ISCR Case 14-04802.h1

Case Headnote

ISCR Case No. 14-04802.h1

deniedDec 31, 2015· Hon. Shari Dam· hearing

Summary

A 41-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to unresolved delinquent debts totaling approximately $19,664. The applicant's financial issues dated back to before 2008, raising concerns about reliability and trustworthiness.

Specific allegations included a $2,325 debt to an apartment complex, settled for $2,000 in July 2015, and a $370 cell phone debt that was removed from his credit report in April 2015 after being disputed. However, several significant debts remained unresolved: an $810 judgment from 2008, a $15,234 delinquent account following an automobile repossession in 2013, a $546 utility debt from 2013 for which a settlement offer was refused, and a $379 debt from 2010 that the applicant claimed no knowledge of and did not investigate.

Despite settling some debts, the applicant failed to demonstrate a responsible financial management plan or provide evidence of financial counseling. The decision highlighted a long history of financial problems and approximately $16,969 in remaining unresolved delinquent debts, leading to the denial of the security clearance.

Why the Applicant Was Denied

The applicant has a long history of financial problems dating back to before 2008.
Numerous delinquent debts remain unresolved, totaling approximately $16,969 after some payments were made.
The applicant did not provide evidence of financial counseling or a workable plan to manage debts.

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 settled one debt, indicating a good-faith effort.
AG ¶ 20(e)appliedReasonable Basis to Dispute Legitimacy of Past-due DebtThe applicant successfully disputed one debt that was removed from his credit report.
AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant's financial problems have been ongoing since 2008.
AG ¶ 20(b)rejectedConditions Beyond the Individual's ControlWhile some circumstances were beyond control, insufficient evidence of responsible actions was provided.
AG ¶ 20(c)rejectedReceived Counseling for the ProblemThe applicant did not provide evidence of receiving financial counseling.

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.”
— AG ¶ 18

Procedural Posture

SOR issuedMar 23, 2015
Answer filedMar 30, 2015
Hearing heldSep 9, 2015via Video Teleconference
Decision dateDec 31, 2015

Cite For

Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
Importance of Demonstrating Financial Responsibility for Security Clearance Eligibility
Impact of Ongoing Financial Problems on Trustworthiness and Reliability Assessments

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 settled this $2,325 debt that became delinquent in early 2014 and was owed to an apartment complex. In July 2015 he paid $2,000 to resolve it. $2,325	For Applicant	Unspecified Financial	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full
1.c	Applicant said he was unaware of this 2008 judgment for $810. He said he disputed the debt online in March or April 2015. It is unresolved. $810	Against Applicant	Unspecified Financial	Denied	—	(e) reasonable, documented basis to dispute the debt	Credited Debt Disputed with Creditor
1.b	Applicant disputed this $370 debt owed to a cell phone company. The creditor removed it from his credit report in April 2015. $370	For Applicant	Unspecified Financial	Denied	—	(e) reasonable, documented basis to dispute the debt	Credited Debt Disputed with Creditor
1.d	Applicant denied owing this $15,234 delinquent account after an automobile repossession. He took out the auto loan in September 2012 and paid $666 a month until February 2013. He said he returned the car because the automobile vendor did not perform according to their contract. It is unresolved. $15,234	Against Applicant	Auto Loan Debt	Denied	—	—	—
1.e	This $546 debt is from 2013 and is owed to a utility company. He offered a settlement in March 2015 but the company refused his offer. It is unresolved. $546	Against Applicant	Utility or Phone Debt	Unknown	—	—	—
1.f	Applicant said that he has no knowledge of this $379 debt from 2010. After receiving the Government’s discovery he did not investigate the debt, which appears on his April 2014 CBR. It is unresolved. $379	Against Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant settled this $2,325 debt that became delinquent in early 2014 and was owed to an apartment complex. In July 2015 he paid $2,000 to resolve it.

$2,325

For Applicant

Unspecified Financial

Admitted

—

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

Credited

Debt Paid in Full

1.c

Applicant said he was unaware of this 2008 judgment for $810. He said he disputed the debt online in March or April 2015. It is unresolved.

$810

Against Applicant

Unspecified Financial

Denied

—

(e) reasonable, documented basis to dispute the debt

Credited

Debt Disputed with Creditor

1.b

Applicant disputed this $370 debt owed to a cell phone company. The creditor removed it from his credit report in April 2015.

$370

For Applicant

Unspecified Financial

Denied

—

(e) reasonable, documented basis to dispute the debt

Credited

Debt Disputed with Creditor

1.d

Applicant denied owing this $15,234 delinquent account after an automobile repossession. He took out the auto loan in September 2012 and paid $666 a month until February 2013. He said he returned the car because the automobile vendor did not perform according to their contract. It is unresolved.

$15,234

Against Applicant

Auto Loan Debt

Denied

—

1.e

This $546 debt is from 2013 and is owed to a utility company. He offered a settlement in March 2015 but the company refused his offer. It is unresolved.

$546

Against Applicant

Utility or Phone Debt

Unknown

—

1.f

Applicant said that he has no knowledge of this $379 debt from 2010. After receiving the Government’s discovery he did not investigate the debt, which appears on his April 2014 CBR. It is unresolved.

$379

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