ISCR Case 10-01494.h1

Case Headnote

ISCR Case No. 10-01494.h1

deniedSep 22, 2011· Hon. Jennifer I. Goldstein· hearing

Summary

A 31-year-old defense contractor and former military service member was denied a security clearance due to financial considerations under Guideline F. The applicant's Statement of Reasons detailed multiple financial delinquencies, including the failure to file a Federal Income Tax Return for 2008, and various unpaid debts totaling $23,508. These debts included a 2005 judgment for $1,053, a student loan of $14,384, and several accounts with collection agents for a credit union, cable television service, music store, bank, gym (two separate accounts), and a medical account.

Disqualifying conditions under Guideline F were raised, specifically AG ¶ 19(a), AG ¶ 19(c), and AG ¶ 19(g). While mitigating conditions AG ¶ 20(c) and AG ¶ 20(d) were applied, they were insufficient to overcome the concerns.

The denial was based on the applicant's failure to file his 2008 Federal Income Tax Return, and his 2009 and 2010 state and Federal tax returns were not filed until the day before the hearing. Despite a monthly income surplus exceeding $2,000, many of the applicant's long-standing delinquent debts remained unresolved, demonstrating a lack of responsibility in managing financial obligations.

Why the Applicant Was Denied

The applicant failed to file his Federal Income Tax Return for 2008 and did not file state or Federal tax returns for 2009 and 2010 until the day before the hearing.
The applicant has a long history of delinquent debts totaling $23,508, with many unresolved despite having a monthly surplus of over $2,000.
The applicant's actions did not demonstrate a pattern of responsibility in managing his financial obligations.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
AG ¶ 19(g)raisedFailure to File Annual Federal, State or Local Income Tax Returns as Required

Mitigating

AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThe counseling received by the applicant was not related to financial matters.
AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant's efforts to resolve debts were insufficient and lacked evidence of good-faith.

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 issuedMar 1, 2011
Answer filedMar 24, 2011
Hearing heldMay 24, 2011
Decision dateSep 22, 2011

Cite For

Failure to File Tax Returns Under Guideline F
History of Financial Delinquencies Impacting Security Clearance
Insufficient Evidence of Good-faith Efforts to Resolve Debts

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 failed to file his Federal Income Tax Return for 2008.	Against Applicant	Tax Filing Failure	Admitted	(g) unexplained affluence	—	—
1.b	Applicant is indebted on a judgment filed against him in 2005 for $1,053. $1,053	Against Applicant	Judgment Against Applicant	Denied with Explanation	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	Applicant is indebted to a collection agent for a credit union in the amount of $187. $187	For Applicant	Credit Card Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full
1.d	Applicant is indebted to a collection agent for a cable television service in the amount of $289. $289	Against Applicant	Unspecified Financial	Denied with Explanation	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	Applicant is indebted to a collection agent for a music store in the amount of $1,712. $1,712	Against Applicant	Unspecified Financial	Denied with Explanation	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	Applicant is indebted to a collection agent for a bank in the amount of $428. $428	Against Applicant	Unspecified Financial	Denied with Explanation	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	Applicant is indebted on a student loan account in the amount of $14,384. $14,384	Against Applicant	Student Loan Debt	Denied with Explanation	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	Applicant is indebted on an account in the amount of $1,154. $1,154	Against Applicant	Unspecified Financial	Denied with Explanation	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	Applicant is indebted to a collection agent for a gym in the amount of $1,185. $1,185	For Applicant	Unspecified Financial	Denied with Explanation	—	—	—
1.j	Applicant is indebted to a different collection agent for the same gym in the amount of $966. $966	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full
1.k	Applicant is indebted to a collection agent for a medical account in the amount of $2,150. $2,150	Against Applicant	Medical Debt	Denied with Explanation	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant failed to file his Federal Income Tax Return for 2008.

Against Applicant

Tax Filing Failure

Admitted

(g) unexplained affluence

—

1.b

Applicant is indebted on a judgment filed against him in 2005 for $1,053.

$1,053

Against Applicant

Judgment Against Applicant

Denied with Explanation

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

Applicant is indebted to a collection agent for a credit union in the amount of $187.

$187

For Applicant

Credit Card Debt

Admitted

—

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

Credited

Debt Paid in Full

1.d

Applicant is indebted to a collection agent for a cable television service in the amount of $289.

$289

Against Applicant

Unspecified Financial

Denied with Explanation

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

Applicant is indebted to a collection agent for a music store in the amount of $1,712.

$1,712

Against Applicant

Unspecified Financial

Denied with Explanation

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

Applicant is indebted to a collection agent for a bank in the amount of $428.

$428

Against Applicant

Unspecified Financial

Denied with Explanation

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

Applicant is indebted on a student loan account in the amount of $14,384.

$14,384

Against Applicant

Student Loan Debt

Denied with Explanation

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

Applicant is indebted on an account in the amount of $1,154.

$1,154

Against Applicant

Unspecified Financial

Denied with Explanation

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i

Applicant is indebted to a collection agent for a gym in the amount of $1,185.

$1,185

For Applicant

Unspecified Financial

Denied with Explanation

—

1.j

Applicant is indebted to a different collection agent for the same gym in the amount of $966.

$966

For Applicant

Unspecified Financial

Admitted

—

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

Credited

Debt Paid in Full

1.k

Applicant is indebted to a collection agent for a medical account in the amount of $2,150.

$2,150

Against Applicant

Medical Debt

Denied with Explanation

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

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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