ISCR Case 10-08450.h1

Case Headnote

ISCR Case No. 10-08450.h1

deniedJul 20, 2012· Hon. Edward W. Loughran· hearing

Summary

The applicant, a 39-year-old defense contractor, faced security concerns under Guideline F due to multiple delinquent debts, including a significant tax liability. Despite some payments made towards medical debts and student loans, the applicant's ongoing financial issues and lack of responsibility in addressing certain debts led to the denial of his security clearance.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $10,177 judgment against Applicant (1.a). $441 medical debt (1.b). $82 medical debt (1.c). $373 medical debt (1.d). $619 student loans (1.e). $619 student loans (1.f). $619 student loans (1.g). $1,865 delinquent debt to Bank B (1.h). $875 delinquent debt to a collection company on behalf of a hospital (1.i). $4,943 delinquent debt to Bank C (1.j). $4,259 delinquent debt to a collection company on behalf of a bank (1.k). $2,707 debt to the IRS (1.l). $5,143 delinquent debt to a collection company on behalf of a department store credit card (1.m). $403 delinquent debt to a collection company on behalf of a telephone services company (1.n). $277 medical debt (1.o).

The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant failed to demonstrate a good-faith effort to resolve all delinquent debts; Ongoing financial issues raised doubts about the applicant's reliability and trustworthiness; The applicant denied responsibility for several debts, which were contradicted by evidence from divorce decrees.

Why the Applicant Was Denied

The applicant failed to demonstrate a good-faith effort to resolve all delinquent debts.
Ongoing financial issues raised doubts about the applicant's reliability and trustworthiness.
The applicant denied responsibility for several debts, which were contradicted by evidence from divorce decrees.

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(b)appliedConditions Largely Beyond the Person's ControlThe applicant's medical issues contributed to some financial problems.
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant paid or settled several medical debts and student loans.
AG ¶ 20(e)appliedReasonable Basis to Dispute Legitimacy of DebtsThe applicant provided sufficient information to doubt the validity of some debts.

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedMar 7, 2012
Answer filedMar 26, 2012
Hearing heldJun 12, 2012
Decision dateJul 20, 2012

Cite For

Denial of Security Clearance Due to Unresolved Financial Obligations
Impact of Ongoing Financial Issues on Security Clearance Eligibility
Consideration of Medical Issues as Mitigating Factors in Financial Cases

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	$10,177 judgment against Applicant $10,177	Against Applicant	Judgment Against Applicant	Denied	—	—	—
1.b	$441 medical debt $441	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	$82 medical debt $82	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.d	$373 medical debt $373	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.e	$619 student loans $619	For Applicant	Student Loan Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.f	$619 student loans $619	For Applicant	Student Loan Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.g	$619 student loans $619	For Applicant	Student Loan Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.h	$1,865 delinquent debt to Bank B $1,865	Against Applicant	Unspecified Financial	Denied	—	—	—
1.i	$875 delinquent debt to a collection company on behalf of a hospital $875	Against Applicant	Unspecified Financial	Denied	—	—	—
1.j	$4,943 delinquent debt to Bank C $4,943	Against Applicant	Unspecified Financial	Denied	—	—	—
1.k	$4,259 delinquent debt to a collection company on behalf of a bank $4,259	Against Applicant	Unspecified Financial	Denied	—	—	—
1.l	$2,707 debt to the IRS $2,707	For Applicant	Tax Unpaid	Admitted	—	(c) received/receiving counseling; problem being resolved	Documented Payment Plan with IRS
1.m	$5,143 delinquent debt to a collection company on behalf of a department store credit card $5,143	Against Applicant	Unspecified Financial	Denied	—	—	—
1.n	$403 delinquent debt to a collection company on behalf of a telephone services company $403	Against Applicant	Unspecified Financial	Denied	—	—	—
1.o	$277 medical debt $277	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.p–1.z	11 sub-charges — specific text not stated in this decision (rulings shown). (low confidence)	Mixed			—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

$10,177 judgment against Applicant

$10,177

Against Applicant

Judgment Against Applicant

Denied

—

1.b

$441 medical debt

$441

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.c

$82 medical debt

$82

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.d

$373 medical debt

$373

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.e

$619 student loans

$619

For Applicant

Student Loan Debt

Admitted

—

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

Documented

Debt Paid in Full

1.f

$619 student loans

$619

For Applicant

Student Loan Debt

Admitted

—

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

Documented

Debt Paid in Full

1.g

$619 student loans

$619

For Applicant

Student Loan Debt

Admitted

—

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

Documented

Debt Paid in Full

1.h

$1,865 delinquent debt to Bank B

$1,865

Against Applicant

Unspecified Financial

Denied

—

1.i

$875 delinquent debt to a collection company on behalf of a hospital

$875

Against Applicant

Unspecified Financial

Denied

—

1.j

$4,943 delinquent debt to Bank C

$4,943

Against Applicant

Unspecified Financial

Denied

—

1.k

$4,259 delinquent debt to a collection company on behalf of a bank

$4,259

Against Applicant

Unspecified Financial

Denied

—

1.l

$2,707 debt to the IRS

$2,707

For Applicant

Tax Unpaid

Admitted

—

(c) received/receiving counseling; problem being resolved

Documented

Payment Plan with IRS

1.m

$5,143 delinquent debt to a collection company on behalf of a department store credit card

$5,143

Against Applicant

Unspecified Financial

Denied

—

1.n

$403 delinquent debt to a collection company on behalf of a telephone services company

$403

Against Applicant

Unspecified Financial

Denied

—

1.o

$277 medical debt

$277

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.p–1.z

11 sub-charges — specific text not stated in this decision (rulings shown). (low confidence)

Mixed

—

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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