ISCR Case 12-01194.h1

Case Headnote

ISCR Case No. 12-01194.h1

deniedNov 15, 2013· Hon. Jennifer I. Goldstein· hearing

Summary

A 45-year-old naturalized U.S. citizen and mother of five was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from 22 delinquent debts totaling $81,956. Specific allegations included various outstanding amounts, such as a $1,248 telecommunications bill, several medical accounts ranging from $25 to $181, and larger debts to department stores and collection companies, including amounts of $6,789, $9,992, $15,520, and $15,264.

Disqualifying conditions F.19(a) and F.19(c) were raised, while mitigating conditions F.20(b), F.20(c), and F.20(d) were applied. Despite having significant income and assets, the applicant failed to provide sufficient documentation to demonstrate that the majority of her debts were resolved.

Ultimately, 12 debts totaling $64,269 remained unresolved. The applicant's failure to provide adequate documentation for debt resolution, coupled with the high number and total amount of delinquent debts, led to concerns about her financial responsibility and judgment, resulting in the denial of her security clearance.

Why the Applicant Was Denied

Applicant had 22 delinquent debts totaling $81,956, with 12 debts totaling $64,269 unresolved.
Applicant failed to provide documentation to support claims of debt resolution for the majority of her debts.
The applicant's financial decisions raised questions about her reliability and trustworthiness.

Conditions Referenced

Disqualifying

F.19(a)raisedInability or Unwillingness to Satisfy Debts
F.19(c)raisedA History of Not Meeting Financial Obligations

Mitigating

F.20(b)rejectedConditions Largely Beyond the Person's ControlApplicant did not act responsibly with respect to her debts after resuming employment.
F.20(c)rejectedReceiving Counseling for the ProblemLittle evidence that the majority of debts were being resolved or under control.
F.20(d)rejectedGood-faith Effort to Repay Overdue CreditorsApplicant failed to show timely payments or resolution of the majority of debts.

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 issuedJun 12, 2013
Answer filedAug 2, 2013
Hearing heldOct 18, 2013Originally scheduled for October 16, 2013, but continued.
Decision dateNov 15, 2013

Cite For

Denial of Security Clearance Due to Unresolved Financial Obligations
Impact of Financial Irresponsibility on Security Clearance Eligibility
Insufficient Evidence of Debt Resolution as a Basis for Clearance Denial

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 is indebted to a collection company for a telecommunications bill in the approximate amount of $1,248. $1,248	Against Applicant	Unspecified Financial	Denied	—	—	—
1.b	Applicant is indebted on a delinquent medical account in the approximate amount of $181. $181	Against Applicant	Medical Debt	Denied	—	—	—
1.c	Applicant was indebted on a delinquent medical account in the approximate amount of $25. $25	For Applicant	Medical Debt	Admitted	—	—	—
1.d	Applicant is indebted on a delinquent medical account in the approximate amount of $112. $112	Against Applicant	Medical Debt	Admitted	—	—	—
1.e	Applicant was indebted on a delinquent account in the approximate amount of $447. $447	For Applicant	Unspecified Financial	Admitted	—	—	—
1.f	Applicant was indebted to a department store in the approximate amount of $6,789. $6,789	For Applicant	Unspecified Financial	Admitted	—	—	—
1.g	Applicant is indebted on a delinquent account in the approximate amount of $9,992. $9,992	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.h	Applicant was indebted on a delinquent account in the approximate amount of $459. $459	For Applicant	Unspecified Financial	Admitted	—	—	—
1.i	Applicant is indebted on a delinquent account in the approximate amount of $2,321. $2,321	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.j	Applicant is indebted on a delinquent account in the approximate amount of $1,838. $1,838	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.k	Applicant is indebted on a delinquent account in the approximate amount of $15,520. $15,520	For Applicant	Unspecified Financial	Unknown	—	—	—
1.l	Applicant is indebted to a department store on an account that was charged off in the approximate amount of $2,786. $2,786	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.m	Applicant is indebted to a collection company for a bank in the approximate amount of $15,264. $15,264	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.n	Applicant is indebted to a collection company in the approximate amount of $357. $357	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.o	Applicant is indebted to a collection company in the approximate amount of $126. $126	For Applicant	Unspecified Financial	Unknown	—	—	—
1.p	Applicant is indebted to a collection company in the approximate amount of $7,724. $7,724	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.q	Applicant is indebted to a collection company in the approximate amount of $3,004. $3,004	For Applicant	Unspecified Financial	Unknown	—	—	—
1.r	Applicant is indebted to a collection company in the approximate amount of $319. $319	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.s	Applicant is indebted to a collection company in the approximate amount of $126. $126	For Applicant	Unspecified Financial	Unknown	—	—	—
1.t	Applicant is indebted to a collection company in the approximate amount of $2,501. $2,501	For Applicant	Unspecified Financial	Unknown	—	—	—
1.u	Applicant is indebted to a collection company in the approximate amount of $6,954. $6,954	Against Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant is indebted to a collection company for a telecommunications bill in the approximate amount of $1,248.

$1,248

Against Applicant

Unspecified Financial

Denied

—

1.b

Applicant is indebted on a delinquent medical account in the approximate amount of $181.

$181

Against Applicant

Medical Debt

Denied

—

1.c

Applicant was indebted on a delinquent medical account in the approximate amount of $25.

$25

For Applicant

Medical Debt

Admitted

—

1.d

Applicant is indebted on a delinquent medical account in the approximate amount of $112.

$112

Against Applicant

Medical Debt

Admitted

—

1.e

Applicant was indebted on a delinquent account in the approximate amount of $447.

$447

For Applicant

Unspecified Financial

Admitted

—

1.f

Applicant was indebted to a department store in the approximate amount of $6,789.

$6,789

For Applicant

Unspecified Financial

Admitted

—

1.g

Applicant is indebted on a delinquent account in the approximate amount of $9,992.

$9,992

Against Applicant

Unspecified Financial

Unknown

—

1.h

Applicant was indebted on a delinquent account in the approximate amount of $459.

$459

For Applicant

Unspecified Financial

Admitted

—

1.i

Applicant is indebted on a delinquent account in the approximate amount of $2,321.

$2,321

Against Applicant

Unspecified Financial

Unknown

—

1.j

Applicant is indebted on a delinquent account in the approximate amount of $1,838.

$1,838

Against Applicant

Unspecified Financial

Unknown

—

1.k

Applicant is indebted on a delinquent account in the approximate amount of $15,520.

$15,520

For Applicant

Unspecified Financial

Unknown

—

1.l

Applicant is indebted to a department store on an account that was charged off in the approximate amount of $2,786.

$2,786

Against Applicant

Unspecified Financial

Unknown

—

1.m

Applicant is indebted to a collection company for a bank in the approximate amount of $15,264.

$15,264

Against Applicant

Unspecified Financial

Unknown

—

1.n

Applicant is indebted to a collection company in the approximate amount of $357.

$357

Against Applicant

Unspecified Financial

Unknown

—

1.o

Applicant is indebted to a collection company in the approximate amount of $126.

$126

For Applicant

Unspecified Financial

Unknown

—

1.p

Applicant is indebted to a collection company in the approximate amount of $7,724.

$7,724

Against Applicant

Unspecified Financial

Unknown

—

1.q

Applicant is indebted to a collection company in the approximate amount of $3,004.

$3,004

For Applicant

Unspecified Financial

Unknown

—

1.r

Applicant is indebted to a collection company in the approximate amount of $319.

$319

Against Applicant

Unspecified Financial

Unknown

—

1.s

Applicant is indebted to a collection company in the approximate amount of $126.

$126

For Applicant

Unspecified Financial

Unknown

—

1.t

Applicant is indebted to a collection company in the approximate amount of $2,501.

$2,501

For Applicant

Unspecified Financial

Unknown

—

1.u

Applicant is indebted to a collection company in the approximate amount of $6,954.

$6,954

Against Applicant

Unspecified Financial

Unknown

—

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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