ISCR Case 06-00799.h1

Case Headnote

ISCR Case No. 06-00799.h1

deniedOct 19, 2006· Hon. Joan Caton Anthony· hearing

Summary

A 41-year-old bio-systems engineer was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial delinquencies, including approximately $50,000 in education loans and over $42,000 in consumer debt.

The Statement of Reasons detailed several specific financial issues as of March 1, 2006. These included an account with an approximate $6,133 balance that was $120 past due, a $7,061 debt charged off as bad debt, and a $1,972 debt that was 90 days past due by approximately $313. Additional debts included amounts of approximately $6,053, $4,623, and $9,085, each 60 days past due by varying amounts, along with a $352 communications company debt that was 60 days past due by approximately $287, and a $276 debt that was 30 days past due by approximately $30. The applicant also participated in a credit counseling program from January 2005 to November 2005 but stopped due to difficulty maintaining the payment plan.

Despite entering a repayment plan in April 2006, the judge found this short history of repayment insufficient to mitigate the financial concerns. The denial was based on the applicant's long history of financial delinquencies, the insufficient track record of recent repayment efforts, and the determination that the financial problems were not primarily due to conditions beyond the applicant's control.

Why the Applicant Was Denied

The applicant has a long history of financial delinquencies and unpaid debts.
The applicant's recent efforts to repay debts do not demonstrate a sufficient track record of financial responsibility.
The applicant's financial problems are not primarily the result of conditions beyond his control.

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.A6.1.3.2rejectedThe Applicant Has Demonstrated a Good Faith Effort to Repay Debts
E2.A6.1.3.3rejectedThe Financial Problems Were Largely Caused by Circumstances Beyond the Applicant's Control
E2.A6.1.3.4appliedThe Applicant Has Received Financial CounselingThe applicant presented evidence of past credit counseling but did not show clear resolution of financial issues.
E2.A6.1.3.6rejectedThe Applicant Has a Reasonable Plan to Repay Debts

Key Rule Quoted

“"A person who is unwilling to fulfill his legal obligations does not demonstrate the high degree of good judgment and reliability required of persons granted access to classified information."”
— ISCR Case No. 98-0810 at 4 (App. Bd. June 8, 2000)

Procedural Posture

SOR issuedApr 14, 2006
Answer filedMay 1, 2006
Hearing heldSep 20, 2006
Decision dateOct 19, 2006

Cite For

Denial of Security Clearance Due to Financial Delinquencies Under Guideline F
Insufficient Evidence of Financial Responsibility Despite Recent Repayment Efforts
Impact of Long-standing Financial Issues on Security Clearance Eligibility

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	that Applicant owed a creditor approximately $6,133 on an account, and, as of March 1, 2006, the account was past due in the approximate amount of $120 $6,133	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.b	that he owed a creditor approximately $7,061 on an account charged off as a bad debt, and, as of March 1, 2006, the debt had not been satisfied $7,061	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.c	that he owed a creditor approximately $1,972, and as of March 1, 2006, the debt was 90 days past due in the approximate amount of $313 $1,972	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.d	that he owed a creditor approximately $6,053, and, as of March 1, 2006 the debt was 60 days past due in the approximate amount of $365 $6,053	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.e	that he owed a creditor approximately $4,623 on an account, and, as of March 1, 2006, the debt was 60 days past due in the approximate amount of $307 $4,623	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.f	that he was indebted to a creditor for approximately $9,085, and, as of March 1, 2006, the debt was 60 days past due in the approximate amount of $564 $9,085	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.g	that he was indebted to a communications company for approximately $352, and, as of March 1, 2006, the debt was 60 days past due in the approximate amount of $287 $352	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.h	that he was indebted to a creditor for approximately $276, and, as of March 1, 2006, the debt was 30 days past due in the approximate amount of $30 $276	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—
1.i	that he had participated in a credit counseling program between approximately January 2005 and November 2005 and had stopped participating because he had difficulty in maintaining the payment plan	Against Applicant	Unspecified Financial	Admitted	(a) inability to satisfy debts	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

that Applicant owed a creditor approximately $6,133 on an account, and, as of March 1, 2006, the account was past due in the approximate amount of $120

$6,133

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

1.b

that he owed a creditor approximately $7,061 on an account charged off as a bad debt, and, as of March 1, 2006, the debt had not been satisfied

$7,061

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

1.c

that he owed a creditor approximately $1,972, and as of March 1, 2006, the debt was 90 days past due in the approximate amount of $313

$1,972

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

1.d

that he owed a creditor approximately $6,053, and, as of March 1, 2006 the debt was 60 days past due in the approximate amount of $365

$6,053

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

1.e

that he owed a creditor approximately $4,623 on an account, and, as of March 1, 2006, the debt was 60 days past due in the approximate amount of $307

$4,623

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

1.f

that he was indebted to a creditor for approximately $9,085, and, as of March 1, 2006, the debt was 60 days past due in the approximate amount of $564

$9,085

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

1.g

that he was indebted to a communications company for approximately $352, and, as of March 1, 2006, the debt was 60 days past due in the approximate amount of $287

$352

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

1.h

that he was indebted to a creditor for approximately $276, and, as of March 1, 2006, the debt was 30 days past due in the approximate amount of $30

$276

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

1.i

that he had participated in a credit counseling program between approximately January 2005 and November 2005 and had stopped participating because he had difficulty in maintaining the payment plan

Against Applicant

Unspecified Financial

Admitted

(a) inability to satisfy debts

—

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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