ISCR Case 12-02369.h1

Case Headnote

ISCR Case No. 12-02369.h1

grantedJan 15, 2014· Hon. Jennifer I. Goldstein· hearing

Summary

A 59-year-old defense contractor employee was granted a security clearance despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant faced allegations regarding approximately $26,686 in debts and the intentional omission of debts on his November 4, 2011 e-QIP.

Specifically, the applicant had a $328 dental debt, which he paid in full. He also had two credit card debts, one for approximately $9,150 and another for about $17,204, both incurred while his wife was unemployed. For these, he established payment arrangements and demonstrated consistent payments from August through December 2013 for the first, and October to December 2013 for the second. A $4 debt was successfully contested and removed as an error.

The judge found no intentional omission of debts on the e-QIP. The applicant demonstrated responsible financial behavior by repaying one debt, successfully contesting another, and making payment arrangements for the remaining obligations. His financial difficulties were attributed to circumstances beyond his control, primarily his wife's unemployment. Based on these mitigating factors, eligibility for a security clearance was granted.

Why the Applicant Prevailed

The applicant acted responsibly by repaying one debt in full and contesting another debt successfully.
The applicant made payment arrangements for remaining debts and is current on payments to the IRS.
The applicant's financial difficulties were attributed to circumstances beyond his control, including his wife's unemployment.

Conditions Referenced

Disqualifying

F.19(c)raisedHistory of Not Meeting Financial Obligations
E.16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant Facts

Mitigating

F.20(a)appliedBehavior Happened Long Ago or Infrequently
F.20(b)appliedConditions Resulting in Financial Problems Were Largely Beyond the Person's Control
F.20(c)appliedReceived Counseling for the Problem And/or Indications That the Problem Is Being Resolved
F.20(d)appliedGood-faith Effort to Repay Overdue Creditors
F.20(e)appliedReasonable Basis to Dispute the Legitimacy of the Past-due Debt
E.17(a)appliedNo Deliberate Omission of Relevant Facts

Key Rule Quoted

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

Procedural Posture

SOR issuedJul 24, 2013
Answer filedAug 30, 2013
Hearing heldDec 16, 2013Rescheduled from November 21, 2013.
Decision dateJan 15, 2014

Cite For

Mitigating Conditions for Financial Difficulties Under Guideline F
Considerations for Personal Conduct Regarding Omissions on E-qip
Whole-person Analysis in Security Clearance Decisions

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 intentionally omitted debts on his November 4, 2011 e-QIP.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATE	Financial	Denied	—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

Applicant intentionally omitted debts on his November 4, 2011 e-QIP.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATE

Financial

Denied

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant was indebted to a collection agent in the approximate amount of $328, as identified in subparagraph 1.a. This debt was for dental treatment and was incurred while Applicant’s wife was unemployed. This debt was listed as a collection account in October 2010. Applicant presented a receipt for this creditor showing that he paid this debt in full. This debt is satisfied. $328	For Applicant	Medical Debt	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	Applicant is indebted to a collection agent for a credit card in the approximate amount of $9,150, as identified in subparagraph 1.b. This debt was for a store credit card that Applicant used to make ends meet when his wife was unemployed. Applicant’s credit report reflects this debt was reported 150 days past due in November 2011. He presented a letter from this creditor showing he made arrangements to pay $120.18 per month until this debt is satisfied in full. He presented documentation that shows he made payments in accordance with this agreement from August through December 2013. This debt is being resolved. $9,150	For Applicant	Credit Card Debt	Admitted	(c) a history of not meeting financial obligations	(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	Documented Payment Plan with Creditor
1.c	Applicant is indebted to a collection agent for a credit card in the approximate amount of $17,204, as identified in subparagraph 1.c. This debt was for a credit card that Applicant used to make ends meet when his wife was unemployed. Applicant’s credit report reflects this debt was reported 150 days past due in November 2011. Applicant presented documentation from this creditor that shows the current balance of this account was $10,594.74, as of November 22, 2013. That letter documented that Applicant made payment arrangements with the creditor for payments of $150 per month. Applicant presented documentation that shows he successfully made $150 payments to this creditor from October to December 2013. This debt is being resolved. $17,204	For Applicant	Credit Card Debt	Admitted	(c) a history of not meeting financial obligations	(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	Documented Payment Plan with Creditor
1.d	Applicant was identified as being indebted to a collection agent in the approximate amount of $4, as identified in subparagraph 1.d. Applicant testified that he did not recognize this debt and contested it directly with this creditor. On August 21, 2013, Applicant received a letter from this creditor stating, “Your account has been updated to paid in full/settled in full.” This debt was an error on his credit report and is now satisfied. $4	For Applicant	Unspecified Financial	Denied	—	(e) reasonable, documented basis to dispute the debt	Documented Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant was indebted to a collection agent in the approximate amount of $328, as identified in subparagraph 1.a. This debt was for dental treatment and was incurred while Applicant’s wife was unemployed. This debt was listed as a collection account in October 2010. Applicant presented a receipt for this creditor showing that he paid this debt in full. This debt is satisfied.

$328

For Applicant

Medical Debt

Admitted

—

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

Documented

Debt Paid in Full

1.b

Applicant is indebted to a collection agent for a credit card in the approximate amount of $9,150, as identified in subparagraph 1.b. This debt was for a store credit card that Applicant used to make ends meet when his wife was unemployed. Applicant’s credit report reflects this debt was reported 150 days past due in November 2011. He presented a letter from this creditor showing he made arrangements to pay $120.18 per month until this debt is satisfied in full. He presented documentation that shows he made payments in accordance with this agreement from August through December 2013. This debt is being resolved.

$9,150

For Applicant

Credit Card Debt

Admitted

(c) a history of not meeting financial obligations

(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

Documented

Payment Plan with Creditor

1.c

Applicant is indebted to a collection agent for a credit card in the approximate amount of $17,204, as identified in subparagraph 1.c. This debt was for a credit card that Applicant used to make ends meet when his wife was unemployed. Applicant’s credit report reflects this debt was reported 150 days past due in November 2011. Applicant presented documentation from this creditor that shows the current balance of this account was $10,594.74, as of November 22, 2013. That letter documented that Applicant made payment arrangements with the creditor for payments of $150 per month. Applicant presented documentation that shows he successfully made $150 payments to this creditor from October to December 2013. This debt is being resolved.

$17,204

For Applicant

Credit Card Debt

Admitted

(c) a history of not meeting financial obligations

(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

Documented

Payment Plan with Creditor

1.d

Applicant was identified as being indebted to a collection agent in the approximate amount of $4, as identified in subparagraph 1.d. Applicant testified that he did not recognize this debt and contested it directly with this creditor. On August 21, 2013, Applicant received a letter from this creditor stating, “Your account has been updated to paid in full/settled in full.” This debt was an error on his credit report and is now satisfied.

For Applicant

Unspecified Financial

Denied

—

(e) reasonable, documented basis to dispute the debt

Documented

Debt Paid in Full

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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