ISCR Case 06-12802.h1

Case Headnote

ISCR Case No. 06-12802.h1

deniedMar 30, 2007· Hon. Kathryn Moen Braeman· hearing

Summary

A 31-year-old senior network professional was denied a security clearance due to unresolved financial issues and, to a lesser extent, past alcohol consumption. While he successfully mitigated concerns related to his alcohol-related arrests and demonstrated reformed conduct, he failed to provide a clear plan for addressing significant debts.

The applicant had multiple outstanding debts, including a corporate credit card debt used for personal expenses, a repossessed vehicle for which he was a co-signer, and several other collection accounts. While he disputed some debts, paid others, and reduced one significant debt, a substantial portion remained unpaid with no established repayment plans. His financial difficulties were longstanding, and despite having a stable income since 2004, he did not demonstrate a good-faith effort to resolve these debts.

Specifically, the denial was based on Guideline F (Financial Considerations) and Guideline G (Alcohol Consumption). Although the applicant engaged in court-ordered alcohol counseling and education, and demonstrated positive behavioral changes, the persistent and unaddressed financial obligations were the primary reason for the denial.

Why the Applicant Was Denied

The applicant failed to mitigate security concerns over unresolved financial issues, with a significant portion of his debt remaining unpaid and no payment plan established.
The applicant's financial difficulties were longstanding, and he did not demonstrate a good-faith effort to resolve his debts despite having a stable income since 2004.

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.A7.1.1.3.1appliedThe Alcohol-related Incidents Do Not Indicate a Pattern
E2.A7.1.1.3.2appliedThe Problem Occurred a Number of Years Ago and There Is No Indication of a Recent Problem
E2.A7.1.1.3.3appliedPositive Changes in Behavior Supportive of Sobriety

Key Rule Quoted

“The responsibility for producing evidence initially falls on the Government to demonstrate that it is not clearly consistent with the national interest to grant or continue Applicant's access to classified information.”

Procedural Posture

SOR issuedJun 29, 2006
Answer filedJul 21, 2006Applicant admitted many allegations but denied some.
Hearing heldNov 14, 2006Hearing was rescheduled once.
Decision dateMar 30, 2007

Cite For

Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
Mitigation of Alcohol-related Concerns Under Guideline G Due to Evidence of Reformation
Importance of Demonstrating a Clear Plan for Debt Resolution in Security Clearance Cases.

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 denied a debt to Creditor #1 for $240 for a judgment entered in November 1999 as he could not document this debt. He had it deleted from his credit report. $240	For Applicant	Unspecified Financial	Denied	—	—	—
1.b	He admitted his debt to Creditor #2 for $257 for a judgment entered in January 2000, but he believed he had paid it even though he could not document that payment. $257	For Applicant	Unspecified Financial	Admitted	—	—	—
1.c	He admits his debt to Creditor #3 for $341, but he is contesting the amount of the debt as he provided notice of intent to vacate and paid them $147.98; he has notified credit bureaus of the dispute. $341	For Applicant	Unspecified Financial	Admitted	—	—	—
1.d	His debt to Creditor #4 for $6,953 was to a collection agency for a credit union debt placed for collection in October 2001 for a car he could not afford after he left the military when he was only earning $15,000 annually. He initially made payments on that debt and reduced it to $4,554. He has notified credit bureaus of the dispute. He is hoping they will agree to payments of $100 per month, but he documented no approved re-payment plan. $6,953	Against Applicant	Auto Loan Debt	Unknown	(b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.e	His debt to Creditor #5 for $4,494, he stated, is the same debt as Creditor #4 for a car he still owns, but no payment plan is in place as discussed above. $4,494	Against Applicant	Auto Loan Debt	Unknown	(b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.f	Applicant has been making arrangements with the law firm to make payments on his debt to Creditor #6 for $2,036 for debts charged off in March 2002 from a corporate credit card. Not all of the charges were business related. That was his first credit card. He did understand he should not have used it for personal expenses. He has not made any payments on this debt, and no payment plan is in place. $2,036	Against Applicant	Credit Card Debt	Unknown	(b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.g	His debt to Creditor #7 for $7,726 was for a vehicle for his wife as she needed to go to work. He co-signed; it was involuntarily re-possessed. No re-payment plan is in place. $7,726	Against Applicant	Auto Loan Debt	Unknown	(b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.h	He denied the debt to Creditor #8 for $2,223 as he paid that debt in August 2006. That payment is confirmed by the October 2006 Equifax Credit Report. $2,223	For Applicant	Unspecified Financial	Denied	—	—	—
1.i	His debt to Creditor #9 for $533 for an account placed for collection by a bank in March 2004 is unresolved, no payment plan is in place. $533	Against Applicant	Unspecified Financial	Unknown	(b) unwillingness to satisfy debts regardless of ability (c) a history of not meeting financial obligations	—	—
1.j	He paid his debt to Creditor #10 for $190 on a personal credit card account charged off in April 2004. $190	For Applicant	Credit Card Debt	Admitted	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant denied a debt to Creditor #1 for $240 for a judgment entered in November 1999 as he could not document this debt. He had it deleted from his credit report.

$240

For Applicant

Unspecified Financial

Denied

—

1.b

He admitted his debt to Creditor #2 for $257 for a judgment entered in January 2000, but he believed he had paid it even though he could not document that payment.

$257

For Applicant

Unspecified Financial

Admitted

—

1.c

He admits his debt to Creditor #3 for $341, but he is contesting the amount of the debt as he provided notice of intent to vacate and paid them $147.98; he has notified credit bureaus of the dispute.

$341

For Applicant

Unspecified Financial

Admitted

—

1.d

His debt to Creditor #4 for $6,953 was to a collection agency for a credit union debt placed for collection in October 2001 for a car he could not afford after he left the military when he was only earning $15,000 annually. He initially made payments on that debt and reduced it to $4,554. He has notified credit bureaus of the dispute. He is hoping they will agree to payments of $100 per month, but he documented no approved re-payment plan.

$6,953

Against Applicant

Auto Loan Debt

Unknown

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.e

His debt to Creditor #5 for $4,494, he stated, is the same debt as Creditor #4 for a car he still owns, but no payment plan is in place as discussed above.

$4,494

Against Applicant

Auto Loan Debt

Unknown

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.f

Applicant has been making arrangements with the law firm to make payments on his debt to Creditor #6 for $2,036 for debts charged off in March 2002 from a corporate credit card. Not all of the charges were business related. That was his first credit card. He did understand he should not have used it for personal expenses. He has not made any payments on this debt, and no payment plan is in place.

$2,036

Against Applicant

Credit Card Debt

Unknown

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.g

His debt to Creditor #7 for $7,726 was for a vehicle for his wife as she needed to go to work. He co-signed; it was involuntarily re-possessed. No re-payment plan is in place.

$7,726

Against Applicant

Auto Loan Debt

Unknown

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.h

He denied the debt to Creditor #8 for $2,223 as he paid that debt in August 2006. That payment is confirmed by the October 2006 Equifax Credit Report.

$2,223

For Applicant

Unspecified Financial

Denied

—

1.i

His debt to Creditor #9 for $533 for an account placed for collection by a bank in March 2004 is unresolved, no payment plan is in place.

$533

Against Applicant

Unspecified Financial

Unknown

(b) unwillingness to satisfy debts regardless of ability

(c) a history of not meeting financial obligations

—

1.j

He paid his debt to Creditor #10 for $190 on a personal credit card account charged off in April 2004.

$190

For Applicant

Credit Card Debt

Admitted

—

¶	Allegation	Finding	Incident	Response	Disqualifying (¶22)	Mitigating applied (¶23)	Mitigation
2.a	The applicant has a history of alcohol-related incidents, including a DUI in December 1998 and two arrests in 2004.	For Applicant	Unspecified Alcohol Incident	Admitted	—	(c) participating in counseling/treatment with satisfactory progress, no prior relapse	—
2.b	The applicant has not been diagnosed with alcohol use disorder.	For Applicant	Alcohol Use Disorder Diagnosed	Denied	—	(c) participating in counseling/treatment with satisfactory progress, no prior relapse	—
2.c	The applicant has engaged in alcohol counseling and education as required by the court.	For Applicant	Treatment Non Compliance	Admitted	—	(c) participating in counseling/treatment with satisfactory progress, no prior relapse	—
2.d	The applicant has demonstrated positive changes in behavior supportive of sobriety.	For Applicant	Binge or Intoxication Pattern	Admitted	—	(c) participating in counseling/treatment with satisfactory progress, no prior relapse	—

Allegation

Finding

Incident

Response

Disqualifying (¶22)

Mitigating applied (¶23)

Mitigation

2.a

The applicant has a history of alcohol-related incidents, including a DUI in December 1998 and two arrests in 2004.

For Applicant

Unspecified Alcohol Incident

Admitted

—

(c) participating in counseling/treatment with satisfactory progress, no prior relapse

—

2.b

The applicant has not been diagnosed with alcohol use disorder.

For Applicant

Alcohol Use Disorder Diagnosed

Denied

—

(c) participating in counseling/treatment with satisfactory progress, no prior relapse

—

2.c

The applicant has engaged in alcohol counseling and education as required by the court.

For Applicant

Treatment Non Compliance

Admitted

—

(c) participating in counseling/treatment with satisfactory progress, no prior relapse

—

2.d

The applicant has demonstrated positive changes in behavior supportive of sobriety.

For Applicant

Binge or Intoxication Pattern

Admitted

—

(c) participating in counseling/treatment with satisfactory progress, no prior relapse

—

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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