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ISCR Case 02-22180.h1 — CASE

ISCR Case 02-22180.h1denied

Case Headnote

ISCR Case No. 02-22180.h1

deniedApr 13, 2004· Hon. Joseph Testan· hearing

Summary

A 43-year-old Resource Control Specialist was denied a security clearance under Guideline E (Personal Conduct) due to a history of unresolved financial obligations. The applicant had incurred approximately $7,200 in new debts since a Chapter 7 bankruptcy discharge in 1997, which had resolved $9,200 in unsecured personal credit debts.

Specific allegations included an outstanding debt of at least $1,983 since 2003, and another for approximately $4,021, charged off in 2002. Additional charged-off debts included $520 from 2003 and $761 from June 2003. While some debts were settled or satisfied, such as a $688 debt settled for $490 in November 2003, a $137 debt satisfied in November 2003, and a $27 debt satisfied in May 2003, an Exxon credit card debt remained with an undetermined exact amount.

The denial was based on the applicant's long-standing history of past-due debts and the failure to provide a credible plan for resolving these financial issues. This history was deemed to adversely affect her judgment, reliability, and trustworthiness.

Why the Applicant Was Denied

Applicant has a long-standing history of past-due debts totaling approximately $7,200.
Applicant's failure to honor financial commitments adversely affects her judgment, reliability, and trustworthiness.
Applicant did not provide a credible plan to resolve her financial issues.

Conditions Referenced

Disqualifying

E2.A6.1.2.1appliedFinancial Considerations - Inability to Satisfy Debts
E2.A6.1.2.3appliedFinancial Considerations - Unwillingness to Satisfy Debts

Key Rule Quoted

“It is not clearly consistent with the national interest to grant or continue a security clearance for applicant.”

Procedural Posture

SOR issuedSep 10, 2003
Answer filedOct 8, 2003
Hearing heldMar 19, 2004
Decision dateApr 13, 2004

Cite For

Denial Based on Unresolved Financial Obligations Under Guideline E
Impact of Financial Irresponsibility on Security Clearance Eligibility
Lack of Credible Repayment Plan as a Basis for Denial of Clearance

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

Standardized Decision Profile

SEAD-4 Guideline E (Personal Conduct) · descriptive summary of a decided case

Posture: Decision on RecordDecided: denied

The judge found multiple personal conduct concerns related to the applicant's financial issues, including long-standing debts and a history of not meeting financial obligations. The judge ruled against the applicant on several allegations, concluding that her financial difficulties reflect adversely on her judgment and reliability, leading to a denial of her security clearance.

¶	Allegation	Finding	Conduct	Concealed Issue	Response	Disqualifying (¶16)	Mitigating applied (¶17)	Mitigation
1.a	Applicant has been indebted to this creditor in the amount of at least $1,983.00 since at least 2003.	Against Applicant	Rules Violation at Workplace	—	Denied	(a) deliberate omission, concealment, or falsification on a security form (c) credible adverse information across areas supporting a whole-person concern	—	—
1.b	Applicant was indebted to this creditor in the amount of $688.00. After the account went delinquent and was "charged off," she settled with the creditor for $490.00. She made the $490.00 payment in November 2003.	For Applicant	Rules Violation at Workplace	—	Admitted	—	—	—
1.c	Applicant is indebted to this creditor in the approximate amount of $4,021.00. This account went delinquent and was eventually "charged off" by the creditor in 2002.	Against Applicant	Rules Violation at Workplace	—	Denied	(a) deliberate omission, concealment, or falsification on a security form (c) credible adverse information across areas supporting a whole-person concern	—	—
1.d	Applicant is indebted to this creditor in the approximate amount of $520.00. This account went delinquent and was eventually "charged off" by the creditor in 2003.	Against Applicant	Rules Violation at Workplace	—	Denied	(a) deliberate omission, concealment, or falsification on a security form (c) credible adverse information across areas supporting a whole-person concern	—	—
1.e	Applicant satisfied this past-due $137.00 debt in November 2003.	For Applicant	Rules Violation at Workplace	—	Admitted	—	—	—
1.f	Applicant is indebted to this creditor for a past-due credit card account with Exxon. The exact amount of indebtedness cannot be determined from the record.	Against Applicant	Rules Violation at Workplace	—	Denied	(a) deliberate omission, concealment, or falsification on a security form (c) credible adverse information across areas supporting a whole-person concern	—	—
1.g	Applicant is indebted to this creditor in the approximate amount of $761.00. This past-due credit card account was "charged off" by the creditor in June 2003.	Against Applicant	Rules Violation at Workplace	—	Denied	(a) deliberate omission, concealment, or falsification on a security form (c) credible adverse information across areas supporting a whole-person concern	—	—
1.h	Applicant satisfied this $27.00 past-due debt in May 2003.	For Applicant	Rules Violation at Workplace	—	Admitted	—	—	—
1.i	Applicant filed a Chapter 7 bankruptcy petition in 1997. Unsecured personal credit debts totaling $9,200.00 were discharged by the bankruptcy court in 1997. Since the date of that discharge, applicant has incurred all of the aforementioned debts.	Against Applicant	Rules Violation at Workplace	—	Denied	(a) deliberate omission, concealment, or falsification on a security form (c) credible adverse information across areas supporting a whole-person concern	—	—

Descriptive standardized rendering of a decided public case (Guideline E). The verbatim source decision is shown in full below.

Full decision

The complete, official text — footnotes and signatures included — is in the original PDF.

Decision text, by section

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

DATE: April 13, 2004 In Re: ---------------- SSN: ----------- Applicant for Security Clearance ISCR Case No. 02-22180 DECISION OF ADMINISTRATIVE JUDGE JOSEPH TESTAN

SYNOPSIS Applicant's inability or unwillingness to address her long-standing past-due debts precludes a finding that it is now clearly consistent with the national interest to grant her access to classified information. Clearance is denied.

STATEMENT OF CASE

On September 10, 2003, the Defense Office of Hearings and Appeals (DOHA), pursuant to Executive Order 10865 and Department of Defense Directive 5220.6 (Directive), dated January 2, 1992, issued a Statement of Reasons (SOR) to applicant which detailed reasons why DOHA could not make the preliminary affirmative finding under the Directive that it is clearly consistent with the national interest to grant or continue a security clearance for applicant and recommended referral to an Administrative Judge to determine whether clearance should be denied or revoked. Applicant responded to the SOR in writing on October 8, 2003. The case was assigned to the undersigned on January 8, 2004. Notices of Hearing were issued on February 12 and March 4, 2004, and the hearing was held on March 19, 2004. Following the hearing, applicant submitted eight pages of documents. These documents, and Department Counsel's letter indicating she has no objection to the documents, were marked as Exhibit F and admitted into evidence. The transcript was received on April 6, 2004.

FINDINGS OF FACT

Applicant is a 43 year old Resource Control Specialist. SOR Allegation 1.a. Applicant has been indebted to this creditor in the amount of at least $1,983.00 since at least 2003. SOR Allegation 1.b. Applicant was indebted to this creditor in the amount of $688.00. After the account went delinquent and was "charged off," she settled with the creditor for $490.00. She made the $490.00 payment in November 2003 (Exhibits 4, E, and F). SOR Allegation 1.c. Applicant is indebted to this creditor in the approximate amount of $4,021.00. This account went delinquent and was eventually "charged off" by the creditor in 2002. SOR Allegation 1.d. Applicant is indebted to this creditor in the approximate amount of $520.00. This account went delinquent and was eventually "charged off" by the creditor in 2003. SOR Allegation 1.e. Applicant satisfied this past-due $137.00 debt in November 2003. SOR Allegation 1.f. Applicant is indebted to this creditor for a past-due credit card account with Exxon. The exact amount of indebtedness cannot be determined from the record. SOR Allegation 1.g. Applicant is indebted to this creditor in the approximate amount of $761.00. This past-due credit card account was "charged off" by the creditor in June 2003. SOR Allegation 1.h. Applicant satisfied this $27.00 past-due debt in May 2003. SOR Allegation 1.i. Applicant filed a Chapter 7 bankruptcy petition in 1997. Unsecured personal credit debts totaling $9,200.00 were discharged by the bankruptcy court in 1997. Since the date of that discharge, applicant has incurred all of the aforementioned debts. Letters from three of applicant's coworkers, including her supervisor, were admitted into evidence. In general, applicant is described by these individuals as hardworking and honest.

CONCLUSION

The evidence establishes that after discharging approximately $9,200.00 in unsecured credit debt in 1997, applicant fell behind on her debt payments to at least eight new creditors during the past several years. The evidence further establishes that after satisfying three of these past-due debts in 2003 by making total payments of approximately $654.00, she is still indebted to at least five different creditors in the approximate amount of $7,200.00. Applicant's continuing failure to honor her financial commitments reflects adversely on her judgment, reliability and trustworthiness, and strongly suggests that she cannot be relied upon to safeguard classified information. Applicant testified that she intends to satisfy her past-due debts, but offered no credible plan for doing so. Given this fact, her multi-year history of not meeting her financial obligations (Disqualifying Condition E2.A6.1.2.1), and her long-standing inability or unwillingness to satisfy her debts (Disqualifying Condition E2.A6.1.2.3.), I conclude that there is little or no chance applicant will resolve her financial difficulties anytime soon. Applicant's payment of three of her smaller debts in 2003 is noted. However, when the evidence is viewed as a whole, this conduct does not constitute a "good-faith effort to repay overdue creditors or otherwise resolve debts." Accordingly, applicant does not qualify for Mitigating Condition E2.A6.1.3.6. Based on the foregoing, Guideline F is found against applicant.

FORMAL FINDINGS

PARAGRAPH 1: AGAINST THE APPLICANT Subparagraphs 1a, 1c, 1d, 1f, 1gand 1i: Against the Applicant Subparagraphs 1b, 1e, and 1h: For the Applicant

DECISION

In light of all the circumstances presented by the record in this case, it is not clearly consistent with the national interest to grant or continue a security clearance for applicant. ____________________________ Joseph Testan Administrative Judge

FOOTNOTES

02-22180.h1 FOR GOVERNMENT Jennifer I. Campbell, Department Counsel FOR APPLICANT Pro Se file:///usr.osd.mil/...omputer/Desktop/DOHA%20transfer/DOHA-Kane/dodogc/doha/industrial/Archived%20-%20HTML/02-22180.h1.html[6/24/2021 11:03:34 AM] 02-22180.h1