitted

—

1.n

Applicant denied SOR ¶ 1.n., which alleged that he owed a creditor $1,943 on a delinquent debt that remained unpaid as of September 24, 2010.

$1,943

Against Applicant

Unspecified Financial

Denied

—

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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