Summary
A 35-year-old defense contractor employee was granted a security clearance despite allegations under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons primarily focused on a Chapter 13 bankruptcy and several debts. Specifically, the applicant was alleged to have provided false information about taxes on her 2017 SF 86, and to have outstanding debts of $403, $232, and $300.
The administrative judge found that the applicant did not intentionally provide false information regarding her taxes. Furthermore, the applicant demonstrated proactive steps to resolve her financial obligations. She entered into a payment agreement in August 2019 for the $403 debt and settled the $232 debt for $130, payable in five monthly installments starting October 2019. A payment agreement was also established for the $300 medical debt.
The judge determined that the applicant's financial difficulties were largely due to circumstances beyond her control, including an abusive ex-husband and divorce. The applicant provided credible evidence of current financial stability and a commitment to resolving her debts, leading to the application of several mitigating conditions. Consequently, the applicant was granted eligibility for a security clearance.
Why the Applicant Prevailed
- The applicant demonstrated a commitment to resolving her financial issues through documented payments and agreements with creditors.
- The applicant's financial problems were largely due to circumstances beyond her control, including an abusive ex-husband and divorce.
- The applicant provided credible evidence of her current financial stability and efforts to maintain her finances.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure 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(b)appliedConditions 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(g)appliedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed
Key Rule Quoted
“A security clearance adjudication is not a debt-collection procedure. It is a procedure designed to evaluate an applicant’s judgment, reliability, and trustworthiness.”
Procedural Posture
- SOR issuedDec 7, 2018
- Answer filedJan 10, 2019
- Hearing heldAug 6, 2019
- Decision dateSep 30, 2019
Cite For
- Mitigation of Financial Concerns Under Guideline F Due to Circumstances Beyond Control
- Evaluation of Personal Conduct Under Guideline E When No Intentional Falsification Is Established
- The Distinction Between Security Clearance Adjudication and Debt Collection Procedures