Summary
A 35-year-old business operations manager for a Department of Defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons cited several unpaid debts, including amounts of $334, $54, and $2,500, as well as a charged-off debt and another debt whose legitimacy the applicant disputed. Disqualifying conditions AG ¶ 19(a) and AG ¶ 19(c) were raised.
The applicant successfully demonstrated that his financial difficulties stemmed largely from circumstances beyond his control, specifically job losses and misrepresentations by his first employer. He provided documented proof to substantiate his dispute of one past-due debt, which subsequently resulted in a zero balance.
The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e). The decision to grant the clearance was based on the applicant's responsible management of current debts through timely payments and the finding that his past financial problems were primarily due to external factors.
Why the Applicant Prevailed
- The applicant's financial problems were largely due to circumstances beyond his control, including job losses.
- The applicant demonstrated responsible financial behavior by making timely payments on current debts.
- The applicant successfully challenged some debts, resulting in a zero balance for one disputed debt.
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
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedMay 27, 2008
- Answer filedJun 20, 2008
- Hearing heldSep 3, 2008
- Decision dateOct 21, 2008
Cite For
- Mitigating Conditions Under Guideline F for Financial Considerations
- Impact of Job Loss on Financial Obligations
- Successful Dispute of Debts as a Mitigating Factor