ISCR Case 12-07447.h1

Case Headnote

ISCR Case No. 12-07447.h1

grantedNov 26, 2013· Hon. Shari Dam· hearing

Summary

A 51-year-old former U.S. Army soldier and law enforcement officer was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons detailed several financial issues, including an $18,000 tax debt to the IRS, which the applicant stated had a current balance of $25,000. He began making automatic monthly payments of $300 in September 2013, with two payments made by the hearing date.

Other debts included a $1,621 judgment to a condominium association, paid in June 2012; a $287 utility debt, paid in September 2013; and a $361 cable company debt, paid in October 2013. A $1,383 credit card debt was settled for $750 and paid in October 2013. A $4,763 car loan debt, delinquent since July 2011 due to a voluntary repossession, remained unresolved.

The judge found that the applicant had taken significant steps to mitigate these concerns. He established a repayment plan for his tax liability and provided evidence of payments made on several other delinquent debts. The financial difficulties were attributed partly to circumstances beyond his control, such as unemployment and medical issues. Ultimately, the applicant demonstrated improved financial management and a credible commitment to resolving his debts, leading to the granting of his security clearance.

Why the Applicant Prevailed

The applicant demonstrated a credible commitment to resolving his financial issues through a repayment plan for his tax liability.
He provided evidence of payments made towards several delinquent debts, showing responsible financial behavior.
The circumstances leading to his financial difficulties were largely beyond his control, including unemployment and medical issues.

Conditions Referenced

Disqualifying

F.1.araisedInability or Unwillingness to Satisfy Debts
F.1.craisedA History of Not Meeting Financial Obligations

Mitigating

F.2.aappliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
F.2.bappliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
F.2.cappliedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
F.2.dappliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
— AG ¶ 2(b)

Procedural Posture

SOR issuedMar 13, 2013
Answer filedMar 20, 2013Applicant initially waived hearing rights.
Hearing heldOct 30, 2013Hearing rescheduled due to government shutdown.
Decision dateNov 26, 2013

Cite For

Mitigation of Financial Issues 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	The $18,000 debt is owed to the Internal Revenue Service (IRS) for taxes related to monies removed from Applicant’s pension. Applicant stated the current balance is $25,000. In September 2013 he began making automatic monthly payments of $300 from his bank account. He has made two payments as of the date of the hearing. He would have started payments sooner but did not have enough money until he obtained his full-time position in September 2013. The debt is slowly being resolved. $25,000	For Applicant	Tax Unpaid	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with IRS
1.b	The $1,621 judgment owed to a condominium association was paid on June 14, 2012. $1,621	For Applicant	Judgment Against Applicant	Admitted	—	—	Documented Debt Paid in Full
1.c	The $287 debt owed to a utility company was paid on September 20, 2013. $287	For Applicant	Utility or Phone Debt	Admitted	—	—	Documented Debt Paid in Full
1.d	The $361 debt owed to a cable company was paid on October 9, 2013. $361	For Applicant	Utility or Phone Debt	Admitted	—	—	Documented Debt Paid in Full
1.e	The $1,383 debt owed to a credit card company was settled for $750 and paid on October 7, 2013. $1,383	For Applicant	Credit Card Debt	Admitted	—	—	Documented Debt Paid in Full
1.f	This $4,763 debt became delinquent in July 2011 when Applicant was unable to pay his car loan, resulting in a voluntary repossession. He has not had sufficient money to resolve this to date. $4,763	For Applicant	Auto Loan Debt	Admitted	—	—	Claimed Other

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The $18,000 debt is owed to the Internal Revenue Service (IRS) for taxes related to monies removed from Applicant’s pension. Applicant stated the current balance is $25,000. In September 2013 he began making automatic monthly payments of $300 from his bank account. He has made two payments as of the date of the hearing. He would have started payments sooner but did not have enough money until he obtained his full-time position in September 2013. The debt is slowly being resolved.

$25,000

For Applicant

Tax Unpaid

Admitted

—

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

Documented

Payment Plan with IRS

1.b

The $1,621 judgment owed to a condominium association was paid on June 14, 2012.

$1,621

For Applicant

Judgment Against Applicant

Admitted

—

Documented

Debt Paid in Full

1.c

The $287 debt owed to a utility company was paid on September 20, 2013.

$287

For Applicant

Utility or Phone Debt

Admitted

—

Documented

Debt Paid in Full

1.d

The $361 debt owed to a cable company was paid on October 9, 2013.

$361

For Applicant

Utility or Phone Debt

Admitted

—

Documented

Debt Paid in Full

1.e

The $1,383 debt owed to a credit card company was settled for $750 and paid on October 7, 2013.

$1,383

For Applicant

Credit Card Debt

Admitted

—

Documented

Debt Paid in Full

1.f

This $4,763 debt became delinquent in July 2011 when Applicant was unable to pay his car loan, resulting in a voluntary repossession. He has not had sufficient money to resolve this to date.

$4,763

For Applicant

Auto Loan Debt

Admitted

—

Claimed

Other

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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