ISCR Case 12-02149.h1

Case Headnote

ISCR Case No. 12-02149.h1

deniedApr 16, 2014· Hon. Wilford H. Ross· hearing

Summary

A 33-year-old defense contractor with an associate degree was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from significant unresolved debts totaling over $48,000 and the misuse of a company credit card for personal expenses.

Specifically, the applicant used a company credit card four times between 2010 and 2012 for personal expenses, violating company policy. Additionally, the applicant admitted to numerous debts, including an educational loan of $5,471, an automobile debt of approximately $13,878, and another automobile debt of $15,286, which was later paid in full. Other debts included various utility, medical, telephone, cable, and past-due accounts, some of which were resolved, while others remained outstanding or disputed.

The judge found that the applicant's financial issues were ongoing and not sufficiently mitigated, with unresolved debts still totaling over $10,953. The applicant's personal conduct, particularly the misuse of the company credit card, demonstrated poor judgment and a lack of candor. The applicant's disputes regarding certain debts were not accepted by all credit reporting agencies, contributing to the unresolved status of many accounts.

Why the Applicant Was Denied

The applicant has unresolved debts totaling over $10,953, indicating ongoing financial instability.
The applicant misused a company credit card for personal expenses, demonstrating poor judgment and lack of compliance with company policy.
The applicant's disputes regarding debts were not accepted by all credit reporting agencies, leaving many debts unresolved.

Conditions Referenced

Disqualifying

F.1raisedFinancial ConsiderationsThe applicant has a history of not meeting financial obligations.
E.2raisedPersonal ConductThe applicant engaged in conduct that shows questionable judgment and lack of candor.

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.”
— AG ¶ 18

Procedural Posture

SOR issuedOct 1, 2013
Answer filedOct 18, 2013
Hearing heldFebruary 11, 2014; February 27, 2014Two hearings held.
Decision dateApr 16, 2014

Cite For

Denial Based on Unresolved Financial Obligations Under Guideline F
Denial Due to Personal Conduct Involving Misuse of Company Resources Under Guideline E
Importance of Demonstrating Financial Responsibility and Good Judgment for 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	Conduct	Concealed Issue	Response	Disqualifying (¶16)	Mitigating applied (¶17)	Mitigation
2.a	Applicant used his company credit card four times between 2010 and 2012 to pay for personal expenses, in violation of company policy.	For Applicant	Rules Violation at WorkplaceNOT DELIBERATE	—	Admitted	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant used his company credit card four times between 2010 and 2012 to pay for personal expenses, in violation of company policy.

For Applicant

Rules Violation at WorkplaceNOT DELIBERATE

—

Admitted

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant admits that he is indebted to a collection agency for an educational loan in the amount of $5,471. $5,471	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.b	Applicant admits that he was indebted to a creditor for a utility debt in the amount of approximately $164. Applicant paid this debt in February 2014. $164	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.c	Applicant admits that he was indebted to a creditor for a debt in the amount of approximately $440. Applicant paid this debt in March 2014. $440	For Applicant	Unspecified Financial	Admitted	—	—	—
1.d	Applicant admits that he is indebted to a creditor for a utility debt in the amount of approximately $556. Applicant had not paid this bill as of the time the record closed. $556	Against Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts	—	—
1.e	Applicant admits that he was indebted to a telephone company for a debt in the amount of $1,220. Applicant stated that he made a payment arrangement with this creditor to resolve this debt by paying $50 a month, and that he had made one payment. $1,220	Against Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts	—	—
1.f	Applicant admits that he is indebted to a creditor for an automobile debt in the amount of approximately $13,878. He made a payment arrangement with this creditor to pay $175 a week to resolve this debt. $13,878	For Applicant	Auto Loan Debt	Admitted	—	—	—
1.g	Applicant admits that he was indebted to a creditor for a cable bill in the amount of $579. This debt was paid in full in February 2014. $579	For Applicant	Unspecified Financial	Admitted	—	—	—
1.h	Applicant admits that he was indebted to a creditor for a medical debt in the amount of approximately $156. Applicant maintains that this delinquent medical bill was incurred by his wife during a period when they were separated. $156	For Applicant	Medical Debt	Admitted	—	—	—
1.i	Applicant admits that he was indebted to a creditor for a telephone debt in the amount of approximately $448. Applicant paid this delinquent debt and is current with his payments on the account. $448	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.j	Applicant admits that he is indebted to a creditor for a debt in the amount of $43. Applicant stated that he paid this debt by means of Western Union several years ago. $43	For Applicant	Unspecified Financial	Admitted	—	—	—
1.k	Applicant admits that he is indebted to a creditor for a medical debt in the amount of $295. He again stated that many of the medical bills involved his wife, and most of them were during the time when they were separated. $295	Against Applicant	Medical Debt	Admitted	(a) inability to satisfy debts	—	—
1.l	Applicant admits that he was indebted to a creditor for a past-due debt in the amount of $265. Applicant stated that he paid this debt. $265	For Applicant	Unspecified Financial	Admitted	—	—	—
1.m	Applicant admits that he was indebted to a creditor for an insurance debt in the amount of $69. Applicant states that he paid this debt. $69	For Applicant	Unspecified Financial	Admitted	—	—	—
1.n	Applicant admits the he is indebted to a creditor for a past-due debt concerning an apartment he rented in the amount of $2,100. Applicant testified that he has attempted unsuccessfully to resolve this debt. $2,100	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.o	Applicant admits that he was indebted to a creditor for a past-due debt in the amount of $3,000. He submitted evidence that he has paid this debt in full. $3,000	For Applicant	Unspecified Financial	Admitted	—	—	—
1.p	Applicant admits that he was indebted to a creditor for an automobile debt in the amount of $15,286. Applicant made a payment arrangement with this creditor and paid this debt in full. $15,286	For Applicant	Auto Loan Debt	Admitted	—	—	—
1.q	Applicant admits that he is indebted to a creditor for a past-due payday loan in the amount of $591. Applicant stated that he paid this debt off several years ago. $591	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.r	Applicant admits that he is indebted to a creditor for five medical accounts in the amount of $2,117. Applicant indicated that these debts involved his wife during the time they were separated and that he does not have any responsibility for them. $2,117	Against Applicant	Medical Debt	Admitted	(a) inability to satisfy debts	—	—
1.s	Applicant admits that he is indebted to a creditor for a medical debt in the amount of $438. Once again, Applicant states that this debt involves his wife and should not be his responsibility. $438	Against Applicant	Medical Debt	Admitted	(a) inability to satisfy debts	—	—
1.t	Applicant admits that he is indebted to a creditor for a past-due debt in the amount of $265. Applicant maintained that he has paid this debt. $265	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.u	Applicant admits that he was indebted to a city for unpaid traffic tickets in the amount of $506. He paid this debt in full. $506	For Applicant	Unspecified Financial	Admitted	—	—	—
1.v	Applicant admits that he was indebted to an insurance company in the amount of $128. He paid this debt in full. $128	For Applicant	Unspecified Financial	Admitted	—	—	—
1.w	Applicant admits that he was indebted to a creditor on a medical account in the amount of $31. Applicant stated that he paid this debt. $31	For Applicant	Medical Debt	Admitted	—	—	—
1.x	Applicant admits that he was indebted to a creditor on a medical account in the amount of $30. Applicant stated that he paid this debt. $30	Against Applicant	Medical Debt	Admitted	(a) inability to satisfy debts	—	—
1.y	specific text not stated in this decision	Unknown	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant admits that he is indebted to a collection agency for an educational loan in the amount of $5,471.

$5,471

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

1.b

Applicant admits that he was indebted to a creditor for a utility debt in the amount of approximately $164. Applicant paid this debt in February 2014.

$164

For Applicant

Utility or Phone Debt

Admitted

—

1.c

Applicant admits that he was indebted to a creditor for a debt in the amount of approximately $440. Applicant paid this debt in March 2014.

$440

For Applicant

Unspecified Financial

Admitted

—

1.d

Applicant admits that he is indebted to a creditor for a utility debt in the amount of approximately $556. Applicant had not paid this bill as of the time the record closed.

$556

Against Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

—

1.e

Applicant admits that he was indebted to a telephone company for a debt in the amount of $1,220. Applicant stated that he made a payment arrangement with this creditor to resolve this debt by paying $50 a month, and that he had made one payment.

$1,220

Against Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

—

1.f

Applicant admits that he is indebted to a creditor for an automobile debt in the amount of approximately $13,878. He made a payment arrangement with this creditor to pay $175 a week to resolve this debt.

$13,878

For Applicant

Auto Loan Debt

Admitted

—

1.g

Applicant admits that he was indebted to a creditor for a cable bill in the amount of $579. This debt was paid in full in February 2014.

$579

For Applicant

Unspecified Financial

Admitted

—

1.h

Applicant admits that he was indebted to a creditor for a medical debt in the amount of approximately $156. Applicant maintains that this delinquent medical bill was incurred by his wife during a period when they were separated.

$156

For Applicant

Medical Debt

Admitted

—

1.i

Applicant admits that he was indebted to a creditor for a telephone debt in the amount of approximately $448. Applicant paid this delinquent debt and is current with his payments on the account.

$448

For Applicant

Utility or Phone Debt

Admitted

—

1.j

Applicant admits that he is indebted to a creditor for a debt in the amount of $43. Applicant stated that he paid this debt by means of Western Union several years ago.

$43

For Applicant

Unspecified Financial

Admitted

—

1.k

Applicant admits that he is indebted to a creditor for a medical debt in the amount of $295. He again stated that many of the medical bills involved his wife, and most of them were during the time when they were separated.

$295

Against Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

—

1.l

Applicant admits that he was indebted to a creditor for a past-due debt in the amount of $265. Applicant stated that he paid this debt.

$265

For Applicant

Unspecified Financial

Admitted

—

1.m

Applicant admits that he was indebted to a creditor for an insurance debt in the amount of $69. Applicant states that he paid this debt.

$69

For Applicant

Unspecified Financial

Admitted

—

1.n

Applicant admits the he is indebted to a creditor for a past-due debt concerning an apartment he rented in the amount of $2,100. Applicant testified that he has attempted unsuccessfully to resolve this debt.

$2,100

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

1.o

Applicant admits that he was indebted to a creditor for a past-due debt in the amount of $3,000. He submitted evidence that he has paid this debt in full.

$3,000

For Applicant

Unspecified Financial

Admitted

—

1.p

Applicant admits that he was indebted to a creditor for an automobile debt in the amount of $15,286. Applicant made a payment arrangement with this creditor and paid this debt in full.

$15,286

For Applicant

Auto Loan Debt

Admitted

—

1.q

Applicant admits that he is indebted to a creditor for a past-due payday loan in the amount of $591. Applicant stated that he paid this debt off several years ago.

$591

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

1.r

Applicant admits that he is indebted to a creditor for five medical accounts in the amount of $2,117. Applicant indicated that these debts involved his wife during the time they were separated and that he does not have any responsibility for them.

$2,117

Against Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

—

1.s

Applicant admits that he is indebted to a creditor for a medical debt in the amount of $438. Once again, Applicant states that this debt involves his wife and should not be his responsibility.

$438

Against Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

—

1.t

Applicant admits that he is indebted to a creditor for a past-due debt in the amount of $265. Applicant maintained that he has paid this debt.

$265

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

1.u

Applicant admits that he was indebted to a city for unpaid traffic tickets in the amount of $506. He paid this debt in full.

$506

For Applicant

Unspecified Financial

Admitted

—

1.v

Applicant admits that he was indebted to an insurance company in the amount of $128. He paid this debt in full.

$128

For Applicant

Unspecified Financial

Admitted

—

1.w

Applicant admits that he was indebted to a creditor on a medical account in the amount of $31. Applicant stated that he paid this debt.

$31

For Applicant

Medical Debt

Admitted

—

1.x

Applicant admits that he was indebted to a creditor on a medical account in the amount of $30. Applicant stated that he paid this debt.

$30

Against Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

—

1.y

specific text not stated in this decision

Unknown

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