Summary
A 37-year-old defense contractor technician was granted a security clearance despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons cited over $70,000 in delinquent student loans, an additional $4,000 in other delinquent accounts, and a $3,000 credit card judgment. The applicant was also making $75 monthly payments to the IRS for a 2014 tax debt.
Personal conduct concerns arose from allegations that the applicant failed to list delinquent accounts on his August 2014 e-QIP and did not disclose a 1999 arrest for Reckless Use of Explosives and Possession of Explosives without a license.
The judge found that the applicant had mitigated these concerns. He demonstrated a commitment to resolving his financial issues by entering into a repayment agreement for his student loans and has since made timely payments on his debts. The judge also determined that the applicant's reliance on his ex-wife's misleading financial information was reasonable, not an intentional falsification. Based on these factors, the security clearance was granted.
Why the Applicant Prevailed
- The applicant demonstrated a commitment to resolving his financial issues by entering into a repayment agreement for his student loans.
- The applicant's reliance on his ex-wife's assurances about their finances was deemed reasonable and not intentional falsification.
- The applicant has shown a track record of making timely payments on his debts since taking control of his finances.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- 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)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 17(b)appliedThe Refusal or Failure to Cooperate, Omission, or Concealment Was Caused or Significantly Contributed to by Improper or Inadequate Advice of Authorized Personnel
Key Rule Quoted
“A falsification must be deliberate and material. It is deliberate if it is done knowingly and willfully.”
Procedural Posture
- SOR issuedFeb 10, 2016
- Answer filedFeb 23, 2016
- Hearing heldJun 8, 2016
- Decision dateMar 22, 2017
Cite For
- Mitigation of Financial Considerations Under Guideline F Due to Reliance on Misleading Information
- Reasonable Reliance on Advice From Authorized Personnel Regarding Disclosure Obligations
- Successful Demonstration of Rehabilitation in Financial Matters Leading to a Favorable Security Clearance Decision.