ISCR Case 10-09499.h1

Case Headnote

ISCR Case No. 10-09499.h1

grantedJul 1, 2010· Hon. Philip S. Howe· hearing

Summary

A 45-year-old defense contractor in the medical services sector was granted a public trust position despite initial concerns under Guidelines E (Personal Conduct) and F (Financial Considerations). The applicant's financial history included several delinquent debts, and she had been terminated from a previous job.

The Statement of Reasons detailed multiple financial obligations. These included a $371 utility bill from 2009, a $15 medical account from 2005, and a $53 medical debt from 2006, all of which were resolved or being resolved through installment payments. Additionally, a $272 credit union overdraft from 2008 and a $4,377 personal loan from 2004 were being addressed with a $30 monthly payment plan. Two mortgage debts totaling $14,559 and $62,391 were resolved through a foreclosure sale in 2011. A $2,096 tax lien on an automobile purchase, later clarified to be $1,539.05, was being paid at $25 monthly. A $5 medical debt from 2006 was determined to be invalid and resolved.

The judge found that the applicant's financial issues stemmed largely from a job loss and unpaid child support, circumstances beyond her control. She demonstrated significant efforts to resolve her debts through installment agreements and timely payments. Furthermore, her previous job termination was deemed retaliatory, with no disqualifying conduct established under Guideline E. Consequently, eligibility for the public trust position was granted.

Why the Applicant Prevailed

The applicant's financial difficulties were primarily due to job loss and lack of child support, which were beyond her control.
She demonstrated a good-faith effort to resolve her debts through installment agreements and timely payments.
The applicant's termination was found to be retaliatory, with no disqualifying conduct established under Guideline E.

Conditions Referenced

Disqualifying

AG ¶ 19 (a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19 (c)raisedHistory of Not Meeting Financial Obligations

Mitigating

AG ¶ 20 (b)appliedConditions Beyond the Person's Control
AG ¶ 20 (d)appliedGood-faith Effort to Repay Debts

Key Rule Quoted

“The standard that must be met for . . . assignment to sensitive duties is that, based on all available information, the person’s loyalty, reliability, and trustworthiness are such that . . . assigning the person to sensitive duties is clearly consistent with the interests of national security.”

Procedural Posture

SOR issuedJan 21, 2011
Answer filedFeb 4, 2011
Hearing heldMay 27, 2011
Decision dateJul 5, 2011

Cite For

Mitigating Conditions for Financial Difficulties Under Guideline F
Retaliatory Termination Claims Under Guideline E
Whole-person Concept in Trustworthiness Determinations

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
1.a	specific text not stated in this decision	For Applicant	Unspecified Personal Conduct	—	Unknown	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

1.a

specific text not stated in this decision

For Applicant

Unspecified Personal Conduct

—

Unknown

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
2.a	Applicant owes $371 on a utility bill from 2009. Applicant called the company but was told it was in collection mode. The utility told her to contact the collection agency. Applicant is making payments to the utility company. Her first payment was for $50 on June 14, 2011. This debt is being resolved by an installment payment process. $371	For Applicant	Utility or Phone Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
2.b	Applicant owes $15 on a medical account. Applicant claimed at the hearing she could not find the origin of the debt, so she has not paid it. The debt is delinquent from 2005. In her subsequent exhibits, Applicant submitted a five-page exhibit showing she contacted the collector and submitted proof that this debt was paid on November 3, 2006. This debt is resolved. $15	For Applicant	Medical Debt	Admitted	—	—	Documented Debt Paid in Full
2.c	Applicant paid a $53 debt owed on a medical account. The debt dated from 2006. This debt is resolved. $53	For Applicant	Medical Debt	Admitted	—	—	Documented Debt Paid in Full
2.d	Applicant owes $272 on a credit union checking account overdraft from 2008. Appellant contends this amount of money has been merged into the amount owed under Subparagraph 2.e, $4,377, on a personal loan for $5,000 she borrowed in 2004 to pay an attorney to represent her in a civil suit against her former husband for unpaid child support. Applicant claims she has a verbal agreement with this credit union to pay $30 monthly on these debts. She is waiting for a document to evidence this installment payment agreement. Applicant stopped paying on these debts when her child support was not paid and she lost her job in March 2009. Applicant submitted a post-hearing exhibit showing she is paying $30 monthly to resolve these two debts. These debts are being resolved by an installment payment agreement. $272	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
2.e	Applicant owes $4,377 on a personal loan for $5,000 she borrowed in 2004 to pay an attorney to represent her in a civil suit against her former husband for unpaid child support. Applicant claims she has a verbal agreement with this credit union to pay $30 monthly on these debts. She is waiting for a document to evidence this installment payment agreement. Applicant stopped paying on these debts when her child support was not paid and she lost her job in March 2009. Applicant submitted a post-hearing exhibit showing she is paying $30 monthly to resolve these two debts. These debts are being resolved by an installment payment agreement. $4,377	For Applicant	Personal Loan Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
2.f	The debts listed in Subparagraphs 2.f ($14,559) and 2.g ($62,391) were for the first and second mortgages on that house. The house was sold at the foreclosure sale for $66,768.32. Applicant’s May 2011 credit report shows the debt balance is zero dollars, as does the May 2011 and the November 2010 credit report submitted by the government. $14,559	For Applicant	Mortgage or Home Loan Debt	Unknown	—	—	Documented Debt Paid in Full
2.g	The debts listed in Subparagraphs 2.f ($14,559) and 2.g ($62,391) were for the first and second mortgages on that house. The house was sold at the foreclosure sale for $66,768.32. Applicant’s May 2011 credit report shows the debt balance is zero dollars, as does the May 2011 and the November 2010 credit report submitted by the government. $62,391	For Applicant	Mortgage or Home Loan Debt	Unknown	—	—	Documented Debt Paid in Full
2.h	The debt in Subparagraph 2.h ($2,096) is a tax lien on an automobile purchase for which Applicant owed sales tax. Applicant originally was confused about the origin of the tax lien and claimed at the hearing the tax was a real estate tax and it was paid from escrow when the house was sold. The 2009 property tax document Applicant submitted shows $669.51 in real estate tax owing for the house. This tax statement shows that amount was paid in 2009. The tax lien does not appear on the May 2011 credit report submitted by Applicant. It does appear on the November 2009 credit report submitted by the government, but only as a tax lien, not a real estate tax lien. That credit report shows the lien was filed in October 2009. The lien does not appear on any other credit report. Applicant obtained information after the hearing showing this tax lien was for sales tax. The amount of the debt now is $1,539.05. Applicant is paying this tax debt at the rate of $25 monthly. This debt is being resolved by an installment payment agreement. $2,096	For Applicant	Tax Unpaid	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with IRS
2.i	Applicant owes $5.00 on a medical debt from 2006. Applicant does not recognize this debt. She contacted the collection agency about it after the hearing. Applicant submitted an exhibit showing the debt was paid. The government’s November 2009 credit report shows this debt with account number 6051 and comparing it to the post-hearing exhibit submitted by Applicant shows the $5.00 debt is actually a cancelled $4.97 portion of the $15.00 debt listed in SOR Subparagraph 2.b. This debt is resolved because it was not a valid debt owed by Applicant. $5	For Applicant	Medical Debt	Unknown	—	—	Documented Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

2.a

Applicant owes $371 on a utility bill from 2009. Applicant called the company but was told it was in collection mode. The utility told her to contact the collection agency. Applicant is making payments to the utility company. Her first payment was for $50 on June 14, 2011. This debt is being resolved by an installment payment process.

$371

For Applicant

Utility or Phone Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

Documented

Payment Plan with Creditor

2.b

Applicant owes $15 on a medical account. Applicant claimed at the hearing she could not find the origin of the debt, so she has not paid it. The debt is delinquent from 2005. In her subsequent exhibits, Applicant submitted a five-page exhibit showing she contacted the collector and submitted proof that this debt was paid on November 3, 2006. This debt is resolved.

$15

For Applicant

Medical Debt

Admitted

—

Documented

Debt Paid in Full

2.c

Applicant paid a $53 debt owed on a medical account. The debt dated from 2006. This debt is resolved.

$53

For Applicant

Medical Debt

Admitted

—

Documented

Debt Paid in Full

2.d

Applicant owes $272 on a credit union checking account overdraft from 2008. Appellant contends this amount of money has been merged into the amount owed under Subparagraph 2.e, $4,377, on a personal loan for $5,000 she borrowed in 2004 to pay an attorney to represent her in a civil suit against her former husband for unpaid child support. Applicant claims she has a verbal agreement with this credit union to pay $30 monthly on these debts. She is waiting for a document to evidence this installment payment agreement. Applicant stopped paying on these debts when her child support was not paid and she lost her job in March 2009. Applicant submitted a post-hearing exhibit showing she is paying $30 monthly to resolve these two debts. These debts are being resolved by an installment payment agreement.

$272

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

Documented

Payment Plan with Creditor

2.e

Applicant owes $4,377 on a personal loan for $5,000 she borrowed in 2004 to pay an attorney to represent her in a civil suit against her former husband for unpaid child support. Applicant claims she has a verbal agreement with this credit union to pay $30 monthly on these debts. She is waiting for a document to evidence this installment payment agreement. Applicant stopped paying on these debts when her child support was not paid and she lost her job in March 2009. Applicant submitted a post-hearing exhibit showing she is paying $30 monthly to resolve these two debts. These debts are being resolved by an installment payment agreement.

$4,377

For Applicant

Personal Loan Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

Documented

Payment Plan with Creditor

2.f

The debts listed in Subparagraphs 2.f ($14,559) and 2.g ($62,391) were for the first and second mortgages on that house. The house was sold at the foreclosure sale for $66,768.32. Applicant’s May 2011 credit report shows the debt balance is zero dollars, as does the May 2011 and the November 2010 credit report submitted by the government.

$14,559

For Applicant

Mortgage or Home Loan Debt

Unknown

—

Documented

Debt Paid in Full

2.g

$62,391

For Applicant

Mortgage or Home Loan Debt

Unknown

—

Documented

Debt Paid in Full

2.h

The debt in Subparagraph 2.h ($2,096) is a tax lien on an automobile purchase for which Applicant owed sales tax. Applicant originally was confused about the origin of the tax lien and claimed at the hearing the tax was a real estate tax and it was paid from escrow when the house was sold. The 2009 property tax document Applicant submitted shows $669.51 in real estate tax owing for the house. This tax statement shows that amount was paid in 2009. The tax lien does not appear on the May 2011 credit report submitted by Applicant. It does appear on the November 2009 credit report submitted by the government, but only as a tax lien, not a real estate tax lien. That credit report shows the lien was filed in October 2009. The lien does not appear on any other credit report. Applicant obtained information after the hearing showing this tax lien was for sales tax. The amount of the debt now is $1,539.05. Applicant is paying this tax debt at the rate of $25 monthly. This debt is being resolved by an installment payment agreement.

$2,096

For Applicant

Tax Unpaid

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

Documented

Payment Plan with IRS

2.i

Applicant owes $5.00 on a medical debt from 2006. Applicant does not recognize this debt. She contacted the collection agency about it after the hearing. Applicant submitted an exhibit showing the debt was paid. The government’s November 2009 credit report shows this debt with account number 6051 and comparing it to the post-hearing exhibit submitted by Applicant shows the $5.00 debt is actually a cancelled $4.97 portion of the $15.00 debt listed in SOR Subparagraph 2.b. This debt is resolved because it was not a valid debt owed by Applicant.

For Applicant

Medical Debt

Unknown

—

Documented

Debt Paid in Full

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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

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION