ISCR Case 02-21282.h1

Case Headnote

ISCR Case No. 02-21282.h1

deniedApr 19, 2004· Hon. Roger E. Willmeth· hearing

Summary

A 41-year-old security officer, employed by a defense contractor and as a civilian by the Department of Defense, was denied a security clearance under Guideline F (Financial Considerations) due to significant financial issues. The applicant had accumulated over $18,000 in child support arrears for three children by his ex-wife, as ordered by a court in state P in April 1999. Additionally, a garnishment order was issued in January 2002 for $50.00 due to child support arrears for another child.

Other financial concerns included a $22,256 vehicle loan, on which the applicant was two months delinquent by May 2003 before becoming current. He also had several delinquent debts, including a $57.00 medical clinic debt paid in November 2003, and a $630.00 bank credit card debt settled for $465.30 in January 2004. However, two other debts—an $82.00 bank credit card debt and a $165.00 medical provider debt—remained unresolved.

As of May 2003, the applicant's personal financial statement indicated that his monthly expenses and debts exceeded his income by $455.00. Despite some efforts to resolve lesser debts, the applicant failed to demonstrate substantial improvement in his overall financial situation. The denial was based on the significant child support arrears, the ongoing financial deficit, and inconsistencies between his responses on the SF 86 and his financial history, leading to the conclusion that granting a security clearance was not consistent with national interest.

Why the Applicant Was Denied

Applicant has over $18,000 in child support arrears and failed to demonstrate significant improvement in his financial situation.
Applicant's financial obligations exceed his income, resulting in a monthly deficit of $455.00 as of May 2003.
Applicant's responses on the SF 86 were inconsistent with his financial history, raising concerns 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.A6.1.3.6appliedIndividual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant settled some lesser debts, demonstrating some effort to address financial issues.

Key Rule Quoted

“Any doubt as to whether access to classified information is clearly consistent with national security will be resolved in favor of national security.”

Procedural Posture

SOR issuedAug 25, 2003
Answer filedOct 4, 2003
Hearing heldJan 7, 2004
Decision dateApr 19, 2004

Cite For

Financial Obligations and Their Impact on Security Clearance Eligibility
Inconsistencies in Financial Disclosures on SF 86
The Significance of Child Support Arrears in Security Clearance Determinations

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	In October 2001, Applicant incurred a debt in the amount of $57.00 to a medical clinic. After he failed to pay the debt, it became delinquent and was assigned to a debt collector. On November 24, 2003, Applicant paid the debt collector the balance due, $68.83 $68	For Applicant	Medical Debt	Admitted	—	(g) arrangements made with the tax authority; in compliance	Credited Debt Paid in Full
1.b	In March 2002, incurred a loan in amount of $22,256.00 to purchase a vehicle. His monthly payment is $623.00. By May 2003, Applicant was two months delinquent in his payments. He has paid the delinquency and is current on the loan	For Applicant	Auto Loan Debt	Admitted	—	(g) arrangements made with the tax authority; in compliance	Credited Debt Paid in Full
1.c	In October 2000, Applicant opened a bank credit card account. He incurred a delinquent debt in the amount of $630.00 that the creditor charged off as a bad debt and assigned to a debt collector. On January 6, 2004, Applicant paid $465.30 to the debt collector to settle the bad debt $465	For Applicant	Credit Card Debt	Admitted	—	(g) arrangements made with the tax authority; in compliance	Credited Debt Paid in Full
1.d	On January 17, 2002, a court in state P issued a garnishment order against Applicant for $50.00 for being in arrears in his child support for a child by EA $50	Against Applicant	Child Support Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	In July 1998, Applicant opened a bank credit card account. He incurred a delinquent debt in the amount of $82.00 that the creditor charged off as a bad debt by September 2000. The record fails to establish that the debt has been paid or otherwise resolved $82	Against Applicant	Credit Card Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	In February 1997, Applicant incurred a debt in the amount of $165.00 to a medical provider that he failed to pay. In 1998, the creditor assigned the unpaid debt to a debt collector. The record fails to establish that the debt has been paid or otherwise resolved $165	Against Applicant	Medical Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	In April 1999, a court in state P ordered Applicant to pay child support in the amount of $712.00 per month for his three children by his ex-wife. By May 2003, Applicant was in arrears by more than $18,000.00 to his ex-wife for child support $18,000	Against Applicant	Child Support Debt	Denied	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	In May 2003, Applicant provided a personal financial statement indicating that his monthly expenses and debts exceeded his monthly income by $455.00 $455	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

In October 2001, Applicant incurred a debt in the amount of $57.00 to a medical clinic. After he failed to pay the debt, it became delinquent and was assigned to a debt collector. On November 24, 2003, Applicant paid the debt collector the balance due, $68.83

$68

For Applicant

Medical Debt

Admitted

—

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

Credited

Debt Paid in Full

1.b

In March 2002, incurred a loan in amount of $22,256.00 to purchase a vehicle. His monthly payment is $623.00. By May 2003, Applicant was two months delinquent in his payments. He has paid the delinquency and is current on the loan

For Applicant

Auto Loan Debt

Admitted

—

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

Credited

Debt Paid in Full

1.c

In October 2000, Applicant opened a bank credit card account. He incurred a delinquent debt in the amount of $630.00 that the creditor charged off as a bad debt and assigned to a debt collector. On January 6, 2004, Applicant paid $465.30 to the debt collector to settle the bad debt

$465

For Applicant

Credit Card Debt

Admitted

—

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

Credited

Debt Paid in Full

1.d

On January 17, 2002, a court in state P issued a garnishment order against Applicant for $50.00 for being in arrears in his child support for a child by EA

$50

Against Applicant

Child Support Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

In July 1998, Applicant opened a bank credit card account. He incurred a delinquent debt in the amount of $82.00 that the creditor charged off as a bad debt by September 2000. The record fails to establish that the debt has been paid or otherwise resolved

$82

Against Applicant

Credit Card Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.f

In February 1997, Applicant incurred a debt in the amount of $165.00 to a medical provider that he failed to pay. In 1998, the creditor assigned the unpaid debt to a debt collector. The record fails to establish that the debt has been paid or otherwise resolved

$165

Against Applicant

Medical Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.g

In April 1999, a court in state P ordered Applicant to pay child support in the amount of $712.00 per month for his three children by his ex-wife. By May 2003, Applicant was in arrears by more than $18,000.00 to his ex-wife for child support

$18,000

Against Applicant

Child Support Debt

Denied

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

In May 2003, Applicant provided a personal financial statement indicating that his monthly expenses and debts exceeded his monthly income by $455.00

$455

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

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES