ISCR Case 12-09720.h1

Case Headnote

ISCR Case No. 12-09720.h1

grantedMar 9, 2016· Hon. LeRoy F. Foreman· hearing

Summary

A 29-year-old pipefitter employed by a defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) highlighted multiple delinquent debts and a failure to file income tax returns between 2009 and 2011.

Specific allegations included two medical debts, both listed with a date of last activity in October 2008. One debt, for $314, was identified as "Collection/Attorney fees" and noted as disputed by the consumer. The other, for $85, was also categorized as "Collection/Attorney fees." Disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a), ¶ 19(c), and ¶ 19(g) were raised.

However, the judge applied mitigating conditions under AG ¶ 20(b), ¶ 20(c), and ¶ 20(d). The applicant resolved most of the delinquent debts prior to the hearing and demonstrated responsible financial behavior, including purchasing a home and maintaining stable employment. The applicant's candor and credibility during the hearing further supported the decision to grant the security clearance.

Why the Applicant Prevailed

The applicant resolved most of the delinquent debts alleged in the SOR before the hearing.
The applicant demonstrated responsible financial behavior by purchasing a home and maintaining employment.
The applicant was candid and credible during the hearing.

Conditions Referenced

Disqualifying

AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
AG ¶ 19(g)rejectedFailure to File Annual Federal, State, or Local Income Tax Returns as RequiredThe applicant was not required to file returns for 2009 through 2011.

Mitigating

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 ControlThere are clear indications that the applicant's financial problems have been resolved.
AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant paid off several debts alleged in the SOR.
AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant voluntarily quit his job in 2007, leading to periods of unemployment.

Key Rule Quoted

“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”

Procedural Posture

SOR issuedAug 26, 2015
Answer filedSep 14, 2015
Hearing heldDec 16, 2015
Decision dateMar 9, 2016

Cite For

Resolution of Delinquent Debts Under Guideline F
Consideration of the Whole-person Concept in Security Clearance Decisions
Impact of Financial Responsibility on 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.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a–1.b	2 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant			—	—	—
1.c	The SOR and GX 4 identify the debt alleged in SOR ¶ 1.c as “medical” and list the first three numbers of a seven-number account. GX 4 reflects that the date of last activity was October 2008, the balance due is $314. The “type of loan” is listed as “Collection/Attorney fees.” There is one comment below the partial account number stating: “Outstanding balance; consumer disputes this account; medical.” There is no name, address, or phone number listed for either the original creditor or the collection agency. The CBR does not reflect the basis for the dispute or when it was filed. $314	For Applicant	Medical Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	The SOR and GX 4 identify the debt alleged in SOR ¶ 1.d as “medical” and list the first three numbers of a seven-number account. GX 4 reflects that the date of last activity was October 2008, and the balance due is $85. The “type of loan” is listed as “Collection/Attorney fees.” The only comment is “Outstanding balance; medical.” $85	For Applicant	Medical Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e–1.h	4 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant			—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a–1.b

2 sub-charges — specific text not stated in this decision (for the applicant).

For Applicant

—

1.c

The SOR and GX 4 identify the debt alleged in SOR ¶ 1.c as “medical” and list the first three numbers of a seven-number account. GX 4 reflects that the date of last activity was October 2008, the balance due is $314. The “type of loan” is listed as “Collection/Attorney fees.” There is one comment below the partial account number stating: “Outstanding balance; consumer disputes this account; medical.” There is no name, address, or phone number listed for either the original creditor or the collection agency. The CBR does not reflect the basis for the dispute or when it was filed.

$314

For Applicant

Medical Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

The SOR and GX 4 identify the debt alleged in SOR ¶ 1.d as “medical” and list the first three numbers of a seven-number account. GX 4 reflects that the date of last activity was October 2008, and the balance due is $85. The “type of loan” is listed as “Collection/Attorney fees.” The only comment is “Outstanding balance; medical.”

$85

For Applicant

Medical Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e–1.h

4 sub-charges — specific text not stated in this decision (for the applicant).

For Applicant

—

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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