Summary
A 38-year-old defense contractor with two children was granted a security clearance despite initial concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons alleged that the applicant failed to disclose an unpaid judgment and several delinquent debts on her July 10, 2007, Security Clearance Application. Specifically, she answered "No" to questions regarding unpaid judgments and debts over 180 days delinquent, and did not list several outstanding obligations.
The alleged debts included amounts ranging from $50 to $29,630, with some attributed to a vehicle, medical bills, and an unknown origin. During the hearing, it was stipulated that one judgment for $822 had been resolved. The applicant testified that she had paid two $50 debts, disputed a $1,027 debt due to potential identity theft, and believed other medical debts should have been covered by insurance. She also stated she only owed a $50 co-payment on a $2,452 debt, which she had paid.
The judge determined that the applicant did not intentionally provide incorrect information, mitigating concerns under Guideline E. Furthermore, the applicant demonstrated a good-faith effort to address her financial issues by consulting credit counseling services and planning to file for bankruptcy. These actions mitigated the security concerns under both guidelines, leading to the granting of her security clearance.
Why the applicant prevailed
- The applicant demonstrated a good-faith effort to resolve her overdue debts by consulting credit counseling services and planning to file for bankruptcy.
- The applicant was found credible in her testimony regarding her lack of awareness of her debts due to personal circumstances.
- No disqualifying conditions were found applicable under Guideline E as the applicant did not intentionally provide incorrect information.
Conditions referenced
- F.1.araisedFinancial Considerations
- F.1.craisedFinancial Considerations
- E.2.araisedPersonal Conduct
- E.2.braisedPersonal Conduct
- F.1.dappliedFinancial ConsiderationsThe applicant engaged in credit counseling and made payments towards her debts.
- E.2.aappliedPersonal ConductThe applicant's response to the SCA was accurate as the judgment was resolved prior to her application.
- E.2.bappliedPersonal ConductThe applicant credibly testified that she was unaware of her debts at the time of the SCA.
Key rule quoted
“The protection of the national security is the paramount consideration.”
Procedural posture
- SOR issuedFeb 12, 2009
- Answer filedMar 7, 2009
- Hearing heldMay 26, 2009
- Decision dateAug 26, 2009
Cite for
- Mitigating Financial Difficulties Under Guideline F
- Credibility of Applicant's Testimony Regarding Personal Conduct Under Guideline E
- Good-faith Efforts to Resolve Debts as a Mitigating Factor