Summary
A 53-year-old senior defense contractor employee, with a history of military service and a top secret clearance, was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The applicant's financial issues stemmed primarily from a failed school business and subsequent tax problems.
Specific allegations included a Chapter 13 bankruptcy filed in October 1999 and dismissed in March 2001, an unpaid federal tax lien of $32,641.00 that was satisfied and released on June 27, 2008, and unpaid state tax liens from 1995 to 1999 totaling approximately $10,100. Additionally, a $7,700 worker's compensation tax lien, discovered during the 2008 security investigation, was found to have been expunged and satisfied.
The decision to grant the clearance was based on several mitigating factors. The applicant demonstrated significant efforts to resolve his financial obligations, including satisfying multiple tax liens and actively managing remaining debts. His financial difficulties were largely attributed to circumstances beyond his control, specifically the failure of his business.
Why the Applicant Prevailed
- The applicant has a long history of military and defense contractor service with a top secret clearance.
- He has resolved several tax liens and is actively managing his remaining debts.
- The applicant's financial difficulties were largely due to circumstances beyond his control, such as the failure of a business.
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 ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past Due Debt
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedApr 9, 2008
- Answer filedMay 23, 2008
- Hearing heldJun 30, 2008
- Decision dateAug 20, 2008
Cite For
- Mitigating Conditions Under Guideline F for Financial Considerations
- Impact of Business Failure on Financial Obligations
- Resolution of Tax Liens as a Factor in Security Clearance Eligibility