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ISCR 03-01371.h1: Guideline F security clearance hearing, granted (2004) · CASE

ISCR Case 03-01371.h1granted

Case headnote

ISCR Case No. 03-01371.h1

grantedJun 25, 2004· Hon. Charles D. Ablard· hearing

Summary

A 46-year-old defense contractor employee was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons alleged that the applicant had approximately $25,000 in delinquent debts across six credit card companies. These allegations raised disqualifying conditions E2.A6.1.2.1 and E2.A6.1.2.3.

However, the applicant successfully demonstrated mitigating condition E2.A6.1.3.6, showing a good faith effort to resolve her financial issues. At the time of her answer to the Statement of Reasons, she provided evidence of paying or settling almost $10,000 of her debts.

Further documentation confirmed that she subsequently settled or paid the remaining delinquent accounts. This consistent effort to resolve her financial obligations led to the granting of her security clearance.

Why the applicant prevailed

The applicant provided evidence of payment or settlement of debts totaling almost $10,000 at the time of her answer to the SOR.
Subsequent documentation showed that she settled or paid the remaining debts, demonstrating a good faith effort to resolve her financial issues.

Conditions referenced

Disqualifying

E2.A6.1.2.1raisedHistory of Not Meeting Financial Obligations
E2.A6.1.2.3raisedEvidence of Inability or Unwillingness to Satisfy Debts

Mitigating

E2.A6.1.3.6appliedGood Faith Effort to Repay Overdue Creditors or Resolve Debts

Key rule quoted

“"Any doubt as to whether access to classified information is clearly consistent with national security will be resolved in favor of the national security."”
Directive, ¶ E2.2.2.

Procedural posture

SOR issuedOct 22, 2003
Answer filedNov 18, 2003Applicant elected to have the case decided on the written record.
Hearing held—No hearing; decided on the written record.
Decision dateJun 25, 2004

Cite for

Demonstrating Good Faith Efforts to Resolve Financial Issues Under Guideline F
Mitigating Conditions Related to Financial Obligations
The Importance of Documentary Evidence in Establishing Financial Responsibility

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

From the decision

Facts this decision states, each with the exact sentence it comes from. Descriptive of the record, not an assessment.

Age at decision: 46: “Applicant is a 46-year-old employee of a defense contractor.”
Delinquent debt cited: $25,000 (on a payment plan): “Applicant is a 46-year-old employee of a defense contractor who incurred approximately $25,000.00 in delinquent debts to six credit card companies.”

Standardized Decision Profile

SEAD-4 Guideline F · descriptive summary of a decided case

Posture: Decision on RecordDecided: granted

The applicant incurred approximately $25,000 in delinquent debts to six credit card companies. The judge found that the applicant had made good faith efforts to settle or pay these debts, leading to a decision to grant the security clearance.

The sub-allegation breakdown is part of the Professional plan. See what it includes.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation

Descriptive standardized rendering of a decided public case. 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: June 25, 2004

In Re:

---------------------

SSN: -----------

Applicant for Security Clearance

CR Case No. 03-01371

DECISION OF ADMINISTRATIVE JUDGE

CHARLES D. ABLARD

SYNOPSIS

Applicant is a 46-year-old employee of a defense contractor who incurred approximately $25,000.00 in delinquent debts to six credit card companies. At the time of the filing of her answer to the SOR she showed evidence of payment or settlement of three of the debts totaling almost $10,000.00 and subsequently submitted documentation as to the remaining debts to show that she had settled, or paid the other accounts. Clearance is granted.

STATEMENT OF CASE

On October 22, 2003, the Defense Office of Hearings and Appeals (DOHA), pursuant to Executive Order 10865, Safeguarding Classified Information Within Industry ,as amended and modified, and Department of Defense Directive 5220.6, Defense Industrial Personnel Security Clearance Review Program (Directive), dated January 2, 1992, as amended and modified, issued a Statement of Reasons (SOR) to Applicant stating reasons why DOHA could not make the preliminary affirmative finding that it is clearly consistent with the national interest to grant or continue a security clearance for Applicant. DOHA recommended the case be referred to an administrative judge to determine whether a clearance should be granted, continued, denied, or revoked.

In a sworn written statement, dated November 18, 2003, Applicant responded to the SOR allegations, and elected to have her case decided on the written record in lieu of a hearing. Department Counsel submitted the government's written case on March 23, 2004. A complete copy of the File of Relevant Material (FORM), consisting of six documents, was provided to Applicant by letter dated March 24, 2004. Applicant was afforded an opportunity to file objections and submit material in refutation, extenuation, or mitigation. She did so on April 8, 2004. The case was assigned to me on April 28, 2004.

FINDINGS OF FACT

Applicant admitted three of the specific allegations of delinquent debt and denied three others in the SOR in her answer. After a complete and thorough review of the information in the record, and upon due consideration of same, I make the following additional findings of fact.

Applicant is a 37-year-old employee of a defense contractor. She incurred approximately $25,000.00 in delinquent debts to six credit card companies. At the time of the filing of her answer to the SOR she showed evidence from 2001 and 2003 of payment or settlement of three of the debts totaling almost $10,000.00. (1d,e, and f) Subsequent to receipt of the FORM, Applicant submitted documentation as to the remaining three debts to show that in March 2003, she had settled one account for 80% of the debt (1a), in early April 2004, had paid a second account in full (1b) and was paying $200.00 a month on a third account that was deemed current by the creditor (1c). (Attachment 1 to Supplemental Answer)

POLICIES

"[N]o one has a 'right' to a security clearance." Department of the Navy v. Egan, 484 U.S. 518, 528 (1988). As Commander in Chief, the President has "the authority to control access to information bearing on national security and to determine whether an individual is sufficiently trustworthy to occupy a position that will give that person access to such information." Id. at 527.

An evaluation of whether the applicant meets the security guidelines includes consideration of the following factors: (1) the nature, extent, and seriousness of the conduct; (2) the circumstances surrounding the conduct; (3) the frequency and recency of the conduct; (4) the individual's age and maturity at the time of the conduct; (5) the voluntariness of participation; (6) the presence or absence of rehabilitation and other behavioral changes; (7) the motivation for the conduct; (8) the potential for pressure, coercion, exploitation, or duress; and (9) the likelihood of continuation or recurrence. Directive, ¶ E2.2.1. Security clearances are granted only when "it is clearly consistent with the national interest to do so." Executive Order No. 10865 § 2. See Executive Order No. 12968 § 3.1(b).

Initially, the government must establish, by something less than a preponderance of the evidence, that conditions exist in the personal or professional history of the applicant which disqualify, or may disqualify, the applicant from being eligible for access to classified information. See Egan, 484 U.S. at 531. The applicant then bears the burden of demonstrating that it is clearly consistent with the national interest to grant or continue the applicant's clearance. "Any doubt as to whether access to classified information is clearly consistent with national security will be resolved in favor of the national security." Directive, ¶ E2.2.2. "[S]ecurity clearance determinations should err, if they must, on the side of denials." Egan, 484 U.S. at 531. See Executive Order No. 12968 § 3.1(b)

CONCLUSION

Upon consideration of all the facts in evidence, and after application of all appropriate legal precepts, factors and conditions above, I conclude the following with respect to all allegations set forth in the SOR.

Applicant's extensive delinquent debts prompted the allegation in the SOR of violation of Guideline F in that an individual who is financially overextended is at risk of having to engage in illegal acts to generate funds. (E2.A6.1.1.) Conditions that could raise a security concern and may be disqualifying include a history of not meeting financial obligations (E2.A6.1.2.1.) and evidence of inability or unwillingness to satisfy debts. (E2.A6.1.2.3.) Mitigating Conditions (MC) include the fact that the person has initiated a good faith effort to repay overdue creditors or otherwise resolve debts. (E2.A6.1.3.6.)

Applicant has shown through documentary evidence from her creditors that the debts have either been paid, settled, or deemed current by her creditors. I therefore conclude that the allegations have been mitigated.

After considering all the evidence as a whole, and focusing on the whole person of the Applicant, I conclude it is clearly consistent with the national interest to grant a security clearance to the Applicant.

FORMAL FINDINGS

Formal findings as required by the Directive (Par. E3.1.25) are as follows: Paragraph 1. Guideline F: For APPLICANT

Subparagraph 1.a.: For Applicant

Subparagraph 1.b.: For Applicant

Subparagraph 1.c.: For Applicant

Subparagraph 1.d.: For Applicant

Subparagraph 1.e.: For Applicant

Subparagraph 1.f.: For Applicant

DECISION

After full consideration of all the facts and documents presented by the record in this case, it is clearly consistent with the national interest to grant or continue a security clearance for Applicant. Clearance is granted.

Charles D. Ablard

Administrative Judge

FOOTNOTES

03-01371.h1 FOR GOVERNMENT Catherine Engstrom, Esq., Department Counsel FOR APPLICANT Pro Se file:///usr.osd.mil/...Computer/Desktop/DOHA%20transfer/DOHA-Kane/dodogc/doha/industrial/Archived%20-%20HTML/03-01371.h1.html[6/24/2021 3:08:29 PM] 03-01371.h1