ISCR Case 12-00677.h1

Case Headnote

ISCR Case No. 12-00677.h1

deniedNov 19, 2013· Hon. Martin H. Mogul· hearing

Summary

A 36-year-old painter employed by a defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to significant unresolved financial debts. The Statement of Reasons (SOR) detailed nine overdue debts, including charged-off accounts and collection accounts, totaling over $20,000.

The applicant admitted to most of these allegations in her Response to the Statement of Reasons (RSOR), noting some debts were charged off and indicating plans to arrange payments for others. However, she disputed a $4,725 medical charge, claiming she was never a patient of the doctor, and also denied a $215 collection account, stating she intended to dispute it.

Despite the applicant's claims of improved financial capability, the judge found insufficient evidence of responsible debt management or resolution. The denial was based on the applicant's inability to meet financial obligations, a lack of good-faith efforts to repay or resolve overdue debts, and unsubstantiated claims of improved financial circumstances. Disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and ¶ 19(c) were raised, while mitigating conditions AG ¶ 20(b) and ¶ 20(d) were applied.

Why the Applicant Was Denied

The applicant has significant unresolved debts totaling over $20,000, indicating an inability to meet financial obligations.
The applicant failed to provide evidence of good-faith efforts to repay overdue creditors or resolve debts.
The applicant's claims of improved financial circumstances were not substantiated by evidence of debt resolution.

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 Largely Beyond the Person's ControlThe applicant's financial difficulties were not deemed to be beyond her control as she had been employed since 2011.
AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not demonstrate any good-faith efforts to resolve her debts.

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 issuedApr 15, 2013
Answer filedMay 9, 2013Requested decision on written record.
Hearing held—No hearing; decision based on written record.
Decision dateNov 19, 2013

Cite For

Denial of Security Clearance Due to Unresolved Financial Obligations
Application of Disqualifying Conditions Under Guideline F
Rejection of Mitigating Conditions Related to Financial Difficulties

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	This overdue debt is cited in the SOR for a charged off account in the amount of $7,305. Applicant admitted this SOR allegation in her RSOR, and added that this debt was “charged off.” $7,305	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	This overdue debt is cited in the SOR for a collection account in the amount of $219. Applicant admitted this SOR allegation in her RSOR and added that she was “arranging payments within next 30 days.” $219	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 for a collection account in the amount of $97. Applicant admitted this SOR allegation in her RSOR and added that she was “arranging payments within next 30 days.” $97	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 for a collection account in the amount of $6,913. Applicant admitted this SOR allegation in her RSOR. $6,913	For Applicant	Unspecified Financial	Admitted	—	—	—
1.e	This overdue debt is cited in the SOR for a collection account in the amount of $1,192. Applicant admitted this SOR allegation in her RSOR, and added that this debt was “charged off.” $1,192	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	This overdue debt is cited in the SOR for a collection account in the amount of $4,725. Applicant admitted this SOR allegation in her RSOR, but wrote that she is “disputing claim. Medical charge from a Dr. I have never been a patient of.” $4,725	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	This overdue debt is cited in the SOR for a collection account in the amount of $279. Applicant admitted this SOR allegation in her RSOR, and added that this debt was “charged off.” $279	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	This overdue debt is cited in the SOR for a collection account in the amount of $215. Applicant denied this SOR allegation in her RSOR and wrote that she is “going to dispute” this debt. $215	Against Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	This overdue debt is cited in the SOR for a collection account in the amount of $218. Applicant admitted this SOR allegation in her RSOR and added that she was “arranging payments within next 30 days.” $218	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

This overdue debt is cited in the SOR for a charged off account in the amount of $7,305. Applicant admitted this SOR allegation in her RSOR, and added that this debt was “charged off.”

$7,305

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

This overdue debt is cited in the SOR for a collection account in the amount of $219. Applicant admitted this SOR allegation in her RSOR and added that she was “arranging payments within next 30 days.”

$219

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 for a collection account in the amount of $97. Applicant admitted this SOR allegation in her RSOR and added that she was “arranging payments within next 30 days.”

$97

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 for a collection account in the amount of $6,913. Applicant admitted this SOR allegation in her RSOR.

$6,913

For Applicant

Unspecified Financial

Admitted

—

1.e

This overdue debt is cited in the SOR for a collection account in the amount of $1,192. Applicant admitted this SOR allegation in her RSOR, and added that this debt was “charged off.”

$1,192

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

This overdue debt is cited in the SOR for a collection account in the amount of $4,725. Applicant admitted this SOR allegation in her RSOR, but wrote that she is “disputing claim. Medical charge from a Dr. I have never been a patient of.”

$4,725

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

This overdue debt is cited in the SOR for a collection account in the amount of $279. Applicant admitted this SOR allegation in her RSOR, and added that this debt was “charged off.”

$279

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

This overdue debt is cited in the SOR for a collection account in the amount of $215. Applicant denied this SOR allegation in her RSOR and wrote that she is “going to dispute” this debt.

$215

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i

This overdue debt is cited in the SOR for a collection account in the amount of $218. Applicant admitted this SOR allegation in her RSOR and added that she was “arranging payments within next 30 days.”

$218

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

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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