ISCR Case 14-02972.h1

Case Headnote

ISCR Case No. 14-02972.h1

grantedMay 22, 2015· Hon. Richard A. Cefola· hearing

Summary

A 44-year-old aircraft electrician was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The allegations stemmed from a divorce, which led to several financial issues. Specifically, the applicant was indebted to Creditor A for approximately $10,599, which he settled for $7,565 and paid. He also had a past-due mortgage debt of about $4,737 with Creditor B, but was current on his payments at the time of review. A small debt of about $27 to Creditor C was also alleged, which the applicant testified he had paid, and it no longer appeared on his credit report.

Additionally, the applicant failed to file federal and state income taxes for tax year 2011, admitting he had prepared but forgotten to mail the returns. Disqualifying conditions under Guideline F, specifically AG ¶ 19(a), AG ¶ 19(c), and AG ¶ 19(g), were initially raised.

However, the applicant successfully mitigated these concerns by demonstrating responsible financial behavior. He settled past-due debts, provided evidence of current financial stability, and filed the overdue tax returns, showing a good-faith effort to resolve his obligations. The judge applied mitigating conditions AG ¶ 20(b) and AG ¶ 20(d), concluding that the financial difficulties were largely attributable to his divorce, a factor considered beyond his control. Based on the whole-person concept, the applicant was granted eligibility for a security clearance.

Why the Applicant Prevailed

The applicant settled past-due debts and provided evidence of current financial stability.
He attributed his financial difficulties to a divorce, which was considered beyond his control.
The applicant filed overdue tax returns and demonstrated a good-faith effort to resolve his financial obligations.

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)raisedFailure to File Annual Federal, State . . . Income Tax Returns as Required

Mitigating

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

Key Rule Quoted

“The administrative judge’s over-arching adjudicative goal is a fair, impartial and commonsense decision.”

Procedural Posture

SOR issuedSep 5, 2014
Answer filedOct 1, 2014
Hearing heldApr 9, 2015
Decision dateMay 22, 2015

Cite For

Mitigation of Financial Issues Due to Divorce Under Guideline F
Good-faith Efforts to Resolve Debts as a Mitigating Factor
Whole-person Concept in Security Clearance Evaluations

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	It is alleged that Applicant is indebted to Creditor A for a past-due debt in the amount of about $10,599. He settled this debt for $7,565, and has paid said amount. $10,599	For Applicant	Unspecified Financial	Admitted	—	—	—
1.b	It is alleged that Applicant is indebted to Creditor B for a past-due mortgage debt in the amount of about $4,737. He is current with his mortgage. $4,737	For Applicant	Mortgage or Home Loan Debt	Admitted	—	—	—
1.c	It is alleged that Applicant is indebted to Creditor C for a past-due debt in the amount of about $27. He testified that he has paid this very small debt, which does not appear on the Government’s most recent April 2015 credit report. $27	For Applicant	Unspecified Financial	Admitted	—	—	—
1.d	It is alleged that Applicant failed to file and/or pay his Federal income taxes for tax year 2011. He admits that he simply forgot to mail this return, which he had prepared.	For Applicant	Tax Filing Failure	Admitted	—	—	—
1.e	It is alleged that Applicant failed to file and/or pay his state income taxes for tax year 2011. He again admits that he simply forgot to mail this return, which he had prepared.	For Applicant	Tax Filing Failure	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

It is alleged that Applicant is indebted to Creditor A for a past-due debt in the amount of about $10,599. He settled this debt for $7,565, and has paid said amount.

$10,599

For Applicant

Unspecified Financial

Admitted

—

1.b

It is alleged that Applicant is indebted to Creditor B for a past-due mortgage debt in the amount of about $4,737. He is current with his mortgage.

$4,737

For Applicant

Mortgage or Home Loan Debt

Admitted

—

1.c

It is alleged that Applicant is indebted to Creditor C for a past-due debt in the amount of about $27. He testified that he has paid this very small debt, which does not appear on the Government’s most recent April 2015 credit report.

$27

For Applicant

Unspecified Financial

Admitted

—

1.d

It is alleged that Applicant failed to file and/or pay his Federal income taxes for tax year 2011. He admits that he simply forgot to mail this return, which he had prepared.

For Applicant

Tax Filing Failure

Admitted

—

1.e

It is alleged that Applicant failed to file and/or pay his state income taxes for tax year 2011. He again admits that he simply forgot to mail this return, which he had prepared.

For Applicant

Tax Filing Failure

Admitted

—

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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

FORMAL FINDINGS

CONCLUSION