ISCR Case 00-0555.h1

Case Headnote

ISCR Case No. 00-0555.h1

deniedMar 13, 2001· Hon. Robert Robinson Gales· hearing

Summary

A 30-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to a prolonged history of financial delinquencies. The Statement of Reasons detailed numerous unpaid debts, judgments, and garnishments spanning several years.

Specific allegations included an outstanding $400 debt to a former landlord from 1993, a $359 utility debt from 1995, and multiple hospital debts from prior to 1996, one of which resulted in a $42.50 judgment. Other significant debts involved a $4,416 finance company debt for a repossessed vehicle, leaving a $3,000 deficiency, and a $3,163.29 furniture store debt that led to a judgment of $3,186.29 plus interest in 1997. Additionally, the applicant owed $729.60 to a landlord for unpaid rent from 1997 and an unspecified amount to an anesthesiologist from 1997, with approximately $760 purportedly paid. While some debts were eventually paid off in October 2000, such as the $84.61 and $81.00 hospital bills and the $729.60 landlord debt, these efforts were deemed insufficient.

The denial was based on the applicant's long-standing pattern of failing to meet financial obligations, including multiple accounts charged off or sent to collection. Despite expressing an intent to resolve his debts, the applicant demonstrated minimal progress over a ten-month period, and a lack of proactive debt management raised significant concerns about his reliability.

Why the Applicant Was Denied

Applicant has a long-standing history of not meeting financial obligations, including multiple accounts charged off or sent to collection.
Despite claiming an intention to resolve debts, the applicant made little progress in addressing his financial issues over a ten-month period.
The applicant's financial difficulties were exacerbated by a lack of proactive measures to manage his debts, leading to grave questions about his reliability.

Conditions Referenced

Disqualifying

E2.A6.1.2.1raisedHistory of Not Meeting Financial Obligations
E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts

Mitigating

E2.A6.1.3.3rejectedConditions Largely Beyond the Person's ControlThe applicant's circumstances did not sufficiently mitigate the financial concerns due to a lack of proactive management of debts.
E2.A6.1.3.4rejectedReceiving Counseling for Financial ProblemsNo evidence was provided to show the applicant was receiving financial counseling.
E2.A6.1.3.6rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant's efforts to resolve debts were not initiated until after the SOR was issued.

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedOct 3, 2000
Answer filedNov 13, 2000
Hearing heldJan 22, 2001
Decision dateMar 13, 2001

Cite For

Denial Based on a History of Financial Irresponsibility Under Guideline F
Insufficient Evidence of Good-faith Efforts to Resolve Debts
Rejection of Mitigating Conditions Due to Lack of Proactive Financial Management

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 owed an outstanding balance of approximately $400.00 to a former landlord for a bad debt, identified as unpaid rent, since approximately 1993. $400	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	He is also indebted to a utility company in the amount of approximately $359.00, for a bad debt, identified as unpaid telephone service, referred for collection in about April 1995. $359	Against Applicant	Utility or Phone Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	Applicant owed an unspecified outstanding balance to a hospital for professional services rendered since an unspecified time prior to early 1996. In February 1996, the creditor received a judgment, in the amount of $42.50. $42	Against Applicant	Judgment Against Applicant	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	Applicant owed an outstanding balance of $84.61 to another hospital for professional emergency room services rendered prior to February 1996, when the account was referred for collection. Finally, in October 2000, Applicant paid off the entire balance with a money order. $84	For Applicant	Medical Debt	Admitted	—	—	—
1.e	Applicant owed an outstanding balance of $81.00 to still another hospital for professional emergency room services rendered prior to February 1996, when the account was referred for collection. Finally, in October 2000, Applicant paid off the entire balance. $81	For Applicant	Medical Debt	Admitted	—	—	—
1.f	Applicant also owed an outstanding balance of $4,416.00 to a finance company for the financing of his Nissan 300ZX, purchased in about August 1996. Unfortunately for Applicant, the repossession left a deficiency of about $3,000.00, for which Applicant remained responsible. $4,416	Against Applicant	Auto Loan Debt	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	Applicant owed an outstanding balance of $3,163.29 to a furniture store for furniture purchased prior to April 1997. In May 1997, the creditor received a judgment, in the amount of $3,186.29 plus interest. $3,163	Against Applicant	Judgment Against Applicant	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	Applicant owed an outstanding balance of $729.60 to a landlord for a bad debt, identified as unpaid rent arising from a broken lease, since prior to September 1997. Finally, in October 2000, Applicant purportedly paid off the entire balance. $729	For Applicant	Unspecified Financial	Unknown	—	—	—
1.i	Applicant also owed an outstanding balance, not otherwise specified by the Government, to his wife's anesthesiologist for professional services rendered in about October 1997. Payment of approximately $760.00 was purportedly satisfied when the funds were withdrawn from the account. $760	Against Applicant	Judgment Against Applicant	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.j	specific text not stated in this decision	For Applicant	Unspecified Financial	Denied	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant has owed an outstanding balance of approximately $400.00 to a former landlord for a bad debt, identified as unpaid rent, since approximately 1993.

$400

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

He is also indebted to a utility company in the amount of approximately $359.00, for a bad debt, identified as unpaid telephone service, referred for collection in about April 1995.

$359

Against Applicant

Utility or Phone Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

Applicant owed an unspecified outstanding balance to a hospital for professional services rendered since an unspecified time prior to early 1996. In February 1996, the creditor received a judgment, in the amount of $42.50.

$42

Against Applicant

Judgment Against Applicant

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

Applicant owed an outstanding balance of $84.61 to another hospital for professional emergency room services rendered prior to February 1996, when the account was referred for collection. Finally, in October 2000, Applicant paid off the entire balance with a money order.

$84

For Applicant

Medical Debt

Admitted

—

1.e

Applicant owed an outstanding balance of $81.00 to still another hospital for professional emergency room services rendered prior to February 1996, when the account was referred for collection. Finally, in October 2000, Applicant paid off the entire balance.

$81

For Applicant

Medical Debt

Admitted

—

1.f

Applicant also owed an outstanding balance of $4,416.00 to a finance company for the financing of his Nissan 300ZX, purchased in about August 1996. Unfortunately for Applicant, the repossession left a deficiency of about $3,000.00, for which Applicant remained responsible.

$4,416

Against Applicant

Auto Loan Debt

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

Applicant owed an outstanding balance of $3,163.29 to a furniture store for furniture purchased prior to April 1997. In May 1997, the creditor received a judgment, in the amount of $3,186.29 plus interest.

$3,163

Against Applicant

Judgment Against Applicant

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

Applicant owed an outstanding balance of $729.60 to a landlord for a bad debt, identified as unpaid rent arising from a broken lease, since prior to September 1997. Finally, in October 2000, Applicant purportedly paid off the entire balance.

$729

For Applicant

Unspecified Financial

Unknown

—

1.i

Applicant also owed an outstanding balance, not otherwise specified by the Government, to his wife's anesthesiologist for professional services rendered in about October 1997. Payment of approximately $760.00 was purportedly satisfied when the funds were withdrawn from the account.

$760

Against Applicant

Judgment Against Applicant

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.j

specific text not stated in this decision

For Applicant

Unspecified Financial

Denied

—

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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

FORMAL FINDINGS

DECISION

FOOTNOTES

CONCLUSION