ISCR Case 14-04210.h1

Case Headnote

ISCR Case No. 14-04210.h1

grantedJul 21, 2015· Hon. Wilford H. Ross· hearing

Summary

A 52-year-old defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant faced allegations regarding multiple delinquent debts totaling approximately $20,398. These included several credit card debts, three medical bills, and an unpaid federal tax debt from 2011.

The applicant successfully addressed most of the financial concerns. He admitted to several credit card debts, providing evidence that he paid some in full in September 2014 and January 2015. He also demonstrated that other credit card debts were duplicates that he subsequently satisfied. The applicant denied owing three $100 medical bills, stating he found no record of them. Furthermore, he admitted to an unpaid federal tax debt, but later provided evidence that he had paid it off and received a tax refund.

The judge determined that the applicant had resolved most of his delinquent debts, demonstrating responsible financial behavior. The applicant also successfully disputed several medical debts with supporting evidence. The decision noted that some financial difficulties were attributed to circumstances beyond his control, such as the 2009 market crisis. Ultimately, the judge concluded that the applicant's financial issues were largely resolved and did not undermine his reliability, leading to the grant of his security clearance.

Why the Applicant Prevailed

The applicant resolved most of his delinquent debts, demonstrating responsible financial behavior.
The applicant disputed several medical debts, providing evidence that supported his claims.
The applicant's financial difficulties were largely due to circumstances beyond his control, such as the 2009 market crisis.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(a)appliedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to Recur
AG ¶ 20(b)appliedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
AG ¶ 20(d)appliedInitiated a Good-faith Effort to Repay Overdue Creditors or Resolve Debts
AG ¶ 20(e)appliedIndividual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
AG ¶ 20(c)appliedClear Indications That the Problem Is Being Resolved or Is Under Control

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedDec 24, 2014
Answer filedJan 19, 2015
Hearing held—Decision made without a hearing.
Decision dateJul 21, 2015

Cite For

Mitigating Conditions Under Guideline F for Resolved Financial Issues
Disputing the Legitimacy of Debts as a Mitigating Factor
Consideration of Circumstances Beyond the Applicant's Control Affecting Financial Stability

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	Applicant admits owing this past-due debt for a credit card in the amount of $3,461. He further submits that this debt was sold to another lender, and that it is a duplicate of allegation 1.i. $3,461	For Applicant	Credit Card Debt	Admitted	—	—	—
1.b	Applicant admits owing this past-due debt in the amount of $1,099. He submitted evidence showing that he paid this debt in full to the successor in interest in January 2015. $1,099	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full
1.c	Applicant admits owing this past-due debt for a credit card in the amount of $1,116. He further submits that this debt was sold to another lender, and that it is a duplicate of allegation 1.j. $1,116	For Applicant	Credit Card Debt	Admitted	—	—	—
1.d	Applicant admits owing this past-due debt in the amount of $4,010. He submitted evidence showing that he paid this debt in full to the successor in interest in September 2014. $4,010	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full
1.e	Applicant admits owing this past-due debt in the amount of $1,216. He further submits that this debt was sold to another lender, and that it is a duplicate of allegation 1.k. $1,216	For Applicant	Credit Card Debt	Admitted	—	—	—
1.f	Applicant denies owing a past-due medical bill in the amount of $100. In his Statement he says: I refute or find no record in the Equifax Credit Report or my personal documentation of a Medical Debt . . . in the amount of $100.00. $100	For Applicant	Medical Debt	Denied	—	—	—
1.g	Applicant denies owing a past-due medical bill in the amount of $100. In his Statement he says: I refute or find no record in the Equifax Credit Report or my personal documentation of a Medical Debt . . . in the amount of $100.00. $100	For Applicant	Medical Debt	Denied	—	—	—
1.h	Applicant denies owing a past-due medical bill in the amount of $100. In his Statement he says: I refute or find no record in the Equifax Credit Report or my personal documentation of a Medical Debt . . . in the amount of $100.00. $100	For Applicant	Medical Debt	Denied	—	—	—
1.i	As stated, Applicant admits owing this past-due debt in the amount of $4,400, which is a duplicate of allegation 1.a. He submitted evidence showing that he satisfied this debt in full to the successor in interest in January 2015. $4,400	For Applicant	Credit Card Debt	Admitted	—	—	Documented Debt Paid in Full
1.j	As stated, Applicant admits owing this past-due debt in the amount of $2,693, which is a duplicate of allegation 1.c. He submitted evidence showing that he satisfied this debt in full to the successor in interest in January 2015. $2,693	For Applicant	Credit Card Debt	Admitted	—	—	Documented Debt Paid in Full
1.k	As stated, Applicant admits owing this past-due debt in the amount of $1,553, which is a duplicate of allegation 1.e. He submitted evidence showing that he satisfied this debt in full to the successor in interest in January 2015. $1,553	For Applicant	Credit Card Debt	Admitted	—	—	Documented Debt Paid in Full
1.l	Applicant admitted that he had an unpaid Federal tax debt for tax year 2011. In his e-QIP Applicant stated that he owed the Government approximately $3,600 and was paying it off at the rate of $288 a month. In his Answer and Statement Applicant states that he paid this debt off and received a tax refund for the year 2013. $3,600	For Applicant	Tax Unpaid	Admitted	—	—	Documented Debt Paid in Full

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant admits owing this past-due debt for a credit card in the amount of $3,461. He further submits that this debt was sold to another lender, and that it is a duplicate of allegation 1.i.

$3,461

For Applicant

Credit Card Debt

Admitted

—

1.b

Applicant admits owing this past-due debt in the amount of $1,099. He submitted evidence showing that he paid this debt in full to the successor in interest in January 2015.

$1,099

For Applicant

Unspecified Financial

Admitted

—

Documented

Debt Paid in Full

1.c

Applicant admits owing this past-due debt for a credit card in the amount of $1,116. He further submits that this debt was sold to another lender, and that it is a duplicate of allegation 1.j.

$1,116

For Applicant

Credit Card Debt

Admitted

—

1.d

Applicant admits owing this past-due debt in the amount of $4,010. He submitted evidence showing that he paid this debt in full to the successor in interest in September 2014.

$4,010

For Applicant

Unspecified Financial

Admitted

—

Documented

Debt Paid in Full

1.e

Applicant admits owing this past-due debt in the amount of $1,216. He further submits that this debt was sold to another lender, and that it is a duplicate of allegation 1.k.

$1,216

For Applicant

Credit Card Debt

Admitted

—

1.f

Applicant denies owing a past-due medical bill in the amount of $100. In his Statement he says: I refute or find no record in the Equifax Credit Report or my personal documentation of a Medical Debt . . . in the amount of $100.00.

$100

For Applicant

Medical Debt

Denied

—

1.g

$100

For Applicant

Medical Debt

Denied

—

1.h

$100

For Applicant

Medical Debt

Denied

—

1.i

As stated, Applicant admits owing this past-due debt in the amount of $4,400, which is a duplicate of allegation 1.a. He submitted evidence showing that he satisfied this debt in full to the successor in interest in January 2015.

$4,400

For Applicant

Credit Card Debt

Admitted

—

Documented

Debt Paid in Full

1.j

As stated, Applicant admits owing this past-due debt in the amount of $2,693, which is a duplicate of allegation 1.c. He submitted evidence showing that he satisfied this debt in full to the successor in interest in January 2015.

$2,693

For Applicant

Credit Card Debt

Admitted

—

Documented

Debt Paid in Full

1.k

As stated, Applicant admits owing this past-due debt in the amount of $1,553, which is a duplicate of allegation 1.e. He submitted evidence showing that he satisfied this debt in full to the successor in interest in January 2015.

$1,553

For Applicant

Credit Card Debt

Admitted

—

Documented

Debt Paid in Full

1.l

Applicant admitted that he had an unpaid Federal tax debt for tax year 2011. In his e-QIP Applicant stated that he owed the Government approximately $3,600 and was paying it off at the rate of $288 a month. In his Answer and Statement Applicant states that he paid this debt off and received a tax refund for the year 2013.

$3,600

For Applicant

Tax Unpaid

Admitted

—

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

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES