ISCR Case 14-01702.h1

Case Headnote

ISCR Case No. 14-01702.h1

deniedOct 13, 2015· Hon. Shari Dam· hearing

Summary

A 44-year-old defense contractor was denied a security clearance due to financial considerations under Guideline F. The applicant had a history of financial delinquencies, including a Chapter 13 bankruptcy and 11 unresolved debts totaling $21,265.

Specific concerns included a $580 credit card debt for which the applicant claimed to have made a July 2014 payment but provided no proof, leaving the debt unverified as resolved. Another $1,555 debt owed to a former landlord was also unresolved, as the applicant stated an agreement for three payments starting September 2014 but submitted no proof of any payments. Additionally, a $701 debt was claimed by the applicant to be resolved via four payments made in 2013, but no proof was supplied, and it remained unresolved despite not appearing on a July 2014 credit report.

While two debts, a $2,362 debt and another $701 debt, were confirmed as paid or settled, the applicant failed to provide sufficient documentation for the majority of his outstanding financial obligations. The applicant's financial problems were not considered beyond his control, and he did not present credible evidence of rehabilitation, leading to the denial of his security clearance.

Why the Applicant Was Denied

The applicant has a history of financial delinquencies, including a Chapter 13 bankruptcy and 11 unresolved debts totaling $21,265.
The applicant failed to provide sufficient documentation to demonstrate that the majority of his debts were resolved or under control.
The applicant's financial problems were not deemed to be beyond his control, and he did not present credible evidence of rehabilitation.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant provided evidence of resolving 2 of the 11 SOR-listed 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 issuedJun 16, 2014
Answer filedAugust 7 and 14, 2014
Hearing held—Decided on the written record without a hearing.
Decision dateOct 13, 2015

Cite For

Denial of Security Clearance Due to Unresolved Financial Obligations
Importance of Providing Documentation to Support Claims of Debt Resolution
Consideration of the Whole-person Concept in Financial Cases

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 $580 debt is a credit card debt. Applicant said he agreed to make two payments of $159.23, one in July and one in August 2014. At the time of his Answer, he said he made the July payment, but did not supply proof of payment. The debt does not appear on the February 2015 CBR. (Item 9.) There is insufficient proof verifying that the debt is paid and resolved. $580	Against Applicant	Credit Card Debt	Admitted	—	—	—
1.d	The $2,362 debt was paid and resolved. The July 2014 CBR states that debt was settled for less than the full amount. (Item 3 at 35.) $2,362	For Applicant	Unspecified Financial	Unknown	—	(d) good-faith effort to repay or otherwise resolve debts	—
1.e	Applicant stated that he agreed to resolve the $1,555 debt owed to a former landlord with three payments of $244.84, the first payment starting in September 2014. (Item 3 at 15.) Applicant did not submit proof of any payments. The debt is unresolved. $1,555	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.i	Applicant denied the $701 debt owed to a creditor because he said he settled the account. The July 2014 CBR states that the account was disputed and is resolved. (Item 3 at 33.) $701	For Applicant	Unspecified Financial	Unknown	—	(d) good-faith effort to repay or otherwise resolve debts	—
1.j	Applicant said he resolved the $701 debt owed to a creditor with four payments he made in 2013, and noted that it is not on his July 2014 CBR. (Item 3.) He did not supply proof of the payments. It was listed on the May 2010 CBR. It is unresolved. $701	Against Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

This $580 debt is a credit card debt. Applicant said he agreed to make two payments of $159.23, one in July and one in August 2014. At the time of his Answer, he said he made the July payment, but did not supply proof of payment. The debt does not appear on the February 2015 CBR. (Item 9.) There is insufficient proof verifying that the debt is paid and resolved.

$580

Against Applicant

Credit Card Debt

Admitted

—

1.d

The $2,362 debt was paid and resolved. The July 2014 CBR states that debt was settled for less than the full amount. (Item 3 at 35.)

$2,362

For Applicant

Unspecified Financial

Unknown

—

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

—

1.e

Applicant stated that he agreed to resolve the $1,555 debt owed to a former landlord with three payments of $244.84, the first payment starting in September 2014. (Item 3 at 15.) Applicant did not submit proof of any payments. The debt is unresolved.

$1,555

Against Applicant

Unspecified Financial

Admitted

—

1.i

Applicant denied the $701 debt owed to a creditor because he said he settled the account. The July 2014 CBR states that the account was disputed and is resolved. (Item 3 at 33.)

$701

For Applicant

Unspecified Financial

Unknown

—

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

—

1.j

Applicant said he resolved the $701 debt owed to a creditor with four payments he made in 2013, and noted that it is not on his July 2014 CBR. (Item 3.) He did not supply proof of the payments. It was listed on the May 2010 CBR. It is unresolved.

$701

Against Applicant

Unspecified Financial

Unknown

—

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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

FOOTNOTES