ISCR Case 11-09742.h2

Case Headnote

ISCR Case No. 11-09742.h2

deniedAug 9, 2013· Hon. Edward W. Loughran· hearing

Summary

A 31-year-old defense contractor and military veteran was denied a security clearance under Guideline F, Financial Considerations, due to multiple delinquent debts exceeding $31,000. The Statement of Reasons (SOR) detailed several outstanding debts, including amounts of $4,390, $3,965, $4,777, $5,029, $7,455, and $5,926, all of which the applicant admitted owing. One alleged debt of $100 to a utility company was denied by the applicant, and another allegation was identified as a duplicate.

The applicant did make some payments, resolving a $1,126 debt and a $156 debt to collection companies. Additionally, the applicant made two payments of $467 each in June and July 2012 towards a $1,335 delinquent loan. While the applicant was enrolled in a debt management program, the judge determined there was insufficient evidence of responsible financial behavior or significant action to implement the plan.

The judge concluded that the applicant's financial problems were recent and ongoing, indicating an inability to meet financial obligations and raising concerns about reliability and trustworthiness. Consequently, the applicant was found not to have mitigated the financial considerations security concerns, and the security clearance was denied.

Why the Applicant Was Denied

The applicant had multiple delinquent debts totaling over $31,000, indicating an inability to meet financial obligations.
The applicant did not demonstrate a track record of responsible financial behavior or significant actions to implement her debt management plan.
The judge found that the applicant's financial problems were recent and ongoing, casting doubt on her reliability and trustworthiness.

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)rejectedConditions Largely Beyond the Person's ControlWhile the applicant's unemployment was beyond her control, she did not act responsibly under the circumstances.
AG ¶ 20(c)rejectedReceiving Counseling for the ProblemInsufficient evidence to determine that the financial problems are under control or will be resolved within a reasonable period.
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsApplicable to some debts that were paid.
AG ¶ 20(e)appliedDispute Legitimacy of Past-due DebtApplicable to a duplicate debt.

Key Rule Quoted

“A security clearance adjudication is not a debt collection procedure. It is a procedure designed to evaluate an applicant’s judgment, reliability, and trustworthiness.”

Procedural Posture

SOR issuedOct 19, 2012
Answer filedNov 22, 2012
Hearing held—Decided on written record.
Decision dateApr 29, 2013Remanded on 07/08/2013.

Cite For

Evaluation of Financial Considerations Under Guideline F
Impact of Ongoing Financial Issues on Security Clearance Eligibility
Importance of Demonstrating Responsible Financial Behavior in Security Clearance 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	Applicant admitted owing the debts alleged in SOR ¶ 1.a ($4,390) $4,390	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	Applicant admitted owing the debts alleged in SOR ¶ 1.b ($3,965) $3,965	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	Applicant paid the $1,126 delinquent debt to a collection company that is alleged in SOR ¶ 1.c. $1,126	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full
1.d	Applicant admitted owing the debts alleged in SOR ¶ 1.d ($4,777) $4,777	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	Applicant admitted owing the debts alleged in SOR ¶ 1.e ($5,029) $5,029	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	Applicant denied owing the $100 delinquent debt to a utility company that is alleged in SOR ¶ 1.f. $100	Against Applicant	Unspecified Financial	Denied	—	—	—
1.g	Applicant admitted owing the debts alleged in SOR ¶ 1.g ($7,455) $7,455	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	Applicant admitted owing the debts alleged in SOR ¶ 1.h ($5,926) $5,926	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	The debt alleged in SOR ¶ 1.i is a duplicate of the debt alleged in SOR ¶ 1.e. $4,894	For Applicant	Unspecified Financial	Unknown	—	—	—
1.j	Applicant paid the $156 delinquent debt to a collection company that is alleged in SOR ¶ 1.j. $156	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full
1.k	Applicant established that she paid $467 in June 2012 and another $467 in July 2012 toward the $1,335 delinquent loan to a collection company on behalf of an online university (SOR ¶ 1.k). $1,335	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant admitted owing the debts alleged in SOR ¶ 1.a ($4,390)

$4,390

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

Applicant admitted owing the debts alleged in SOR ¶ 1.b ($3,965)

$3,965

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

Applicant paid the $1,126 delinquent debt to a collection company that is alleged in SOR ¶ 1.c.

$1,126

For Applicant

Unspecified Financial

Admitted

—

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

Credited

Debt Paid in Full

1.d

Applicant admitted owing the debts alleged in SOR ¶ 1.d ($4,777)

$4,777

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

Applicant admitted owing the debts alleged in SOR ¶ 1.e ($5,029)

$5,029

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

Applicant denied owing the $100 delinquent debt to a utility company that is alleged in SOR ¶ 1.f.

$100

Against Applicant

Unspecified Financial

Denied

—

1.g

Applicant admitted owing the debts alleged in SOR ¶ 1.g ($7,455)

$7,455

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

Applicant admitted owing the debts alleged in SOR ¶ 1.h ($5,926)

$5,926

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i

The debt alleged in SOR ¶ 1.i is a duplicate of the debt alleged in SOR ¶ 1.e.

$4,894

For Applicant

Unspecified Financial

Unknown

—

1.j

Applicant paid the $156 delinquent debt to a collection company that is alleged in SOR ¶ 1.j.

$156

For Applicant

Unspecified Financial

Admitted

—

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

Credited

Debt Paid in Full

1.k

Applicant established that she paid $467 in June 2012 and another $467 in July 2012 toward the $1,335 delinquent loan to a collection company on behalf of an online university (SOR ¶ 1.k).

$1,335

For Applicant

Unspecified Financial

Admitted

—

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

Credited

Debt Paid in Full

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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

FOOTNOTES