Summary
The applicant, a 50-year-old software engineer, contested the revocation of her security clearance due to financial issues stemming from her husband's alcoholism and business failures. She demonstrated significant efforts to mitigate her financial problems, including settling debts and seeking financial counseling. The judge found that the applicant's financial difficulties were largely beyond her control and ruled in her favor, granting her eligibility for access to classified information.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Charged-off unsecured consumer loan for $20,460 settled for $9,700 (1.a). Charged-off credit card account for $4,307 settled for $2,153 (1.b). Charged-off credit card account for $3,367 settled for $1,300 (1.c). Collection account for $2,460 resolved with a zero balance (1.d). Collection account for a telecommunications bill for $2,189 disputed (1.e). Collection account for a telecommunications bill for $1,453 related to husband's business failure (1.f). Collection account for a merchant credit card account for $803 settled for $440 (1.g). Charged-off account for a consumer account for $287 settled for $127 (1.h). Medical collection account for $265 being validated (1.i). Charged-off merchant credit card account for $819 is a duplicate account (1.j). Collection account for telecommunications account for $860 in dispute (1.k). Chapter 7 bankruptcy case filed in 2000 and discharged in 2001 (1.l).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant provided sufficient evidence to explain and mitigate her financial problems; Her financial difficulties were largely due to her husband's alcoholism and business failures, which were beyond her control; The applicant has made substantial efforts to settle debts and has received financial counseling.
Why the Applicant Prevailed
- The applicant provided sufficient evidence to explain and mitigate her financial problems.
- Her financial difficulties were largely due to her husband's alcoholism and business failures, which were beyond her control.
- The applicant has made substantial efforts to settle debts and has received financial counseling.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- 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(c)appliedThe Individual Has Received or Is Receiving Financial Counseling
- AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“It is well-established law that no one has a right to a security clearance.”
Procedural Posture
- SOR issuedAug 24, 2017
- Answer filedSep 19, 2017
- Hearing heldApr 18, 2018rescheduled due to government shutdown
- Decision dateMay 29, 2019
Cite For
- Mitigating Conditions Under Guideline F for Financial Considerations
- Impact of Personal Circumstances on Financial Responsibility
- Importance of Financial Counseling in Security Clearance Cases