KEYWORD: Guideline F
DIGEST: The Judge’s findings about the ongoing nature of Applicant’s delinquent debts are
based upon substantial evidence. Even if an applicant has paid his debts, however, a Judge may
still consider circumstances underlying those debts for what they reveal about the applicant’s
judgement, reliability, and willingness to abide by rules and regulations, qualities essential to
protecting classified information. Adverse decision affirmed
CASENO: 15-01137.a1
DATE: 09/14/2017
DATE: September 14, 2017
In Re:
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Applicant for Security Clearance
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ISCR Case No. 15-01137
APPEAL BOARD DECISION
APPEARANCES
FOR GOVERNMENT
James B. Norman, Esq., Chief Department Counsel
FOR APPLICANT
Patrick R. Blasz, Esq.  
The Department of Defense (DoD) declined to grant Applicant a security clearance.  On
August 26, 2015, DoD issued a statement of reasons (SOR) advising Applicant of the basis for that
decision–security concerns raised under Guideline F (Financial Considerations) of Department of
Defense Directive 5220.6 (Jan. 2, 1992, as amended) (Directive). On March 6, 2017, Department
Counsel amended the SOR to add additional Guideline F allegations.  Tr. at 9.  Applicant requested
a hearing.  On June 7, 2017, after the hearing, Defense Office of Hearings and Appeals (DOHA)
Administrative Judge Thomas M. Crean denied Applicant’s request for a security clearance. 
Applicant appealed pursuant to Directive ¶¶ E3.1.28 and E3.1.30.
Applicant raised the following issues on appeal: whether the Judge’s findings of fact
contained errors; whether Applicant’s circumstances raised Guideline F security concerns; and
whether the Judge’s adverse decision was arbitrary, capricious, or contrary to law.  Consistent with
the following, we affirm.
The Judge’s Findings of Fact
Applicant served in the military from 1997 to 1999, when he was discharged due to family
hardship.  Born in another country, he became a U.S. citizen in 2006.  His wife is also a naturalized
U.S. citizen.  He has four children, all of whom Applicant supports.  Applicant’s current salary is
about $91,000 from a position he has held since early 2012.  Applicant’s wife works part time. 
Their combined monthly income is about $6,200, with $800 left after expenses.  
Applicant filed for Chapter 7 bankruptcy protection in 2013, with additional petitions filed
the next year.  His debts were discharged in 2015.  Applicant’s amended SOR includes several
delinquent debts, for such things as an automobile loan, student loans, telecommunication services,
and other past-due accounts.  Applicant attributed his financial problems to his wife’s job loss in
2011.  The family moved to a less expensive house, which reduced their monthly mortgage
payments.
Applicant stopped making payments on his car in 2016 but hopes to bring the loan current
with an expected tax refund.  At the hearing he stated that he had an agreement with the creditor to
pay off the car loan but did not provide verification.  Neither did he show that he had made any
payments.  He submitted a statement after the hearing to the effect that his student loans were in
good standing.  However, the document that he submitted showed that the last payment on the loan
was in 2010 and that there were past-due balances.  He also has an agreement to resolve his
telecommunication debts.
The Judge’s Analysis
The Judge concluded that Applicant’s circumstances raised concerns that he is unable or
unwillingness to satisfy his debts and/or that he has a history of delinquent debt.  In evaluating
Applicant’s case for mitigation, the Judge concluded that his debts were numerous and recent and
that they were not incurred under circumstances that would render them unlikely to recur.  He noted
that Applicant incurred additional debts after his bankruptcy discharge and failed to present
documentation to show that he had acted responsibly.  The Judge stated that Applicant’s promises
to pay his debts in the future do not equate to a track record of debt resolution and that Applicant
had not corroborated his claims that he had payment agreements for his student loans and for the
telecommunication debt.  He concluded that Applicant had not met his burden of persuasion.
In the whole-person analysis, the Judge noted Applicant’s military service and the effect his
wife’s job loss had on their financial well-being.  He also cited to Applicant’s having been
discharged in bankruptcy which, though a legally permissible recourse, was soon followed by
additional debt.  The Judge concluded that Applicant had not presented sufficient evidence that his
response to his debts had been reasonable.
Discussion
In presenting his arguments on appeal, Applicant cites to matters from outside the record,
which we cannot consider.  Directive ¶ E3.1.29.  Applicant challenges some of the Judge’s findings. 
He notes factual errors regarding his age and the country of his birth, although as he concedes the
latter error is harmless.  He states that he rented the less expensive house to which the family moved
in 2011 rather than having purchased it, as the Judge stated.  Applicant also contends that the Judge
erred in his findings regarding the extent to which he is resolving the student loan account and the
telecommunication debt.  
We have examined Applicant Exhibit E, a printout concerning the student loans.  While this
document does appear to show that some payments were made after 2010 and that some of the loans
are in forbearance, it does not undermine the Judge’s ultimate conclusion that Applicant had not
actually demonstrated a track record of debt payment.  We have considered the totality of
Applicant’s challenge to the Judge’s findings.  The Judge’s material findings of security concern
“are supported by such relevant evidence as a reasonable mind might accept as adequate to support
a conclusion in light of all the contrary evidence in the same record.”  Directive ¶ E3.1.32.1. 
Applicant has cited to no harmful error in the Judge’s findings.
Applicant denies that his financial circumstances raise security concerns.  He argues that
credit reports are often unreliable and that he is addressing his financial problems.  As we stated
above, the Judge’s findings about the ongoing nature of Applicant’s delinquent debts are based upon
substantial evidence.  Even if an applicant has paid his debts, however, a Judge may still consider
circumstances underlying those debts for what they reveal about the applicant’s judgment,
reliability, and willingness to abide by rules and regulations, qualities essential to protecting
classified information.  See Directive, Encl. 2, App. A ¶ 18.  See also ISCR Case No. 15-01737 at
3 (App. Bd. Feb. 14,  2017); ISCR Case No. 14-02394 at 3-4 (App. Bd. Aug. 17, 2015).  
In the case before us, Applicant acquired delinquent debts not long after he had been
discharged in bankruptcy.  When these newer debts are viewed in light of his ongoing responsibility
to pay the student loan accounts, which were not discharged, we find no reason to disturb the
Judge’s conclusion that Applicant has a history of delinquent debt.  Such a history can raise
reasonable concerns that Applicant lacks the judgment required to protect classified information. 
See, e.g., ISCR Case No. 09-02045 at 2 (App. Bd. Nov. 2, 2009), in which the applicant’s “history
of delinquent debt” was found to have raised concerns about her security worthiness.  
  
The Judge examined the relevant evidence and articulated a satisfactory explanation for the
decision, both as to the mitigating conditions and the whole-person factors.  The decision is
sustainable on this record.  “The general standard is that a clearance may be granted only when
‘clearly consistent with the interests of the national security.’”  Department of the Navy v. Egan, 484
U.S. 518, 528 (1988).  See also Directive, Encl. 2, App. A ¶ 2(b):  “Any doubt concerning personnel
being considered for national security eligibility will be resolved in favor of the national security.”
Order
The Decision is AFFIRMED.  
Signed: Michael Ra’anan             
Michael Ra’anan
Administrative Judge
Chairperson, Appeal Board
Signed: James E. Moody             
James E. Moody
Administrative Judge
Member, Appeal Board
Signed: James F. Duffy                
James F. Duffy
Administrative Judge
Member, Appeal Board