Summary
A federal contractor and Army veteran was granted a security clearance despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) related to delinquent debts. The Statement of Reasons (SOR) alleged that the applicant deliberately failed to disclose delinquent debt on an October 2012 security clearance application.
Specifically, the applicant was indebted to two mortgage lenders for two separate accounts, each with a balance of $107,321. Additionally, the applicant had two outstanding property tax liens related to a property purchased in 2003 in State 1. These liens were for $162, recorded in November 2013, and $160, recorded in November 2012.
The judge determined that the applicant's financial issues stemmed from external market factors, not irresponsible behavior. The applicant took responsible steps to address the situation, including communicating with lenders and attempting to sell the home. The debts were subsequently resolved, and the applicant demonstrated responsible financial management thereafter, leading to the decision to grant the security clearance.
Why the Applicant Prevailed
- The applicant's financial difficulties were due to market factors beyond his control, not irresponsible behavior.
- The applicant took responsible steps to address his financial situation, including communicating with lenders and attempting to sell his home.
- The applicant's debts were resolved, and he demonstrated responsible management of his finances thereafter.
Conditions Referenced
- AG ¶ 19raisedFinancial ConsiderationsThe applicant has a history of not paying his creditors.
- AG ¶ 15raisedPersonal ConductThe applicant allegedly failed to disclose delinquent debt on his security clearance application.
- AG ¶ 20(a)appliedFinancial ConsiderationsThe applicant's financial issues were caused by circumstances beyond his control.
- AG ¶ 20(b)appliedFinancial ConsiderationsThe applicant acted responsibly in addressing his financial difficulties.
- AG ¶ 20(c)appliedFinancial ConsiderationsThe applicant's debts have been resolved, and he has no ongoing financial problems.
- AG ¶ 2(a)appliedWhole Person ConceptThe applicant has a history of responsibly handling consumer debt obligations.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedSep 18, 2015
- Answer filed—Applicant requested a decision without a hearing.
- Hearing held—Decision made without a hearing.
- Decision dateJun 1, 2017
Cite For
- Mitigating Factors for Financial Difficulties Under Guideline E
- Lack of Intent to Conceal Information Under Guideline F
- Whole-person Concept in Security Clearance Evaluations