ISCR Case 10-01188.h1

Case Headnote

ISCR Case No. 10-01188.h1

deniedApr 5, 2011· Hon. Wilford H. Ross· hearing

Summary

A 46-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The applicant's financial difficulties stemmed from a two-year period of unemployment. Despite some evidence of improved financial stability, the applicant had outstanding debts totaling over $31,000, which raised concerns about reliability and trustworthiness.

The Statement of Reasons detailed several allegations, including denied debts to medical creditors, a bank line of credit for $26,152, and college tuition of $3,679. The applicant admitted to a mortgage on a house foreclosed in 2009 but denied a second mortgage of $105,351 related to the same property. Additional denied debts included various delinquent amounts ranging from $50 to $817.

Disqualifying conditions were raised, and several mitigating conditions were applied. However, the clearance was ultimately denied because the applicant's unresolved debts exceeded $31,000, and insufficient evidence was provided for a plan to resolve these outstanding obligations or demonstrate consistent financial stability. The financial difficulties had persisted for several years without clear resolution.

Why the Applicant Was Denied

The applicant has unresolved debts totaling over $31,000, which raises concerns about reliability and trustworthiness.
The applicant failed to provide sufficient evidence of a plan to resolve outstanding debts or demonstrate financial stability.
The applicant's financial difficulties have persisted for several years without clear resolution.

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 Long Ago or InfrequentlyThe applicant's financial difficulties are ongoing and have not been resolved.
AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile the applicant's layoff contributed to her financial issues, she failed to show evidence of resolving debts.
AG ¶ 20(d)appliedGood-faith Effort to Repay CreditorsThe applicant has made some efforts to pay off debts, but gaps remain.
AG ¶ 20(e)appliedReasonable Basis to Dispute DebtsThe applicant has disputed several debts, but many remain unresolved.

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 issuedSep 14, 2010
Answer filedSep 28, 2010Applicant requested a decision without a hearing.
Hearing held—No hearing was conducted.
Decision dateApr 5, 2011

Cite For

Financial Overextension as a Disqualifying Condition Under Guideline F
Importance of Providing Evidence of Financial Stability and Debt Resolution
The Whole-person Concept in Evaluating 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 denies that she is indebted to a medical creditor in the amount of $95. $95	Against Applicant	Medical Debt	Denied	—	—	—
1.b	Applicant denies that she is indebted to a medical creditor in the amount of $50. $50	For Applicant	Medical Debt	Denied	—	—	—
1.c	Applicant denies that she is indebted to a bank for a line of credit in the amount of $26,152. $26,152	Against Applicant	Unspecified Financial	Denied	—	—	—
1.d	Applicant denies that she is indebted to a college for tuition in the amount of $3,679. $3,679	Against Applicant	Unspecified Financial	Denied	—	—	—
1.e	Applicant admits that she was indebted on a mortgage for a house that was foreclosed upon in 2009.	For Applicant	Mortgage or Home Loan Debt	Admitted	—	—	—
1.f	Applicant denies that she is indebted on a second mortgage in the amount of $105,351 for the house that was foreclosed upon in 2009. $105,351	For Applicant	Mortgage or Home Loan Debt	Denied	—	—	—
1.g	Applicant denies that she is indebted to a creditor for a delinquent debt in the amount of $817. $817	Against Applicant	Unspecified Financial	Denied	—	—	—
1.h	Applicant denies that she is indebted on a medical debt in the amount of $725. $725	For Applicant	Medical Debt	Denied	—	—	—
1.i	Applicant denies that she is indebted to a creditor for a delinquent debt in the amount of $117. $117	Against Applicant	Unspecified Financial	Denied	—	—	—
1.j	Applicant denies that she is indebted to a creditor for a delinquent debt in the amount of $739. $739	Against Applicant	Unspecified Financial	Denied	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant denies that she is indebted to a medical creditor in the amount of $95.

$95

Against Applicant

Medical Debt

Denied

—

1.b

Applicant denies that she is indebted to a medical creditor in the amount of $50.

$50

For Applicant

Medical Debt

Denied

—

1.c

Applicant denies that she is indebted to a bank for a line of credit in the amount of $26,152.

$26,152

Against Applicant

Unspecified Financial

Denied

—

1.d

Applicant denies that she is indebted to a college for tuition in the amount of $3,679.

$3,679

Against Applicant

Unspecified Financial

Denied

—

1.e

Applicant admits that she was indebted on a mortgage for a house that was foreclosed upon in 2009.

For Applicant

Mortgage or Home Loan Debt

Admitted

—

1.f

Applicant denies that she is indebted on a second mortgage in the amount of $105,351 for the house that was foreclosed upon in 2009.

$105,351

For Applicant

Mortgage or Home Loan Debt

Denied

—

1.g

Applicant denies that she is indebted to a creditor for a delinquent debt in the amount of $817.

$817

Against Applicant

Unspecified Financial

Denied

—

1.h

Applicant denies that she is indebted on a medical debt in the amount of $725.

$725

For Applicant

Medical Debt

Denied

—

1.i

Applicant denies that she is indebted to a creditor for a delinquent debt in the amount of $117.

$117

Against Applicant

Unspecified Financial

Denied

—

1.j

Applicant denies that she is indebted to a creditor for a delinquent debt in the amount of $739.

$739

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