ISCR Case 05-03537.h1

Case Headnote

ISCR Case No. 05-03537.h1

grantedJan 31, 2006· Hon. Richard A. Cefola· hearing

Summary

A 43-year-old defense contractor was granted a security clearance despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons detailed several financial issues, including a Chapter 7 Bankruptcy in 1992 and a dismissed Chapter 13 Bankruptcy in 1999. Specific debts included approximately $12,166 for a vehicle repossession, $293, $120, $1,170, and $145 owed to various cable television providers, and $977 to a wireless phone service, for which she was making $25 monthly payments.

Additionally, the applicant disputed debts of about $889 to a men's clothing store and $614 to a financial institution. An alleged $13,000 debt from a co-signed vehicle repossession was noted, and a $112,000 home foreclosure debt was satisfied through the sale of the house. An $8,013 automobile debt had been paid off. The applicant also answered "No" to questions 38 and 39 on her January 2004 SCA, indicating she was unaware of any past due debts exceeding 90 or 180 days.

The clearance was granted because the applicant successfully demonstrated that her financial difficulties, including those leading to the bankruptcies, were largely beyond her control, such as those stemming from a divorce. She addressed all admitted past due debts and showed a good-faith effort to repay creditors. Her veracity was further supported by testimony from her supervisor and community members.

Why the Applicant Prevailed

The Applicant addressed all admitted past due debts and demonstrated a good-faith effort to repay creditors.
Financial difficulties were largely attributed to circumstances beyond her control, such as divorce.
The Applicant's veracity was supported by testimony from her supervisor and community members.

Conditions Referenced

Disqualifying

F.1raisedHistory of Not Meeting Financial Obligations
F.3raisedInability or Unwillingness to Satisfy Debts

Mitigating

F.3appliedMitigating Circumstances Due to Circumstances Beyond Control
F.4appliedGood-faith Effort to Repay Overdue Creditors
E.2appliedNo Intent to Falsify Information

Key Rule Quoted

“The Government must make out a case under Guidelines E (Personal Conduct), and F (Financial Considerations); which establishes doubt about a person's judgment, reliability and trustworthiness.”

Procedural Posture

SOR issuedJul 19, 2005
Answer filedAug 15, 2005
Hearing heldNov 22, 2005
Decision dateJan 31, 2006

Cite For

Mitigating Circumstances Under Guideline F Due to Circumstances Beyond Control
Good-faith Efforts to Repay Debts as a Mitigating Factor
Absence of Intent to Falsify Information Under Guideline E

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	When the Applicant executed her January 2004 SCA, she answered "No" to questions 38 and 39. She was unaware of any past due debts in excess of 90 or 180 days.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATE	Financial	Denied	—	(b) omission/refusal followed advice of counsel; later cooperated fully	—
2.b	When the Applicant executed her January 2004 SCA, she answered "No" to questions 38 and 39. She was unaware of any past due debts in excess of 90 or 180 days.	For Applicant	Omission or Failure to DiscloseNOT DELIBERATE	Financial	Denied	—	(b) omission/refusal followed advice of counsel; later cooperated fully	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

When the Applicant executed her January 2004 SCA, she answered "No" to questions 38 and 39. She was unaware of any past due debts in excess of 90 or 180 days.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATE

Financial

Denied

—

(b) omission/refusal followed advice of counsel; later cooperated fully

—

2.b

When the Applicant executed her January 2004 SCA, she answered "No" to questions 38 and 39. She was unaware of any past due debts in excess of 90 or 180 days.

For Applicant

Omission or Failure to DiscloseNOT DELIBERATE

Financial

Denied

—

(b) omission/refusal followed advice of counsel; later cooperated fully

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	The Applicant is indebted to a financial institution in the amount of about $12,166 for a vehicle repossession. $12,166	For Applicant	Auto Loan Debt	Unknown	(a) inability to satisfy debts	(c) received/receiving counseling; problem being resolved	—
1.b	The Applicant is indebted to a cable television provider in the amount of about $293. $293	For Applicant	Utility or Phone Debt	Unknown	—	(c) received/receiving counseling; problem being resolved	—
1.c	The Applicant is indebted to another cable television provider in the amount of about $120. $120	For Applicant	Utility or Phone Debt	Unknown	—	(c) received/receiving counseling; problem being resolved	—
1.d	The Applicant disputes a debt to a men's clothing store in the amount of about $889. $889	For Applicant	Unspecified Financial	Denied	—	—	—
1.e	The Applicant is indebted to a cable television provider for equipment in the amount of about $1,170. $1,170	For Applicant	Utility or Phone Debt	Unknown	—	—	—
1.f	The Applicant is indebted to a third cable television provider in the amount of about $145. $145	For Applicant	Utility or Phone Debt	Unknown	—	(c) received/receiving counseling; problem being resolved	—
1.g	The Applicant disputes a debt to a financial institution in the amount of about $614. $614	For Applicant	Unspecified Financial	Unknown	—	—	—
1.h	The Applicant is making monthly payments of $25 towards a debt to a wireless phone service in the amount of about $977. $977	For Applicant	Utility or Phone Debt	Unknown	—	(c) received/receiving counseling; problem being resolved	—
1.i	The Applicant's $112,000 debt as a result of a home foreclosure has been satisfied with the sale of the house. $112,000	For Applicant	Mortgage or Home Loan Debt	Unknown	—	(c) received/receiving counseling; problem being resolved	—
1.j	There is an alleged $13,000 debt as the result of a vehicle repossession for which she co-signed for a relative. $13,000	For Applicant	Auto Loan Debt	Unknown	—	—	—
1.k	An automobile debt in the amount of about $8,013 has been paid off. $8,013	For Applicant	Auto Loan Debt	Unknown	—	(c) received/receiving counseling; problem being resolved	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The Applicant is indebted to a financial institution in the amount of about $12,166 for a vehicle repossession.

$12,166

For Applicant

Auto Loan Debt

Unknown

(a) inability to satisfy debts

(c) received/receiving counseling; problem being resolved

—

1.b

The Applicant is indebted to a cable television provider in the amount of about $293.

$293

For Applicant

Utility or Phone Debt

Unknown

—

(c) received/receiving counseling; problem being resolved

—

1.c

The Applicant is indebted to another cable television provider in the amount of about $120.

$120

For Applicant

Utility or Phone Debt

Unknown

—

(c) received/receiving counseling; problem being resolved

—

1.d

The Applicant disputes a debt to a men's clothing store in the amount of about $889.

$889

For Applicant

Unspecified Financial

Denied

—

1.e

The Applicant is indebted to a cable television provider for equipment in the amount of about $1,170.

$1,170

For Applicant

Utility or Phone Debt

Unknown

—

1.f

The Applicant is indebted to a third cable television provider in the amount of about $145.

$145

For Applicant

Utility or Phone Debt

Unknown

—

(c) received/receiving counseling; problem being resolved

—

1.g

The Applicant disputes a debt to a financial institution in the amount of about $614.

$614

For Applicant

Unspecified Financial

Unknown

—

1.h

The Applicant is making monthly payments of $25 towards a debt to a wireless phone service in the amount of about $977.

$977

For Applicant

Utility or Phone Debt

Unknown

—

(c) received/receiving counseling; problem being resolved

—

1.i

The Applicant's $112,000 debt as a result of a home foreclosure has been satisfied with the sale of the house.

$112,000

For Applicant

Mortgage or Home Loan Debt

Unknown

—

(c) received/receiving counseling; problem being resolved

—

1.j

There is an alleged $13,000 debt as the result of a vehicle repossession for which she co-signed for a relative.

$13,000

For Applicant

Auto Loan Debt

Unknown

—

1.k

An automobile debt in the amount of about $8,013 has been paid off.

$8,013

For Applicant

Auto Loan Debt

Unknown

—

(c) received/receiving counseling; problem being resolved

—

Loading case…

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