ISCR Case 12-09497.h1

Case Headnote

ISCR Case No. 12-09497.h1

grantedMay 25, 2016· Hon. Gregg A. Cervi· hearing

Summary

A 50-year-old defense contractor was granted a security clearance despite initial concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons detailed several financial allegations, including a state tax lien from 2011, which the applicant provided evidence to show was satisfied and released. Another debt was also shown to be paid in full.

For other debts, the applicant demonstrated active efforts toward resolution. He made a $200 payment toward one debt in October 2015 and claimed ongoing $50 monthly payments. For another, he reported a $60 payment and ongoing discussions with the creditor. He also established an oral agreement for $20 monthly payments on a separate debt, making two payments in November 2015 and intending to use his 2016 tax refund for full payoff.

The judge found that the applicant successfully mitigated the concerns by demonstrating a clear intent and significant action to resolve his outstanding debts, reducing his overall indebtedness from approximately $22,000 to about $3,500 in undisputed debts. His financial problems were largely attributed to circumstances beyond his control, including issues related to his ex-spouse's responsibilities. The applicant's responsible financial management led to the security clearance being granted.

Why the Applicant Prevailed

The applicant demonstrated a clear intent to resolve outstanding debts and took significant action to address financial issues.
He reduced his overall indebtedness from approximately $22,000 to about $3,500 of undisputed debts.
The applicant's financial problems were largely due to circumstances beyond his control, including issues related to his ex-spouse's responsibilities.

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(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem
AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control

Key Rule Quoted

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

Procedural Posture

SOR issuedSep 5, 2015
Answer filedSep 21, 2015
Hearing heldMar 24, 2016
Decision dateMay 25, 2016

Cite For

Mitigation of Financial Considerations Under Guideline F
Resolution of Personal Conduct Issues Under Guideline E
Whole-person Analysis 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	Conduct	Concealed Issue	Response	Disqualifying (¶16)	Mitigating applied (¶17)	Mitigation
2.a	specific text not stated in this decision	For Applicant	Omission or Failure to Disclose	Financial	Denied	—	(a) prompt, good-faith correction before being confronted (b) omission/refusal followed advice of counsel; later cooperated fully (c) offense is minor, long ago, infrequent, or unique circumstances (d) acknowledged the behavior; counseling/positive steps taken (e) positive steps to reduce vulnerability to exploitation	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

specific text not stated in this decision

For Applicant

Omission or Failure to Disclose

Financial

Denied

—

(a) prompt, good-faith correction before being confronted

(b) omission/refusal followed advice of counsel; later cooperated fully

(c) offense is minor, long ago, infrequent, or unique circumstances

(d) acknowledged the behavior; counseling/positive steps taken

(e) positive steps to reduce vulnerability to exploitation

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant has shown a payment of $200 in October 2015 toward the debt in SOR ¶ 1.a, although he claimed that he has paid $570 and tries to make a $50 payment each month. $200	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.i	Applicant claimed that he paid $60 toward the debt in SOR ¶ 1.i, and that he was talking further with the creditor regarding its final resolution. $60	For Applicant	Unspecified Financial	Admitted	—	—	Claimed Debt Paid in Full
1.ll	Applicant stated he had an oral agreement to pay $20 per-month toward SOR ¶ 1.ll, and that he made two payments in November 2015 toward this debt, and intends to apply his 2016 tax refund to pay off the entire debt.	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.bb	SOR ¶ 1.bb is a state tax lien, entered in 2011. Applicant provided evidence with his Answer to show that the taxes have been satisfied and the lien released. This debt is resolved.	For Applicant	Tax Unpaid	Admitted	—	—	Documented Debt Paid in Full
1.ii	Applicant provided evidence showing he paid the debt in SOR ¶ 1.ii. This account is satisfied.	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant has shown a payment of $200 in October 2015 toward the debt in SOR ¶ 1.a, although he claimed that he has paid $570 and tries to make a $50 payment each month.

$200

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Debt Paid in Full

1.i

Applicant claimed that he paid $60 toward the debt in SOR ¶ 1.i, and that he was talking further with the creditor regarding its final resolution.

$60

For Applicant

Unspecified Financial

Admitted

—

Claimed

Debt Paid in Full

1.ll

Applicant stated he had an oral agreement to pay $20 per-month toward SOR ¶ 1.ll, and that he made two payments in November 2015 toward this debt, and intends to apply his 2016 tax refund to pay off the entire debt.

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Payment Plan with Creditor

1.bb

SOR ¶ 1.bb is a state tax lien, entered in 2011. Applicant provided evidence with his Answer to show that the taxes have been satisfied and the lien released. This debt is resolved.

For Applicant

Tax Unpaid

Admitted

—

Documented

Debt Paid in Full

1.ii

Applicant provided evidence showing he paid the debt in SOR ¶ 1.ii. This account is satisfied.

For Applicant

Unspecified Financial

Admitted

—

Documented

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

CONCLUSION

FOOTNOTES