ISCR Case 04-12391.h1

Case Headnote

ISCR Case No. 04-12391.h1

grantedNov 20, 2006· Hon. Charles D. Ablard· hearing

Summary

A 57-year-old defense contractor with a long history of security clearance was subject to a DOHA review under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to $11,000 in delinquent debts. The Statement of Reasons detailed four specific debts: $5,908, $2,929, $1,782, and $490.

For the largest debt, the applicant attempted to contact the creditor but received no response, and the credit report showed incorrect addresses. For the $2,929 debt, he sent two registered letters that were returned unaccepted, coinciding with a Federal Trade Commission investigation into the creditor's practices. The $1,782 debt was owed to a furniture company that had ceased operations in his city, making it difficult to locate. The smallest debt, $490, was a credit card balance paid in May 2003, and he now holds a zero-balance card with the same company. All outstanding debts have since been located by a credit counselor and are now on a payment plan.

The judge granted the security clearance, finding that the applicant had made a good-faith effort to resolve his delinquent debts through a credit counseling program. He demonstrated the financial means to pay off the debts, and his explanation for not reporting them was deemed credible and not deliberate.

Why the Applicant Prevailed

The applicant demonstrated a good-faith effort to resolve his delinquent debts through a credit counseling program.
He has the financial means to pay off the debts, as evidenced by his salary and savings.
The applicant's explanation for the failure to report debts was credible and not deemed deliberate.

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
E2.A5.1.1raisedQuestionable Judgment, Unreliability, and Unwillingness to Comply with Rules
E2.A5.1.2.2raisedDeliberate Omission, Concealment, or Falsification of Relevant Facts

Mitigating

E2.A6.1.3.3rejectedConditions Largely Beyond the Person's ControlThe judge found little evidence that the debts resulted from conditions beyond the applicant's control.
E2.A6.1.3.4appliedReceiving Counseling for the Problem
E2.A6.1.3.6appliedGood-faith Effort to Repay Overdue Creditors

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 issuedNov 9, 2005
Answer filedDec 1, 2005
Hearing heldAug 24, 2006Hearing was rescheduled due to applicant's overseas work.
Decision dateNov 20, 2006

Cite For

Mitigation of Financial Concerns Under Guideline F Through Credit Counseling
Credibility of Applicant's Explanation for Financial Omissions Under Guideline E
Consideration of the Whole Person Concept in Security Clearance Determinations

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

¶	Allegation	Finding	Conduct	Concealed Issue	Response	Disqualifying (¶16)	Mitigating applied (¶17)	Mitigation
2.a–2.b	2 sub-charges — specific text not stated in this decision (for the applicant).	For Applicant	NOT DELIBERATE	Financial		—	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a–2.b

2 sub-charges — specific text not stated in this decision (for the applicant).

For Applicant

NOT DELIBERATE

Financial

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	$5,908.00. He wrote and emailed the creditor but received no response. Credit report showed addresses in Florida where he had never lived. The creditor has been located by the counselor and is now on the payment plan. $5,908	For Applicant	Unspecified Financial	Admitted	—	—	—
1.b	$2,929.00. He sent two registered letters to the creditor which he showed at the hearing and both were returned unaccepted. The Federal Trade Commission had an ongoing investigation about credit collection practices at the time he sent the letters. The creditor has been located by the counselor and is now on the payment plan. $2,929	For Applicant	Unspecified Financial	Admitted	—	—	—
1.c	$1,782.00. The creditor furniture company closed its operation in his city and he could find no information about them although he acknowledged that his family had purchased furniture from them. Applicant has recently been contacted by the holder of the account and they are being paid through the credit counseling program. $1,782	For Applicant	Unspecified Financial	Admitted	—	—	—
1.d	$490.00. Credit card debt was paid in May 2003. He currently has a credit card with the same company that has a zero balance. $490	For Applicant	Credit Card Debt	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

$5,908.00. He wrote and emailed the creditor but received no response. Credit report showed addresses in Florida where he had never lived. The creditor has been located by the counselor and is now on the payment plan.

$5,908

For Applicant

Unspecified Financial

Admitted

—

1.b

$2,929.00. He sent two registered letters to the creditor which he showed at the hearing and both were returned unaccepted. The Federal Trade Commission had an ongoing investigation about credit collection practices at the time he sent the letters. The creditor has been located by the counselor and is now on the payment plan.

$2,929

For Applicant

Unspecified Financial

Admitted

—

1.c

$1,782.00. The creditor furniture company closed its operation in his city and he could find no information about them although he acknowledged that his family had purchased furniture from them. Applicant has recently been contacted by the holder of the account and they are being paid through the credit counseling program.

$1,782

For Applicant

Unspecified Financial

Admitted

—

1.d

$490.00. Credit card debt was paid in May 2003. He currently has a credit card with the same company that has a zero balance.

$490

For Applicant

Credit Card Debt

Admitted

—

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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

FINDINGS OF FACT

POLICIES

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES