Summary
A 54-year-old defense contractor and U.S. Marine Corps veteran was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons cited significant delinquent debts totaling $166,827, including a $76,993 second-mortgage account, an $18,580 credit-card account, and a $1,254 cable account. Additionally, state and federal taxes totaling approximately $106,186 were identified. These issues raised disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a), ¶ 19(c), and ¶ 19(f).
However, the applicant successfully mitigated these concerns by demonstrating a commitment to resolving his financial issues. Prior to the hearing, he resolved multiple delinquent debts and established a track record of responsible financial management, particularly after experiencing a layoff.
The applicant also received financial counseling and adhered to repayment agreements with his creditors. These actions satisfied mitigating conditions under AG ¶ 20(a), ¶ 20(b), ¶ 20(c), ¶ 20(d), and ¶ 20(g), leading to the decision to grant the security clearance.
Why the Applicant Prevailed
- The applicant resolved multiple delinquent debts prior to the hearing.
- He established a track record of responsible financial management after experiencing a layoff.
- The applicant received financial counseling and adhered to repayment agreements with creditors.
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
- 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
- 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 AG.”
Procedural Posture
- SOR issuedSep 12, 2016
- Answer filedSep 26, 2016
- Hearing heldMay 18, 2017
- Decision dateAug 25, 2017
Cite For
- Mitigation of Financial Issues Under Guideline F
- Responsible Financial Management After Job Loss
- Impact of Financial Counseling on Security Clearance Eligibility