Summary
A 63-year-old defense contractor and former U.S. Army service member sought to retain a SECRET security clearance, which was challenged under Guideline F (Financial Considerations). The Statement of Reasons cited two specific delinquent accounts: a bank credit card debt of $9,618 that was charged off and sold to a debt buyer, and a $191 telephone service debt charged off in October 2008. These issues raised disqualifying conditions under Adjudicative Guidelines Paragraphs 19(a), 19(c), and 19(e).
However, the applicant successfully demonstrated that his financial issues were largely resolved and attributed to circumstances beyond his control, specifically unemployment and identity theft. He provided a personal financial statement showing a net remainder of $5,168.50 available for discretionary spending, indicating current financial stability.
The judge applied mitigating conditions under Adjudicative Guidelines Paragraphs 20(a), 20(b), 20(c), 20(d), and 20(e). Ultimately, the security clearance was GRANTED, as the judge concluded that the applicant's financial issues were under control and did not raise doubts about his reliability or trustworthiness.
Why the Applicant Prevailed
- The applicant resolved most delinquent accounts and demonstrated financial stability.
- He provided evidence of a personal financial statement showing a net remainder of $5,168.50 available for discretionary spending.
- The applicant's financial issues were largely attributed to circumstances beyond his control, including unemployment and identity theft.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(e)raisedConsistent Spending Beyond One’s Means
- AG ¶ 20(a)appliedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to Recur
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(c)appliedEvidence of Financial Problems Being Resolved or Under Control
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors or Resolve Debts
- AG ¶ 20(e)appliedReasonable Basis to Dispute the Legitimacy of Past-due Debt
Key Rule Quoted
“Eligibility for a security clearance or access to classified information is granted.”
Procedural Posture
- SOR issuedMay 6, 2010
- Answer filedMay 20, 2010Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; decision based on written record.
- Decision dateNov 18, 2010
Cite For
- Mitigation of Financial Issues Under Guideline F
- Impact of Identity Theft on Financial Considerations
- Demonstrating Financial Stability After Previous Difficulties