ISCR Case 05-15727.h1

Case Headnote

ISCR Case No. 05-15727.h1

deniedOct 30, 2006· Hon. Joan Caton Anthony· hearing

Summary

A 45-year-old single male applicant was denied a security clearance under Guideline F (Financial Considerations) due to a history of significant financial difficulties. These issues included a Chapter 7 bankruptcy petition in March 1999, which discharged debts by July 1999.

However, the applicant also had several outstanding debts that remained unsatisfied as of early 2005 and 2006. These included approximately $13,174 owed to an automobile company, $2,318 to a medical provider, $566 to a communications company, and $110 to another creditor. Additionally, the applicant owed his state of residence $2,522 in taxes, penalties, and interest for tax years 2000 and 2001, with a lien filed in April 2003, and $1,543 for tax years 1999-2003, with a lien filed in February 2005.

Despite recent efforts by the applicant to address some of these debts, the judge determined these actions were insufficient to mitigate ongoing security concerns. The denial was based on the applicant's consistent history of not meeting financial obligations and a failure to demonstrate that his financial problems were under control, concluding that recent efforts did not substitute for a consistent record of timely remedial action.

Why the Applicant Was Denied

The applicant has a history of not meeting financial obligations.
Recent efforts to pay debts do not substitute for a consistent record of timely remedial action.
The applicant failed to demonstrate that his financial problems are under control.

Conditions Referenced

Disqualifying

E2.A6.1.2.1raisedFinancial Considerations - Inability or Unwillingness to Satisfy Debts
E2.A6.1.2.3raisedFinancial Considerations - Financial Irresponsibility

Mitigating

E2.A6.1.3.6appliedGood-faith Efforts to Repay Overdue CreditorsThe applicant made efforts to clarify the status of several debts and paid some debts.
E2.A6.1.3.3rejectedFinancial Considerations - Conditions Beyond ControlThe applicant's financial problems were not solely due to job loss.
E2.A6.1.3.1rejectedFinancial Considerations - Recent Good-faith EffortsThe applicant's recent efforts were insufficient to mitigate long-standing issues.
E2.A6.1.3.2rejectedFinancial Considerations - Clear Indication of Financial StabilityThe applicant did not demonstrate a clear indication of financial stability.
E2.A6.1.3.4rejectedFinancial Considerations - Seeking Financial CounselingThe applicant has not sought financial counseling.

Key Rule Quoted

“"The objective of the security clearance process is the fair-minded, common sense assessment of a person's trustworthiness and fitness for access to classified information."”
— Department of Defense Directive 5220.6.

Procedural Posture

SOR issuedMay 18, 2006
Answer filedJun 6, 2006
Hearing heldSep 8, 2006record left open until September 18, 2006
Decision dateOct 30, 2006

Cite For

Denial of Security Clearance Due to Financial Irresponsibility
Insufficient Mitigation of Financial Issues Under Guideline F
Importance of a Consistent Record of Financial Responsibility

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	Applicant petitioned for Chapter 7 bankruptcy in about March 1999 and was released from dischargeable debts on July 10, 1999.	For Applicant	Bankruptcy Filing	Admitted	—	—	—
1.b	Applicant owed an automobile company approximately $13,174 on an account charged off as a bad debt in about February 1999, and, as of March 5, 2005, this debt had not been satisfied. $13,174	For Applicant	Unspecified Financial	Admitted	—	—	—
1.c	Applicant owed a medical provider approximately $2,318 on an account placed for collection in about May 2002, and, as of January 6, 2006, the account had not been satisfied. $2,318	For Applicant	Unspecified Financial	Admitted	—	—	—
1.d	Applicant owed a communications company approximately $566 on an account placed for collection in about August 2002, and, as of June 27, 2005, the debt had not been satisfied. $566	Against Applicant	Utility or Phone Debt	Admitted	—	—	—
1.e	Applicant owed a creditor $110 on an account placed for collection in about November 2002, and, as of January 6, 2006, the debt had not been satisfied. $110	For Applicant	Unspecified Financial	Admitted	—	—	—
1.f	Applicant owed his state of residence $2,522 in taxes, penalties, and interest for tax years 2000 and 2001, that a Notice of Lien of Judgment was filed against him on April 10, 2003, for non payment of his state tax debt, and, as of January 6, 2006, the debt had not been satisfied. $2,522	Against Applicant	Tax Unpaid	Admitted	—	—	—
1.g	Applicant owed his state of residence $1,543 in taxes, penalties, and interest for the tax years between 1999 and 2003, that a Notice of Lien of Judgment was filed against him on February 3, 2005, for non-payment of his state tax debt, and, as of January 6, 2006, the debt had not been satisfied. $1,543	Against Applicant	Tax Unpaid	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant petitioned for Chapter 7 bankruptcy in about March 1999 and was released from dischargeable debts on July 10, 1999.

For Applicant

Bankruptcy Filing

Admitted

—

1.b

Applicant owed an automobile company approximately $13,174 on an account charged off as a bad debt in about February 1999, and, as of March 5, 2005, this debt had not been satisfied.

$13,174

For Applicant

Unspecified Financial

Admitted

—

1.c

Applicant owed a medical provider approximately $2,318 on an account placed for collection in about May 2002, and, as of January 6, 2006, the account had not been satisfied.

$2,318

For Applicant

Unspecified Financial

Admitted

—

1.d

Applicant owed a communications company approximately $566 on an account placed for collection in about August 2002, and, as of June 27, 2005, the debt had not been satisfied.

$566

Against Applicant

Utility or Phone Debt

Admitted

—

1.e

Applicant owed a creditor $110 on an account placed for collection in about November 2002, and, as of January 6, 2006, the debt had not been satisfied.

$110

For Applicant

Unspecified Financial

Admitted

—

1.f

Applicant owed his state of residence $2,522 in taxes, penalties, and interest for tax years 2000 and 2001, that a Notice of Lien of Judgment was filed against him on April 10, 2003, for non payment of his state tax debt, and, as of January 6, 2006, the debt had not been satisfied.

$2,522

Against Applicant

Tax Unpaid

Admitted

—

1.g

Applicant owed his state of residence $1,543 in taxes, penalties, and interest for the tax years between 1999 and 2003, that a Notice of Lien of Judgment was filed against him on February 3, 2005, for non-payment of his state tax debt, and, as of January 6, 2006, the debt had not been satisfied.

$1,543

Against Applicant

Tax Unpaid

Admitted

—

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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

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

CONCLUSION

FORMAL FINDINGS

DECISION

FOOTNOTES