Summary
A 51-year-old senior graphic designer's security clearance was granted despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) detailed several financial issues, including a federal tax lien for $9,851, a medical collection account for $151, a department store collection account for $997, and a past-due mortgage loan with an approximate balance of $43,739. Additionally, two other collection accounts totaling $5,482 and $1,811 were cited. These issues raised Disqualifying Condition F.1.
However, the applicant demonstrated significant mitigating actions. He resolved the federal tax lien by paying over $11,000 to the IRS, leading to its release in December 2009. He also brought his past-due mortgage loan current, showcasing responsible financial behavior.
The judge applied Mitigating Conditions F.20(c), F.20(d), and F.20(e), noting the applicant's good-faith efforts to resolve his debts and his current financial stability, including a positive cash flow. These actions led to the favorable decision to grant the security clearance.
Why the Applicant Prevailed
- The applicant resolved a significant federal tax lien by paying over $11,000 to the IRS, which was released in December 2009.
- The applicant brought his past-due mortgage loan current, demonstrating financial responsibility.
- The applicant provided evidence of a positive cash flow and made good-faith efforts to resolve his financial issues.
Conditions Referenced
- F.1raisedFinancial ConsiderationsThe applicant has a history of financial problems, including a federal tax lien and other debts.
- F.20(c)appliedFinancial ConsiderationsThe applicant's financial problems are being resolved or are under control.
- F.20(d)appliedFinancial ConsiderationsThe applicant made good-faith efforts to resolve his financial problems.
- F.20(e)appliedFinancial ConsiderationsThe applicant has a reasonable basis to dispute the legitimacy of some past-due debts.
Key Rule Quoted
“The overall concern under Guideline F is that: Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness, and ability to protect classified information.”
Procedural Posture
- SOR issuedJun 19, 2009
- Answer filed—Applicant answered the SOR in a timely fashion.
- Hearing heldOct 28, 2009
- Decision dateMar 16, 2010
Cite For
- Mitigating Conditions Under Guideline F for Financial Considerations
- Resolution of Financial Issues as a Basis for Granting Security Clearance
- Good-faith Efforts to Resolve Debts as a Mitigating Factor