Summary
The applicant, a 58-year-old system engineer and consultant, faced security concerns under Guideline F due to financial issues stemming from a divorce, medical expenses for his daughter, and a real estate downturn. He demonstrated significant progress by paying over $100,000 to resolve all debts listed in the Statement of Reasons (SOR) and established an installment plan with the IRS for tax debts. The judge found that the applicant's financial problems were largely beyond his control and that he acted responsibly, leading to a granted security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: SOR ¶ 1.a alleges a charged-off bank debt for $121,646 (1.a). SOR ¶ 1.b alleges a charged-off bank debt for $38,581 (1.b). SOR ¶ 1.c alleges a tax lien entered against Applicant in 2013 for $59,516 (1.c). SOR ¶ 1.d alleges a medical debt placed for collection for $59 (1.d). SOR ¶ 1.e alleges a debt owed to a city placed for collection for $65 (1.e). SOR ¶ 1.f alleges a utility debt placed for collection for $124 (1.f).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c), AG ¶ 19(f). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(g). The decision turned on the following: Applicant resolved all debts listed in the SOR; He paid over $100,000 towards his financial obligations in the past three years; Circumstances beyond his control contributed to his financial difficulties.
Why the Applicant Prevailed
- Applicant resolved all debts listed in the SOR.
- He paid over $100,000 towards his financial obligations in the past three years.
- Circumstances beyond his control contributed to his financial difficulties.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- 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
- AG ¶ 20(b)appliedConditions 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
- AG ¶ 20(d)appliedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(g)appliedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedOct 15, 2016
- Answer filedDec 1, 2016
- Hearing heldJul 11, 2017held as scheduled
- Decision dateNov 2, 2017
Cite For
- Mitigation of Financial Issues Under Guideline F
- Evidence of Good Faith Efforts to Resolve Debts
- Impact of Circumstances Beyond Control on Financial Stability