Summary
The applicant, a 54-year-old defense contractor and U.S. Army veteran, sought a security clearance under Guideline F due to financial concerns stemming from delinquent debts and a past bankruptcy. The judge found that the applicant had taken responsible steps to address his financial issues, including paying off several debts and demonstrating sound financial management, leading to a decision to grant the security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: a disputed charge of $195 by a satellite television provider, was settled for $125 and paid in October 2009 (1.a). a $194 debt to a grocery store arose when Applicant’s wife started working at that store. The debt was for required employee clothing, but she left the job for medical reasons before she actually reported to work. This debt was paid in October 2009 (1.b). he owes $12,476 for tax year 1998 (1.c). he owes the Internal Revenue Service (IRS) $6,668 for tax year 1997 (1.d). a state tax debt for $899 for tax years 1995 and 1997. Applicant paid this debt in September 2005 (1.e). a $514 debt owed to a wholesale warehouse. It was settled for $411 and paid in October 2009 (1.f). the same $514 debt owed to a wholesale warehouse. It was settled for $411 and paid in October 2009 (1.g). two unpaid medical bills for $12 and $48. Applicant disputed these debts because he thought TriCare should have paid these costs. He decided to pay them in full in October 2009 (1.h). his retired pay was being garnished to satisfy unpaid child support (1.i). he filed a Chapter 7 bankruptcy petition in 1997 (1.j).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant demonstrated responsible financial management by paying off several delinquent debts after receiving retroactive benefits from his wife's disability; The applicant's financial difficulties were largely due to circumstances beyond his control, including his ex-wife's actions and his current wife's disability; The applicant's overall financial situation has improved, and he has shown intent to resolve remaining debts.
Why the Applicant Prevailed
- The applicant demonstrated responsible financial management by paying off several delinquent debts after receiving retroactive benefits from his wife's disability.
- The applicant's financial difficulties were largely due to circumstances beyond his control, including his ex-wife's actions and his current wife's disability.
- The applicant's overall financial situation has improved, and he has shown intent to resolve remaining debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness 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 and Does Not Cast Doubt on the Individual's Current Reliability, Trustworthiness, or Good Judgment
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“A security clearance decision is intended to resolve whether it is clearly consistent with the national interest for an applicant to either receive or continue to have access to classified information.”
Procedural Posture
- SOR issuedAug 11, 2009
- Answer filed—
- Hearing heldJan 20, 2010
- Decision dateApr 30, 2010
Cite For
- Mitigating Conditions Under Guideline F for Financial Considerations
- Responsible Financial Management in the Context of Personal Hardships
- Impact of External Circumstances on Financial Obligations