ISCR Case 05-16321.h1

Case Headnote

ISCR Case No. 05-16321.h1

grantedNov 17, 2006· Hon. Erin C. Hogan· hearing

Summary

A 40-year-old ground systems engineer with prior military service was granted a security clearance despite concerns under Guideline F (Financial Considerations). The Statement of Reasons detailed approximately $18,774 in delinquent debt across 19 separate accounts, including credit card charge-offs, collection accounts for various services (cable, cell phone), medical bills, and a signature loan. These debts ranged from $12.86 to $11,883, with the earliest delinquency noted in September 1998 and the latest in May 2005.

The judge determined that the applicant's financial difficulties were primarily due to circumstances beyond his control, specifically underemployment and significant family responsibilities. In mitigation, the applicant demonstrated a good faith effort to address his financial obligations. This included consolidating his largest debts and successfully paying off several smaller accounts.

Further supporting the decision to grant the clearance were the applicant's long history of holding a security clearance during his military career and positive character references. Ultimately, the judge found that the mitigating factors outweighed the financial concerns, leading to the granting of the security clearance.

Why the Applicant Prevailed

The applicant's financial problems were largely caused by circumstances beyond his control, including loss of employment and family responsibilities.
The applicant demonstrated a good faith effort to repay overdue creditors and resolve debts, including consolidating his largest debts and paying off several smaller accounts.
The applicant's long history of holding a security clearance during his military career and positive character references supported his case.

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.A6.1.3.3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control
E2.A6.1.3.6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts

Key Rule Quoted

“"The adjudicative process is an examination of a sufficient period of a person's life to make an affirmative determination that the person is eligible for a security clearance."”
— Department of the Navy v. Egan, 484 U.S. 518, 527 (1988)

Procedural Posture

SOR issuedJun 6, 2006
Answer filedJul 23, 2006Applicant requested a hearing.
Hearing heldOct 3, 2006
Decision dateNov 17, 2006

Cite For

Mitigating Conditions for Financial Considerations Under Guideline F
Impact of Circumstances Beyond Control on Financial Delinquencies
Good Faith Efforts to Resolve Debts as a Mitigating Factor

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	$555 credit card account charged off in September 1998 $555	For Applicant	Credit Card Debt	Denied	—	—	—
1.b	$1,386 account placed for collection in October 2001 $1,386	For Applicant	Unspecified Financial	Admitted	—	—	—
1.c	$3,124 account placed for collection in November 2001 $3,124	For Applicant	Unspecified Financial	Admitted	—	—	—
1.d	$11,883 account placed for collection in April 2002 $11,883	For Applicant	Unspecified Financial	Admitted	—	—	—
1.e	$68 cell phone account placed for collection in June 2002 $68	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.f	$218 cable account placed for collection in August 2002 $218	For Applicant	Utility or Phone Debt	Admitted	—	—	—
1.g	$248 dental bill delinquent since 2002 $248	For Applicant	Medical Debt	Admitted	—	—	—
1.h	$109 account charged off in November 2002 $109	For Applicant	Unspecified Financial	Denied	—	—	—
1.i	$509 account placed for collection in September 2003 $509	For Applicant	Unspecified Financial	Admitted	—	—	—
1.j	$43.45 account placed for collection in September 2003 $43	For Applicant	Unspecified Financial	Admitted	—	—	—
1.k	$331 phone or cell phone account placed for collection in November 2004 $331	For Applicant	Utility or Phone Debt	Denied	—	—	—
1.l	$183.04 account placed for collection in November 2004 $183	For Applicant	Unspecified Financial	Denied	—	—	—
1.m	$105 medical account placed for collection in November 2004 $105	For Applicant	Medical Debt	Denied	—	—	—
1.n	$105 medical account placed for collection in December 2004 $105	For Applicant	Medical Debt	Denied	—	—	—
1.o	$218 cable bill placed for collection in April 2005 $218	For Applicant	Utility or Phone Debt	Denied	—	—	—
1.p	$12.86 medical account delinquent since May 2005 $12	For Applicant	Medical Debt	Denied	—	—	—
1.q	$100 delinquent signature loan $100	For Applicant	Unspecified Financial	Denied	—	—	—
1.r	$106.63 delinquent account $106	For Applicant	Unspecified Financial	Denied	—	—	—
1.s	$8,342 collection account $8,342	For Applicant	Unspecified Financial	Denied	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

$555 credit card account charged off in September 1998

$555

For Applicant

Credit Card Debt

Denied

—

1.b

$1,386 account placed for collection in October 2001

$1,386

For Applicant

Unspecified Financial

Admitted

—

1.c

$3,124 account placed for collection in November 2001

$3,124

For Applicant

Unspecified Financial

Admitted

—

1.d

$11,883 account placed for collection in April 2002

$11,883

For Applicant

Unspecified Financial

Admitted

—

1.e

$68 cell phone account placed for collection in June 2002

$68

For Applicant

Utility or Phone Debt

Admitted

—

1.f

$218 cable account placed for collection in August 2002

$218

For Applicant

Utility or Phone Debt

Admitted

—

1.g

$248 dental bill delinquent since 2002

$248

For Applicant

Medical Debt

Admitted

—

1.h

$109 account charged off in November 2002

$109

For Applicant

Unspecified Financial

Denied

—

1.i

$509 account placed for collection in September 2003

$509

For Applicant

Unspecified Financial

Admitted

—

1.j

$43.45 account placed for collection in September 2003

$43

For Applicant

Unspecified Financial

Admitted

—

1.k

$331 phone or cell phone account placed for collection in November 2004

$331

For Applicant

Utility or Phone Debt

Denied

—

1.l

$183.04 account placed for collection in November 2004

$183

For Applicant

Unspecified Financial

Denied

—

1.m

$105 medical account placed for collection in November 2004

$105

For Applicant

Medical Debt

Denied

—

1.n

$105 medical account placed for collection in December 2004

$105

For Applicant

Medical Debt

Denied

—

1.o

$218 cable bill placed for collection in April 2005

$218

For Applicant

Utility or Phone Debt

Denied

—

1.p

$12.86 medical account delinquent since May 2005

$12

For Applicant

Medical Debt

Denied

—

1.q

$100 delinquent signature loan

$100

For Applicant

Unspecified Financial

Denied

—

1.r

$106.63 delinquent account

$106

For Applicant

Unspecified Financial

Denied

—

1.s

$8,342 collection account

$8,342

For Applicant

Unspecified Financial

Denied

—

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

FINDINGS OF FACT

POLICIES

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES

APPEARANCES