ISCR Case 12-03600.h1

Case Headnote

ISCR Case No. 12-03600.h1

grantedMar 14, 2014· Hon. Wilford H. Ross· hearing

Summary

A 56-year-old retired Marine Corps veteran and defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations) regarding approximately $54,318 in delinquent debts. The applicant's financial challenges were attributed to factors beyond his control, specifically a housing market downturn and family medical issues.

The Statement of Reasons detailed several allegations. The applicant successfully refuted claims of owing $252 to a hospital and $235 to a medical provider's collection agency, providing documentation of full payment for these and other debts totaling $1,245 to that agency. He also denied debts of $825, $522, and $311 to other medical creditors, stating these were either not on his current credit report or had been paid. The applicant admitted to a $52,173 second mortgage debt related to a home purchased in 2004 with an adjustable-rate first mortgage.

The decision to grant the clearance was based on the finding that the applicant's financial difficulties stemmed from uncontrollable circumstances. He provided evidence of resolving past debts, maintaining financial stability, and proactively addressing remaining debts and disputes, demonstrating a good-faith effort to manage his financial obligations.

Why the Applicant Prevailed

The applicant's financial difficulties were largely due to circumstances beyond his control, including a housing downturn and medical issues.
The applicant provided evidence of resolving past debts and maintaining a stable financial situation.
The applicant demonstrated a proactive approach in addressing remaining debts and disputes.

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 Long Ago or Infrequently
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 issuedSep 10, 2013
Answer filedNov 13, 2013
Hearing heldFeb 13, 2014
Decision dateMar 14, 2014

Cite For

Mitigation of Financial Difficulties Under Guideline F
Consideration of Circumstances Beyond an Applicant's Control
Good-faith Efforts to Resolve Debts as a Mitigating Factor

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 denies that he owes a hospital $252 for a past-due debt. Applicant stated that he has paid this debt, and submitted a statement from the collection agency for the hospital stating, “Your account is now settled in full.” $252	For Applicant	Medical Debt	Denied	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.b	Applicant denies that he is indebted to a medical provider’s collection agency in the amount of $235. Applicant stated that he has paid this debt, and all other debts owed to this agency, which amounted to $1,245. He provided five paid in full letters from this collection agency, as well as a copy of an email between his wife and this collection agency concerning payments. $235	For Applicant	Medical Debt	Denied	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	Applicant admits that he was indebted to a mortgage company for a second mortgage in the amount of $52,173. This debt concerns Applicant’s home that he bought after his family moved. The house was purchased for approximately $325,000 in 2004 using an adjustable rate mortgage for the first. $52,173	For Applicant	Mortgage or Home Loan Debt	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Claimed Other
1.d	Applicant denies that he is indebted to a medical creditor in the amount of $825. As stated, the credit report the Government refers to in the SOR is not part of the record. A review of the available credit reports, and the Applicant’s Interrogatories, also failed to show a debt in this amount. $825	For Applicant	Unspecified Financial	Denied	—	—	—
1.e	Applicant denies that he is indebted to a medical creditor in the amount of $522. Applicant states in his Answer at page 2, “The SOR stated that these [SOR 1.d, 1.e, and 1.f] are Medical Bills appearing on my Credit Report. I pulled my recent Credit Report and they are not showing. These may be old accounts that were paid off when we paid . . . old medical bills that had not cleared through our insurance.” $522	For Applicant	Unspecified Financial	Denied	—	—	—
1.f	Applicant denies that he is indebted to a medical creditor in the amount of $311. Applicant states in his Answer at page 2, “The SOR stated that these [SOR 1.d, 1.e, and 1.f] are Medical Bills appearing on my Credit Report. I pulled my recent Credit Report and they are not showing. These may be old accounts that were paid off when we paid . . . old medical bills that had not cleared through our insurance.” $311	For Applicant	Unspecified Financial	Denied	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant denies that he owes a hospital $252 for a past-due debt. Applicant stated that he has paid this debt, and submitted a statement from the collection agency for the hospital stating, “Your account is now settled in full.”

$252

For Applicant

Medical Debt

Denied

—

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

Documented

Debt Paid in Full

1.b

Applicant denies that he is indebted to a medical provider’s collection agency in the amount of $235. Applicant stated that he has paid this debt, and all other debts owed to this agency, which amounted to $1,245. He provided five paid in full letters from this collection agency, as well as a copy of an email between his wife and this collection agency concerning payments.

$235

For Applicant

Medical Debt

Denied

—

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

Documented

Debt Paid in Full

1.c

Applicant admits that he was indebted to a mortgage company for a second mortgage in the amount of $52,173. This debt concerns Applicant’s home that he bought after his family moved. The house was purchased for approximately $325,000 in 2004 using an adjustable rate mortgage for the first.

$52,173

For Applicant

Mortgage or Home Loan Debt

Admitted

—

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

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

Claimed

Other

1.d

Applicant denies that he is indebted to a medical creditor in the amount of $825. As stated, the credit report the Government refers to in the SOR is not part of the record. A review of the available credit reports, and the Applicant’s Interrogatories, also failed to show a debt in this amount.

$825

For Applicant

Unspecified Financial

Denied

—

1.e

Applicant denies that he is indebted to a medical creditor in the amount of $522. Applicant states in his Answer at page 2, “The SOR stated that these [SOR 1.d, 1.e, and 1.f] are Medical Bills appearing on my Credit Report. I pulled my recent Credit Report and they are not showing. These may be old accounts that were paid off when we paid . . . old medical bills that had not cleared through our insurance.”

$522

For Applicant

Unspecified Financial

Denied

—

1.f

Applicant denies that he is indebted to a medical creditor in the amount of $311. Applicant states in his Answer at page 2, “The SOR stated that these [SOR 1.d, 1.e, and 1.f] are Medical Bills appearing on my Credit Report. I pulled my recent Credit Report and they are not showing. These may be old accounts that were paid off when we paid . . . old medical bills that had not cleared through our insurance.”

$311

For Applicant

Unspecified Financial

Denied

—

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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