ISCR Case 01-20407.h1

Case Headnote

ISCR Case No. 01-20407.h1

deniedDec 22, 2003· Hon. Roger E. Willmeth· hearing

Summary

A 27-year-old general clerk employed by a defense contractor was denied a security clearance, primarily under Guideline F (Financial Considerations). The denial also cited concerns under Guidelines A (Allegiance), B (Foreign Influence), C (Foreign Preference), D (Sexual Behavior), and I (Psychological Conditions). The applicant had a history of not meeting financial obligations, including several delinquent debts that remained unpaid or unresolved.

Specific financial issues included a $120.00 clothing store debt from 1995, a $63.00 club debt from 1998, a $78.00 radiologist debt from 1999, and a $91.00 telephone company debt from 2000, all of which were charged off and remained unpaid. Additionally, a $159.70 department store account was charged off in 2001, with the applicant making a partial payment of $53.24 in April 2003 and agreeing to pay the balance. A bank charged off a $715.00 credit card balance in May 2002, for which the applicant made three payments of $119.21 each to a corporate entity.

While the applicant satisfied a $2,500.00 loan from a finance company, for which a judgment was obtained and satisfied around October 3, 2002, and made progress on some other debts, a comprehensive plan to resolve all outstanding financial obligations was not demonstrated. The decision concluded that granting a security clearance was not consistent with national interest due to the unresolved delinquent debts and the applicant's failure to ensure financial difficulties would not recur.

Why the Applicant Was Denied

Applicant has unresolved delinquent debts totaling several accounts.
Applicant has not demonstrated a plan to ensure financial difficulties will not recur.
Despite some payments made, the applicant's overall financial situation remains concerning.

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.A6.1.3.6appliedGood-faith Effort to Repay Overdue CreditorsApplicant made payments on some debts and resolved others.

Key Rule Quoted

“Eligibility for access to classified information is predicated upon an individual meeting adjudicative guidelines discussed in Enclosure 2 of the Directive.”
— Directive E2.2.2.

Procedural Posture

SOR issuedAug 19, 2002
Answer filedJan 17, 2003Applicant requested a hearing.
Hearing heldMay 16, 2003
Decision dateDec 22, 2003

Cite For

Denial of Security Clearance Due to Unresolved Financial Obligations
Impact of Financial Management on Security Clearance Eligibility
Evaluation of Mitigating Conditions 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 (¶4)	Mitigating applied (¶5)	Mitigation
1.a	Applicant has not paid the debt.	Against Applicant	Unspecified Allegiance Concern	Admitted	(a) involvement in, support of, training to commit, or advocacy of any act of sabotage, espionage, treason, terrorism, or sedition against the United States (c) association or sympathy with persons or organizations that advocate, threaten, or use force or violence, or use any other illegal or unconstitutional …	—	—
1.b	Applicant has not paid the debt.	Against Applicant	Unspecified Allegiance Concern	Admitted	(a) involvement in, support of, training to commit, or advocacy of any act of sabotage, espionage, treason, terrorism, or sedition against the United States (c) association or sympathy with persons or organizations that advocate, threaten, or use force or violence, or use any other illegal or unconstitutional …	—	—
1.c	Applicant has not paid the debt.	Against Applicant	Unspecified Allegiance Concern	Admitted	(a) involvement in, support of, training to commit, or advocacy of any act of sabotage, espionage, treason, terrorism, or sedition against the United States (c) association or sympathy with persons or organizations that advocate, threaten, or use force or violence, or use any other illegal or unconstitutional …	—	—
1.d	Applicant has not paid the debt.	Against Applicant	Unspecified Allegiance Concern	Admitted	(a) involvement in, support of, training to commit, or advocacy of any act of sabotage, espionage, treason, terrorism, or sedition against the United States (c) association or sympathy with persons or organizations that advocate, threaten, or use force or violence, or use any other illegal or unconstitutional …	—	—
1.e	Applicant obtained a judgment against Applicant, which she satisfied on or about October 3, 2002.	For Applicant	Unspecified Allegiance Concern	Admitted	—	(c) involvement occurred for only a short period and was attributable to curiosity or academic interest	Documented Other
1.f	Applicant had a $159.70 balance on a delinquent account with a department store that was charged off as a bad debt and assigned to a debt collector.	For Applicant	Unspecified Allegiance Concern	Admitted	—	(c) involvement occurred for only a short period and was attributable to curiosity or academic interest	Documented Other
1.g	In May 2002, a bank charged off Applicant's $715.00 balance on her delinquent credit card account as a bad debt.	For Applicant	Unspecified Allegiance Concern	Admitted	—	(c) involvement occurred for only a short period and was attributable to curiosity or academic interest	Documented Other
1.h	Despite being dropped from the program by the consumer credit counseling service, Applicant has since satisfied one of the two remaining creditors under that payment program.	For Applicant	Unspecified Allegiance Concern	Admitted	—	(c) involvement occurred for only a short period and was attributable to curiosity or academic interest	Documented Other
1.i	Applicant has not satisfied or made arrangements to resolve all of it.	Against Applicant	Unspecified Allegiance Concern	Admitted	(a) involvement in, support of, training to commit, or advocacy of any act of sabotage, espionage, treason, terrorism, or sedition against the United States (c) association or sympathy with persons or organizations that advocate, threaten, or use force or violence, or use any other illegal or unconstitutional …	—	—

Allegation

Finding

Type

Response

Disqualifying (¶4)

Mitigating applied (¶5)

Mitigation

1.a

Applicant has not paid the debt.

Against Applicant

Unspecified Allegiance Concern

Admitted

(a) involvement in, support of, training to commit, or advocacy of any act of sabotage, espionage, treason, terrorism, or sedition against the United States

(c) association or sympathy with persons or organizations that advocate, threaten, or use force or violence, or use any other illegal or unconstitutional …

—

1.b

Applicant has not paid the debt.

Against Applicant

Unspecified Allegiance Concern

Admitted

(a) involvement in, support of, training to commit, or advocacy of any act of sabotage, espionage, treason, terrorism, or sedition against the United States

(c) association or sympathy with persons or organizations that advocate, threaten, or use force or violence, or use any other illegal or unconstitutional …

—

1.c

Applicant has not paid the debt.

Against Applicant

Unspecified Allegiance Concern

Admitted

(a) involvement in, support of, training to commit, or advocacy of any act of sabotage, espionage, treason, terrorism, or sedition against the United States

(c) association or sympathy with persons or organizations that advocate, threaten, or use force or violence, or use any other illegal or unconstitutional …

—

1.d

Applicant has not paid the debt.

Against Applicant

Unspecified Allegiance Concern

Admitted

(a) involvement in, support of, training to commit, or advocacy of any act of sabotage, espionage, treason, terrorism, or sedition against the United States

(c) association or sympathy with persons or organizations that advocate, threaten, or use force or violence, or use any other illegal or unconstitutional …

—

1.e

Applicant obtained a judgment against Applicant, which she satisfied on or about October 3, 2002.

For Applicant

Unspecified Allegiance Concern

Admitted

—

(c) involvement occurred for only a short period and was attributable to curiosity or academic interest

Documented

Other

1.f

Applicant had a $159.70 balance on a delinquent account with a department store that was charged off as a bad debt and assigned to a debt collector.

For Applicant

Unspecified Allegiance Concern

Admitted

—

(c) involvement occurred for only a short period and was attributable to curiosity or academic interest

Documented

Other

1.g

In May 2002, a bank charged off Applicant's $715.00 balance on her delinquent credit card account as a bad debt.

For Applicant

Unspecified Allegiance Concern

Admitted

—

(c) involvement occurred for only a short period and was attributable to curiosity or academic interest

Documented

Other

1.h

Despite being dropped from the program by the consumer credit counseling service, Applicant has since satisfied one of the two remaining creditors under that payment program.

For Applicant

Unspecified Allegiance Concern

Admitted

—

(c) involvement occurred for only a short period and was attributable to curiosity or academic interest

Documented

Other

1.i

Applicant has not satisfied or made arrangements to resolve all of it.

Against Applicant

Unspecified Allegiance Concern

Admitted

(a) involvement in, support of, training to commit, or advocacy of any act of sabotage, espionage, treason, terrorism, or sedition against the United States

(c) association or sympathy with persons or organizations that advocate, threaten, or use force or violence, or use any other illegal or unconstitutional …

—

¶	Allegation	Finding	Relationship	Country	Response	Disqualifying (¶7)	Mitigating applied (¶8)	Mitigation
1.a–1.i	9 sub-charges — specific text not stated in this decision (5 against, 4 for the applicant).	Mixed	Unspecified Foreign Relationship Other	—		—	—	—

Allegation

Finding

Relationship

Country

Response

Disqualifying (¶7)

Mitigating applied (¶8)

Mitigation

1.a–1.i

9 sub-charges — specific text not stated in this decision (5 against, 4 for the applicant).

Mixed

Unspecified Foreign Relationship

Other

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶10)	Mitigating applied (¶11)	Mitigation
1.a	Applicant has a history of not meeting financial obligations.	Against Applicant	Unspecified Foreign Preference	Unknown	(a) applying for and/or acquiring citizenship in any other country (c) failure to use a U.S. passport when entering or exiting the U.S.	—	—
1.b	Applicant has a history of not meeting financial obligations.	Against Applicant	Unspecified Foreign Preference	Unknown	(a) applying for and/or acquiring citizenship in any other country (c) failure to use a U.S. passport when entering or exiting the U.S.	—	—
1.c	Applicant has a history of not meeting financial obligations.	Against Applicant	Unspecified Foreign Preference	Unknown	(a) applying for and/or acquiring citizenship in any other country (c) failure to use a U.S. passport when entering or exiting the U.S.	—	—
1.d	Applicant has a history of not meeting financial obligations.	Against Applicant	Unspecified Foreign Preference	Unknown	(a) applying for and/or acquiring citizenship in any other country (c) failure to use a U.S. passport when entering or exiting the U.S.	—	—
1.e	Applicant has resolved her obligation to a finance company in accordance with Mitigating Condition 6.	For Applicant	Unspecified Foreign Preference	Unknown	—	(f) the foreign preference, if detected, involves a foreign country/entity/association that poses a low national security risk	—
1.f	Applicant has made arrangements to pay off the other creditor with two additional payments.	For Applicant	Unspecified Foreign Preference	Unknown	—	(f) the foreign preference, if detected, involves a foreign country/entity/association that poses a low national security risk	—
1.g	Applicant has resolved this debt in accordance with Mitigating Condition 6.	For Applicant	Unspecified Foreign Preference	Unknown	—	(f) the foreign preference, if detected, involves a foreign country/entity/association that poses a low national security risk	—
1.h	Applicant has mitigated this security concern.	For Applicant	Unspecified Foreign Preference	Unknown	—	(f) the foreign preference, if detected, involves a foreign country/entity/association that poses a low national security risk	—
1.i	Applicant has not resolved the delinquent debts listed in SOR.	Against Applicant	Unspecified Foreign Preference	Unknown	(a) applying for and/or acquiring citizenship in any other country (c) failure to use a U.S. passport when entering or exiting the U.S.	—	—

Allegation

Finding

Type

Response

Disqualifying (¶10)

Mitigating applied (¶11)

Mitigation

1.a

Applicant has a history of not meeting financial obligations.

Against Applicant

Unspecified Foreign Preference

Unknown

(a) applying for and/or acquiring citizenship in any other country

(c) failure to use a U.S. passport when entering or exiting the U.S.

—

1.b

Applicant has a history of not meeting financial obligations.

Against Applicant

Unspecified Foreign Preference

Unknown

(a) applying for and/or acquiring citizenship in any other country

(c) failure to use a U.S. passport when entering or exiting the U.S.

—

1.c

Applicant has a history of not meeting financial obligations.

Against Applicant

Unspecified Foreign Preference

Unknown

(a) applying for and/or acquiring citizenship in any other country

(c) failure to use a U.S. passport when entering or exiting the U.S.

—

1.d

Applicant has a history of not meeting financial obligations.

Against Applicant

Unspecified Foreign Preference

Unknown

(a) applying for and/or acquiring citizenship in any other country

(c) failure to use a U.S. passport when entering or exiting the U.S.

—

1.e

Applicant has resolved her obligation to a finance company in accordance with Mitigating Condition 6.

For Applicant

Unspecified Foreign Preference

Unknown

—

(f) the foreign preference, if detected, involves a foreign country/entity/association that poses a low national security risk

—

1.f

Applicant has made arrangements to pay off the other creditor with two additional payments.

For Applicant

Unspecified Foreign Preference

Unknown

—

(f) the foreign preference, if detected, involves a foreign country/entity/association that poses a low national security risk

—

1.g

Applicant has resolved this debt in accordance with Mitigating Condition 6.

For Applicant

Unspecified Foreign Preference

Unknown

—

(f) the foreign preference, if detected, involves a foreign country/entity/association that poses a low national security risk

—

1.h

Applicant has mitigated this security concern.

For Applicant

Unspecified Foreign Preference

Unknown

—

(f) the foreign preference, if detected, involves a foreign country/entity/association that poses a low national security risk

—

1.i

Applicant has not resolved the delinquent debts listed in SOR.

Against Applicant

Unspecified Foreign Preference

Unknown

(a) applying for and/or acquiring citizenship in any other country

(c) failure to use a U.S. passport when entering or exiting the U.S.

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶13)	Mitigating applied (¶14)	Mitigation
1.a–1.i	9 sub-charges — specific text not stated in this decision (5 against, 4 for the applicant).	Mixed			—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶13)

Mitigating applied (¶14)

Mitigation

1.a–1.i

9 sub-charges — specific text not stated in this decision (5 against, 4 for the applicant).

Mixed

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	In 1995, Applicant opened a credit card account with a clothing store in and obtained merchandise. In 1998, the creditor cancelled her account for nonpayment and charged off the $120.00 balance as a bad debt. Applicant has not paid the debt. $120	Against Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	In 1998, Applicant established an account with a club and incurred charges. Later that same year, the club charged off the $63.00 balance as a bad debt. Applicant has not paid the debt. $63	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	In 1999, Applicant incurred a $78.00 debt to a radiologist in connection with an injury she sustained to her arm. In 2000, the radiologist assigned the debt to a collection agency. Applicant has not paid the debt. $78	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	In 2000, applicant incurred a $191.00 debt to a telephone company. In September of that year, the telephone company assigned the debt, with a balance of $91.00, to a collection agency. Applicant has not paid the debt. $191	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	Applicant obtained a $2,500.00 loan from a finance company in 1997. The creditor obtained a judgment against Applicant, which she satisfied on or about October 3, 2002. $2,500	For Applicant	Personal Loan Debt	Admitted	—	(g) arrangements made with the tax authority; in compliance	—
1.f	In September 2001, Applicant had a $159.70 balance on a delinquent account with a department store that was charged off as a bad debt and assigned to a debt collector. On April 22, 2003, she paid the debt collector $53.24 and agreed to pay the balance within two months. $159	For Applicant	Unspecified Financial	Admitted	—	(g) arrangements made with the tax authority; in compliance	—
1.g	In May 2002, a bank charged off Applicant's $715.00 balance on her delinquent credit card account as a bad debt. Applicant made three payments of $119.21 each to a corporate name, other than the name of the bank, on November 8, 2002, December 11, 2002, and January 8, 2003. $715	For Applicant	Credit Card Debt	Admitted	—	(g) arrangements made with the tax authority; in compliance	—
1.h–1.i	2 sub-charges — specific text not stated in this decision (1 against, 1 for the applicant). (low confidence)	Mixed			—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

In 1995, Applicant opened a credit card account with a clothing store in and obtained merchandise. In 1998, the creditor cancelled her account for nonpayment and charged off the $120.00 balance as a bad debt. Applicant has not paid the debt.

$120

Against Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

In 1998, Applicant established an account with a club and incurred charges. Later that same year, the club charged off the $63.00 balance as a bad debt. Applicant has not paid the debt.

$63

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

In 1999, Applicant incurred a $78.00 debt to a radiologist in connection with an injury she sustained to her arm. In 2000, the radiologist assigned the debt to a collection agency. Applicant has not paid the debt.

$78

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.d

In 2000, applicant incurred a $191.00 debt to a telephone company. In September of that year, the telephone company assigned the debt, with a balance of $91.00, to a collection agency. Applicant has not paid the debt.

$191

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

Applicant obtained a $2,500.00 loan from a finance company in 1997. The creditor obtained a judgment against Applicant, which she satisfied on or about October 3, 2002.

$2,500

For Applicant

Personal Loan Debt

Admitted

—

(g) arrangements made with the tax authority; in compliance

—

1.f

In September 2001, Applicant had a $159.70 balance on a delinquent account with a department store that was charged off as a bad debt and assigned to a debt collector. On April 22, 2003, she paid the debt collector $53.24 and agreed to pay the balance within two months.

$159

For Applicant

Unspecified Financial

Admitted

—

(g) arrangements made with the tax authority; in compliance

—

1.g

In May 2002, a bank charged off Applicant's $715.00 balance on her delinquent credit card account as a bad debt. Applicant made three payments of $119.21 each to a corporate name, other than the name of the bank, on November 8, 2002, December 11, 2002, and January 8, 2003.

$715

For Applicant

Credit Card Debt

Admitted

—

(g) arrangements made with the tax authority; in compliance

—

1.h–1.i

2 sub-charges — specific text not stated in this decision (1 against, 1 for the applicant). (low confidence)

Mixed

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶28)	Mitigating applied (¶29)	Mitigation
1.a–1.i	9 sub-charges — specific text not stated in this decision (5 against, 4 for the applicant).	Mixed			—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶28)

Mitigating applied (¶29)

Mitigation

1.a–1.i

9 sub-charges — specific text not stated in this decision (5 against, 4 for the applicant).

Mixed

—

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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