Summary
A 45-year-old Department of Defense contractor and retired Army E-8 was granted a security clearance despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons alleged that the applicant failed to disclose several delinquent debts on his security clearance application. Specifically, he answered "No" to questions regarding being over 180 days delinquent on any debt in the last seven years and being currently over 90 days delinquent.
The undisclosed debts included a $16,300 line of credit charged off in March 2006, a $1,041 medical account placed for collection in July 2005, a $7,347 credit card account charged off in January 2006, a $2,828 medical account placed for collection in October 2005, and a $4,625 credit card account placed for collection in September 2006.
The judge found that the applicant's financial difficulties stemmed from circumstances beyond his control, such as his wife's unemployment and medical expenses. The applicant demonstrated a good-faith effort to resolve these issues through repayment agreements and acknowledged his prior omissions, showing transparency during the investigation. These mitigating factors led to the decision to grant the security clearance.
Why the Applicant Prevailed
- The applicant demonstrated a good-faith effort to resolve his financial issues through repayment agreements.
- The applicant's financial difficulties were largely due to circumstances beyond his control, such as his wife's unemployment and medical expenses.
- The applicant acknowledged his previous omissions and showed transparency during the investigation.
Conditions Referenced
- FC DC 19(a)raisedInability or Unwillingness to Satisfy Debts
- FC DC 19(c)raisedA History of Not Meeting Financial Obligations
- PC DC 16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- PC DC 16(e)raisedPersonal Conduct Creating Vulnerability to Exploitation
- FC MC 20(b)appliedConditions Largely Beyond the Person's Control
- FC MC 20(d)appliedGood-faith Effort to Repay Overdue Creditors
- PC MC 17(c)appliedMinor Offense or Unlikely to Recur
- PC MC 17(d)appliedAcknowledgment of Behavior and Positive Steps Taken
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedFeb 28, 2008
- Answer filedMar 19, 2008
- Hearing heldMay 28, 2008
- Decision dateJul 10, 2008
Cite For
- Mitigation of Financial Issues Due to Circumstances Beyond Control
- Acknowledgment of Prior Omissions in Security Clearance Applications
- Good-faith Efforts to Resolve Debts and Improve Financial Stability