ISCR Case 14-06085.h1

Case Headnote

ISCR Case No. 14-06085.h1

grantedOct 6, 2015· Hon. Mary E. Henry· hearing

Summary

This case concerns a 55-year-old service representative for a DOD contractor whose eligibility for a public trust position was reviewed under Guideline F (Financial Considerations). The Statement of Reasons (SOR) alleged multiple past-due accounts, including balances of $7,103, $756, $446, $384 (cable bill), $96, $2,922 (vehicle repossession), $516, $147, $517, $200, $44, and three separate $1,000 accounts. A judgment of $1,070 was also cited. The $44 account was paid in January 2015. Disqualifying conditions F.1.a, F.1.c, and F.1.d were raised.

The applicant's financial history also included a 1989 embezzlement conviction. However, the judge applied mitigating conditions F.2.a, F.2.b, F.2.c, and F.2.e, noting that the applicant had not engaged in criminal behavior since 1989 and had demonstrated good judgment in her personal life, including managing finances responsibly after bankruptcy.

The decision to grant eligibility was based on the finding that the applicant's past conduct was unlikely to recur. Her current employment, including a recent promotion and recognition, was presented as evidence of her reliability and trustworthiness. The judge ultimately GRANTED the applicant's eligibility for a public trust position.

Why the Applicant Prevailed

The applicant acknowledged her past embezzlement and has not engaged in criminal behavior since 1989.
She has shown good judgment in her personal life, including divorcing an abusive spouse and managing her finances responsibly after bankruptcy.
The applicant's current employment reflects her reliability and trustworthiness, as evidenced by her recent promotion and recognition at work.

Conditions Referenced

Disqualifying

F.1.araisedInability or Unwillingness to Satisfy Debts
F.1.craisedA History of Not Meeting Financial Obligations
F.1.draisedDeceptive or Illegal Financial Practices Such as Embezzlement

Mitigating

F.2.aappliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
F.2.bappliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
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 Control
F.2.eappliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt

Key Rule Quoted

“The guidelines presume a nexus or rational connection between proven conduct under any of the criteria listed therein and an applicant’s security suitability.”
— ISCR Case No. 08-06605 at 3 (App. Bd. Feb. 4, 2010)

Procedural Posture

SOR issuedFeb 5, 2015
Answer filedApr 14, 2015
Hearing heldJul 16, 2015
Decision dateOct 6, 2015

Cite For

Mitigating Conditions Under Guideline F for Past Financial Misconduct
Consideration of the Whole-person Concept in Security Clearance Decisions
The Presumption of a Nexus Between Proven Conduct and Security Suitability

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 has a past-due account with a balance of $7,103. $7,103	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	Applicant has a past-due account with a balance of $756. $756	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	Applicant has a past-due account with a balance of $446. $446	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	Applicant has a past-due cable bill with a balance of $384. $384	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	Applicant has a past-due account with a balance of $96. $96	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	Applicant has a judgment against her in the amount of $1,070. $1,070	For Applicant	Judgment Against Applicant	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	Applicant has a past-due account with a balance of $2,922 related to a vehicle repossession. $2,922	For Applicant	Auto Loan Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	Applicant has a past-due account with a balance of $516. $516	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	Applicant has a past-due account with a balance of $147. $147	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.j	Applicant has a past-due account with a balance of $517. $517	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.k	Applicant has a past-due account with a balance of $200. $200	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.l	Applicant has a past-due account with a balance of $44, which she paid in January 2015. $44	For Applicant	Unspecified Financial	Admitted	—	—	Documented Debt Paid in Full
1.m	Applicant has a past-due account with a balance of $1,000. $1,000	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.n	Applicant has a past-due account with a balance of $1,000. $1,000	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.o	Applicant has a past-due account with a balance of $1,000. $1,000	For Applicant	Unspecified Financial	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant has a past-due account with a balance of $7,103.

$7,103

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

Applicant has a past-due account with a balance of $756.

$756

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

Applicant has a past-due account with a balance of $446.

$446

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

Applicant has a past-due cable bill with a balance of $384.

$384

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

Applicant has a past-due account with a balance of $96.

$96

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

Applicant has a judgment against her in the amount of $1,070.

$1,070

For Applicant

Judgment Against Applicant

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

Applicant has a past-due account with a balance of $2,922 related to a vehicle repossession.

$2,922

For Applicant

Auto Loan Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

Applicant has a past-due account with a balance of $516.

$516

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i

Applicant has a past-due account with a balance of $147.

$147

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.j

Applicant has a past-due account with a balance of $517.

$517

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.k

Applicant has a past-due account with a balance of $200.

$200

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.l

Applicant has a past-due account with a balance of $44, which she paid in January 2015.

$44

For Applicant

Unspecified Financial

Admitted

—

Documented

Debt Paid in Full

1.m

Applicant has a past-due account with a balance of $1,000.

$1,000

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.n

Applicant has a past-due account with a balance of $1,000.

$1,000

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.o

Applicant has a past-due account with a balance of $1,000.

$1,000

For Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

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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

PROCEDURAL RULINGS

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION

FOOTNOTES