ISCR Case 14-04304.h1

Case Headnote

ISCR Case No. 14-04304.h1

grantedOct 9, 2015· Hon. Mary E. Henry· hearing

Summary

A 44-year-old manager for a Department of Defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) detailed several financial allegations, including a $3,802 debt for college classes, a $2,203 credit card debt, and a $565 debt which the applicant claimed to have paid. Additionally, a tax lien filed by the IRS on December 16, 2013, was released on November 12, 2014, indicating payment. The applicant also denied knowledge of a $2,041 debt, which was not present on his 2014 credit report.

The judge found that the applicant had taken significant steps to resolve his financial obligations. This included the payment of the tax lien and a credit card debt. While some debts lacked full documentation of resolution, the applicant demonstrated a credible plan for managing his remaining financial responsibilities.

Ultimately, the decision to grant the clearance was based on the applicant's proactive efforts to resolve a significant portion of his debts, the finding that some financial issues stemmed from circumstances beyond his control (such as a foreclosure), and his demonstrated credible plan for managing future obligations, supported by a history of timely bill payments.

Why the Applicant Prevailed

The applicant resolved or is in the process of resolving a significant portion of his debts, including a tax lien and a credit card debt.
The applicant's financial issues were largely due to circumstances beyond his control, such as a foreclosure.
The applicant demonstrated a credible plan to manage his remaining debts and has a history of timely bill payments.

Conditions Referenced

Disqualifying

F.1.araisedInability or Unwillingness to Satisfy Debts
F.1.craisedA History of Not Meeting Financial Obligations

Mitigating

F.2.brejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant did not indicate that any circumstances beyond his control created his debts.
F.2.cappliedThe 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 ControlThe applicant paid his tax debt, and the IRS released its lien less than one year after filing it.
F.2.dappliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant has shown that he paid or resolved $5,643 of the $12,213 in debt alleged after the SOR was amended.
F.2.eappliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant disputed a debt that no longer appears on his credit report.

Key Rule Quoted

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

Procedural Posture

SOR issuedFeb 7, 2015
Answer filedMar 13, 2015Requested a decision on the written record.
Hearing held—No hearing; decision based on written record.
Decision dateOct 9, 2015

Cite For

Mitigation of Financial Issues Under Guideline F
Consideration of the Whole-person Concept in Security Clearance Decisions
Evidence of Debt Resolution as a Factor in Granting Security Clearance

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 admitted SOR allegation 1.a ($3,802). He enrolled in college classes, which he understood his employer had paid. Due to his work schedule, he was unable to continue with the classes. He later learned that he had incurred a debt for these classes. He advised that he developed a payment plan, but he did not provide a copy of the plan or of his payments made under the plan. $3,802	For Applicant	Personal Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(c) received/receiving counseling; problem being resolved	—
1.b	He also admitted the $2,203 credit card debt in SOR allegation 1.b. He believes that this debt was included in his foreclosure. He has not provided any documentation supporting his position that this credit card debt was included in his foreclosure. $2,203	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	Applicant denied owing the $565 debt in SOR allegation 1.c, indicating that he paid this debt. He did not provide any documentation showing that this debt is resolved. $565	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	The lien filings documentation shows that the IRS filed a tax lien on December 16, 2013. The same document shows that the IRS released the lien on November 12, 2014. The IRS will release a lien when a debt is paid. The release of the lien by the IRS supports an indication that he tax debt is paid as Applicant stated. $3,402	For Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(c) received/receiving counseling; problem being resolved	—
1.e	He denied any knowledge of the $2,041 debt in SOR allegation 1.e. The debt did not appear on the credit report he reviewed (not in the record), although it is shown on the Government’s credit report dated September 4, 2013. This credit report reflects that Applicant disputed this debt, which has a date of last activity in 2007. The result of his dispute is unknown; however, this debt is not shown on his 2014 credit report. $2,041	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(e) reasonable, documented basis to dispute the debt	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant admitted SOR allegation 1.a ($3,802). He enrolled in college classes, which he understood his employer had paid. Due to his work schedule, he was unable to continue with the classes. He later learned that he had incurred a debt for these classes. He advised that he developed a payment plan, but he did not provide a copy of the plan or of his payments made under the plan.

$3,802

For Applicant

Personal Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(c) received/receiving counseling; problem being resolved

—

1.b

He also admitted the $2,203 credit card debt in SOR allegation 1.b. He believes that this debt was included in his foreclosure. He has not provided any documentation supporting his position that this credit card debt was included in his foreclosure.

$2,203

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

Applicant denied owing the $565 debt in SOR allegation 1.c, indicating that he paid this debt. He did not provide any documentation showing that this debt is resolved.

$565

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

The lien filings documentation shows that the IRS filed a tax lien on December 16, 2013. The same document shows that the IRS released the lien on November 12, 2014. The IRS will release a lien when a debt is paid. The release of the lien by the IRS supports an indication that he tax debt is paid as Applicant stated.

$3,402

For Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(c) received/receiving counseling; problem being resolved

—

1.e

He denied any knowledge of the $2,041 debt in SOR allegation 1.e. The debt did not appear on the credit report he reviewed (not in the record), although it is shown on the Government’s credit report dated September 4, 2013. This credit report reflects that Applicant disputed this debt, which has a date of last activity in 2007. The result of his dispute is unknown; however, this debt is not shown on his 2014 credit report.

$2,041

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(e) reasonable, documented basis to dispute the debt

—

Loading case…

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

PROCEDURAL RULINGS

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES