ISCR Case 11-13065.h1

Case Headnote

ISCR Case No. 11-13065.h1

grantedJun 19, 2013· Hon. Noreen A. Lynch· hearing

Summary

A 45-year-old engineer was granted a security clearance despite past financial difficulties, which were primarily attributed to a custody battle and subsequent foreclosure. The applicant demonstrated a commitment to resolving these issues and has maintained a stable financial situation since 2008.

Regarding specific allegations, the applicant paid a $240 medical account in full in May 2013 after identifying the account holder. A charged-off credit account for $4,921 was settled for a reduced amount of $904 and paid in full. For a $6,606 collection account, the applicant learned it had been sold to a company no longer in business, and post-hearing documentation confirmed a zero balance. An account that was 120 days late had $859 paid on it. The applicant also researched a $9,238 collection account but found the company was no longer in business, providing documentation to support this. The status of a $219,000 first mortgage, following a 2009 foreclosure sale, remains unknown, and the applicant plans to seek a written update.

The clearance was granted because the applicant's financial issues were largely beyond his control, he made significant efforts to rectify his financial standing, and he was found to be candid and credible in his testimony.

Why the Applicant Prevailed

The applicant's financial difficulties were primarily due to circumstances beyond his control, including a custody battle and foreclosure.
He has made significant efforts to pay off delinquent debts and has maintained a stable financial situation since 2008.
The applicant was candid and credible in his testimony, demonstrating responsibility in managing his finances.

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(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt

Key Rule Quoted

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

Procedural Posture

SOR issuedJan 17, 2013
Answer filed—
Hearing heldMay 9, 2013
Decision dateJun 19, 2013

Cite For

Mitigating Conditions Under Guideline F Related to Financial Difficulties Caused by Circumstances Beyond the Applicant's Control
The Importance of Demonstrating a Good-faith Effort to Resolve Financial Issues
The Relevance of the Whole-person Concept in Security Clearance 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	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant could not determine who held the $240 medical account alleged in SOR 1.a. He found the account holder for the medical bill and paid the amount in full in May 2013. $240	For Applicant	Medical Debt	Admitted	(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 Debt Paid in Full
1.b	The account for $4,921, which is a charged-off credit account is in repayment status. Applicant was paying the account, but he received a settlement offer with a reduced amount ($904), and he has paid the account in full. $4,921	For Applicant	Unspecified Financial	Admitted	(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 Debt Paid in Full
1.c	Applicant has a $6,606 collection account (SOR 1.c). When he contacted the account holder to pay the debt, he learned that the account was sold to another entity. However, the company is no longer in business. Applicant submitted information post-hearing that confirms that the account was sold, but reflects a zero balance. $6,606	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (e) reasonable, documented basis to dispute the debt	Documented Debt Disputed with Creditor
1.d	The first mortgage of $219,000 (SOR 1.d) is still in an unknown status. Applicant contacted the mortgage company but has not received information. In 2009, the house was sold after the foreclosure, but Applicant has not been able to determine the status, but plans to contact them in writing for an update. $219,000	For Applicant	Mortgage or Home Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	Applicant submitted documentation that he has paid $859 on the account that was 120 days late. (SOR 1.e) $859	For Applicant	Unspecified Financial	Admitted	(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 Debt Paid in Full
1.f	Applicant also researched the collection account for $9,238 (SOR 1.f). He tried to pay the account but the company is no longer in business. He provided documentation to substantiate his claim. $9,238	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (e) reasonable, documented basis to dispute the debt	Documented Debt Disputed with Creditor

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant could not determine who held the $240 medical account alleged in SOR 1.a. He found the account holder for the medical bill and paid the amount in full in May 2013.

$240

For Applicant

Medical Debt

Admitted

(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

Debt Paid in Full

1.b

The account for $4,921, which is a charged-off credit account is in repayment status. Applicant was paying the account, but he received a settlement offer with a reduced amount ($904), and he has paid the account in full.

$4,921

For Applicant

Unspecified Financial

Admitted

(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

Debt Paid in Full

1.c

Applicant has a $6,606 collection account (SOR 1.c). When he contacted the account holder to pay the debt, he learned that the account was sold to another entity. However, the company is no longer in business. Applicant submitted information post-hearing that confirms that the account was sold, but reflects a zero balance.

$6,606

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(e) reasonable, documented basis to dispute the debt

Documented

Debt Disputed with Creditor

1.d

The first mortgage of $219,000 (SOR 1.d) is still in an unknown status. Applicant contacted the mortgage company but has not received information. In 2009, the house was sold after the foreclosure, but Applicant has not been able to determine the status, but plans to contact them in writing for an update.

$219,000

For Applicant

Mortgage or Home Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

Applicant submitted documentation that he has paid $859 on the account that was 120 days late. (SOR 1.e)

$859

For Applicant

Unspecified Financial

Admitted

(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

Debt Paid in Full

1.f

Applicant also researched the collection account for $9,238 (SOR 1.f). He tried to pay the account but the company is no longer in business. He provided documentation to substantiate his claim.

$9,238

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(e) reasonable, documented basis to dispute the debt

Documented

Debt Disputed with Creditor

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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