ISCR Case 02-31324.h1

Case Headnote

ISCR Case No. 02-31324.h1

grantedJan 22, 2004· Hon. Kathryn Moen Braeman· hearing

Summary

A 52-year-old defense contractor employee was granted a security clearance despite concerns under Guideline F (Financial Considerations) and Guideline J (Criminal Conduct). The applicant had a history of financial difficulties, including two bankruptcy filings in 1987 and 1997, the latter of which was dismissed in 1999 due to missed payments and debt to 17 creditors. Additionally, his wages were garnished by one creditor from 1998-2000, and a tax lien was filed against him in 1999, with the debt settled in 2001. He also settled a bank debt in 2003 and made payment arrangements for another outstanding balance.

Regarding criminal conduct, the applicant was charged in January 1998 with Unlawful Possession of Alcoholic Beverage and Driving Under the Influence (DUI). He was found guilty of the possession charge, paying a fine and costs, but was found not guilty of DUI.

The clearance was granted because the applicant demonstrated significant efforts to resolve most outstanding debts, including paying several creditors and consistently making payments on another. He also showed financial responsibility by living within his income. The criminal conduct was considered isolated, and the applicant provided evidence of rehabilitation through his job performance.

Why the Applicant Prevailed

The applicant has resolved or is in the process of resolving most of his outstanding debts.
He has demonstrated financial responsibility and lives within his income.
The applicant's criminal conduct was isolated and he has shown evidence of rehabilitation through his job performance.

Conditions Referenced

Disqualifying

F.1raisedA History of Not Meeting Financial Obligations
F.3raisedInability or Unwillingness to Satisfy Debts
J.1raisedAllegations or Admissions of Criminal Conduct, Regardless of Whether the Person Was Formally Charged

Mitigating

F.4appliedThere Are Clear Indications That the Problem Is Being Resolved or Is Under Control
F.6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
J.1appliedThe Criminal Behavior Was Not Recent
J.2appliedThe Crime Was an Isolated Incident
J.6appliedThere Is Clear Evidence of Successful Rehabilitation

Key Rule Quoted

“The responsibility for producing evidence initially falls on the Government to demonstrate that it is not clearly consistent with the national interest to grant or continue Applicant's access to classified information.”

Procedural Posture

SOR issuedApr 30, 2003
Answer filedUndated
Hearing heldSep 30, 2003
Decision dateJan 22, 2004

Cite For

Mitigation of Financial Issues Under Guideline F
Isolated Criminal Conduct Under Guideline J
Evidence of Rehabilitation in Security Clearance Cases

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 March 1987 Applicant was granted a discharge in a Chapter 7 Bankruptcy Case. He reaffirmed the loan obligation on his home in State #1.	For Applicant	Bankruptcy Filing	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts (f) the affluence resulted from a legal source	—
1.b	After Applicant was married to Wife #3, they began to play video poker and were 'blowing money and running up a credit card debt.' In April 1997 they filed for Chapter 13 Bankruptcy.	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts (f) the affluence resulted from a legal source	—
1.c	He then started getting behind in the bankruptcy payments as well; and he could not contact the law firm that had represented him. So he stopped making payments while he lived in State #3. In 1998 he moved back to State #1. His Chapter 13 was dismissed in April 1999 as he was seven months behind in his plan payments and was in debt to 17 different creditors.	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts (f) the affluence resulted from a legal source	—
1.d	He has paid Creditor #1; he paid Creditor #2 through garnishment; he paid Creditor #4, the Internal Revenue Service. He paid Creditor #5 for his State #1 taxes. He provided no evidence on the status of his payments to Creditors #7 through #17.	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (c) a history of not meeting financial obligations	(d) good-faith effort to repay or otherwise resolve debts (f) the affluence resulted from a legal source	—
1.e	Applicant's wages were garnished by Creditor #2 from 1998-2000 and that debt is paid.	For Applicant	Unspecified Financial	Unknown	—	(d) good-faith effort to repay or otherwise resolve debts (f) the affluence resulted from a legal source	—
1.f	Applicant paid his debt in October 2001 to State #1 for taxes, penalties and interest after a tax lien was filed in May 1999.	For Applicant	Tax Unpaid	Unknown	—	(d) good-faith effort to repay or otherwise resolve debts (f) the affluence resulted from a legal source	—
1.g	In April 2003 Applicant settled a debt to a bank and paid in full the debt of approximately $1,000 which had been referred for collection in August 2000. $1,000	For Applicant	Unspecified Financial	Unknown	—	(d) good-faith effort to repay or otherwise resolve debts (f) the affluence resulted from a legal source	—
1.h	In May 2003 Applicant made arrangements to start making payments of $50 per month toward the balance owed to this creditor and has been consistent in the payments.	For Applicant	Unspecified Financial	Unknown	—	(d) good-faith effort to repay or otherwise resolve debts (f) the affluence resulted from a legal source	—
1.i	Applicant denied a debt to a credit card to Creditor #7 for $1,276 which was referred for collection in May 1996. $1,276	For Applicant	Credit Card Debt	Denied	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

In March 1987 Applicant was granted a discharge in a Chapter 7 Bankruptcy Case. He reaffirmed the loan obligation on his home in State #1.

For Applicant

Bankruptcy Filing

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(d) good-faith effort to repay or otherwise resolve debts

(f) the affluence resulted from a legal source

—

1.b

After Applicant was married to Wife #3, they began to play video poker and were 'blowing money and running up a credit card debt.' In April 1997 they filed for Chapter 13 Bankruptcy.

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(d) good-faith effort to repay or otherwise resolve debts

(f) the affluence resulted from a legal source

—

1.c

He then started getting behind in the bankruptcy payments as well; and he could not contact the law firm that had represented him. So he stopped making payments while he lived in State #3. In 1998 he moved back to State #1. His Chapter 13 was dismissed in April 1999 as he was seven months behind in his plan payments and was in debt to 17 different creditors.

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(d) good-faith effort to repay or otherwise resolve debts

(f) the affluence resulted from a legal source

—

1.d

He has paid Creditor #1; he paid Creditor #2 through garnishment; he paid Creditor #4, the Internal Revenue Service. He paid Creditor #5 for his State #1 taxes. He provided no evidence on the status of his payments to Creditors #7 through #17.

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

(d) good-faith effort to repay or otherwise resolve debts

(f) the affluence resulted from a legal source

—

1.e

Applicant's wages were garnished by Creditor #2 from 1998-2000 and that debt is paid.

For Applicant

Unspecified Financial

Unknown

—

(d) good-faith effort to repay or otherwise resolve debts

(f) the affluence resulted from a legal source

—

1.f

Applicant paid his debt in October 2001 to State #1 for taxes, penalties and interest after a tax lien was filed in May 1999.

For Applicant

Tax Unpaid

Unknown

—

(d) good-faith effort to repay or otherwise resolve debts

(f) the affluence resulted from a legal source

—

1.g

In April 2003 Applicant settled a debt to a bank and paid in full the debt of approximately $1,000 which had been referred for collection in August 2000.

$1,000

For Applicant

Unspecified Financial

Unknown

—

(d) good-faith effort to repay or otherwise resolve debts

(f) the affluence resulted from a legal source

—

1.h

In May 2003 Applicant made arrangements to start making payments of $50 per month toward the balance owed to this creditor and has been consistent in the payments.

For Applicant

Unspecified Financial

Unknown

—

(d) good-faith effort to repay or otherwise resolve debts

(f) the affluence resulted from a legal source

—

1.i

Applicant denied a debt to a credit card to Creditor #7 for $1,276 which was referred for collection in May 1996.

$1,276

For Applicant

Credit Card Debt

Denied

—

¶	Allegation	Finding	Offense	Criminal disposition	Response	Disqualifying (¶31)	Mitigating applied (¶32)	Mitigation
2.a	In January 1998 in State #3 he was driving home and was stopped by a roadblock; he had packaged beer in his vehicle. He was charged with (1) Unlawful Possession of Alcoholic Beverage and (2) Driving Under the Influence (DUI). He was found guilty of the first charge and paid a fine and costs in April 1998, but found not guilty of DUI in August 1998.	For Applicant	DUI or DWI Criminal	Convicted	Denied	—	(a) so much time has passed, or unusual circumstances, that it is unlikely to recur (b) pressured/coerced and unlikely to recur absent that pressure (c) no reliable evidence the individual committed the offense	—

Allegation

Finding

Offense

Criminal disposition

Response

Disqualifying (¶31)

Mitigating applied (¶32)

Mitigation

2.a

In January 1998 in State #3 he was driving home and was stopped by a roadblock; he had packaged beer in his vehicle. He was charged with (1) Unlawful Possession of Alcoholic Beverage and (2) Driving Under the Influence (DUI). He was found guilty of the first charge and paid a fine and costs in April 1998, but found not guilty of DUI in August 1998.

For Applicant

DUI or DWI Criminal

Convicted

Denied

—

(a) so much time has passed, or unusual circumstances, that it is unlikely to recur

(b) pressured/coerced and unlikely to recur absent that pressure

(c) no reliable evidence the individual committed the offense

—

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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

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES