Summary
A 37-year-old human resources assistant for a defense contractor was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons alleged approximately $23,666 in delinquent debts, including three credit card accounts totaling $7,581, three additional credit card accounts totaling $4,800, and three more credit card accounts totaling $9,758. Additionally, a $1,500 delinquent tax debt to the IRS was cited. These issues raised disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c).
The applicant contended that these debts resulted from a stolen wallet and subsequent identity theft, circumstances she argued were beyond her control. The judge found her testimony credible, noting that the financial issues were unlikely to recur. Mitigating conditions applied included AG ¶ 20(a), AG ¶ 20(b), and AG ¶ 20(e).
The decision to grant clearance was based on several factors: the applicant's credible testimony regarding the identity theft, her demonstrated sound current financial management with positive cash flow and savings, and numerous positive references attesting to her integrity and reliability.
Why the Applicant Prevailed
- The applicant's credible testimony established that the debts were incurred due to circumstances beyond her control, specifically identity theft.
- The applicant demonstrated sound current financial management, with a positive cash flow and savings.
- The applicant's character was supported by numerous positive references attesting to her integrity and reliability.
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 and Does Not Cast Doubt on the Individual's Current Reliability, Trustworthiness, or Good Judgment
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“A security clearance decision is intended to resolve whether it is clearly consistent with the national interest for an applicant to either receive or continue to have access to classified information.”
Procedural Posture
- SOR issuedOct 14, 2008
- Answer filed—
- Hearing heldFeb 25, 2009
- Decision dateMar 26, 2009
Cite For
- Mitigation of Financial Issues Due to Identity Theft Under Guideline F
- Credibility Assessment of Applicant's Testimony in Financial Cases
- Consideration of Positive Character References in Security Clearance Decisions