Summary
A 51-year-old licensed clinical psychologist was granted eligibility for a public trust position despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons cited a total of $61,802 in credit card debt, discharged in May 2012, and federal tax debt of $64,727 from tax years 2007 through 2010, which resulted in an IRS lien for $61,226. These issues raised disqualifying conditions under AG ¶ 19(a), AG ¶ 19(c), and AG ¶ 19(f).
However, the judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(g). The applicant demonstrated a consistent history of regular and timely debt payments and engaged in financial counseling. She had responsibly managed her finances for over three years, and the financial difficulties were largely attributed to circumstances beyond her control.
Based on these mitigating factors and the applicant's proactive steps, the judge determined that the trustworthiness concerns were resolved, leading to the decision to grant the security clearance.
Why the Applicant Prevailed
- The applicant demonstrated a meaningful track record of regular and timely payments on her debts.
- She received financial counseling and managed her finances responsibly for over three years.
- The financial issues were largely caused by circumstances beyond her control.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns or Failure to Pay Annual Federal, State, or Local Income Tax as Required
- 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(c)appliedThe Individual Has Received or Is Receiving Financial Counseling for the Problem From a Legitimate and Credible Source
- AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(g)appliedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those Arrangements
Key Rule Quoted
“AG ¶ 2(b) requires that '[a]ny doubt concerning personnel being considered for access to [sensitive] information will be resolved in favor of national security.'”
Procedural Posture
- SOR issuedDec 1, 2015
- Answer filedFeb 1, 2016
- Hearing heldJul 10, 2017
- Decision dateSep 14, 2017
Cite For
- Mitigation of Financial Considerations Under Guideline F
- Responsible Management of Finances After Bankruptcy
- Impact of External Circumstances on Financial Obligations