ISCR Case 14-05965.h1

Case Headnote

ISCR Case No. 14-05965.h1

grantedJul 23, 2015· Hon. John Grattan Metz, Jr.· hearing

Summary

A 41-year-old senior systems engineer was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant faced allegations including failure to file state and federal income tax returns for 2011-2013 and eight delinquent accounts totaling nearly $55,000. Additional issues involved an ex-husband's child support arrears and unpaid tuition, as well as a delinquent mortgage.

The applicant demonstrated significant mitigating efforts. She filed all outstanding tax returns and repaid several debts, including those from the Statement of Reasons, using funds from a retirement account. She also entered into a trial period plan to rehabilitate her delinquent mortgage and scheduled subsequent payments. While she claimed to have paid one $315 debt, documentation was not provided.

The judge found that the applicant took proactive steps to resolve her financial problems, which were largely attributed to her husband's alcoholism and her own medical issues. Her credible plan for resolution and stable employment reduced the likelihood of recurrence, leading to the determination that granting the clearance was consistent with the national interest.

Why the Applicant Prevailed

The applicant took proactive steps to address her financial issues, including filing missing tax returns and repaying debts.
She demonstrated a credible plan to resolve her financial problems, which were largely due to circumstances beyond her control.
The applicant's current employment is stable, reducing the likelihood of recurrence of her financial difficulties.

Conditions Referenced

Disqualifying

F.19(a)raisedInability or Unwillingness to Satisfy Debts
F.20(c)raisedA History of Not Meeting Financial Obligations

Mitigating

F.20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
F.20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
F.20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“The Government must prove, by substantial evidence, controverted facts alleged in the SOR. If it does, the burden shifts to applicant to refute, extenuate, or mitigate the Government’s case.”
— Department of the Navy v. Egan, 484 U.S. 518 (1988)

Procedural Posture

SOR issuedJan 24, 2015
Answer filed—
Hearing heldMay 27, 2015
Decision dateJul 23, 2015

Cite For

Mitigating Factors for Financial Considerations Under Guideline F
Proactive Steps to Resolve Financial Issues Can Mitigate Security Concerns
The Impact of Personal Circumstances on Financial Difficulties

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 failing to file her state and Federal income tax returns for 2011-2013.	For Applicant	Tax Filing Failure	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	—
1.b	Eight delinquent accounts totaling nearly $55,000. $55,000	For Applicant	Unspecified Financial	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.c	Applicant paid SOR debts 1.b-1.g in May 2015 with funds from an early withdrawal from her retirement account.	For Applicant	Unspecified Financial	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	Documented Debt Paid in Full
1.d	Applicant received settlement offers from the creditors for SOR debt 1.c and 1.d for substantial discounts, but preferred to repay the entire amount owed.	For Applicant	Unspecified Financial	Admitted	—	—	—
1.e	Applicant has already scheduled the second and third payments for her mortgage rehabilitation plan.	For Applicant	Mortgage or Home Loan Debt	Admitted	—	(b) conditions largely beyond the person’s control; acted responsibly (d) good-faith effort to repay or otherwise resolve debts	—
1.f	Applicant claimed to have paid SOR debt 1.i for $315, but did not provide any documentation. $315	For Applicant	Unspecified Financial	Admitted	—	—	—
1.g	Applicant's ex-husband is $17,000 in arrears with his child support payments and an undetermined amount for unpaid tuition, which Applicant has paid to the school. $17,000	For Applicant	Child Support Debt	Admitted	—	—	—
1.h	Applicant entered into a trial period plan agreement with her lender to begin the process of rehabilitating her delinquent mortgage.	For Applicant	Mortgage or Home Loan Debt	Admitted	—	—	—
1.i	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant admitted failing to file her state and Federal income tax returns for 2011-2013.

For Applicant

Tax Filing Failure

Admitted

—

(b) conditions largely beyond the person’s control; acted responsibly

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

—

1.b

Eight delinquent accounts totaling nearly $55,000.

$55,000

For Applicant

Unspecified Financial

Admitted

—

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Debt Paid in Full

1.c

Applicant paid SOR debts 1.b-1.g in May 2015 with funds from an early withdrawal from her retirement account.

For Applicant

Unspecified Financial

Admitted

—

(b) conditions largely beyond the person’s control; acted responsibly

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

Documented

Debt Paid in Full

1.d

Applicant received settlement offers from the creditors for SOR debt 1.c and 1.d for substantial discounts, but preferred to repay the entire amount owed.

For Applicant

Unspecified Financial

Admitted

—

1.e

Applicant has already scheduled the second and third payments for her mortgage rehabilitation plan.

For Applicant

Mortgage or Home Loan Debt

Admitted

—

(b) conditions largely beyond the person’s control; acted responsibly

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

—

1.f

Applicant claimed to have paid SOR debt 1.i for $315, but did not provide any documentation.

$315

For Applicant

Unspecified Financial

Admitted

—

1.g

Applicant's ex-husband is $17,000 in arrears with his child support payments and an undetermined amount for unpaid tuition, which Applicant has paid to the school.

$17,000

For Applicant

Child Support Debt

Admitted

—

1.h

Applicant entered into a trial period plan agreement with her lender to begin the process of rehabilitating her delinquent mortgage.

For Applicant

Mortgage or Home Loan Debt

Admitted

—

1.i

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

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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

FOOTNOTES