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ISCR Case 12-06569.h1 — CASE

ISCR Case 12-06569.h1granted

Case Headnote

ISCR Case No. 12-06569.h1

grantedOct 2, 2015· Hon. Richard A. Cefola· hearing

Summary

A 35-year-old defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons cited three financial allegations. The applicant denied a past-due debt of approximately $189 to Creditor A, providing evidence that this debt was paid in full. He admitted to owing Creditor B about $9,473 for current college tuition, for which he established a payment plan, making an initial $1,000 payment and subsequent monthly payments of $150. Additionally, he admitted to a past tuition debt of approximately $1,901 to Creditor C, which he has since made current.

The Disqualifying Conditions F.19.a and F.19.c were raised, but the judge applied Mitigating Conditions F.20.b and F.20.d. The applicant attributed his financial difficulties to the death of his high school sweetheart, a circumstance deemed beyond his control.

He demonstrated a good-faith effort to resolve his debts, including setting up a payment plan for his current tuition. The judge found that the applicant is now living within his means and maintains a positive monthly cash flow, ultimately mitigating the financial concerns. The security clearance was granted.

Why the Applicant Prevailed

The applicant attributed his financial difficulties to the death of his high school sweetheart, which was considered beyond his control.
He demonstrated a good-faith effort to repay debts, including a payment plan for current tuition obligations.
The applicant is now living within his means and has a positive monthly cash flow.

Conditions Referenced

Disqualifying

F.19.araisedInability or Unwillingness to Satisfy Debts
F.19.craisedA History of Not Meeting Financial Obligations

Mitigating

F.20.bappliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
F.20.dappliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“The ultimate determination of whether to grant eligibility for a security clearance must be an overall commonsense judgment based upon careful consideration of the guidelines and the whole-person concept.”

Procedural Posture

SOR issuedJan 7, 2015
Answer filedFeb 21, 2015
Hearing heldJun 3, 2015
Decision dateOct 2, 2015

Cite For

Mitigating Conditions Under Guideline F Related to Financial Difficulties Due to Circumstances Beyond Control
Good-faith Efforts to Resolve Financial Obligations
Whole-person Concept in Evaluating 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.

Standardized Decision Profile

SEAD-4 Guideline F · descriptive summary of a decided case

Posture: Decision on RecordDecided: granted

The judge found that the applicant had financial concerns under Guideline F but determined that these concerns were mitigated. The applicant demonstrated a good-faith effort to address his debts and attributed his financial difficulties to circumstances beyond his control, leading to a decision in favor of granting the security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant denies that he is indebted to Creditor A for a past-due debt in the amount of about $189. This debt is “paid in full,” as evidenced by correspondence from Creditor A’s successor to this debt. $189	For Applicant	Unspecified Financial	Denied	—	—	—
1.b	Applicant admits that he is indebted to Creditor B, for past tuition at his current college, in the amount of about $9,473. He has set up a payment plan with his college by which he made an initial payment of $1,000, and is making monthly payments of $150. $9,473	For Applicant	Unspecified Financial	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.c	Applicant admits that he was indebted to Creditor C, his college, for past tuition in the amount of about $1,901. He is now current with this tuition as evidenced by correspondence from his college. $1,901	For Applicant	Unspecified Financial	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full

Descriptive standardized rendering of a decided public case (Guideline F). The verbatim source decision is shown in full below.

Full decision

The complete, official text — footnotes and signatures included — is in the original PDF.

Decision text, by section

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

DEPARTMENT OF DEFENSE DEFENSE OFFICE OF HEARINGS AND APPEALS

In the matter of: ) ) ) ISCR Case No. 12-06569 ) ) Applicant for Security Clearance )

For Government: Jeff Nagel, Esquire, Department Counsel For Applicant: Pro se

October 2, 2015

______________

STATEMENT OF CASE

______________

CEFOLA, Richard A., Administrative Judge:

Applicant submitted his Electronic Questionnaires for Investigations Processing (e-QIP) on February 17, 2012. On January 7, 2015, the Department of Defense (DOD) issued a Statement of Reasons (SOR) detailing the security concerns under Guideline F for Applicant. The action was taken under Executive Order 10865, Safeguarding Classified Information Within Industry (February 20, 1960), as amended; Department of Defense Directive 5220.6, Defense Industrial Personnel Security Clearance Review Program (January 2, 1992), as amended (Directive); and the adjudicative guidelines (AG), effective within the Department of Defense after September 1, 2006.

Applicant acknowledged receipt of the SOR on February 3, 2015. He answered the SOR in writing (Answer) on February 21, 2015, and requested a hearing before an Administrative Judge. The Defense Office of Hearings and Appeals (DOHA) received the request soon thereafter, and I received the case assignment on May 4, 2015. DOHA issued a notice of hearing on May 5, 2015, and I convened the hearing as scheduled on June 3, 2015. The Government offered Exhibits (GXs) 1 through 4, which were received without objection. Applicant testified on his own behalf and submitted Exhibits (AppXs) A and B, which were received without objection. DOHA received the transcript of the hearing (TR) on June 11, 2015. I granted Applicant’s request to keep the record open until July 6, 2015, to submit additional matters. On June 15, 2015, he submitted Exhibit C, which was received without objection. The record closed on July 6, 2015. Based upon a review of the pleadings, exhibits, and testimony, eligibility for access to classified information is granted.

FINDINGS OF FACT

In his Answer to the SOR, Applicant admitted the factual allegations in Subparagraphs 1.b. and 1.c. of the SOR, with explanations. He denied the factual allegations in Subparagraph 1.a. of the SOR. He also provided additional information to support his request for eligibility for a security clearance.

Guideline F - Financial Considerations

Applicant is a 35 year old, and has been working for a defense contractor “for 15 years.” (TR at page 20 line 3 to page 22 line 25.) This is his first time applying for a security clearance. (Id.) About ten years ago, he lost “his high school sweetheart . . . [to] cancer.” (TR at page 23 lines 1–15.) He attributes the alleged financial difficulties to her death; as he dropped out of college, and two of the three allegations relate to his college debt. (TR at page 20 line 3 to page 23 line 15.) He has now returned to college, lives within his means, and has a positive monthly cash flow. (Id, and TR at page 34 line 16 to page 35 line 19.)

1.a. Applicant denies that he is indebted to Creditor A for a past-due debt in the amount of about $189. This debt is “paid in full,” as evidenced by correspondence from Creditor A’s successor to this debt. (TR at page 23 line 16 to page 25 line 3, and Answer at pages 2–5.)

1.b. Applicant admits that he is indebted to Creditor B, for past tuition at his current college, in the amount of about $9,473. He has set up a payment plan with his college by which he made an initial payment of $1,000, and is making monthly payments of $150. (TR at page 25 line 4 to page 29 line 23.) This is evidenced by correspondence from his college. (AppX A.) I find this to be a good-faith effort to address this debt.

1.c. Applicant admits that he was indebted to Creditor C, his college, for past tuition in the amount of about $1,901. He is now current with this tuition as evidenced by correspondence from his college. (TR at page 30 line 12 to page 31 line 21, at page 36 line 2 to page 37 line 12, AppX A at pages 7–8, and AppX B.)

POLICIES

When evaluating an applicant’s suitability for a security clearance, the administrative judge must consider the adjudicative guidelines (AG). In addition to brief introductory explanations for each guideline, the adjudicative guidelines list potentially disqualifying conditions and mitigating conditions, which are useful in evaluating an applicant’s eligibility for access to classified information.

These guidelines are not inflexible rules of law. Instead, recognizing the complexities of human behavior, these guidelines are applied in conjunction with the factors listed in the adjudicative process. The administrative judge’s over-arching adjudicative goal is a fair, impartial and commonsense decision. According to AG Paragraph 2(c), the entire process is a conscientious scrutiny of a number of variables known as the “whole-person concept.” The administrative judge must consider all available, reliable information about the person, past and present, favorable and unfavorable, in making a decision.

The protection of the national security is the paramount consideration. Paragraph 2(b) requires that “[a]ny doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.” In reaching this decision, I have drawn only those conclusions that are reasonable, logical and based on the evidence contained in the record. Likewise, I have avoided drawing inferences grounded on mere speculation or conjecture.

Under Directive Paragraph E3.1.14, the Government must present evidence to establish controverted facts alleged in the SOR. Under Directive Paragraph E3.1.15, the applicant is responsible for presenting “witnesses and other evidence to rebut, explain, extenuate, or mitigate facts admitted by applicant or proven by Department Counsel. . . .” The applicant has the ultimate burden of persuasion as to obtaining a favorable security decision.

A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence. This relationship transcends normal duty hours and endures throughout off-duty hours. The Government reposes a high degree of trust and confidence in individuals to whom it grants access to classified information. Decisions include, by necessity, consideration of the possible risk the Applicant may deliberately or inadvertently fail to protect or safeguard classified information. Such decisions entail a certain degree of legally permissible extrapolation as to potential, rather than actual, risk of compromise of classified information.

Section 7 of Executive Order 10865 provides that decisions shall be “in terms of the national interest and shall in no sense be a determination as to the loyalty of the applicant concerned.” See also EO 12968, Section 3.1(b) (listing multiple prerequisites for access to classified or sensitive information).

ANALYSIS

Guideline F - Financial Considerations

The security concern relating to the guideline for Financial Considerations is set out in Paragraph 18:

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. An individual who is financially overextended is at risk of having to engage in illegal acts to generate funds.

The guideline notes several conditions that could raise security concerns. Under Subparagraph 19(a), an “inability or unwillingness to satisfy debts@ is potentially disqualifying. Similarly under Subparagraph 19(c), “a history of not meeting financial obligations@ may raise security concerns. Applicant has had difficulty meeting his financial obligations. However, I find two countervailing Mitigating Conditions that are applicable here. Under Subparagraph 20(b), it may be mitigating where “the conditions that resulted in the financial problem were largely beyond the person’s control (e.g. . . . a death . . . ), and the individual acted responsibly under the circumstances.” Applicant’s past-due indebtedness is directly attributed to his “sweetheart’s” dying from cancer. Under Subparagraph 20(d), it may also be mitigating where “the individual initiated a good-faith effort to repay overdue creditors or otherwise resolve debts.” Applicant has made a good-faith effort to resolve all of the alleged past-due debts.

Under the whole-person concept, the administrative judge must evaluate an applicant’s eligibility for a security clearance by considering the totality of Applicant’s conduct and all the circumstances. Under Paragraph 2(c), the ultimate determination of whether to grant eligibility for a security clearance must be an overall commonsense judgment based upon careful consideration of the guidelines and the whole-person concept.

The administrative judge should also consider the nine adjudicative process factors listed at AG Paragraph 2(a):

(1) the nature, extent, and seriousness of the conduct; (2) the circumstances surrounding the conduct, to include knowledgeable participation; (3) the frequency and recency of the conduct; (4) the individual’s age and maturity at the time of the conduct; (5) the extent to which participation is voluntary; (6) the presence or absence of rehabilitation and other permanent behavioral changes; (7) the motivation for the conduct; (8) the potential for pressure, coercion, exploitation, or duress; and (9) the likelihood of continuation or recurrence. I considered all of the evidence, including the potentially disqualifying and mitigating conditions surrounding this case. Applicant is well thought of in the workplace. (AppX C.) The record evidence leaves me without questions and doubts as to Applicant’s eligibility and suitability for a security clearance. For this reason, I conclude Applicant has mitigated the security concerns arising from his Financial Considerations, under the whole-person concept.

FORMAL FINDINGS

Formal findings for or against Applicant on the allegations set forth in the SOR, as required by section E3.1.25 of Enclosure 3 of the Directive, are:

Paragraph 1, Guideline F: FOR APPLICANT

Subparagraph 1.a. For Applicant

Subparagraph 1.b. For Applicant

Subparagraph 1.c. For Applicant

CONCLUSION

In light of all of the circumstances presented by the record in this case, it is clearly consistent with the national interest to grant Applicant eligibility for a security clearance. Eligibility for access to classified information is granted.

Richard A. Cefola Administrative Judge