ISCR Case 11-10282.h1

Case Headnote

ISCR Case No. 11-10282.h1

deniedJun 6, 2013· Hon. Martin H. Mogul· hearing

Summary

A 35-year-old former active-duty Army member and current National Guard employee was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved financial debts exceeding $39,000. The Statement of Reasons (SOR) cited numerous overdue debts, including an $18,144 debt and several others ranging from $67 to $4,020, which the applicant testified were unpaid.

While the applicant believed some student loan debts were duplicates, he provided no evidence to support this claim. He did, however, make efforts to address four education loans totaling $15,187.23, making eight payments of $115. Although these specific debts were considered in the process of being resolved, the overall extent of his overdue obligations remained a concern.

Despite some financial problems being attributed to factors beyond his control, the applicant's attempts to make payments were deemed insufficient to demonstrate responsible financial management. The decision concluded that the applicant had not sufficiently mitigated the concerns raised by his extensive unresolved debts, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant has significant unresolved debts totaling over $39,000.
The applicant's financial problems were attributed to factors beyond his control, but he has not sufficiently mitigated the concerns due to the extent of his overdue debts.
The applicant's attempts to make payments on some debts were insufficient to demonstrate responsible financial management.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(b)rejectedConditions Beyond the Person's ControlWhile the applicant's financial problems were due to factors beyond his control, the extent of his overdue debts was too significant to apply this condition.
AG ¶ 20(d)rejectedGood-faith Effort to Become Current on DebtsThe applicant's efforts to make payments were insufficient given the overall amount of outstanding debt.

Key Rule Quoted

“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”

Procedural Posture

SOR issuedNov 28, 2012
Answer filedDec 26, 2012
Hearing heldApr 4, 2013
Decision dateJun 6, 2013

Cite For

Significant Unresolved Debts Under Guideline F
Insufficient Mitigation of Financial Concerns
Impact of Financial Instability on Security Clearance Eligibility

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.b	This overdue debt is cited in the SOR in the amount of $396. Applicant testified that this debt is unpaid. (Tr at 32.) I find that this debt has not been resolved. $396	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	This overdue debt is cited in the SOR in the amount of $67. Applicant testified that this debt is unpaid. (Tr at 32.) I find that this debt has not been resolved. $67	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	This overdue debt is cited in the SOR in the amount of $1,654. Applicant testified that this debt is unpaid. (Tr at 32.) I find that this debt has not been resolved. $1,654	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	This overdue debt is cited in the SOR in the amount of $540. Applicant testified that this debt is unpaid. (Tr at 38.) I find that this debt has not been resolved. $540	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.j	This overdue debt is cited in the SOR in the amount of $308. Applicant testified that this debt is unpaid. (Tr at 38.) I find that this debt has not been resolved. $308	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.k	This overdue debt is cited in the SOR in the amount of $1,062. Applicant testified that this debt is unpaid. (Tr at 38.) I find that this debt has not been resolved. $1,062	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.l	This overdue debt is cited in the SOR in the amount of $214. Applicant testified that this debt is unpaid. (Tr at 38.) I find that this debt has not been resolved. $214	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.n	This overdue debt is cited in the SOR in the amount of $75. Applicant testified that this debt is unpaid. (Tr at 39.) I find that this debt has not been resolved. $75	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.o	This overdue debt is cited in the SOR in the amount of $1,348. Applicant testified that he believed that this debt and 1.p., 1.q., 1.r., and 1.s., below, are for student loans and are duplicates of the debts listed as 1.e. through 1.h. (Tr at 39-41, 43-45.) However, Applicant did not furnish any evidence to establish that any of these debts are duplicates of any debts listed above. I find that this debt has not been resolved. $1,348	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.p	This overdue debt is cited in the SOR in the amount of $2,165. This debt is reviewed in 1.o., above. I find that this debt is still owed. $2,165	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.q	This overdue debt is cited in the SOR in the amount of $1,348. This debt is reviewed in 1.o., above. I find that this debt is still owed. $1,348	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.r	This overdue debt is cited in the SOR in the amount of $4,020. This debt is reviewed in 1.o., above. I find that this debt is still owed. $4,020	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.s	This overdue debt is cited in the SOR in the amount of $2,102. This debt is reviewed in 1.o., above. I find that this debt is still owed. $2,102	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.a	This overdue debt is cited in the SOR in the amount of $18,144. At the hearing, Applicant testified that this debt is unpaid. (Tr at 32.) I find that this debt has not been resolved. $18,144	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	This overdue debt is cited in the SOR in the amount of $2,655. Applicant testified that the debts, listed as 1.e., 1.f., 1.g., and 1.h., were four education loans. He was contacted by the creditor of these student loans, and informed that if he paid a certain amount per month for nine straight months, his student loan would be reinstated in good standing. Applicant explained that he has paid $115 a month from September 2012 to April 2013. (Tr at 33-37.) Exhibit D confirms that Applicant owes $15,187.23 on these four debts, and he has made eight payments of $115 toward these debts. I find that these debts are now in the process of being resolved, but Applicant still owes $15,187.23 toward these four debts. $2,655	For Applicant	Student Loan Debt	Admitted	—	—	—
1.f	This overdue debt is cited in the SOR in the amount of $3,161. This debt is reviewed in 1.e., above. I find that this debt is being resolved, but it is still owed. $3,161	For Applicant	Student Loan Debt	Admitted	—	—	—
1.g	This overdue debt is cited in the SOR in the amount of $5,050. This debt is reviewed in 1.e., above. I find that this debt is being resolved, but it is still owed. $5,050	For Applicant	Student Loan Debt	Admitted	—	—	—
1.h	This overdue debt is cited in the SOR in the amount of $1,654. This debt is reviewed in 1.e., above. I find that this debt is being resolved, but it is still owed. $1,654	For Applicant	Student Loan Debt	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.b

This overdue debt is cited in the SOR in the amount of $396. Applicant testified that this debt is unpaid. (Tr at 32.) I find that this debt has not been resolved.

$396

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

This overdue debt is cited in the SOR in the amount of $67. Applicant testified that this debt is unpaid. (Tr at 32.) I find that this debt has not been resolved.

$67

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

This overdue debt is cited in the SOR in the amount of $1,654. Applicant testified that this debt is unpaid. (Tr at 32.) I find that this debt has not been resolved.

$1,654

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i

This overdue debt is cited in the SOR in the amount of $540. Applicant testified that this debt is unpaid. (Tr at 38.) I find that this debt has not been resolved.

$540

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.j

This overdue debt is cited in the SOR in the amount of $308. Applicant testified that this debt is unpaid. (Tr at 38.) I find that this debt has not been resolved.

$308

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.k

This overdue debt is cited in the SOR in the amount of $1,062. Applicant testified that this debt is unpaid. (Tr at 38.) I find that this debt has not been resolved.

$1,062

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.l

This overdue debt is cited in the SOR in the amount of $214. Applicant testified that this debt is unpaid. (Tr at 38.) I find that this debt has not been resolved.

$214

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.n

This overdue debt is cited in the SOR in the amount of $75. Applicant testified that this debt is unpaid. (Tr at 39.) I find that this debt has not been resolved.

$75

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.o

This overdue debt is cited in the SOR in the amount of $1,348. Applicant testified that he believed that this debt and 1.p., 1.q., 1.r., and 1.s., below, are for student loans and are duplicates of the debts listed as 1.e. through 1.h. (Tr at 39-41, 43-45.) However, Applicant did not furnish any evidence to establish that any of these debts are duplicates of any debts listed above. I find that this debt has not been resolved.

$1,348

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.p

This overdue debt is cited in the SOR in the amount of $2,165. This debt is reviewed in 1.o., above. I find that this debt is still owed.

$2,165

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.q

This overdue debt is cited in the SOR in the amount of $1,348. This debt is reviewed in 1.o., above. I find that this debt is still owed.

$1,348

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.r

This overdue debt is cited in the SOR in the amount of $4,020. This debt is reviewed in 1.o., above. I find that this debt is still owed.

$4,020

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.s

This overdue debt is cited in the SOR in the amount of $2,102. This debt is reviewed in 1.o., above. I find that this debt is still owed.

$2,102

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.a

This overdue debt is cited in the SOR in the amount of $18,144. At the hearing, Applicant testified that this debt is unpaid. (Tr at 32.) I find that this debt has not been resolved.

$18,144

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

This overdue debt is cited in the SOR in the amount of $2,655. Applicant testified that the debts, listed as 1.e., 1.f., 1.g., and 1.h., were four education loans. He was contacted by the creditor of these student loans, and informed that if he paid a certain amount per month for nine straight months, his student loan would be reinstated in good standing. Applicant explained that he has paid $115 a month from September 2012 to April 2013. (Tr at 33-37.) Exhibit D confirms that Applicant owes $15,187.23 on these four debts, and he has made eight payments of $115 toward these debts. I find that these debts are now in the process of being resolved, but Applicant still owes $15,187.23 toward these four debts.

$2,655

For Applicant

Student Loan Debt

Admitted

—

1.f

This overdue debt is cited in the SOR in the amount of $3,161. This debt is reviewed in 1.e., above. I find that this debt is being resolved, but it is still owed.

$3,161

For Applicant

Student Loan Debt

Admitted

—

1.g

This overdue debt is cited in the SOR in the amount of $5,050. This debt is reviewed in 1.e., above. I find that this debt is being resolved, but it is still owed.

$5,050

For Applicant

Student Loan Debt

Admitted

—

1.h

This overdue debt is cited in the SOR in the amount of $1,654. This debt is reviewed in 1.e., above. I find that this debt is being resolved, but it is still owed.

$1,654

For Applicant

Student Loan Debt

Admitted

—

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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