ISCR Case 00-0587.h1

Case Headnote

ISCR Case No. 00-0587.h1

deniedJan 15, 2002· Hon. Barry M. Sax· hearing

Summary

A 45-year-old systems support engineer's security clearance application was DENIED under Guideline F (Financial Considerations) due to multiple unresolved delinquent debts totaling nearly $16,000. The applicant faced allegations concerning ten specific debts. These included approximately $3,880 owed to Department Store A, $4,504 to Credit Card Company D, $191 to Collection Agency E for towing services, $2,287 to Department Store F, $500 to Bank G, $417 to Company H, $40 to Pizza Store I, and $3,631 to Company J. All of these debts remained unsatisfied, with some having been written off or charged off.

Two smaller debts to Company B, totaling $59 and $42 each, were paid off by a check dated August 15, 2001. Despite these payments and some communication with creditors and legal counsel, the applicant did not demonstrate sufficient financial rehabilitation or a clear plan to resolve the remaining obligations.

The administrative judge cited the applicant's failure to resolve the significant outstanding debts as the primary reason for the denial. While personal circumstances contributed to the financial issues, the applicant did not provide adequate evidence of resolution, leading to the conclusion that the financial concerns remained a significant security risk.

Why the Applicant Was Denied

The applicant had multiple unresolved delinquent debts totaling nearly $16,000.
The applicant failed to demonstrate financial rehabilitation or a clear plan to resolve his debts.
The applicant's financial issues were exacerbated by personal circumstances, but he did not provide sufficient evidence of resolution.

Conditions Referenced

Disqualifying

AG ¶ 19raisedA History of Not Meeting Financial Obligations
AG ¶ 20raisedInability or Unwillingness to Satisfy Debts

Mitigating

AG ¶ 21rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlWhile the applicant's financial issues stemmed from personal circumstances, he did not demonstrate sufficient efforts to resolve the debts.
AG ¶ 22rejectedThe Person Has Received or Is Receiving Counseling for the Problem AND There Are Clear Indications That the Problem Is Being Resolved or Is Under ControlThe applicant did not provide evidence of effective counseling or resolution of financial issues.
AG ¶ 23rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant's efforts were insufficient to demonstrate a good-faith effort to resolve the debts.

Key Rule Quoted

“"any doubt as to whether access to classified information is clearly consistent with the interests of national security will be resolved in favor of the nation's security."”
— DoD Directive 5220.6, E2.2.2.

Procedural Posture

SOR issuedApr 17, 2001
Answer filedJun 29, 2001Applicant elected for a decision based on the written record.
Hearing held—No hearing; decision based on written record.
Decision dateJan 15, 2002

Cite For

Denial of Security Clearance Due to Unresolved Financial Obligations
Impact of Personal Circumstances on Financial Responsibility
Insufficient Evidence of Financial Rehabilitation Under Guideline F

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 was indebted to Department Store A for a delinquent debt of approximately $3,880.00. This debt was written off and has not been satisfied. $3,880	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.b	Applicant was indebted to Company B for two delinquent debts in the amounts of $59.00 and $42.00. These debts were paid off by a check, dated August 15, 2001. $101	For Applicant	Unspecified Financial	Denied	—	—	—
1.c	Applicant was indebted to Company B for two delinquent debts in the amounts of $59.00 and $42.00. These debts were paid off by a check, dated August 15, 2001. $101	For Applicant	Unspecified Financial	Denied	—	—	—
1.d	Applicant was indebted to Credit Card Company D for a delinquent debt in the amount of approximately $4,504.00. This debt had been charged off and has not been satisfied. $4,504	Against Applicant	Credit Card Debt	Unknown	—	—	—
1.e	Applicant was indebted to Collection Agency E for a debt incurred for services provided by a towing company in the amount of approximately $191.00. This debt has not been satisfied. $191	Against Applicant	Unspecified Financial	Denied	—	—	—
1.f	Applicant was indebted to Department Store F for a delinquent debt in the amount of approximately $2,287.00. This debt has not been satisfied. $2,287	Against Applicant	Unspecified Financial	Admitted	—	—	—
1.g	Applicant was indebted to Bank G for a delinquent debt in the amount of $500.00. This debt has not been satisfied. $500	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.h	Applicant was indebted to Company H in the amount of $417.00. This debt has not been satisfied. $417	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.i	Applicant was indebted to Pizza Store I for a delinquent debt in the amount of $40.00. This debt has not been satisfied. $40	Against Applicant	Unspecified Financial	Unknown	—	—	—
1.j	Applicant was indebted to Company J for a delinquent debt in the amount of approximately $3,631.00. This debt has not been satisfied. $3,631	Against Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant was indebted to Department Store A for a delinquent debt of approximately $3,880.00. This debt was written off and has not been satisfied.

$3,880

Against Applicant

Unspecified Financial

Admitted

—

1.b

Applicant was indebted to Company B for two delinquent debts in the amounts of $59.00 and $42.00. These debts were paid off by a check, dated August 15, 2001.

$101

For Applicant

Unspecified Financial

Denied

—

1.c

Applicant was indebted to Company B for two delinquent debts in the amounts of $59.00 and $42.00. These debts were paid off by a check, dated August 15, 2001.

$101

For Applicant

Unspecified Financial

Denied

—

1.d

Applicant was indebted to Credit Card Company D for a delinquent debt in the amount of approximately $4,504.00. This debt had been charged off and has not been satisfied.

$4,504

Against Applicant

Credit Card Debt

Unknown

—

1.e

Applicant was indebted to Collection Agency E for a debt incurred for services provided by a towing company in the amount of approximately $191.00. This debt has not been satisfied.

$191

Against Applicant

Unspecified Financial

Denied

—

1.f

Applicant was indebted to Department Store F for a delinquent debt in the amount of approximately $2,287.00. This debt has not been satisfied.

$2,287

Against Applicant

Unspecified Financial

Admitted

—

1.g

Applicant was indebted to Bank G for a delinquent debt in the amount of $500.00. This debt has not been satisfied.

$500

Against Applicant

Unspecified Financial

Unknown

—

1.h

Applicant was indebted to Company H in the amount of $417.00. This debt has not been satisfied.

$417

Against Applicant

Unspecified Financial

Unknown

—

1.i

Applicant was indebted to Pizza Store I for a delinquent debt in the amount of $40.00. This debt has not been satisfied.

$40

Against Applicant

Unspecified Financial

Unknown

—

1.j

Applicant was indebted to Company J for a delinquent debt in the amount of approximately $3,631.00. This debt has not been satisfied.

$3,631

Against Applicant

Unspecified Financial

Unknown

—

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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

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES