ISCR Case 11-13999.h2

Case Headnote

ISCR Case No. 11-13999.h2

grantedMar 10, 2014· Hon. Wilford H. Ross· hearing

Summary

A 62-year-old single male defense contractor employee was initially denied a security clearance under Guideline F (Financial Considerations) due to approximately $79,593 in delinquent debts. The Statement of Reasons detailed multiple outstanding obligations, including $10,012.77 owed to the IRS as of August 2013, and various credit card debts ranging from $1,374 to $21,880. Additionally, the applicant had an outstanding state tax debt and a cell phone bill of $82.

The applicant demonstrated significant efforts to address these financial issues. He entered a debt resolution program in January 2013 to manage several credit card debts and successfully paid all state back taxes. He also established a payment arrangement with the IRS, increasing his monthly payments to $175, and made regular payments on his cell phone bill. Payment arrangements were also made for two credit card debts, reducing them from $9,905 to $4,398 and from $15,382 to $6,125, respectively.

The judge found that the applicant had taken responsible steps to resolve his financial problems, many of which stemmed from circumstances beyond his control, such as a breakup and unexpected expenses. His proactive engagement with a debt resolution program and consistent payments to creditors led to the decision to grant the security clearance.

Why the Applicant Prevailed

The applicant demonstrated a proactive approach to resolving his financial issues by entering a debt resolution program before the SOR was issued.
He has made regular payments to creditors and has successfully negotiated payment arrangements with the IRS and state taxing authority.
The applicant's financial problems were largely due to circumstances beyond his control, such as a breakup and unexpected expenses.

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)appliedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to Recur
AG ¶ 20(b)appliedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
AG ¶ 20(c)appliedClear Indications That the Problem Is Being Resolved or Is Under Control
AG ¶ 20(d)appliedInitiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
AG ¶ 20(e)appliedReasonable Basis to Dispute the Legitimacy of the Past-due Debt

Key Rule Quoted

“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”

Procedural Posture

SOR issuedMar 22, 2013
Answer filedApr 18, 2013
Hearing heldJul 22, 2013
Decision dateMar 10, 2014Remand decision issued.

Cite For

Mitigating Conditions Under Guideline F for Financial Considerations
Proactive Measures in Addressing Financial Issues
Whole-person Concept in Security Clearance Evaluations

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 admits that he is indebted to the Internal Revenue Service (IRS) for unpaid taxes. As of August 2013 Applicant owed the IRS $10,012.77. He currently pays $175 a month on this arrangement, which is an increase of $25 over his prior payments and is acceptable to the IRS. $10,012	For Applicant	Tax Unpaid	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	—
1.b	Applicant admits that he was indebted to his state taxing authority for unpaid taxes. He provided evidence showing that he has successfully paid all of his state back taxes. $713	For Applicant	Tax Unpaid	Admitted	—	—	—
1.c	Applicant admits that he is indebted to a creditor for a credit card debt in the amount of $1,374. Applicant entered into an agreement with a debt resolution company in January 2013 to resolve his delinquent debts. $1,374	For Applicant	Credit Card Debt	Admitted	—	—	—
1.d	Applicant admits that he is indebted to a creditor for a credit card debt in the amount of $21,880. Applicant entered into an agreement with a debt resolution company in January 2013 to resolve his delinquent debts. $21,880	For Applicant	Credit Card Debt	Admitted	—	—	—
1.e	Applicant admits that he was indebted to a creditor for a credit card debt in the amount of $9,905. Applicant submitted evidence showing that a payment arrangement has been made reducing this debt to $4,398. $9,905	For Applicant	Credit Card Debt	Admitted	—	—	—
1.f	Applicant admits that he was indebted to a creditor for a credit card debt in the amount of $15,382. Applicant submitted evidence showing that a payment arrangement has been made reducing this debt to $6,125. $15,382	For Applicant	Credit Card Debt	Admitted	—	—	—
1.g	Applicant admits that he is indebted to a creditor for a credit card debt in the amount of $8,187. Applicant entered into an agreement with a debt resolution company in January 2013 to resolve his delinquent debts. $8,187	For Applicant	Credit Card Debt	Admitted	—	—	—
1.h	Applicant admits that he is indebted to a creditor for a credit card debt in the amount of $14,070. Applicant submitted evidence showing that this debt has now been included in the program. $14,070	For Applicant	Credit Card Debt	Admitted	—	—	—
1.i	Applicant admits that he is indebted to a creditor for a credit card debt in the amount of $2,946. Applicant entered into an agreement with a debt resolution company in January 2013 to resolve his delinquent debts. $2,946	For Applicant	Credit Card Debt	Admitted	—	—	—
1.j	Applicant admits that he was indebted for a cell phone bill in the amount of $82. Applicant is still a customer of this phone company. He submitted his most recent bill showing that he is making regular payments. $82	For Applicant	Utility or Phone Debt	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant admits that he is indebted to the Internal Revenue Service (IRS) for unpaid taxes. As of August 2013 Applicant owed the IRS $10,012.77. He currently pays $175 a month on this arrangement, which is an increase of $25 over his prior payments and is acceptable to the IRS.

$10,012

For Applicant

Tax Unpaid

Admitted

—

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

(c) received/receiving counseling; problem being resolved

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

—

1.b

Applicant admits that he was indebted to his state taxing authority for unpaid taxes. He provided evidence showing that he has successfully paid all of his state back taxes.

$713

For Applicant

Tax Unpaid

Admitted

—

1.c

Applicant admits that he is indebted to a creditor for a credit card debt in the amount of $1,374. Applicant entered into an agreement with a debt resolution company in January 2013 to resolve his delinquent debts.

$1,374

For Applicant

Credit Card Debt

Admitted

—

1.d

Applicant admits that he is indebted to a creditor for a credit card debt in the amount of $21,880. Applicant entered into an agreement with a debt resolution company in January 2013 to resolve his delinquent debts.

$21,880

For Applicant

Credit Card Debt

Admitted

—

1.e

Applicant admits that he was indebted to a creditor for a credit card debt in the amount of $9,905. Applicant submitted evidence showing that a payment arrangement has been made reducing this debt to $4,398.

$9,905

For Applicant

Credit Card Debt

Admitted

—

1.f

Applicant admits that he was indebted to a creditor for a credit card debt in the amount of $15,382. Applicant submitted evidence showing that a payment arrangement has been made reducing this debt to $6,125.

$15,382

For Applicant

Credit Card Debt

Admitted

—

1.g

Applicant admits that he is indebted to a creditor for a credit card debt in the amount of $8,187. Applicant entered into an agreement with a debt resolution company in January 2013 to resolve his delinquent debts.

$8,187

For Applicant

Credit Card Debt

Admitted

—

1.h

Applicant admits that he is indebted to a creditor for a credit card debt in the amount of $14,070. Applicant submitted evidence showing that this debt has now been included in the program.

$14,070

For Applicant

Credit Card Debt

Admitted

—

1.i

Applicant admits that he is indebted to a creditor for a credit card debt in the amount of $2,946. Applicant entered into an agreement with a debt resolution company in January 2013 to resolve his delinquent debts.

$2,946

For Applicant

Credit Card Debt

Admitted

—

1.j

Applicant admits that he was indebted for a cell phone bill in the amount of $82. Applicant is still a customer of this phone company. He submitted his most recent bill showing that he is making regular payments.

$82

For Applicant

Utility or Phone Debt

Admitted

—

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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

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES