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Summary

The applicant, a 42-year-old spray painter with over 23 years of service and a history of holding a security clearance, faced concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to multiple delinquent debts and an alleged falsification on his security clearance application. The judge found that the applicant did not intentionally falsify his application and demonstrated a good-faith effort to resolve his financial issues, leading to a decision to grant his security clearance.

Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant’s incomplete answers on his security clearance application concerning financial issues of judgments and past due debts raises a security concern under Personal Conduct Disqualifying Condition (PC DC) AG ¶ 16(a) "the deliberate omission, concealment, or falsification of relevant and material facts from any personnel security questionnaire, personal history, or similar form used to conduct investigations, to determine security eligibility or trustworthiness" (2.a). small medical debt in collection for $25 (1.a). small medical debt in collection for $25 (1.b). small medical debt in collection for $50 (1.c). small medical debt in collection for $556 (1.d). small medical debt in collection for $162 (1.e). small medical debt in collection for $195 (1.f). small medical debt in collection for $50 (1.g). small medical debt in collection for $89 (1.h). small medical debt in collection for $50 (1.i). small medical debt in collection for $50 (1.j). small medical debt in collection for $97 (1.k). small medical debt in collection for $34 (1.l). small medical debt in collection for $50 (1.m). delinquent cell phone debt in collection for $191 (1.n). federal tax lien for $15,895 (1.o). credit card debt in collection for $1,684 (1.p). credit card debt in collection for $2,195 (1.q). bankruptcy filed in April 1990, discharged in August 1990 (1.r).

The judge granted the clearance. The government raised disqualifying conditions AG ¶ 16(a), AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant took immediate action to pay all small medical debts upon learning of them; He has been making consistent payments on his IRS tax debt since 1998 and is current with those payments; The applicant's financial problems were largely due to circumstances beyond his control, and he has shown a strong desire to manage his debts responsibly.

Why the applicant prevailed

• The applicant took immediate action to pay all small medical debts upon learning of them.
• He has been making consistent payments on his IRS tax debt since 1998 and is current with those payments.
• The applicant's financial problems were largely due to circumstances beyond his control, and he has shown a strong desire to manage his debts responsibly.

Conditions referenced

Key rule quoted

“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”

Procedural posture

• SOR issuedJul 9, 2008
• Answer filedSep 8, 2008
• Hearing heldNov 20, 2008
• Decision dateDec 18, 2008

Cite for

• Mitigation of Financial Issues Under Guideline F Due to Good-faith Efforts to Resolve Debts
• Non-intentional Omission of Financial Information on Security Clearance Applications
• Consideration of Personal Circumstances Affecting Financial Stability in Security Clearance Decisions.