Summary
This case concerns a 53-year-old program analyst whose security clearance eligibility was reviewed under Guideline F (Financial Considerations) and ultimately granted. The Statement of Reasons alleged that the applicant filed for Chapter 13 bankruptcy in 2009, which was dismissed in 2012, and had 40 delinquent debts totaling $66,165. Additionally, he was arrested and charged with fraudulently issuing worthless checks. These issues raised disqualifying conditions under Adjudicative Guidelines paragraphs 19(a), 19(c), and 19(d).
Despite these financial challenges, the decision applied mitigating conditions under Adjudicative Guidelines paragraphs 20(a), 20(b), 20(d), and 20(e). The applicant demonstrated that his financial difficulties, including the bankruptcy and numerous delinquent debts, were largely due to circumstances beyond his control. He made a good faith effort to repay overdue creditors and resolve his debts.
Crucially, the applicant had not incurred any new delinquent debts since securing stable employment. Given his responsible actions and demonstrated commitment to financial stability, the security clearance was granted.
Why the Applicant Prevailed
- The applicant acted responsibly under circumstances largely beyond his control.
- He demonstrated a good faith effort to repay overdue creditors and resolve debts.
- The applicant has not incurred any delinquent debts since gaining stable employment.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(d)raisedDeceptive or Illegal Financial Practices Such as . . . Check Fraud
- AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(e)notedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“A security clearance adjudication is an evaluation of an individual’s judgment, reliability, and trustworthiness. It is not a debt-collection procedure.”
Procedural Posture
- SOR issuedJul 25, 2017
- Answer filedAug 8, 2017
- Hearing heldJun 6, 2018Hearing convened as scheduled.
- Decision dateMar 19, 2019
Cite For
- Mitigation of Financial Concerns Under Guideline F
- Good Faith Efforts to Resolve Debts
- Impact of Circumstances Beyond Control on Financial Stability