Summary
A 48-year-old senior electrical engineer was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Department of Defense had sought to deny her clearance due to a history of significant delinquent debts.
The Statement of Reasons detailed numerous financial issues, including multiple judgments and delinquent accounts. These included a $6,684 judgment released in May 2016, a $25,160 judgment settled for $10,500 with monthly payments, and two $25,160 judgments settled and released in September 2015. Other allegations involved a mortgage that went into foreclosure in 2010, a $174,000 mortgage that became $10,000 past due and was modified, and various other settled or outstanding debts ranging from $86 to $26,993.
The judge found that the applicant had taken substantial steps to mitigate her financial issues. She settled and paid four judgments and five collection accounts, demonstrating a good-faith effort to resolve her debts. The applicant is current on her primary residence mortgage, holds significant equity in her real estate, and maintains a positive income flow from rental properties. Her financial problems were largely attributed to circumstances beyond her control, and she sought assistance from credible sources. Based on these mitigating factors, the security clearance was granted.
Why the Applicant Prevailed
- The applicant settled and paid four judgments and five collection accounts, demonstrating a good-faith effort to resolve her debts.
- She is current on her primary residence mortgage and has significant equity in her real estate holdings.
- The applicant's financial problems were largely due to circumstances beyond her control, and she sought assistance from various credible sources.
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 Person Has Received or Is Receiving Counseling for the Problem
- AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay the Overdue Creditors
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedJun 17, 2016
- Answer filedAug 8, 2016
- Hearing heldMar 2, 2018Originally scheduled for June 29, 2017, but cancelled.
- Decision dateOct 12, 2018
Cite For
- Mitigation of Financial Considerations Under Guideline F
- Impact of External Circumstances on Financial Obligations
- Good-faith Efforts in Debt Resolution