Summary
The applicant, a 37-year-old defense contractor, faced financial issues under Guideline F due to a prior unemployment period. She successfully rehabilitated her finances by addressing tax delinquencies and settling various debts. The administrative judge concluded that the applicant mitigated the security concerns, resulting in the granting of her security clearance eligibility.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Failure to file federal income tax returns for 2015 and 2016 (1.a). Delinquent consumer debt totaling approximately $15,000 (1.b). Loan delinquent in the amount of $11,359 (1.c). Delinquent utility bill totaling $1,959 (1.d). Delinquent credit card totaling $631 (1.e). Delinquent debt totaling $609 (1.f). Delinquent dental bill totaling $445 (1.g). Delinquent medical bill totaling $198 (1.h).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(b), AG ¶ 19(c), AG ¶ 19(f). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(g). The decision turned on the following: The applicant's financial problems were largely due to circumstances beyond her control, specifically a period of unemployment; She has made significant progress in rehabilitating her finances by paying off debts and filing overdue tax returns; The applicant demonstrated a good-faith effort to resolve her financial issues, including establishing payment plans.
Why the applicant prevailed
- The applicant's financial problems were largely due to circumstances beyond her control, specifically a period of unemployment.
- She has made significant progress in rehabilitating her finances by paying off debts and filing overdue tax returns.
- The applicant demonstrated a good-faith effort to resolve her financial issues, including establishing payment plans.
Conditions referenced
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)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)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(c)appliedThere Are Clear Indications That the Problem Is Being Resolved or Is Under 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)appliedThe 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 13, 2017
- Answer filedDec 14, 2017
- Hearing heldOct 3, 2018
- Decision dateJan 7, 2019
Cite for
- Mitigation of Financial Issues Under Guideline F Due to Circumstances Beyond Control
- Good-faith Efforts to Resolve Financial Delinquencies
- Rehabilitation of Finances Leading to Security Clearance Eligibility