ISCR Case 11-08894.h1

Case Headnote

ISCR Case No. 11-08894.h1

grantedMay 28, 2013· Hon. Robert Robinson Gales· hearing

Summary

A 48-year-old naturalized U.S. citizen from Uganda was granted a security clearance under Guideline F (Financial Considerations) despite a history of financial difficulties. The Statement of Reasons detailed several outstanding debts, including a state court judgment for $19,062, which resulted in a $19,116 lien against the applicant and his nephew. This judgment was later settled with a collection agent for a payment of $81.

Other financial concerns included a home security system account with an unpaid past due balance of $1,590, an airline-affiliated credit card with an unpaid balance of $16,698 (of which $3,799 was past due), a telephone account with a $164 past due balance, and a home improvement retailer charge account with an unpaid balance of $3,398 and a past due balance of $699.

The judge determined that the applicant's financial issues stemmed largely from a job loss and a co-signed loan with a family member, circumstances beyond his control. The applicant demonstrated a good-faith effort to resolve these issues by contacting creditors, establishing repayment plans, and successfully paying off one account while actively working to resolve others. Based on these mitigating factors, the security clearance was granted.

Why the Applicant Prevailed

The applicant demonstrated a good-faith effort to resolve his financial issues by contacting creditors and establishing repayment plans.
The financial difficulties were largely due to circumstances beyond the applicant's control, including loss of employment and a co-signed loan issue with a family member.
The applicant successfully paid off one account and is actively working on resolving others.

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 That Resulted in Financial Problems Were Largely Beyond the Person's Control
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors or Resolve Debts
AG ¶ 20(e)appliedReasonable Basis to Dispute the Legitimacy of Past-due Debt

Key Rule Quoted

“Eligibility for a security clearance and access to classified information is granted only upon a finding that it is clearly consistent with the national interest to do so.”
— Exec. Or. 10865, Safeguarding Classified Information within Industry § 2 (Feb. 20, 1960), as amended and modified.

Procedural Posture

SOR issuedDec 12, 2012
Answer filedJan 14, 2013Applicant elected to have the case decided on the written record.
Hearing held—No hearing; decision based on written record.
Decision dateMay 28, 2013

Cite For

Mitigation of Financial Issues Under Guideline F
Good-faith Efforts in Resolving Debts
Impact of Circumstances Beyond Control on Financial Considerations

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	Based on that judgment, the creditor filed a lien against Applicant and his nephew in the state circuit court in the amount of $19,116 $19,116	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	—
1.b	The account went to judgment against Applicant and his nephew in the state district court in the amount of $19,062 $19,062	For Applicant	Judgment Against Applicant	Unknown	(a) inability to satisfy debts	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	—
1.c	The account was eventually transferred or sold to another collection agent, and that collection agent and Applicant agreed to a settlement based on a payment of $81 $81	For Applicant	Unspecified Financial	Unknown	—	(d) good-faith effort to repay or otherwise resolve debts	—
1.d	There is an account for a home security system with a high credit of $1,871, and an unpaid past due balance of $1,590 that was placed for collection $1,590	For Applicant	Unspecified Financial	Unknown	—	—	—
1.e	There is an airline-affiliated bank credit card account with an unpaid balance of $16,698, of which $3,799 was past due $16,698	For Applicant	Credit Card Debt	Unknown	(a) inability to satisfy debts	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	—
1.f	There is a telephone account with a high credit, unpaid balance, and past due balance of $164 that was placed for collection $164	For Applicant	Utility or Phone Debt	Unknown	—	—	—
1.g	There is a charge account with a large home improvement retailer with a high credit of $4,384, an unpaid balance of $3,398, and a past due balance of $699 $3,398	For Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Based on that judgment, the creditor filed a lien against Applicant and his nephew in the state circuit court in the amount of $19,116

$19,116

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

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

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

—

1.b

The account went to judgment against Applicant and his nephew in the state district court in the amount of $19,062

$19,062

For Applicant

Judgment Against Applicant

Unknown

(a) inability to satisfy debts

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

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

—

1.c

The account was eventually transferred or sold to another collection agent, and that collection agent and Applicant agreed to a settlement based on a payment of $81

$81

For Applicant

Unspecified Financial

Unknown

—

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

—

1.d

There is an account for a home security system with a high credit of $1,871, and an unpaid past due balance of $1,590 that was placed for collection

$1,590

For Applicant

Unspecified Financial

Unknown

—

1.e

There is an airline-affiliated bank credit card account with an unpaid balance of $16,698, of which $3,799 was past due

$16,698

For Applicant

Credit Card Debt

Unknown

(a) inability to satisfy debts

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

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

—

1.f

There is a telephone account with a high credit, unpaid balance, and past due balance of $164 that was placed for collection

$164

For Applicant

Utility or Phone Debt

Unknown

—

1.g

There is a charge account with a large home improvement retailer with a high credit of $4,384, an unpaid balance of $3,398, and a past due balance of $699

$3,398

For Applicant

Unspecified Financial

Unknown

—

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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

FOOTNOTES