Summary
A 56-year-old defense contractor and retired Air Force senior master sergeant was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) cited five delinquent debts totaling $60,254, including charged-off credit card debts ranging from $9,325 to $17,006, and a failure to file her 2013 federal income tax return.
However, the applicant demonstrated significant mitigating factors. Before the SOR was issued, she filed her 2013 tax return and made substantial progress in resolving her delinquent debts, establishing a track record of payment and resolution. The judge determined that her financial difficulties were largely due to circumstances beyond her control, specifically an untrustworthy business partner and her husband's unemployment.
Given the applicant's proactive steps to address her financial obligations and the external factors contributing to her past issues, the security clearance was granted.
Why the Applicant Prevailed
- The applicant made substantial progress on her delinquent debts, establishing a track record of payment and resolution.
- The applicant filed her 2013 federal income tax return before the SOR was issued, demonstrating responsibility.
- The financial issues were largely due to circumstances beyond her control, including an untrustworthy business partner and her husband's unemployment.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns 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 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
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedJun 22, 2016
- Answer filedJul 18, 2016
- Hearing heldDec 5, 2016
- Decision dateJan 18, 2017
Cite For
- Mitigation of Financial Considerations Under Guideline F
- Establishing a Track Record of Debt Repayment as a Mitigating Factor
- Consideration of Circumstances Beyond an Applicant's Control in Financial Cases