ISCR Case 98-0703.h1

Case Headnote

ISCR Case No. 98-0703.h1

deniedMar 9, 1999· Hon. Barry M. Sax· hearing

Summary

A 42-year-old project computer administration engineer was denied a security clearance under Guideline F, Financial Considerations, due to a pattern of unresolved financial obligations. The Statement of Reasons detailed nine specific debts, all of which remained unsatisfied as of July 10, 1998.

These debts included a $917 judgment from about January 1992 to a car dealer, a $225 judgment from about January 1993 to an individual, and approximately $3,045 in unpaid 1989 state taxes with a lien filed in about April 1993. Other obligations included an approximately $4,125 unpaid account from August 1994, an approximately $600 judgment from about 1995 for rental car damage, and an approximately $1,222 unpaid mobile phone account from about February 1995. Further debts were an approximately $300 judgment from about 1996 for an unpaid car, an approximately $510 unpaid credit card account from about June 1996, and approximately $6,020 in past due child support arrears since about January 1997.

The applicant was found to be financially capable of paying these debts, with a monthly net remainder of approximately $1,263 after expenses as of July 10, 1998. Despite this, the judge found a consistent history of not meeting financial obligations and insufficient efforts to resolve them until the hearing process, leading to concerns about the applicant's judgment and reliability. The denial was based on disqualifying conditions F.1 and F.3, with mitigating condition F.6 applied but ultimately insufficient.

Why the Applicant Was Denied

The applicant had a history of not meeting financial obligations.
The applicant demonstrated a pattern of financial irresponsibility over several years.
The applicant failed to provide evidence of substantial efforts to resolve debts until the hearing process began.

Conditions Referenced

Disqualifying

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

Mitigating

F.6rejectedThe Conditions That Led to the Financial Problems Were Beyond the Applicant's ControlThe judge found no evidence that the debts were the result of factors largely beyond the applicant's control.

Key Rule Quoted

“A person who demonstrates a history of financial mismanagement cannot be relied upon to properly manage classified information.”

Procedural Posture

SOR issuedOct 23, 1998
Answer filedNov 14, 1998
Hearing heldFeb 18, 1999
Decision dateMar 9, 1999

Cite For

Denial of Security Clearance Based on Financial Irresponsibility Under Guideline F
Pattern of Unresolved Debts Impacting Security Clearance Eligibility
Insufficient Mitigation Efforts in Financial Consideration 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 was indebted to Company A, a car dealer, in the amount of $917.00, for a judgment filed against him in about January 1992. As of July 10, 1998, the date of his sworn statement to an agent of the Defense Security Service (DSS), this debt had not been satisfied. $917	Against Applicant	Judgment Against Applicant	Admitted	(a) inability to satisfy debts	—	—
1.b	Applicant was indebted to Dr. B, in the amount of approximately $225.00 for a judgment filed in about January 1993. As of July 10, 1998, this debt had not been satisfied. $225	For Applicant	Judgment Against Applicant	Admitted	—	—	Documented Debt Paid in Full
1.c	Applicant was indebted to State C for tax year 1989, in the amount of approximately $3,045.00, based on a tax lien that was filed in about April 1993. As of July 10, 1998, this debt had not been satisfied. $3,045	Against Applicant	Tax Unpaid	Unknown	(a) inability to satisfy debts	—	—
1.d	Applicant was indebted to Company D, in the amount of approximately $4,125.00 for an unpaid account turned over to a credit collection agency in August 1994. As of July 10, 1998, this debt had not been satisfied. $4,125	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts	—	—
1.e	Applicant was indebted to an automobile rental company E in the amount of approximately $600.00, for a judgment entered against him in about 1995, for damage to a rental car. As of July 10, 1998, this debt had not been satisfied. $600	Against Applicant	Judgment Against Applicant	Unknown	(a) inability to satisfy debts	—	—
1.f	Applicant was indebted to a mobile phone company F, in the amount of approximately $1,222.00 for an account unpaid since about February 1995. As of July 10, 1998, this debts had not been satisfied. $1,222	Against Applicant	Unspecified Financial	Unknown	(a) inability to satisfy debts	—	—
1.g	Applicant was indebted to an individual G who sold Applicant a car. Applicant failed to pay the full price for the car, and a judgment was entered against him in about 1996 for approximately $300.00. As of July 10, 1998, this debt had not been satisfied. $300	Against Applicant	Judgment Against Applicant	Unknown	(a) inability to satisfy debts	—	—
1.h	Applicant was indebted to credit card company H, in the amount of approximately $510.00, for an account unpaid since about June 1996. As of July 10, 1998, this debt had not been satisfied. $510	Against Applicant	Credit Card Debt	Unknown	(a) inability to satisfy debts	—	—
1.i	Applicant was indebted to State I for approximately $6,020.00 in past due child support, in arrears since about January 1997. As of July 10, 1998, this debt had not been satisfied. $6,020	Against Applicant	Child Support Debt	Unknown	(a) inability to satisfy debts	—	—
1.j	As of July 10, 1998, Applicant was financially capable of paying the debts listed above at SOR 1.a. - 1.j., as evidenced by a monthly net remainder of approximately $1,263.00, after expenses, as shown on Applicant's sworn personal financial statement of July 10, 1998.	Against Applicant	Unspecified Financial	Unknown	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

Applicant was indebted to Company A, a car dealer, in the amount of $917.00, for a judgment filed against him in about January 1992. As of July 10, 1998, the date of his sworn statement to an agent of the Defense Security Service (DSS), this debt had not been satisfied.

$917

Against Applicant

Judgment Against Applicant

Admitted

(a) inability to satisfy debts

—

1.b

Applicant was indebted to Dr. B, in the amount of approximately $225.00 for a judgment filed in about January 1993. As of July 10, 1998, this debt had not been satisfied.

$225

For Applicant

Judgment Against Applicant

Admitted

—

Documented

Debt Paid in Full

1.c

Applicant was indebted to State C for tax year 1989, in the amount of approximately $3,045.00, based on a tax lien that was filed in about April 1993. As of July 10, 1998, this debt had not been satisfied.

$3,045

Against Applicant

Tax Unpaid

Unknown

(a) inability to satisfy debts

—

1.d

Applicant was indebted to Company D, in the amount of approximately $4,125.00 for an unpaid account turned over to a credit collection agency in August 1994. As of July 10, 1998, this debt had not been satisfied.

$4,125

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

—

1.e

Applicant was indebted to an automobile rental company E in the amount of approximately $600.00, for a judgment entered against him in about 1995, for damage to a rental car. As of July 10, 1998, this debt had not been satisfied.

$600

Against Applicant

Judgment Against Applicant

Unknown

(a) inability to satisfy debts

—

1.f

Applicant was indebted to a mobile phone company F, in the amount of approximately $1,222.00 for an account unpaid since about February 1995. As of July 10, 1998, this debts had not been satisfied.

$1,222

Against Applicant

Unspecified Financial

Unknown

(a) inability to satisfy debts

—

1.g

Applicant was indebted to an individual G who sold Applicant a car. Applicant failed to pay the full price for the car, and a judgment was entered against him in about 1996 for approximately $300.00. As of July 10, 1998, this debt had not been satisfied.

$300

Against Applicant

Judgment Against Applicant

Unknown

(a) inability to satisfy debts

—

1.h

Applicant was indebted to credit card company H, in the amount of approximately $510.00, for an account unpaid since about June 1996. As of July 10, 1998, this debt had not been satisfied.

$510

Against Applicant

Credit Card Debt

Unknown

(a) inability to satisfy debts

—

1.i

Applicant was indebted to State I for approximately $6,020.00 in past due child support, in arrears since about January 1997. As of July 10, 1998, this debt had not been satisfied.

$6,020

Against Applicant

Child Support Debt

Unknown

(a) inability to satisfy debts

—

1.j

As of July 10, 1998, Applicant was financially capable of paying the debts listed above at SOR 1.a. - 1.j., as evidenced by a monthly net remainder of approximately $1,263.00, after expenses, as shown on Applicant's sworn personal financial statement of July 10, 1998.

Against Applicant

Unspecified Financial

Unknown

—

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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