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ISCR 97-0659.h1: Guideline F security clearance hearing, denied (1998) · CASE

ISCR Case 97-0659.h1denied

Case headnote

ISCR Case No. 97-0659.h1

deniedMar 27, 1998· Hon. Joseph Testan· hearing

Summary

A 24-year-old security officer for a defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to significant financial indebtedness. The applicant owed approximately $10,000 to thirteen creditors, with no payments made to any of them since at least September 1997.

The applicant claimed his financial difficulties began after a 1995 job loss following a work-related automobile accident. However, the judge found that the applicant had taken little to no action to satisfy these debts and had stated he did not intend to repay any of his creditors.

The denial was based on the applicant's prolonged inaction regarding his debts, which were deemed largely self-created, and a lack of evidence indicating that his financial condition would improve in the near future. Disqualifying conditions F1 and F3 were raised, with mitigating condition F3 applied, but ultimately insufficient to overcome the concerns.

Why the applicant was denied

The applicant has not made any payments to his creditors since at least September 1997.
The applicant's financial problems were largely self-created due to his inaction regarding his debts.
There was a lack of evidence suggesting that the applicant's financial condition would improve in the near future.

Conditions referenced

Disqualifying

F1raisedA History of Not Meeting Financial Obligations.
F3raisedInability or Unwillingness to Satisfy Debts.

Mitigating

F3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control (e.g., Loss of Employment).

Key rule quoted

“It is not clearly consistent with the national interest to grant or continue a security clearance for applicant.”

Procedural posture

SOR issuedOct 2, 1997
Answer filedOct 14, 1997
Hearing heldFeb 19, 1998
Decision dateMar 27, 1998

Cite for

Denial of Security Clearance Due to Significant Financial Indebtedness
Impact of Inaction on Financial Obligations Under Guideline F
Consideration of Mitigating Factors Related to Financial Difficulties

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

From the decision

Facts this decision states, each with the exact sentence it comes from. Descriptive of the record, not an assessment.

Delinquent debt cited: $10,000: “His total indebtedness to the thirteen creditors is approximately $10,000.00.”

Standardized Decision Profile

SEAD-4 Guideline F · descriptive summary of a decided case

Posture: Decision on RecordDecided: denied

The judge found against the applicant on financial considerations due to a history of not meeting financial obligations and an inability or unwillingness to satisfy debts. Although the applicant's financial difficulties were largely attributed to a loss of employment, he had taken little action to address his debts, leading to a denial of his security clearance.

The sub-allegation breakdown is part of the Professional plan. See what it includes.

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation

Descriptive standardized rendering of a decided public case. The verbatim source decision is shown in full below.

Full decision

The complete, official text, footnotes and signatures included, is in the original PDF.

Decision text, by section

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

DATE: March 27, 1998 In Re: Applicant for Security Clearance ISCR Case No. 97-0659 DECISION OF ADMINISTRATIVE JUDGE JOSEPH TESTAN

FOR GOVERNMENT Martin H. Mogul, Department Counsel FOR APPLICANT Pro Se

STATEMENT OF CASE

On October 2, 1997, the Defense Office of Hearings and Appeals (DOHA), pursuant to Executive Order 10865 and Department of Defense Directive 5220.6 (Directive), dated January 2, 1992, issued a Statement of Reasons (SOR) (copy appended) to (Applicant), which detailed reasons why DOHA could not make the preliminary affirmative finding under the Directive that it is clearly consistent with the national interest to grant or continue a security clearance for applicant and recommended referral to an Administrative Judge to determine whether clearance should be denied or revoked. Applicant responded to the SOR in writing on October 14, 1997. The case was received by the undersigned on December 31, 1997. A Notice of Hearing was issued on January 12, 1998, and the hearing was held on February 19, 1998.

FINDINGS OF FACT

Applicant is twenty-four years of age. He is employed as a security officer by a defense contractor. With the exception of Paragraph 1f,(1) applicant admits that he is indebted as alleged in SOR Paragraphs 1a through 1n. SOR Paragraphs 1a, 1b, 1c, 1d, 1e, 1g, 1h, 1i, 1j, 1k, 1l, 1mand 1nare therefore incorporated by reference as Findings of Fact. Applicant has not made a payment to any of these thirteen creditors since at least September 1997. His total indebtedness to the thirteen creditors is approximately $10,000.00. In a signed, sworn statement that he gave to the Defense Security Service (DSS) in January 1997 (G-2), applicant stated that he did not intend to repay any of his creditors. At the hearing he testified that he has changed his mind and now intends to satisfy some of the smaller debts when he is financially able to do so (TR at 12). Applicant testified that his financial difficulties began after he lost his job following a work-related automobile accident in 1995. His unemployment from August to approximately November 1995 caused him to fall behind on his debt payments, and for a variety of reasons, he has been unable to catch up (TR 31-32).

POLICIES

Enclosure 2 of the Directive sets forth the Adjudication Policy (divided into Disqualifying Factors and Mitigating Factors) which must be followed by the Administrative Judge. Based on the foregoing Findings of Fact, the following Disqualifying Factors and Mitigating Factors are applicable: FINANCIAL CONSIDERATIONS Disqualifying Factors: 1. A history of not meeting financial obligations. 3. Inability or unwillingness to satisfy debts. Mitigating Factors: 3. The conditions that resulted in the behavior were largely beyond the person's control (e. g., loss of employment).

CONCLUSION

The evidence establishes that applicant has been indebted to at least thirteen creditors in the total amount of approximately $10,000.00 since at least September 1997. Although applicant's financial problems were caused in large part by a factor beyond his control (i.e., his unemployment following his 1995 automobile accident), the fact remains he has taken little or no action to satisfy any of these thirteen debts, only one of which is in excess of $1,000.00. Given applicant's inability or unwillingness to take any meaningful action to satisfy these thirteen long-standing debts, particularly the relatively small debts, and the lack of any evidence that reasonably suggests applicant's financial condition is likely to significantly improve anytime soon, it is not clearly consistent with the national interest to grant him access to classified information at this time. For this reason, Criterion F is found against applicant.

FORMAL FINDINGS

PARAGRAPH 1: AGAINST THE APPLICANT

DECISION

In light of all the circumstances presented by the record in this case, it is not clearly consistent with the national interest to grant or continue a security clearance for applicant. ____________________________ Joseph Testan Administrative Judge 1. Applicant testified, credibly, that his former roommate incurred this debt without applicant's knowledge or permission (TR at 13-14). For this reason, this debt will not be considered in reaching a decision in this case.

FOOTNOTES

97-0659.h1 file:///usr.osd.mil/...yComputer/Desktop/DOHA%20transfer/DOHA-Kane/dodogc/doha/industrial/Archived%20-%20HTML/97-0659.h1.html[7/2/2021 4:03:30 PM] 97-0659.h1 file:///usr.osd.mil/...yComputer/Desktop/DOHA%20transfer/DOHA-Kane/dodogc/doha/industrial/Archived%20-%20HTML/97-0659.h1.html[7/2/2021 4:03:30 PM]