Summary
The applicant, a 58-year-old principal fellow in the defense industry, faced security concerns under Guideline F due to significant financial difficulties stemming from medical issues affecting himself and his family. He demonstrated responsible financial behavior by enrolling in a debt consolidation plan and maintaining a payment plan with the IRS, leading to the granting of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Indebted to the Federal Government for delinquent taxes in the amount of $55,000 for tax years 2015 through 2017 (1.a). Charged-off credit card account in the amount of $3,532 (1.b). Charged-off pay day loan account in the amount $3,242 (1.c). Collection pay day loan the amount of $2,741 (1.d). Charged-off credit card account in the amount of $1,975 (1.e). Collection medical account in the amount of $1,588 (1.f). Collection medical account in the amount of $1,306 (1.g). Collection credit card account in the amount of $1,111 (1.h). Collection medical account in the amount of $981 (1.i). Collection alarm company account in the amount of $935 (1.j). Charged-off credit card company in the amount of $822 (1.k). Collection medical account in the amount of $407 (1.l). Collection medical account in the amount of $188 (1.m). Charged-off pay day loan account in the amount of $2,600 (1.n). Charged-off pay day loan account in the amount of $3,910 (1.o). Indebted for automobile that was repossessed in the amount of $7,313 (1.p).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), 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 difficulties were largely due to circumstances beyond his control, including serious medical issues affecting himself and his family; He has taken significant steps to resolve his debts, including enrolling in a debt consolidation plan and maintaining a payment plan with the IRS; The applicant demonstrated good judgment and reliability in managing his financial obligations.
Why the Applicant Prevailed
- The applicant's financial difficulties were largely due to circumstances beyond his control, including serious medical issues affecting himself and his family.
- He has taken significant steps to resolve his debts, including enrolling in a debt consolidation plan and maintaining a payment plan with the IRS.
- The applicant demonstrated good judgment and reliability in managing his financial obligations.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- 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)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 for the Problem From a Legitimate and Credible Source
- 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
“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 issuedSep 22, 2021
- Answer filedOct 7, 2021
- Hearing heldJul 5, 2022
- Decision dateMar 1, 2023
Cite For
- Mitigation of Financial Difficulties Under Guideline F
- Consideration of Circumstances Beyond an Applicant's Control in Financial Matters
- Evaluation of Good-faith Efforts to Resolve Debts in Security Clearance Cases