Summary
A 55-year-old defense contractor employee was granted a security clearance despite initial concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The issues stemmed from financial difficulties related to a dairy farm loss, which resulted in eight delinquent debts and a 1995 federal tax lien for $11,000. The applicant also had $2,000 in other delinquent debt listed on the Statement of Reasons.
The applicant addressed these concerns by resolving most of the debts, providing proof of payment for the listed delinquent debts at the hearing. Regarding the tax lien, the applicant stated he believed it had expired and was no longer owed. This belief also informed his "no" answers to questions on his security clearance application concerning financial delinquencies and tax liens.
The judge found no intentional falsification of the security clearance application, mitigating concerns under Guideline E. The applicant's demonstrated efforts to resolve the majority of his debts and his belief regarding the expired tax lien were considered mitigating factors under Guideline F, leading to the granting of the security clearance.
Why the applicant prevailed
- The applicant resolved eight of nine delinquent debts, demonstrating financial responsibility.
- The applicant believed the tax lien had expired and was no longer collectible, mitigating concerns under Guideline F.
- The applicant did not intentionally falsify his security clearance application, mitigating concerns under Guideline E.
Conditions referenced
- FC DC 19(a)raisedInability or Unwillingness to Satisfy Debts
- FC DC 19(c)raisedA History of Not Meeting Financial Obligations
- FC DC 20(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- FC MC 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- FC MC 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- FC MC 20(c)appliedThe Person Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- FC MC 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not make any effort to pay the IRS tax lien.
Key rule quoted
“An individual who is financially overextended is at risk of having to engage in illegal acts to generate funds.”
Procedural posture
- SOR issuedApr 20, 2007
- Answer filedJun 8, 2007
- Hearing heldDec 7, 2007Applicant was available for a hearing for the first time.
- Decision dateDec 28, 2007
Cite for
- Mitigating Circumstances Under Guideline F for Financial Issues
- No Intentional Falsification of Security Clearance Application Under Guideline E
- Consideration of the Whole Person Concept in Security Clearance Determinations.