ISCR Case 02-11177.h1

Case Headnote

ISCR Case No. 02-11177.h1

grantedFeb 14, 2005· Hon. Robert J. Tuider· hearing

Summary

A 37-year-old unmarried fire and rescue engineer was granted a security clearance despite initial concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). These concerns stemmed from a history of excessive gambling and several unresolved debts.

The applicant faced allegations regarding six specific debts. These included a $1,860 debt to a finance company, paid in full by March 5, 2004; a $478 debt to a phone company, paid by March 25, 2004; a $119 debt to a gas company, paid by November 13, 2003; and a $13 debt to a cable company, paid by December 3, 2003. A $7,270 judgment from 1997 was satisfied by May 24, 1999, through wage garnishment. Additionally, a $1,747.27 debt to a credit card company, resulting from misuse of a government credit card in 1993, was being paid through payment plans and was anticipated to be resolved within months.

The applicant also admitted to a past gambling problem, with expenditures totaling approximately $38,000 between 1994 and 1998, and continued gambling through 2001. However, he demonstrated significant rehabilitation. He resolved all six alleged debts, sought professional assistance from a consumer credit counseling service in November 2003, and testified that his gambling behavior ceased in 2002, with estimated annual expenditures significantly reduced to $1,000-$1,500 in 2002 and 2003. The clearance was granted based on these mitigating factors and his demonstrated efforts to live within his means.

Why the Applicant Prevailed

The applicant successfully resolved all six debts alleged in the SOR.
He sought professional assistance from a consumer credit counseling service in November 2003.
The applicant's gambling behavior ceased in 2002, and he has since lived within his means.

Conditions Referenced

Disqualifying

E2.A6.1.2raisedA History of Not Meeting Financial Obligations
E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
E2.A6.1.3raisedFinancial Problems That Are Linked to Gambling

Mitigating

E2.A6.1.3.1appliedThe Behavior Was Not Recent
E2.A6.1.3.4appliedThe Person Has Received Counseling for the Problem and There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
E2.A6.1.3.6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“"[N]o one has a 'right' to a security clearance."”
— Department of the Navy v. Egan, 484 U.S. 518, 528 (1988)

Procedural Posture

SOR issuedOct 3, 2003
Answer filedOct 30, 2003
Hearing heldFeb 23, 2004
Decision dateFeb 14, 2005

Cite For

Successful Rehabilitation of Financial Issues Under Guideline F
Mitigating Conditions Related to Gambling Behavior
Lack of a Pattern of Personal Conduct Violations Under Guideline E

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

¶	Allegation	Finding	Conduct	Concealed Issue	Response	Disqualifying (¶16)	Mitigating applied (¶17)	Mitigation
2.a–2.b	2 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant		—		—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a–2.b

2 sub-charges — specific text not stated in this decision (for the applicant).

For Applicant

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—
1.b	is a debt to a finance company for $1,860.00, which was not paid as of June 19, 2003. Applicant entered into an agreement with a credit management company dated February 11, 2004 to begin making payments on the new balance, which was $2,288.05. Applicant submitted evidence after the hearing reflecting this account was paid-in-full on March 5, 2004. $1,860	For Applicant	Unspecified Financial	Admitted	—	(g) arrangements made with the tax authority; in compliance	Documented Debt Paid in Full
1.c	is a debt to a phone company for $478.00, which was not paid as of June 19, 2003. This debt was sold to a credit collection agency. Applicant submitted evidence after the hearing reflecting this account was paid-in-full on March 25, 2004. $478	For Applicant	Unspecified Financial	Admitted	—	(g) arrangements made with the tax authority; in compliance	Documented Debt Paid in Full
1.d	is a debt to a gas company for $119.00, which was referred to a collection agency. It had not been paid as of June 19, 2003. Applicant paid this debt in full on November 13, 2003. $119	For Applicant	Utility or Phone Debt	Admitted	—	(g) arrangements made with the tax authority; in compliance	Documented Debt Paid in Full
1.e	is a debt to a cable company for $13.00, which was referred to a collection agency. It had not been paid as of June 29, 2003. Applicant paid this debt in full on December 3, 2003. $13	For Applicant	Utility or Phone Debt	Admitted	—	(g) arrangements made with the tax authority; in compliance	Documented Debt Paid in Full
1.f	is a judgment for $7,270.00 entered against Applicant on June 18, 1997 in favor of a finance company. Applicant's wages were garnished on August 12, 1997, and Notice of Satisfaction was entered on May 24, 1999 by Sheriff's Release. $7,270	For Applicant	Judgment Against Applicant	Admitted	—	—	—
1.g	is a debt to a credit card company for $1,747.27, which had not been paid as of May 18, 1999. This debt arose as a result of Applicant misusing his government credit card while he was in the Air Force. Applicant misused his government credit card in 1993 for "rent-a-car services, cash advances, and some food and clothing, for spring break in Florida." Applicant set up payment plans to pay this debt off and anticipates it will be paid "[w]ithin the next couple of months." $1,747	For Applicant	Credit Card Debt	Admitted	—	—	—
1.h	alleges between 1994 and 1998, Applicant spent approximately $38,000.00 in gambling casinos. Gambling expenditures in approximate amounts are as follows: 1994: $12,000.00, 1995: $12,000.00, 1996: $6,000.00, 1997: $5,000.00, and 1998: $3,000.00. After 1999, Applicant continued to gamble and his gambling expenditures in approximate amounts are as follows: 1999: $10,000.00, 2000: $5,000.00 to $6,000.00, and 2001: $5,000.00. In years 2002 and 2003, Applicant testified he "rarely gambled" and estimated his gambling expenditures to be approximately $1,000.00 to $1,500.00 a year. $38,000	For Applicant	Gambling Losses	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	(g) arrangements made with the tax authority; in compliance	—
1.i	Applicant admits he had a gambling problem, but does not currently have a gambling problem.	For Applicant	Gambling Losses	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

specific text not stated in this decision

For Applicant

Unspecified Financial

Unknown

—

1.b

is a debt to a finance company for $1,860.00, which was not paid as of June 19, 2003. Applicant entered into an agreement with a credit management company dated February 11, 2004 to begin making payments on the new balance, which was $2,288.05. Applicant submitted evidence after the hearing reflecting this account was paid-in-full on March 5, 2004.

$1,860

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Debt Paid in Full

1.c

is a debt to a phone company for $478.00, which was not paid as of June 19, 2003. This debt was sold to a credit collection agency. Applicant submitted evidence after the hearing reflecting this account was paid-in-full on March 25, 2004.

$478

For Applicant

Unspecified Financial

Admitted

—

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

Documented

Debt Paid in Full

1.d

is a debt to a gas company for $119.00, which was referred to a collection agency. It had not been paid as of June 19, 2003. Applicant paid this debt in full on November 13, 2003.

$119

For Applicant

Utility or Phone Debt

Admitted

—

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

Documented

Debt Paid in Full

1.e

is a debt to a cable company for $13.00, which was referred to a collection agency. It had not been paid as of June 29, 2003. Applicant paid this debt in full on December 3, 2003.

$13

For Applicant

Utility or Phone Debt

Admitted

—

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

Documented

Debt Paid in Full

1.f

is a judgment for $7,270.00 entered against Applicant on June 18, 1997 in favor of a finance company. Applicant's wages were garnished on August 12, 1997, and Notice of Satisfaction was entered on May 24, 1999 by Sheriff's Release.

$7,270

For Applicant

Judgment Against Applicant

Admitted

—

1.g

is a debt to a credit card company for $1,747.27, which had not been paid as of May 18, 1999. This debt arose as a result of Applicant misusing his government credit card while he was in the Air Force. Applicant misused his government credit card in 1993 for "rent-a-car services, cash advances, and some food and clothing, for spring break in Florida." Applicant set up payment plans to pay this debt off and anticipates it will be paid "[w]ithin the next couple of months."

$1,747

For Applicant

Credit Card Debt

Admitted

—

1.h

alleges between 1994 and 1998, Applicant spent approximately $38,000.00 in gambling casinos. Gambling expenditures in approximate amounts are as follows: 1994: $12,000.00, 1995: $12,000.00, 1996: $6,000.00, 1997: $5,000.00, and 1998: $3,000.00. After 1999, Applicant continued to gamble and his gambling expenditures in approximate amounts are as follows: 1999: $10,000.00, 2000: $5,000.00 to $6,000.00, and 2001: $5,000.00. In years 2002 and 2003, Applicant testified he "rarely gambled" and estimated his gambling expenditures to be approximately $1,000.00 to $1,500.00 a year.

$38,000

For Applicant

Gambling Losses

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

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

—

1.i

Applicant admits he had a gambling problem, but does not currently have a gambling problem.

For Applicant

Gambling Losses

Admitted

—

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Case Profile

Summary

Why the Applicant Prevailed

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

SYNOPSIS

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES