ISCR Case 97-0077.h1

Case Headnote

ISCR Case No. 97-0077.h1

grantedMay 31, 1997· Hon. Darlene Lokey Anderson· hearing

Summary

A 44-year-old defense contractor was granted a Secret-Level security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons detailed several outstanding debts. These included a credit card debt of approximately $5,514.10 from 1989, unpaid since 1996, which the applicant stated the creditor would not accept partial payments for. The applicant also admitted to owing approximately $383.17 in 1992 back taxes to the IRS, which had reportedly increased to $864.55. A significant child support obligation of approximately $53,394.00, opened in 1994 and unpaid since December 1996, was also noted, with the applicant claiming it was based on a salary he never earned and that he continued to make bi-weekly payments of $160.00 to $170.00.

Additionally, the government alleged two other debts: $298.56 for an electric service account from 1990-1992, and $1,3820.72 for a telephone service account closed in 1990. For both of these, the applicant was uncertain of his responsibility and had requested explanations, stating he would pay if the debts were confirmed.

The judge determined that the applicant's financial issues largely stemmed from circumstances beyond his control, specifically a divorce and job loss. The applicant is now employed full-time and demonstrated the ability to address his debts. His mitigating evidence successfully outweighed the government's concerns, leading to the security clearance being granted.

Why the Applicant Prevailed

The applicant demonstrated that his financial difficulties were largely due to circumstances beyond his control, including a divorce and job loss.
The applicant is now employed full-time and has the means to address his outstanding debts.
The applicant provided persuasive evidence in mitigation that outweighed the government's prima facie case.

Conditions Referenced

Disqualifying

F.1raisedA History of Not Meeting Financial Obligations
F.3raisedAn Inability or Unwillingness to Satisfy Debts

Mitigating

F.3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control

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 an acceptable security risk.”

Procedural Posture

SOR issuedJan 28, 1997
Answer filedFeb 18, 1997Applicant elected to have the case determined on a written record.
Hearing held—No hearing; case determined on written record.
Decision dateMay 31, 1997

Cite For

Mitigation of Financial Issues Under Guideline F Due to Circumstances Beyond Control
Consideration of Employment Status in Financial Mitigation
The Importance of Persuasive Evidence in Rebuttal to Government Allegations

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	The Applicant admits that he is indebted in the amount of approximately $5,514.10 for a credit card debt opened in November 1989. This debt remains outstanding, and the Applicant has made no effort to pay this bill since December 1996. The Applicant states that this creditor will not accept partial payments but requires the entire balance which he is unable to pay. $5,514	For Applicant	Credit Card Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.b	The Government alleges that the Applicant is indebted in the amount of $298.56 for a balance owed on an electric service account opened on April 5, 1990, and terminated on September 17, 1992. The Applicant is uncertain as to whether he owes this debt, and there is no evidence in the record that he does. The Applicant indicates that he has asked for an explanation of the debt to determine if it is his, and if he does owe it, he will pay it immediately. $298	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.c	The Applicant admits that he is indebted in the amount of approximately $383.17 to the Internal Revenue Service for back taxes owed for tax year 1992. This debt remains outstanding, and the Applicant has made no effort to pay this bill. The Applicant has contacted the Internal Revenue Service for an explanation of the debt, as they are currently showing that the debt has increased to $864.55. $383	For Applicant	Tax Unpaid	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.d	The Government alleges that the Applicant is indebted in the amount of $1,3820.72 for a telephone service account which was closed in July 1990. The Applicant is uncertain as to whether he owes this debt, and there is no evidence in the record that he does. The Applicant indicates that he has asked for an explanation of the debt to determine if it is his, and if he does owe it, he will pay it immediately. $13,820	For Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.e	The Applicant admits that he is indebted in the amount of approximately $53,394.00 for a child support obligation account opened in July 1994. This debt also remains outstanding and the Applicant has made no effort to pay this bill since December 11, 1996. The Applicant claims that this debt was assessed based upon the base salary of a position that he never held which is part of his divorce decree. The Applicant indicates that he has made efforts to change the support arrangements but has had no cooperation from his former wife or her attorney. The Applicant continues, however, to pay $160.00 to $170.00 dollars in child support every two weeks, and does not see how he will ever be able to pay off this debt. $53,394	For Applicant	Child Support Debt	Admitted	(a) inability to satisfy debts (b) unwillingness to satisfy debts regardless of ability	—	—
1.f–1.g	2 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)	For Applicant			—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

The Applicant admits that he is indebted in the amount of approximately $5,514.10 for a credit card debt opened in November 1989. This debt remains outstanding, and the Applicant has made no effort to pay this bill since December 1996. The Applicant states that this creditor will not accept partial payments but requires the entire balance which he is unable to pay.

$5,514

For Applicant

Credit Card Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.b

The Government alleges that the Applicant is indebted in the amount of $298.56 for a balance owed on an electric service account opened on April 5, 1990, and terminated on September 17, 1992. The Applicant is uncertain as to whether he owes this debt, and there is no evidence in the record that he does. The Applicant indicates that he has asked for an explanation of the debt to determine if it is his, and if he does owe it, he will pay it immediately.

$298

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.c

The Applicant admits that he is indebted in the amount of approximately $383.17 to the Internal Revenue Service for back taxes owed for tax year 1992. This debt remains outstanding, and the Applicant has made no effort to pay this bill. The Applicant has contacted the Internal Revenue Service for an explanation of the debt, as they are currently showing that the debt has increased to $864.55.

$383

For Applicant

Tax Unpaid

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.d

The Government alleges that the Applicant is indebted in the amount of $1,3820.72 for a telephone service account which was closed in July 1990. The Applicant is uncertain as to whether he owes this debt, and there is no evidence in the record that he does. The Applicant indicates that he has asked for an explanation of the debt to determine if it is his, and if he does owe it, he will pay it immediately.

$13,820

For Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.e

The Applicant admits that he is indebted in the amount of approximately $53,394.00 for a child support obligation account opened in July 1994. This debt also remains outstanding and the Applicant has made no effort to pay this bill since December 11, 1996. The Applicant claims that this debt was assessed based upon the base salary of a position that he never held which is part of his divorce decree. The Applicant indicates that he has made efforts to change the support arrangements but has had no cooperation from his former wife or her attorney. The Applicant continues, however, to pay $160.00 to $170.00 dollars in child support every two weeks, and does not see how he will ever be able to pay off this debt.

$53,394

For Applicant

Child Support Debt

Admitted

(a) inability to satisfy debts

(b) unwillingness to satisfy debts regardless of ability

—

1.f–1.g

2 sub-charges — specific text not stated in this decision (for the applicant). (low confidence)

For Applicant

—

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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