ISCR Case 10-03899.h1

Case Headnote

ISCR Case No. 10-03899.h1

grantedApr 4, 2013· Hon. Michael H. Leonard· hearing

Summary

A 67-year-old defense contractor and cultural advisor was granted security clearance eligibility despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons detailed numerous financial issues, including six medical collection accounts totaling $3,207, six delinquent consumer accounts totaling $5,512, and three charged-off student loan accounts totaling $66,000. Additionally, there was a mortgage loan with an $81,000 past-due balance and three collection accounts owed to the local city government for $160. The applicant also had three Chapter 13 bankruptcy cases filed between 2010 and 2011, all of which were dismissed.

The judge found that the applicant's financial difficulties stemmed primarily from a period of unemployment, which was largely beyond his control. The applicant demonstrated that he now has the financial capacity to repay his overdue creditors and is not financially overextended.

Crucially, the judge determined that the applicant's failure to disclose certain financial information was not a deliberate omission, concealment, or falsification. Given these mitigating factors and the resolution of most financial issues, the applicant was granted security clearance.

Why the Applicant Prevailed

The applicant demonstrated that his financial problems were primarily due to a lengthy period of unemployment, which was largely beyond his control.
He has the financial means to repay overdue creditors and is not financially overextended.
The applicant's failure to report financial issues was not a deliberate omission, concealment, or falsification.

Conditions Referenced

Disqualifying

AG ¶ 19raisedFinancial Considerations
AG ¶ 15raisedPersonal Conduct

Mitigating

AG ¶ 20(b)appliedFinancial ConsiderationsThe applicant's financial problems were traceable to a lengthy period of unemployment.
AG ¶ 20(c)appliedFinancial ConsiderationsThere are clear indications that his financial problems are in the process of being resolved.
AG ¶ 20(d)appliedFinancial ConsiderationsThe applicant demonstrated a good-faith effort to resolve his financial problems.
AG ¶ 2(a)appliedPersonal ConductThe applicant's failure to disclose financial issues was not a deliberate omission.

Key Rule Quoted

“No one has a 'right' to a security clearance.”
— Department of Navy v. Egan, 484 U.S. 518, 528 (1988)

Procedural Posture

SOR issuedAug 10, 2011
Answer filed—
Hearing heldJan 22, 2013Hearing was rescheduled due to applicant's overseas work location.
Decision dateApr 4, 2013

Cite For

Mitigating Conditions Under Guideline F for Financial Considerations
Non-deliberate Omissions Under Guideline E for Personal Conduct
Resolution of Financial Issues as a Basis for Granting Security Clearance.

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–2.e	5 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant	NOT DELIBERATE	Financial		—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a–2.e

5 sub-charges — specific text not stated in this decision (for the applicant).

For Applicant

NOT DELIBERATE

Financial

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	six medical collection accounts in amounts ranging from $147 to $1,397 for a total of $3,207 $3,207	For Applicant	Medical Debt	Unknown	—	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	—
1.b	six delinquent consumer accounts in amounts ranging from $264 to $2,691 for a total of $5,512 $5,512	For Applicant	Unspecified Financial	Unknown	—	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	—
1.c	three charged-off student loan accounts for a total of $66,000 $66,000	For Applicant	Student Loan Debt	Unknown	—	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	—
1.d	a mortgage loan with a past-due balance of $81,000 $81,000	For Applicant	Mortgage or Home Loan Debt	Unknown	—	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	—
1.e	three collection accounts for a total of $160 owed to the local city government $160	For Applicant	Unspecified Financial	Unknown	—	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	—
1.f	three Chapter 13 bankruptcy cases filed during 2010–2011 with each case ending in dismissal	For Applicant	Bankruptcy Filing	Unknown	—	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	—
1.g	four accounts in SOR ¶¶ 1.a, 1.g, 1.h, and 1.o are with the same creditor, and they have a zero balance $0	For Applicant	Medical Debt	Unknown	—	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	—
1.h	two accounts in SOR ¶¶ 1.p and 1.q are pending resolution and the listed creditor does not have a record of the debts	For Applicant	Unspecified Financial	Unknown	—	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	—
1.i–1.v	14 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant			—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

six medical collection accounts in amounts ranging from $147 to $1,397 for a total of $3,207

$3,207

For Applicant

Medical Debt

Unknown

—

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

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

—

1.b

six delinquent consumer accounts in amounts ranging from $264 to $2,691 for a total of $5,512

$5,512

For Applicant

Unspecified Financial

Unknown

—

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

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

—

1.c

three charged-off student loan accounts for a total of $66,000

$66,000

For Applicant

Student Loan Debt

Unknown

—

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

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

—

1.d

a mortgage loan with a past-due balance of $81,000

$81,000

For Applicant

Mortgage or Home Loan Debt

Unknown

—

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

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

—

1.e

three collection accounts for a total of $160 owed to the local city government

$160

For Applicant

Unspecified Financial

Unknown

—

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

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

—

1.f

three Chapter 13 bankruptcy cases filed during 2010–2011 with each case ending in dismissal

For Applicant

Bankruptcy Filing

Unknown

—

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

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

—

1.g

four accounts in SOR ¶¶ 1.a, 1.g, 1.h, and 1.o are with the same creditor, and they have a zero balance

For Applicant

Medical Debt

Unknown

—

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

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

—

1.h

two accounts in SOR ¶¶ 1.p and 1.q are pending resolution and the listed creditor does not have a record of the debts

For Applicant

Unspecified Financial

Unknown

—

(b) conditions largely beyond the person’s control; acted responsibly

(c) received/receiving counseling; problem being resolved

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

—

1.i–1.v

14 sub-charges — specific text not stated in this decision (for the applicant).

For Applicant

—

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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

DISCUSSION

FORMAL FINDINGS

CONCLUSION

FOOTNOTES