Summary
A Department of Defense contractor employee, holding an active security clearance since 2002, faced allegations under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons cited several financial delinquencies, including a past-due mortgage of $3,768 on a $223,944 balance, a second mortgage with a $31,641 past-due amount on a $56,158 balance, and a $999 judgment from 2011 for medical debt. Additionally, nine collection accounts ranging from $75 to $846 were listed, with one $846 medical account placed for collection in August 2014.
The applicant was also alleged to have falsified a 2009 security clearance questionnaire by answering "no" to a question about being over 180 days delinquent on any debt within the preceding seven years, despite having numerous such delinquencies.
However, the judge found that the applicant's financial difficulties stemmed from identity theft and a significant loss of income, circumstances largely beyond his control. The applicant demonstrated a proactive approach, including financial counseling, and had resolved most of his debts, resulting in a stable current financial situation with no negative accounts reported. Consequently, the applicant's security clearance was GRANTED.
Why the Applicant Prevailed
- The applicant demonstrated that his financial problems were largely due to circumstances beyond his control, including identity theft and loss of income.
- He provided evidence of financial counseling and a proactive approach to resolving his debts.
- The applicant's current financial situation is stable, with no negative accounts reported on his credit report.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Beyond ControlThe applicant's financial issues were exacerbated by identity theft and loss of income due to his wife's medical condition.
- AG ¶ 20(c)appliedFinancial CounselingThe applicant and his wife completed financial counseling programs.
- AG ¶ 20(d)appliedGood-faith Effort to Resolve DebtsThe applicant provided proof of efforts to resolve his delinquent accounts.
- AG ¶ 20(e)appliedDispute Legitimacy of DebtsThe applicant disputed certain debts related to identity theft and provided evidence of their resolution.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedJun 17, 2016
- Answer filedJul 12, 2016
- Hearing heldJul 12, 2017
- Decision dateSep 12, 2017
Cite For
- Mitigating Conditions for Financial Difficulties Under Guideline F
- Impact of Identity Theft on Financial Responsibility
- Consideration of Proactive Measures in Resolving Debts