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ISCR Case 03-24079.h1 — CASE

ISCR Case 03-24079.h1denied

Case Headnote

ISCR Case No. 03-24079.h1

deniedJul 18, 2005· Hon. Joseph Testan· hearing

Summary

A 39-year-old employee of a defense contractor was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from significant financial indebtedness, totaling approximately $27,000 owed to twelve different creditors, with most of these debts being past-due.

The Statement of Reasons detailed multiple allegations, all pointing to the applicant's approximate $27,000 debt across twelve creditors. The judge determined that this financial irresponsibility adversely affected the applicant's judgment, reliability, and trustworthiness.

The decision to deny the clearance was based on the applicant's substantial past-due debts and the finding that his financial conduct reflected poorly on his character. Furthermore, there was no credible evidence presented to suggest that the applicant's financial situation would improve significantly in the near future.

Why the Applicant Was Denied

Applicant is indebted to twelve creditors totaling approximately $27,000, with most debts being past-due.
Applicant's financial irresponsibility reflects adversely on his judgment, reliability, and trustworthiness.
There is a lack of credible evidence suggesting the applicant's financial condition will improve significantly in the near future.

Conditions Referenced

Disqualifying

E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts

Procedural Posture

SOR issuedDec 27, 2004
Answer filedJan 5, 2005Applicant elected to have the case determined on a written record.
Hearing held—No hearing; case determined on written record.
Decision dateJul 18, 2005

Cite For

Financial Irresponsibility Impacting Security Clearance Eligibility
Disqualifying Conditions Related to Financial Obligations Under Guideline F
Lack of Evidence for Financial Improvement as a Basis for Denial

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 F · descriptive summary of a decided case

Posture: Decision on RecordDecided: denied

The applicant has significant financial concerns, being indebted to twelve creditors for approximately $27,000, with most debts being past-due for several years. The judge found that the applicant's financial issues reflect adversely on his judgment and trustworthiness, leading to a denial of the security clearance.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	Applicant is indebted to 12 different creditors in the approximate amount of $27,000.00. $27,000	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	specific text not stated in this decision	For Applicant	Unspecified Financial	Unknown	—	—	—
1.c	Applicant is indebted to 12 different creditors in the approximate amount of $27,000.00. $27,000	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.d	Applicant is indebted to 12 different creditors in the approximate amount of $27,000.00. $27,000	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	Applicant is indebted to 12 different creditors in the approximate amount of $27,000.00. $27,000	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.f	Applicant is indebted to 12 different creditors in the approximate amount of $27,000.00. $27,000	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.g	Applicant is indebted to 12 different creditors in the approximate amount of $27,000.00. $27,000	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	Applicant is indebted to 12 different creditors in the approximate amount of $27,000.00. $27,000	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.i	Applicant is indebted to 12 different creditors in the approximate amount of $27,000.00. $27,000	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.j	specific text not stated in this decision	Against Applicant	Unspecified Financial	Denied with Explanation	—	—	—
1.k	Applicant is indebted to 12 different creditors in the approximate amount of $27,000.00. $27,000	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.l	Applicant is indebted to 12 different creditors in the approximate amount of $27,000.00. $27,000	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.m	Applicant is indebted to 12 different creditors in the approximate amount of $27,000.00. $27,000	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—

Descriptive standardized rendering of a decided public case (Guideline F). 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: July 18, 2005 In Re: ------------------- SSN: ----------- Applicant for Security Clearance ISCR Case No. 03-24079 DECISION OF ADMINISTRATIVE JUDGE JOSEPH TESTAN

SYNOPSIS Applicant is indebted to 12 different creditors in the approximate amount of $27,000.00. Most, if not all, of these debts are past-due, some for many years. These facts, together with the lack of any evidence suggesting applicant's financial condition is likely to significantly improve anytime soon, precludes a decision favorable to applicant. Clearance is denied.

STATEMENT OF CASE

On December 27, 2004, 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 on January 5, 2005, and elected to have his case determined on a written record in lieu of a hearing. Department Counsel submitted the Government's written case (FORM) on or about April 5, 2005. Applicant did not file a response to the FORM. The case was assigned to me on ay 31, 2005.

FINDINGS OF FACT

Applicant is a 39 year old employee of a defense contractor. Applicant admits without qualification that he is indebted as alleged in SOR Paragraphs 1a, 1c, 1d, 1e, 1f, 1g, 1h, 1i, 1k, 1l, and1m. These allegations are therefore incorporated by reference as Findings of Fact. The Government's evidence is insufficient to establish that applicant is indebted as alleged in SOR Paragraph 1b. Accordingly, this allegation is found for applicant. In his response to the SOR, applicant denied he is indebted as alleged in SOR Paragraph 1j. However, in a signed, sworn statement he gave to the Defense Security Service (DSS) in September 2003, he admitted that he was indebted to this creditor in the past-due amount of $1,474.00. In addition, a bill in this amount addressed to applicant's minor child from the named creditor was offered in evidence. I find that applicant is indebted as alleged. Applicant attributes his financial problems to losing a job in 1999, attorney fees he incurred in divorce and custody proceedings, and "irresponsible . . spending at times" (Exhibit 5). As of September 2003, applicant had a negative monthly cash flow of $256.00.

CONCLUSION

The evidence establishes that applicant is indebted to twelve creditors in the total amount of approximately $27,000.00. Most, if not all, of these debts are past-due. Some of them have been past-due for years. Applicant's failure to honor his financial obligations reflects adversely on his judgment, reliability and trustworthiness, and suggests he cannot be relied upon to safeguard classified information. With respect to the Financial Considerations guideline, Disqualifying Conditions E2.A6.1.2.1 (a history of not meeting financial obligations) and E2.A6.1.2.3 (inability or unwillingness to satisfy debts) are applicable. In view of applicant's numerous past-due debts, his inability or unwillingness to address them in any significant way, and the lack of any credible evidence that his financial condition is likely to significantly improve anytime soon, Guideline F is found against applicant. No Mitigation Conditions are applicable.

FORMAL FINDINGS

PARAGRAPH 1: AGAINST 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

FOR GOVERNMENT Julie R. Edmunds, Department Counsel FOR APPLICANT Pro Se