ISCR Case 14-07018.h1

Case Headnote

ISCR Case No. 14-07018.h1

deniedJun 8, 2016· Hon. Jennifer I. Goldstein· hearing

Summary

A 30-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to approximately $9,111 in unresolved financial debts. The Statement of Reasons detailed five specific allegations. While one medical debt of $83, past due since May 2011, was resolved by June 2011, the applicant failed to provide sufficient evidence for the remaining four.

These unresolved debts included a state tax lien of $3,848, filed in 2010. Although the applicant showed two releases of holds on his driver's license related to this lien in 2013 and 2015, and claimed an installment agreement was initiated in March 2014, no payments after that date were documented. Additionally, a $773 credit card debt, delinquent since November 2014, remained unresolved despite a settlement offer, as no payments were shown.

Two other debts were also unresolved: a $254 medical debt, delinquent since September 2013, for which the applicant claimed insurance payment but provided no proof; and a $4,153 debt to a collection agent for a bank, delinquent since April 2014, with no evidence of payment provided. The denial was based on the applicant's unresolved debts totaling approximately $9,028, failure to provide evidence of payments or resolution for four delinquent accounts, and lack of demonstrated financial counseling or responsible conduct.

Why the Applicant Was Denied

The applicant has unresolved debts totaling approximately $9,028, indicating a lack of financial responsibility.
The applicant failed to provide evidence of payments or resolution for four out of five delinquent accounts.
The applicant did not demonstrate evidence of financial counseling or responsible conduct to mitigate security concerns.

Conditions Referenced

Disqualifying

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

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.”

Procedural Posture

SOR issuedAug 27, 2015
Answer filedSep 4, 2015Applicant requested a decision on the written record.
Hearing held—No hearing; case decided on the written record.
Decision dateJun 8, 2016

Cite For

Denial of Security Clearance Due to Unresolved Financial Obligations
Insufficient Evidence of Financial Responsibility Under Guideline F
Lack of Mitigating Circumstances for Financial Issues

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 is indebted on a medical account in the amount of $83. This debt had been past due since at least May 2011. However, Applicant resolved this debt on June 14, 2011, as documented in a receipt from this creditor. This debt is resolved. $83	For Applicant	Medical Debt	Admitted	—	—	—
1.b	A state tax lien in the amount of $3,848 was filed against Applicant in 2010. He presented documentation showing that the hold against his driver’s license, which he averred was related to the lien, was released on June 14, 2013. Apparently, another hold against his license was issued against Applicant for the same debt, because he presented a second letter, dated June 25, 2015, documenting the hold on Applicant’s driver’s license had again been released. Applicant’s Response further reflects that Applicant had entered into an installment agreement to resolve this debt through monthly payments of $130.32 as of March 3, 2014. However, Applicant failed to document any payments after March 2014. Applicant failed to meet his burden to show that he has resolved or is resolving this debt. $3,848	Against Applicant	Tax Unpaid	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	Applicant is indebted on a credit card in the amount of $773. This debt has been delinquent since November 2014. Applicant presented an offer from the account holder to settle this debt for six payments of $64.48. However, Applicant failed to present documentation to show he made any payments to this creditor. This debt is unresolved. $773	Against Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	Applicant is indebted on a medical debt in the amount of $254. This debt has been delinquent since September 2013. Applicant claimed that this debt was paid by his insurance company, but failed to produce evidence to support his claim. This debt is unresolved. $254	Against Applicant	Medical Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	Applicant is indebted to a collection agent for a bank in the amount of $4,153. This debt has been delinquent since at least April 2014. Applicant presented a demand for payment from an attorney representing the creditor, but did not provide evidence of payment. This debt is unresolved. $4,153	Against 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 is indebted on a medical account in the amount of $83. This debt had been past due since at least May 2011. However, Applicant resolved this debt on June 14, 2011, as documented in a receipt from this creditor. This debt is resolved.

$83

For Applicant

Medical Debt

Admitted

—

1.b

A state tax lien in the amount of $3,848 was filed against Applicant in 2010. He presented documentation showing that the hold against his driver’s license, which he averred was related to the lien, was released on June 14, 2013. Apparently, another hold against his license was issued against Applicant for the same debt, because he presented a second letter, dated June 25, 2015, documenting the hold on Applicant’s driver’s license had again been released. Applicant’s Response further reflects that Applicant had entered into an installment agreement to resolve this debt through monthly payments of $130.32 as of March 3, 2014. However, Applicant failed to document any payments after March 2014. Applicant failed to meet his burden to show that he has resolved or is resolving this debt.

$3,848

Against Applicant

Tax Unpaid

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

Applicant is indebted on a credit card in the amount of $773. This debt has been delinquent since November 2014. Applicant presented an offer from the account holder to settle this debt for six payments of $64.48. However, Applicant failed to present documentation to show he made any payments to this creditor. This debt is unresolved.

$773

Against Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

Applicant is indebted on a medical debt in the amount of $254. This debt has been delinquent since September 2013. Applicant claimed that this debt was paid by his insurance company, but failed to produce evidence to support his claim. This debt is unresolved.

$254

Against Applicant

Medical Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

Applicant is indebted to a collection agent for a bank in the amount of $4,153. This debt has been delinquent since at least April 2014. Applicant presented a demand for payment from an attorney representing the creditor, but did not provide evidence of payment. This debt is unresolved.

$4,153

Against Applicant

Unspecified Financial

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Loading case…

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