ISCR Case 12-04005.h1

Case Headnote

ISCR Case No. 12-04005.h1

grantedMar 6, 2015· Hon. Marc E. Curry· hearing

Summary

A 48-year-old single man with one child was granted a security clearance despite initial concerns under Guideline F (Financial Considerations), stemming from approximately $59,000 in debts. The Statement of Reasons detailed nine specific financial allegations. These included a $1,503 utility bill opened by an ex-girlfriend, a $41,130 federal income tax delinquency from 2006-2009 due to a misunderstanding with his ex-girlfriend regarding a child deduction, and a $1,728 bank debt of unknown origin.

Other debts included a $6,857 truck loan balance, an $1,842 delinquent cell phone bill, a $1,673 bounced check from 2006, and an unspecified utility bill from 2007. Additionally, he faced a $450 collection agency debt of unknown origin and a $12,558 loan taken in 2010, which he used for an employment agency and Christmas gifts.

The applicant successfully mitigated these concerns by satisfying seven of the nine listed debts, with most resolved in February 2015. For the remaining debts, he established payment plans, including $515 monthly for the tax delinquency since January 2014 and $500 monthly for the 2010 loan since April 2014, reducing its balance to $9,500. He also developed a money management plan with a credit repair agency, demonstrating responsible financial management.

Why the Applicant Prevailed

Applicant satisfied seven out of nine debts listed in the SOR.
He has been making significant monthly payments on the remaining debts for over 11 months.
Applicant developed a money management plan with a credit repair agency.

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(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
AG ¶ 20(c)appliedReceived or Is Receiving Counseling for the Problem
AG ¶ 20(d)appliedInitiated a Good-faith Effort to Repay Overdue Creditors

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 issuedApr 25, 2014
Answer filedMay 14, 2014Applicant admitted all allegations.
Hearing heldFeb 5, 2015Held via video-teleconference.
Decision dateMar 6, 2015

Cite For

Mitigation of Financial Concerns Under Guideline F
Successful Demonstration of Financial Responsibility
Application of Whole-person Concept 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	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	a utility bill stemming from an account that his ex-girlfriend opened in his name without his knowledge. It totals $1,503. Applicant satisfied the bill on February 13, 2015. $1,503	For Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (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	Credited Debt Paid in Full
1.b	a federal income tax delinquency for tax years 2006 through 2009 totaling approximately $41,130. Applicant incurred this delinquency because, unbeknownst to him, his ex-girlfriend was claiming a deduction for their son every year when they had agreed that they would claim him on their respective income taxes in alternate years. Applicant consulted a tax debt resolution company who helped him negotiate a $14,000 reduction in the delinquency and organize a payment plan for the remainder. Applicant has been paying $515 per month, as planned, since January 2014. $41,130	For Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (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	Credited Payment Plan with IRS
1.c	totals $1,728 and is owed to a bank. Applicant does not know the origin of this debt. After trying unsuccessfully for approximately two years to get more information about the debt, Applicant satisfied it in February 2015. $1,728	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (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	Credited Debt Paid in Full
1.d	the balance of a truck loan, totaling $6,857, that Applicant owed to the dealer after his truck was totalled in a car accident. Applicant paid the debt in full in February 2015. $6,857	For Applicant	Auto Loan Debt	Admitted	(a) inability to satisfy debts (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	Credited Debt Paid in Full
1.e	a delinquent cell phone bill totaling $1,842. Applicant satisfied the debt in February 2015. $1,842	For Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (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	Credited Debt Paid in Full
1.f	for a bounced check from 2006. It totals $1,673. With the help of a credit repair agency, Applicant identified the debt and paid it in February 2015. $1,673	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (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	Credited Debt Paid in Full
1.g	totals $450 and is owed to a collection agency. Applicant has not been able to ascertain its origin. $450	For Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	a loan totaling $12,558. Applicant borrowed this money after he quit his job in 2010, and used the money primarily to retain an employment agency to help him find a job and to purchase Christmas gifts. In April 2014, Applicant contacted the collection agent and negotiated an agreement to satisfy this debt through $500 monthly payments. Per the creditor, Applicant has been paying the debt, as agreed, and he has reduced the balance to $9,500. $12,558	For Applicant	Personal Loan Debt	Admitted	(a) inability to satisfy debts (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	Credited Payment Plan with Creditor
1.i	a utility bill. It became delinquent in October 2007. Applicant paid this account in February 2015.	For Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (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	Credited Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

a utility bill stemming from an account that his ex-girlfriend opened in his name without his knowledge. It totals $1,503. Applicant satisfied the bill on February 13, 2015.

$1,503

For Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(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

Credited

Debt Paid in Full

1.b

a federal income tax delinquency for tax years 2006 through 2009 totaling approximately $41,130. Applicant incurred this delinquency because, unbeknownst to him, his ex-girlfriend was claiming a deduction for their son every year when they had agreed that they would claim him on their respective income taxes in alternate years. Applicant consulted a tax debt resolution company who helped him negotiate a $14,000 reduction in the delinquency and organize a payment plan for the remainder. Applicant has been paying $515 per month, as planned, since January 2014.

$41,130

For Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(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

Credited

Payment Plan with IRS

1.c

totals $1,728 and is owed to a bank. Applicant does not know the origin of this debt. After trying unsuccessfully for approximately two years to get more information about the debt, Applicant satisfied it in February 2015.

$1,728

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(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

Credited

Debt Paid in Full

1.d

the balance of a truck loan, totaling $6,857, that Applicant owed to the dealer after his truck was totalled in a car accident. Applicant paid the debt in full in February 2015.

$6,857

For Applicant

Auto Loan Debt

Admitted

(a) inability to satisfy debts

(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

Credited

Debt Paid in Full

1.e

a delinquent cell phone bill totaling $1,842. Applicant satisfied the debt in February 2015.

$1,842

For Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(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

Credited

Debt Paid in Full

1.f

for a bounced check from 2006. It totals $1,673. With the help of a credit repair agency, Applicant identified the debt and paid it in February 2015.

$1,673

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(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

Credited

Debt Paid in Full

1.g

totals $450 and is owed to a collection agency. Applicant has not been able to ascertain its origin.

$450

For Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

a loan totaling $12,558. Applicant borrowed this money after he quit his job in 2010, and used the money primarily to retain an employment agency to help him find a job and to purchase Christmas gifts. In April 2014, Applicant contacted the collection agent and negotiated an agreement to satisfy this debt through $500 monthly payments. Per the creditor, Applicant has been paying the debt, as agreed, and he has reduced the balance to $9,500.

$12,558

For Applicant

Personal Loan Debt

Admitted

(a) inability to satisfy debts

(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

Credited

Payment Plan with Creditor

1.i

a utility bill. It became delinquent in October 2007. Applicant paid this account in February 2015.

For Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(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

Credited

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

FOOTNOTES