ISCR Case 12-11683.h1

Case Headnote

ISCR Case No. 12-11683.h1

grantedJun 27, 2014· Hon. Darlene Lokey Anderson· hearing

Summary

This case concerns a 51-year-old married male with a Master's Degree in Criminal Justice who sought a security clearance under Guideline F (Financial Considerations). The applicant faced allegations of financial issues, including $15,000 in back taxes for 2007, reduced to about $4,000 under a payment plan, and $4,000 owed in county property taxes. Other debts included a $7,850 second home loan, a $40,000 home equity line of credit, and a mortgage account 120 days past due with an approximate amount of $2,412 and a balance of $409,397.00. Debts to a bank for a delinquent credit card ($3,212) and a cellular telephone company ($276) were discharged in bankruptcy.

Disqualifying conditions 19(a) and 19(c) were raised, but mitigating conditions 20(b), 20(c), and 20(d) were applied. The judge found that the applicant's financial problems were largely beyond his control, stemming from unexpected medical emergencies and job loss.

The applicant demonstrated significant efforts to resolve his debts, including filing for bankruptcy and hiring a financial advisor. He showed evidence of financial rehabilitation and a commitment to living within his means. Based on these factors, the security clearance was GRANTED.

Why the Applicant Prevailed

The applicant demonstrated that his financial issues were largely due to circumstances beyond his control, including health problems and job loss.
He took proactive steps to address his financial situation, including hiring a financial advisor and filing for bankruptcy.
The applicant showed evidence of financial rehabilitation and a commitment to living within his means.

Conditions Referenced

Disqualifying

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

Mitigating

20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
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
20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“The adjudicative process is the careful weighing of a number of variables known as the whole-person concept.”

Procedural Posture

SOR issuedFeb 19, 2014
Answer filedMar 10, 2014
Hearing heldMay 15, 2014
Decision dateJun 27, 2014

Cite For

Mitigating Conditions Under Guideline F Due to Circumstances Beyond Control
Good-faith Efforts to Resolve Financial Issues
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–1.b	2 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant			—	—	—
1.c	Applicant originally owed $15,000 in back taxes for tax year 2007 to the Internal Revenue Service. He has since set up a payment plan that he is following. He has reduced the debt to about $4,000. $4,000	For Applicant	Tax Unpaid	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(b) conditions largely beyond the person’s control; acted responsibly (c) received/receiving counseling; problem being resolved (d) good-faith effort to repay or otherwise resolve debts	Documented Payment Plan with Creditor
1.d	Applicant owes $4,000 to a county in unpaid property taxes. $4,000	For Applicant	Tax Unpaid	Unknown	(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	Claimed Payment Plan with Creditor
1.e	Applicant explained that this debt owed to a bank for a delinquent credit card in the amount of $3,212 was discharged in the bankruptcy. $3,212	For Applicant	Credit Card Debt	Unknown	—	—	—
1.f	Applicant is indebted to a bank for a second on his home loan in the amount of $7,850. $7,850	For Applicant	Mortgage or Home Loan Debt	Unknown	—	—	Claimed Payment Plan with Creditor
1.g	Applicant is indebted to a bank for a home equity line of credit in the amount of $40,000. $40,000	For Applicant	Mortgage or Home Loan Debt	Unknown	—	—	Claimed Payment Plan with Creditor
1.h	Applicant explained that this debt owed to a cellular telephone company in the amount of $276 was discharged in the bankruptcy. $276	For Applicant	Utility or Phone Debt	Unknown	—	—	—
1.i	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—
1.j	Applicant was indebted to a mortgage company for an account that was 120 days past due in the approximate amount of $2,412 with a balance of $409,397.00. $2,412	For Applicant	Mortgage or Home Loan Debt	Unknown	—	—	Documented Debt Paid in Full

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

Applicant originally owed $15,000 in back taxes for tax year 2007 to the Internal Revenue Service. He has since set up a payment plan that he is following. He has reduced the debt to about $4,000.

$4,000

For Applicant

Tax Unpaid

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

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

(c) received/receiving counseling; problem being resolved

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

Documented

Payment Plan with Creditor

1.d

Applicant owes $4,000 to a county in unpaid property taxes.

$4,000

For Applicant

Tax Unpaid

Unknown

(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

Claimed

Payment Plan with Creditor

1.e

Applicant explained that this debt owed to a bank for a delinquent credit card in the amount of $3,212 was discharged in the bankruptcy.

$3,212

For Applicant

Credit Card Debt

Unknown

—

1.f

Applicant is indebted to a bank for a second on his home loan in the amount of $7,850.

$7,850

For Applicant

Mortgage or Home Loan Debt

Unknown

—

Claimed

Payment Plan with Creditor

1.g

Applicant is indebted to a bank for a home equity line of credit in the amount of $40,000.

$40,000

For Applicant

Mortgage or Home Loan Debt

Unknown

—

Claimed

Payment Plan with Creditor

1.h

Applicant explained that this debt owed to a cellular telephone company in the amount of $276 was discharged in the bankruptcy.

$276

For Applicant

Utility or Phone Debt

Unknown

—

1.i

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

1.j

Applicant was indebted to a mortgage company for an account that was 120 days past due in the approximate amount of $2,412 with a balance of $409,397.00.

$2,412

For Applicant

Mortgage or Home Loan Debt

Unknown

—

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

CONCLUSION

FORMAL FINDINGS

DECISION