Summary
A 65-year-old defense contractor and Army veteran was granted a security clearance despite initial concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons cited several financial issues, including a home equity debt of $48,847, a car loan for $23,246, and two tax liens, each for $1,103. Additionally, the applicant filed for Chapter 13 bankruptcy in May 2011, which was discharged in February 2014.
Personal conduct concerns arose because the applicant falsely answered three questions about his finances on his June 2014 security clearance application and failed to declare his tax liens and delinquent debt, though the liens were paid at the time. Disqualifying conditions F.1.a, F.1.b, and F.1.f were raised.
However, the judge found that the applicant had mitigated these concerns. Mitigating conditions F.20.b, F.20.d, and F.20.g were applied, recognizing the applicant's good-faith efforts to resolve financial issues, including the completion of his bankruptcy plan. The applicant's financial difficulties were largely attributed to the death of his wife, a circumstance beyond his control. His recent financial behavior demonstrated stability, with no new delinquent debts and current payments on all obligations, leading to the granting of his security clearance.
Why the Applicant Prevailed
- The applicant demonstrated a good-faith effort to resolve financial issues, including completing a Chapter 13 bankruptcy plan.
- The applicant's financial difficulties were largely due to the death of his wife, which was beyond his control.
- The applicant's recent financial behavior showed stability, with no new delinquent debts and current payments on obligations.
Conditions Referenced
- F.1.araisedInability to Satisfy Debts
- F.1.braisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- F.1.fraisedFailure 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
- F.20.bappliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- F.20.dappliedIndividual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- F.20.gappliedIndividual 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
“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”
Procedural Posture
- SOR issuedMay 19, 2016
- Answer filedJun 6, 2016Applicant elected to decide on the written record.
- Hearing held—No hearing; decided on written record.
- Decision dateSep 1, 2017
Cite For
- Mitigation of Financial Considerations Under Guideline F Due to Personal Circumstances
- Unintentional Omissions in Personal Conduct Under Guideline E
- Successful Completion of Chapter 13 Bankruptcy as a Mitigating Factor