ISCR Case 12-07158.h1

Case Headnote

ISCR Case No. 12-07158.h1

deniedJul 23, 2013· Hon. Carol G. Ricciardello· hearing

Summary

A 34-year-old applicant with a high school education and an associate's degree was denied a security clearance due to concerns under Guideline F (Financial Considerations) and Guideline J (Criminal Conduct). The applicant had 21 delinquent debts totaling approximately $37,000, including a personal loan judgment, six medical debts, and student loan debt. Despite hiring a credit consolidation attorney in March 2013 to develop a repayment plan, no evidence of financial counseling or resolution of the remaining debts was provided.

The applicant also had a history of criminal conduct. This included a 2001 conviction for theft by receiving stolen property, resulting in a $400 fine and 12 months probation, and a 2001 conviction for defaulting on a furniture credit contract, leading to a $400 fine and 12 months probation. Additionally, the applicant faced multiple driving-related charges, including a dismissed charge for leaving the scene of an accident in 2004, and several charges for driving on a suspended license between 2010 and 2011, some of which were reduced but resulted in fines and probation. An aggravated assault charge from 2010 was dismissed.

The judge found that the applicant failed to mitigate these financial and criminal conduct concerns, specifically noting the inability or unwillingness to pay delinquent debts and a pattern of unreliable conduct indicated by the criminal history. The lack of evidence for financial counseling or good-faith debt repayment efforts contributed to the denial of the security clearance.

Why the Applicant Was Denied

Applicant has 21 delinquent debts totaling approximately $37,000, which he is unable or unwilling to pay.
Applicant has a history of criminal charges, including theft and multiple driving on a suspended license offenses, indicating a pattern of unreliable conduct.
Applicant did not provide evidence of financial counseling or a good-faith effort to repay his debts.

Conditions Referenced

Disqualifying

AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
AG ¶ 31(a)appliedA Single Serious Crime or Multiple Lesser Offenses
AG ¶ 31(c)appliedAllegation or Admission of Criminal Conduct

Mitigating

AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlApplicant's unemployment contributed to his financial issues, but he did not act responsibly to address his debts.
AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemApplicant did not provide evidence of receiving financial counseling.
AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant has not initiated a good-faith effort to repay his delinquent debts.

Key Rule Quoted

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

Procedural Posture

SOR issuedApr 1, 2013
Answer filedUndated
Hearing heldJul 9, 2013via video teleconference
Decision dateJul 23, 2013

Cite For

Failure to Mitigate Financial Obligations Under Guideline F
Pattern of Criminal Conduct Affecting Reliability Under Guideline J
Consideration of the 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	The $4,757 judgment in SOR ¶ 1.a (duplicate in ¶ 1.j) is for a personal loan. $4,757	Against Applicant	Personal Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	Applicant has 21 delinquent debts totaling approximately $37,000. $37,000	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	Applicant has six medical debts.	Against Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	Applicant believes he currently owes $22,000 for his student loans. $22,000	Against Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	Applicant did not provide an actual balance owed from the creditor.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	None of the remaining alleged debts are paid or resolved.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	Applicant hired a credit consolidation attorney in March 2013.	Against Applicant	Unspecified Financial	Admitted	—	—	Claimed Other
1.h	The attorney is to contact Applicant’s creditors and develop a monthly repayment plan to resolve his delinquent debts.	Against Applicant	Unspecified Financial	Admitted	—	—	Claimed Other
1.i	Applicant did not provide evidence that he is receiving financial counseling.	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.j–1.v	13 sub-charges — specific text not stated in this decision (12 against, 1 for the applicant). (low confidence)	Mixed			—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The $4,757 judgment in SOR ¶ 1.a (duplicate in ¶ 1.j) is for a personal loan.

$4,757

Against Applicant

Personal Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

Applicant has 21 delinquent debts totaling approximately $37,000.

$37,000

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

Applicant has six medical debts.

Against Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

Applicant believes he currently owes $22,000 for his student loans.

$22,000

Against Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

Applicant did not provide an actual balance owed from the creditor.

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

None of the remaining alleged debts are paid or resolved.

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

Applicant hired a credit consolidation attorney in March 2013.

Against Applicant

Unspecified Financial

Admitted

—

Claimed

Other

1.h

The attorney is to contact Applicant’s creditors and develop a monthly repayment plan to resolve his delinquent debts.

Against Applicant

Unspecified Financial

Admitted

—

Claimed

Other

1.i

Applicant did not provide evidence that he is receiving financial counseling.

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.j–1.v

13 sub-charges — specific text not stated in this decision (12 against, 1 for the applicant). (low confidence)

Mixed

—

¶	Allegation	Finding	Offense	Criminal disposition	Response	Disqualifying (¶31)	Mitigating applied (¶32)	Mitigation
2.a	Applicant was charged with criminal trespass in 1998. It was a dispute with a person he believed stole his dog. He was acquitted of the charge.	For Applicant	Trespassing or Burglary	Acquitted or Found Not Guilty	Denied	—	—	—
2.b	Applicant was found guilty in March 2001 of two counts of theft by receiving stolen property. He purchased video equipment from a friend and later learned it was stolen. He was sentenced to pay a $400 fine and 12 months of probation.	Against Applicant	Theft or Larceny	Convicted	Denied	(a) pattern of minor offenses casting doubt on judgment/reliability	—	—
2.c	In December 2001, he purchased furniture on credit. He moved and later defaulted on the contract. The furniture was repossessed. Applicant was found guilty of destruction, removal, concealment, encumbrance, transfer of property subject to a security interest. He was fined $400 and sentenced to 12 months probation.	Against Applicant	Theft or Larceny	Convicted	Denied	(a) pattern of minor offenses casting doubt on judgment/reliability	—	—
2.d	In April 2004, Applicant had a car accident. He waited for the police to arrive, but later left the scene and walked to his house. He then called the police again. He was charged with duty of driver to stop at or return to the scene, which was later dismissed.	For Applicant	Unspecified Criminal Conduct	Dismissed or Nolle Prossed	Denied	—	—	—
2.e	Applicant was charged in July 2010 with driving on a suspended license. He paid a $729 fine. Court documents verify the original charge and sentence. Applicant disputes the conviction, stating the charge was dropped because he was not given notice of the suspension. He did not provide proof of the reduction of the charge.	Against Applicant	Traffic Offense Pattern	Convicted	Denied	(a) pattern of minor offenses casting doubt on judgment/reliability	—	—
2.f	Applicant was charged in August 2010 with four counts of driving on a suspended license. The charges were reduced to driving without a license on his person. He was found guilty of the reduced counts and paid a $450 fine and was given 12 months probation.	Against Applicant	Traffic Offense Pattern	Convicted	Denied	(a) pattern of minor offenses casting doubt on judgment/reliability	—	—
2.g	In November 2010, Applicant and his wife were having a loud discussion. She attempted to leave and he got in her car. There was some type of altercation. He was arrested for aggravated assault, a felony, and driving with a suspended license. The aggravated assault charge was dismissed.	For Applicant	Assault or Battery	Dismissed or Nolle Prossed	Denied	—	—	—
2.h	Applicant was charged with driving on a suspended license in September 2011. He was convicted and was fined $67.	Against Applicant	Traffic Offense Pattern	Convicted	Denied	(a) pattern of minor offenses casting doubt on judgment/reliability	—	—
2.i	Applicant was charged with driving on a suspended license and failure to have insurance in November 2011. The charges were reduced to no proof of insurance and driving without a license on his person. He was fined $450 and $700 respectively. He paid the fine.	Against Applicant	Traffic Offense Pattern	Convicted	Denied	(a) pattern of minor offenses casting doubt on judgment/reliability	—	—

Allegation

Finding

Offense

Criminal disposition

Response

Disqualifying (¶31)

Mitigating applied (¶32)

Mitigation

2.a

Applicant was charged with criminal trespass in 1998. It was a dispute with a person he believed stole his dog. He was acquitted of the charge.

For Applicant

Trespassing or Burglary

Acquitted or Found Not Guilty

Denied

—

2.b

Applicant was found guilty in March 2001 of two counts of theft by receiving stolen property. He purchased video equipment from a friend and later learned it was stolen. He was sentenced to pay a $400 fine and 12 months of probation.

Against Applicant

Theft or Larceny

Convicted

Denied

(a) pattern of minor offenses casting doubt on judgment/reliability

—

2.c

In December 2001, he purchased furniture on credit. He moved and later defaulted on the contract. The furniture was repossessed. Applicant was found guilty of destruction, removal, concealment, encumbrance, transfer of property subject to a security interest. He was fined $400 and sentenced to 12 months probation.

Against Applicant

Theft or Larceny

Convicted

Denied

(a) pattern of minor offenses casting doubt on judgment/reliability

—

2.d

In April 2004, Applicant had a car accident. He waited for the police to arrive, but later left the scene and walked to his house. He then called the police again. He was charged with duty of driver to stop at or return to the scene, which was later dismissed.

For Applicant

Unspecified Criminal Conduct

Dismissed or Nolle Prossed

Denied

—

2.e

Applicant was charged in July 2010 with driving on a suspended license. He paid a $729 fine. Court documents verify the original charge and sentence. Applicant disputes the conviction, stating the charge was dropped because he was not given notice of the suspension. He did not provide proof of the reduction of the charge.

Against Applicant

Traffic Offense Pattern

Convicted

Denied

(a) pattern of minor offenses casting doubt on judgment/reliability

—

2.f

Applicant was charged in August 2010 with four counts of driving on a suspended license. The charges were reduced to driving without a license on his person. He was found guilty of the reduced counts and paid a $450 fine and was given 12 months probation.

Against Applicant

Traffic Offense Pattern

Convicted

Denied

(a) pattern of minor offenses casting doubt on judgment/reliability

—

2.g

In November 2010, Applicant and his wife were having a loud discussion. She attempted to leave and he got in her car. There was some type of altercation. He was arrested for aggravated assault, a felony, and driving with a suspended license. The aggravated assault charge was dismissed.

For Applicant

Assault or Battery

Dismissed or Nolle Prossed

Denied

—

2.h

Applicant was charged with driving on a suspended license in September 2011. He was convicted and was fined $67.

Against Applicant

Traffic Offense Pattern

Convicted

Denied

(a) pattern of minor offenses casting doubt on judgment/reliability

—

2.i

Applicant was charged with driving on a suspended license and failure to have insurance in November 2011. The charges were reduced to no proof of insurance and driving without a license on his person. He was fined $450 and $700 respectively. He paid the fine.

Against Applicant

Traffic Offense Pattern

Convicted

Denied

(a) pattern of minor offenses casting doubt on judgment/reliability

—

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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