ISCR Case 15-00908.h1

Case Headnote

ISCR Case No. 15-00908.h1

deniedJan 28, 2016· Hon. Carol G. Ricciardello· hearing

Summary

A 47-year-old federal contractor was denied a security clearance under Guideline F (Financial Considerations) due to multiple unresolved financial issues. The Statement of Reasons (SOR) detailed several delinquent debts and judgments. While the applicant provided proof that a $205 tax lien from 2005 was paid in July 2005, she admitted to two car loan debts, one for $6,044 with a judgment entered in 2009, and another for $13,911 with a judgment entered in 2008. Regarding the latter, she stated it was being paid and that her ex-husband was responsible for it per their divorce agreement.

Additionally, the SOR listed seven medical collection accounts ranging from $50 to $302, with last activities between January 2007 and September 2013. Another collection account for unpaid insurance, totaling $76, with last activity in August 2012, was also cited.

The denial was based on the applicant's numerous unresolved delinquent debts, totaling approximately $21,161. The applicant failed to provide sufficient evidence to demonstrate she was not responsible for the two car loan debts. The decision concluded that her financial issues were not timely addressed, raising concerns about her reliability and judgment.

Why the Applicant Was Denied

Applicant has numerous unresolved delinquent debts totaling approximately $21,161.
Applicant did not provide sufficient evidence to prove she is not responsible for the debts in SOR ¶ 1.b and 1.c.
Applicant's financial issues were not timely addressed, raising concerns about her reliability and judgment.

Conditions Referenced

Disqualifying

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

Mitigating

AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlApplicant indicated her financial problems were due to her divorce and her husband's unemployment.
AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsApplicant initiated a payment agreement for some debts but did not provide evidence of consistent payments.

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 issuedAug 15, 2015
Answer filedSep 8, 2015Applicant elected to have her case decided on the written record.
Hearing held—Case decided on the written record.
Decision dateJan 28, 2016

Cite For

Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
Impact of Financial Irresponsibility on Security Clearance Eligibility
Consideration of Mitigating Conditions Related to 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 provided sufficient documented proof that the 2005 tax lien in SOR ¶ 1.a ($205) was paid in July 2005. $205	For Applicant	Tax Filing Failure	Admitted	—	(d) good-faith effort to repay or otherwise resolve debts	Credited Debt Paid in Full
1.b	Applicant admitted the car loan debts in ¶¶ 1.b (judgment entered in 2009 - $6,044) and 1.c (judgment entered in 2008 - $13,911). $6,044	Against Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	Regarding the debt in ¶ 1.c she stated that this debt was being paid, and 'due to the divorce my ex-husband was supposed to pay per divorce.' $13,911	For Applicant	Judgment Against Applicant	Admitted	—	—	Claimed Debt Paid in Full
1.d	The debts in SOR ¶¶ 1.d ($302, last activity May 2011); 1.e ($222, last activity July 2009); 1.f ($81, last activity September 2013); 1.g ($55, last activity December 2011); 1.h ($257, last activity January 2007); 1.i ($163, last activity April 2008); and 1.j ($50, last activity August 2008) are collection accounts for medical debts. $302	For Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Payment Plan with Creditor
1.e	The debts in SOR ¶¶ 1.d ($302, last activity May 2011); 1.e ($222, last activity July 2009); 1.f ($81, last activity September 2013); 1.g ($55, last activity December 2011); 1.h ($257, last activity January 2007); 1.i ($163, last activity April 2008); and 1.j ($50, last activity August 2008) are collection accounts for medical debts. $222	For Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	Claimed Payment Plan with Creditor
1.f	The debts in SOR ¶¶ 1.d ($302, last activity May 2011); 1.e ($222, last activity July 2009); 1.f ($81, last activity September 2013); 1.g ($55, last activity December 2011); 1.h ($257, last activity January 2007); 1.i ($163, last activity April 2008); and 1.j ($50, last activity August 2008) are collection accounts for medical debts. $81	Against Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	The debts in SOR ¶¶ 1.d ($302, last activity May 2011); 1.e ($222, last activity July 2009); 1.f ($81, last activity September 2013); 1.g ($55, last activity December 2011); 1.h ($257, last activity January 2007); 1.i ($163, last activity April 2008); and 1.j ($50, last activity August 2008) are collection accounts for medical debts. $55	For Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	The debts in SOR ¶¶ 1.d ($302, last activity May 2011); 1.e ($222, last activity July 2009); 1.f ($81, last activity September 2013); 1.g ($55, last activity December 2011); 1.h ($257, last activity January 2007); 1.i ($163, last activity April 2008); and 1.j ($50, last activity August 2008) are collection accounts for medical debts. $257	Against Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	The debts in SOR ¶¶ 1.d ($302, last activity May 2011); 1.e ($222, last activity July 2009); 1.f ($81, last activity September 2013); 1.g ($55, last activity December 2011); 1.h ($257, last activity January 2007); 1.i ($163, last activity April 2008); and 1.j ($50, last activity August 2008) are collection accounts for medical debts. $163	Against Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.j	The debts in SOR ¶¶ 1.d ($302, last activity May 2011); 1.e ($222, last activity July 2009); 1.f ($81, last activity September 2013); 1.g ($55, last activity December 2011); 1.h ($257, last activity January 2007); 1.i ($163, last activity April 2008); and 1.j ($50, last activity August 2008) are collection accounts for medical debts. $50	Against Applicant	Medical Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.k	The debt in SOR ¶ 1.k ($76, last activity August 2012) is a collection account for unpaid insurance. $76	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 provided sufficient documented proof that the 2005 tax lien in SOR ¶ 1.a ($205) was paid in July 2005.

$205

For Applicant

Tax Filing Failure

Admitted

—

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

Credited

Debt Paid in Full

1.b

Applicant admitted the car loan debts in ¶¶ 1.b (judgment entered in 2009 - $6,044) and 1.c (judgment entered in 2008 - $13,911).

$6,044

Against Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

Regarding the debt in ¶ 1.c she stated that this debt was being paid, and 'due to the divorce my ex-husband was supposed to pay per divorce.'

$13,911

For Applicant

Judgment Against Applicant

Admitted

—

Claimed

Debt Paid in Full

1.d

The debts in SOR ¶¶ 1.d ($302, last activity May 2011); 1.e ($222, last activity July 2009); 1.f ($81, last activity September 2013); 1.g ($55, last activity December 2011); 1.h ($257, last activity January 2007); 1.i ($163, last activity April 2008); and 1.j ($50, last activity August 2008) are collection accounts for medical debts.

$302

For Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Claimed

Payment Plan with Creditor

1.e

$222

For Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

Claimed

Payment Plan with Creditor

1.f

$81

Against Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

$55

For Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

$257

Against Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.i

$163

Against Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.j

$50

Against Applicant

Medical Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.k

The debt in SOR ¶ 1.k ($76, last activity August 2012) is a collection account for unpaid insurance.

$76

Against 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 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

FOOTNOTES