Summary
The applicant, a 39-year-old defense contractor employee, faced security concerns under Guideline F due to financial issues stemming from his ex-wife's fraudulent activities. Despite admitting to the financial allegations, the applicant successfully mitigated these concerns by demonstrating significant efforts to resolve his debts and improve his financial management, leading to a granted security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: This is a medical account with a balance of $2,000 that was placed for collection and went to judgment in 2009. Applicant paid off the judgment and a Notice of Satisfaction was issued on December 17, 2015. The account has been resolved (1.a). This is a medical account with a balance of $15,000 that was placed for collection and went to judgment in 2009. Applicant paid off the judgment and a Notice of Satisfaction was issued on December 17, 2015. The account has been resolved (1.b). This is a medical account with a balance of $2,100 that was placed for collection and went to judgment in 2008. Applicant paid off the judgment and a Notice of Satisfaction was issued on December 17, 2015. The account has been resolved (1.c). This is a furniture company bank account with a balance of $19,704 that was placed for collection and went to judgment in 2007. Applicant’s attorney made efforts to locate the creditor and was faced with the facts that the original creditor had no record of the account and the successor creditor and the law firm that represented them no longer exist. On January 29, 2016, a payment in the amount of $29,826.26 (including $9,501.64 in interest) was issued to the court-ordered receiver for the closed debt-collecting law firm. The account has been resolved (1.d). This is his wife’s bank credit card account with a balance of $17,908.22 that was placed for collection and went to judgment in 2007. Applicant paid off the judgment and on December 18, 2015, the judgment lien was released. The account has been resolved (1.e).
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). The decision turned on the following: The applicant resolved all identified delinquent debts prior to the decision; He engaged professional services to assist with debt resolution and enrolled in financial counseling; The applicant's character references and work performance were highly favorable.
Why the Applicant Prevailed
- The applicant resolved all identified delinquent debts prior to the decision.
- He engaged professional services to assist with debt resolution and enrolled in financial counseling.
- The applicant's character references and work performance were highly favorable.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
Key Rule Quoted
“Eligibility for a security clearance and access to classified information is granted.”
Procedural Posture
- SOR issuedAug 3, 2015Applicant received SOR on August 11, 2015.
- Answer filedAug 25, 2015Requested a hearing.
- Hearing heldJan 14, 2016Hearing conducted with multiple witnesses.
- Decision dateOct 19, 2016
Cite For
- Mitigation of Financial Issues Under Guideline F
- Impact of Personal Circumstances on Financial Responsibility
- Importance of Character References in Security Clearance Decisions