ISCR Case 13-00090.h1

Case Headnote

ISCR Case No. 13-00090.h1

deniedSep 12, 2013· Hon. Martin H. Mogul· hearing

Summary

A 48-year-old former U.S. Air Force member was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial difficulties. The Statement of Reasons (SOR) detailed multiple overdue debts, including amounts of $14,000, $11,585, $2,185, $601, $18,394, $64,153, $1,000, and $57,689. The applicant testified that most of these debts remained unpaid. One $100 debt was claimed paid without a receipt, and a $2,100 debt was identified as a duplicate of another listed. The applicant also disputed the validity of the $57,689 debt and stated that a $601 debt was for an unsolicited credit card.

Additionally, the SOR noted a Chapter 7 bankruptcy filed in July 1996 and discharged in October 1996. While the applicant had made nine monthly payments of $55 toward a $64,153 education loan, stating it was no longer in default, the judge found insufficient evidence of responsible financial management overall.

Despite presenting character witnesses and a history of honorable service, the applicant failed to resolve the majority of her debts and did not demonstrate a good-faith effort to address her financial obligations. This led to the denial of eligibility for access to classified information, as it raised significant concerns about her reliability and trustworthiness.

Why the Applicant Was Denied

The applicant failed to resolve the majority of her debts, including a dismissed bankruptcy that could have provided relief.
The applicant did not demonstrate a good-faith effort to address her financial obligations, which raised significant concerns about her reliability and trustworthiness.

Conditions Referenced

Disqualifying

AG ¶ 19 (a)appliedInability or Unwillingness to Satisfy Debts
AG ¶ 19 (c)appliedHistory of Not Meeting Financial Obligations

Mitigating

AG ¶ 20 (b)rejectedConditions Beyond ControlThe applicant did not act responsibly under the circumstances as she dismissed her bankruptcy.
AG ¶ 20 (d)rejectedGood-faith Effort to Resolve DebtsThe applicant has not initiated a good-faith effort to resolve her debts.

Key Rule Quoted

“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”

Procedural Posture

SOR issuedFeb 28, 2013
Answer filedMar 26, 2013
Hearing heldJun 5, 2013
Decision dateSep 12, 2013

Cite For

Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
Importance of Demonstrating Good-faith Efforts to Resolve Debts
Impact of Financial Irresponsibility 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	This overdue debt is cited in the SOR in the amount of $14,000. Applicant testified that this debt has not been paid. $14,000	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	This overdue debt is cited in the SOR in the amount of $100. Applicant testified that this debt has been paid, but she did not have a receipt from the creditor. $100	For Applicant	Unspecified Financial	Admitted	—	—	—
1.c	This overdue debt is cited in the SOR in the amount of $11,585. Applicant testified that this debt has not been paid. $11,585	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	This overdue debt is cited in the SOR in the amount of $2,185. Applicant testified that this debt has not been paid. $2,185	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	This overdue debt is cited in the SOR in the amount of $601. Applicant testified that this debt was for the fees charged for a credit card that she had not requested and was not aware she had received. $601	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	This overdue debt is cited in the SOR in the amount of $18,394. Applicant testified that this debt for tuition for a private school program that her son attended has not been paid. $18,394	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	This overdue debt is cited in the SOR in the amount of $64,153. Applicant testified that she has made nine monthly payments of $55 toward this debt for her education loans, and that the debt is now no longer considered in default. $64,153	For Applicant	Student Loan Debt	Unknown	—	—	—
1.h	This overdue debt is cited in the SOR in the amount of $1,000. Applicant testified that this debt has not been paid. $1,000	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	This overdue debt is cited in the SOR in the amount of $57,689. Applicant testified that she does not believe that this is a valid debt. $57,689	For Applicant	Unspecified Financial	Unknown	—	—	—
1.j	This overdue debt is cited in the SOR in the amount of $2,100. Applicant testified that this debt is the same one as listed as 1.d. $2,100	For Applicant	Unspecified Financial	Unknown	—	—	—
1.k	Applicant filed a Chapter 7 bankruptcy on or about July 1, 1996. This bankruptcy was discharged on October 7, 1996.	For Applicant	Bankruptcy Filing	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

This overdue debt is cited in the SOR in the amount of $14,000. Applicant testified that this debt has not been paid.

$14,000

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

This overdue debt is cited in the SOR in the amount of $100. Applicant testified that this debt has been paid, but she did not have a receipt from the creditor.

$100

For Applicant

Unspecified Financial

Admitted

—

1.c

This overdue debt is cited in the SOR in the amount of $11,585. Applicant testified that this debt has not been paid.

$11,585

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

This overdue debt is cited in the SOR in the amount of $2,185. Applicant testified that this debt has not been paid.

$2,185

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

This overdue debt is cited in the SOR in the amount of $601. Applicant testified that this debt was for the fees charged for a credit card that she had not requested and was not aware she had received.

$601

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

This overdue debt is cited in the SOR in the amount of $18,394. Applicant testified that this debt for tuition for a private school program that her son attended has not been paid.

$18,394

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

This overdue debt is cited in the SOR in the amount of $64,153. Applicant testified that she has made nine monthly payments of $55 toward this debt for her education loans, and that the debt is now no longer considered in default.

$64,153

For Applicant

Student Loan Debt

Unknown

—

1.h

This overdue debt is cited in the SOR in the amount of $1,000. Applicant testified that this debt has not been paid.

$1,000

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i

This overdue debt is cited in the SOR in the amount of $57,689. Applicant testified that she does not believe that this is a valid debt.

$57,689

For Applicant

Unspecified Financial

Unknown

—

1.j

This overdue debt is cited in the SOR in the amount of $2,100. Applicant testified that this debt is the same one as listed as 1.d.

$2,100

For Applicant

Unspecified Financial

Unknown

—

1.k

Applicant filed a Chapter 7 bankruptcy on or about July 1, 1996. This bankruptcy was discharged on October 7, 1996.

For Applicant

Bankruptcy Filing

Admitted

—

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Case Profile

Summary

Why the Applicant Was Denied

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