Summary
A 40-year-old defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The allegations primarily stemmed from past-due debts associated with a failed business.
The applicant demonstrated significant efforts to resolve these financial issues. Prior to the Statement of Reasons (SOR), a state sales tax lien of $1,000 was paid and released in June 2018. Other state sales tax liens, totaling approximately $16,101, were reduced to $6,553.41 under a February 2015 payment plan. Additionally, a $1,434 business-related judgment was paid, and a $167 debt to Creditor G was paid in full in November 2018. A debt of about $1,295 to Creditor H was resolved, showing a $0.00 balance in November 2018, and a $50 debt to Creditor I was paid in December 2016.
The administrative judge found that the applicant had addressed all alleged past-due debts before the SOR was issued, established a positive monthly budget of about $400, and was well-respected in the workplace. These actions mitigated the security concerns, leading to the decision to grant the security clearance.
Why the applicant prevailed
- The applicant addressed all alleged past-due debts prior to the issuance of the SOR.
- The applicant demonstrated a positive monthly budget of about $400.
- The applicant is well respected in the workplace.
Conditions referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)notedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns or Failure to Pay Annual Federal, State, or Local Income Tax as Required
- 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(g)notedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those Arrangements
Key rule quoted
“The protection of the national security is the paramount consideration.”
Procedural posture
- SOR issuedOct 26, 2018
- Answer filedNov 29, 2018
- Hearing heldFeb 12, 2019hearing was convened as scheduled
- Decision dateMar 19, 2019
Cite for
- Mitigation of Financial Concerns Under Guideline F
- Consideration of the Whole-person Concept in Security Clearance Decisions
- Evidence of Good-faith Efforts to Resolve Debts as a Mitigating Factor