ISCR Case 04-09651.h1

Case Headnote

ISCR Case No. 04-09651.h1

deniedMay 23, 2006· Hon. Joan Caton Anthony· hearing

Summary

A 46-year-old waiver assistant was denied a security clearance under Guideline F (Financial Considerations) due to a history of unresolved financial issues totaling approximately $24,313. The Statement of Reasons detailed twelve separate debts, including charged-off accounts, accounts placed for collection, a judgment, and various past-due amounts. These debts originated between approximately September 1997 and November 2002, and remained unsatisfied as of November 2004 or March 2005, depending on the specific debt.

Disqualifying conditions related to a history of not meeting financial obligations and an inability or unwillingness to satisfy debts were raised. While mitigating conditions concerning the circumstances of the indebtedness, good-faith efforts to resolve the debt, and the absence of a pattern of financial irresponsibility were considered, they were not sufficient to overcome the security concerns.

The denial was based on the applicant's long history of unresolved financial problems and her admission to owing approximately $24,313 in delinquent debts. Despite demonstrating some payments, the applicant failed to convincingly show that her financial delinquencies did not pose a security concern.

Why the Applicant Was Denied

The applicant has a long history of unresolved financial problems dating back several years.
She admitted to owing approximately $24,313 in delinquent debts.
The applicant failed to demonstrate that her financial delinquencies are not a security concern.

Conditions Referenced

Disqualifying

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

Mitigating

E2.A6.1.3.1rejectedThe Behavior Was Not Recent.
E2.A6.1.3.2rejectedIt Was an Isolated Incident.
E2.A6.1.3.3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control.The applicant cited unfortunate life circumstances but they did not fully explain her long-standing financial difficulties.
E2.A6.1.3.4rejectedThe Person Has Received or Is Receiving Counseling for the Problem and There Are Clear Indications That the Problem Is Being Resolved or Is Under Control.
E2.A6.1.3.6rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts.

Key Rule Quoted

“"[N]o one has a 'right' to a security clearance."”
— Department of the Navy v. Egan, 484 U.S. 518, 528 (1988)

Procedural Posture

SOR issuedJun 20, 2005
Answer filedAug 26, 2005
Hearing heldJan 30, 2006Applicant submitted additional evidence post-hearing.
Decision dateMay 23, 2006

Cite For

Denial of Clearance Due to Unresolved Financial Obligations Under Guideline F
Impact of Long-standing Financial Delinquencies on Security Clearance Eligibility
Consideration of Mitigating Conditions Related to Financial Issues 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	indebted to a creditor for approximately $1,178 for an account charged off as a bad debt in about September 1997, and, as of November 9, 2004, the debt had not been satisfied $1,178	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.b	indebted to a creditor in the approximate amount of $3,128 for an account placed for collection in about December 1997, and, as of November 9, 2004, the debt had not been satisfied $3,128	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.c	indebted to a creditor in the approximate amount of $5,660 for an account charged off as a bad debt in about April 1998, and, as of November 9, 2004, the debt had not been satisfied $5,660	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.d	indebted to a creditor in the approximate amount of $733 for an account charged off as a bad debt in about May 1999, and, as of March 30, 2005, the debt had not been satisfied $733	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.e	indebted to a creditor in the amount of $113 on an account placed for collection in about November 1999, and, as of March 30, 2005, the debt had not been satisfied $113	For Applicant	Unspecified Financial	Admitted	—	—	—
1.f	indebted to a creditor for approximately $7,654 on an account placed for collection in about November 2000, and, as of March 30, 2005, the account had not been satisfied $7,654	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.g	indebted to a creditor for approximately $4,819 on an account placed for collection in November 2002, and, as of March 30, 2005, the account had not been satisfied $4,819	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.h	indebted to a creditor for approximately $709 for a judgment entered against her in about April 2003, and, as of March 30, 2005, the judgment had not been satisfied $709	Against Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.i	owed a creditor approximately $114.63 on a past due debt, and, as of November 9, 2004, the debt had not been satisfied $114	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.j	owed approximately $25 on a past due medical account, and as of November 9, 2004, the debt had not been satisfied $25	Against Applicant	Medical Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.k	owed a creditor approximately $22.55 on a past due account, and, as of November 9, 2004, the debt had not been satisfied $22	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.l	owed a dentist approximately $157 on a past due account, and, as of November 9, 2004, the debt had not been satisfied $157	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

indebted to a creditor for approximately $1,178 for an account charged off as a bad debt in about September 1997, and, as of November 9, 2004, the debt had not been satisfied

$1,178

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.b

indebted to a creditor in the approximate amount of $3,128 for an account placed for collection in about December 1997, and, as of November 9, 2004, the debt had not been satisfied

$3,128

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.c

indebted to a creditor in the approximate amount of $5,660 for an account charged off as a bad debt in about April 1998, and, as of November 9, 2004, the debt had not been satisfied

$5,660

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.d

indebted to a creditor in the approximate amount of $733 for an account charged off as a bad debt in about May 1999, and, as of March 30, 2005, the debt had not been satisfied

$733

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.e

indebted to a creditor in the amount of $113 on an account placed for collection in about November 1999, and, as of March 30, 2005, the debt had not been satisfied

$113

For Applicant

Unspecified Financial

Admitted

—

1.f

indebted to a creditor for approximately $7,654 on an account placed for collection in about November 2000, and, as of March 30, 2005, the account had not been satisfied

$7,654

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.g

indebted to a creditor for approximately $4,819 on an account placed for collection in November 2002, and, as of March 30, 2005, the account had not been satisfied

$4,819

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.h

indebted to a creditor for approximately $709 for a judgment entered against her in about April 2003, and, as of March 30, 2005, the judgment had not been satisfied

$709

Against Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.i

owed a creditor approximately $114.63 on a past due debt, and, as of November 9, 2004, the debt had not been satisfied

$114

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.j

owed approximately $25 on a past due medical account, and as of November 9, 2004, the debt had not been satisfied

$25

Against Applicant

Medical Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.k

owed a creditor approximately $22.55 on a past due account, and, as of November 9, 2004, the debt had not been satisfied

$22

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.l

owed a dentist approximately $157 on a past due account, and, as of November 9, 2004, the debt had not been satisfied

$157

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

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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

SYNOPSIS

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES