ISCR Case 12-08683.h1

Case Headnote

ISCR Case No. 12-08683.h1

grantedJan 21, 2016· Hon. Noreen A. Lynch· hearing

Summary

A 67-year-old communications coordinator with three master's degrees was granted a security clearance despite initial concerns under Guideline F (Financial Considerations) regarding approximately $90,000 in delinquent debt. The Statement of Reasons detailed several specific allegations. One debt of $26,277 was taken over by another creditor, and the applicant's attorney informed him that the related court case was dismissed in October 2014. A separate allegation for $23,838 was determined to be a duplicate of the $26,277 account.

Another collection account for $15,194 was sold to a different creditor for $7,596, and the judgment case was dismissed in January 2015. For a $7,618 collection account, the applicant provided documentation showing he settled the debt for $4,000. Two other collection accounts, for $2,641 and $16,342, were maintained by the applicant as being owed to the same credit card, with the latter resulting in a judgment.

The clearance was granted because the applicant successfully demonstrated that he had resolved or was in the process of resolving his debts through settlements, payments, and dismissals of court cases. He also showed a stable financial situation, evidenced by a credit score above 600 and no new debts. His age, military service, and long-term employment were positive factors in the overall assessment.

Why the Applicant Prevailed

The applicant provided evidence of resolving or settling his debts, including documentation of payments and dismissals of court cases.
He demonstrated a stable financial situation with a current credit score above 600 and no new debts incurred.
The applicant's age, military service, and long-term employment contributed positively to the whole-person assessment.

Conditions Referenced

Disqualifying

FC DC AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
FC DC AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations

Mitigating

FC MC AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good Judgment
FC MC AG ¶ 20(b)appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person’s Control
FC MC AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
FC MC AG ¶ 20(c)appliedThe 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

Key Rule Quoted

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

Procedural Posture

SOR issuedApr 26, 2015
Answer filed—Timely answered the SOR.
Hearing heldDec 8, 2015Hearing conducted.
Decision dateJan 21, 2016

Cite For

Demonstrating Resolution of Financial Obligations Under Guideline F
Application of Mitigating Conditions for Financial Difficulties
Whole-person Assessment in Security Clearance Determinations

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	As to SOR allegation 1.a for an amount of $26,277, the debt was taken over by another creditor. Applicant states he went to court in October 2014 and was informed by his attorney that the case was dismissed. $26,277	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(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
1.b	As to the debt in 1.b for an amount of $23,838, Applicant states that this is the same account described in 1.a. The Government agrees that these accounts are duplicates. $23,838	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	—
1.c	As to the debt in 1.c for a collection account in the amount of $15,194, Applicant stated that this account was also sold to another creditor for $7,596 and when he went to court in January 2015, the judgment case was dismissed. $15,194	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(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
1.d	As to the debt in 1.d for a collection account in the amount of $7,618, Applicant presented documentation that he settled the debt for $4,000. $7,618	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(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
1.e	As to the debt in 1.e for a collection account in the amount of $2,641, and 1.f for $16,342, Applicant maintains that they are owed to the same credit card. $2,641	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	—
1.f	As to the collection account in 1.f for $16,342, Applicant stated that the collection account resulted in a judgment. $16,342	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

As to SOR allegation 1.a for an amount of $26,277, the debt was taken over by another creditor. Applicant states he went to court in October 2014 and was informed by his attorney that the case was dismissed.

$26,277

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(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

1.b

As to the debt in 1.b for an amount of $23,838, Applicant states that this is the same account described in 1.a. The Government agrees that these accounts are duplicates.

$23,838

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

—

1.c

As to the debt in 1.c for a collection account in the amount of $15,194, Applicant stated that this account was also sold to another creditor for $7,596 and when he went to court in January 2015, the judgment case was dismissed.

$15,194

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(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

1.d

As to the debt in 1.d for a collection account in the amount of $7,618, Applicant presented documentation that he settled the debt for $4,000.

$7,618

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(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

1.e

As to the debt in 1.e for a collection account in the amount of $2,641, and 1.f for $16,342, Applicant maintains that they are owed to the same credit card.

$2,641

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

—

1.f

As to the collection account in 1.f for $16,342, Applicant stated that the collection account resulted in a judgment.

$16,342

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

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

—

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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