Summary
The applicant, a 60-year-old Project Engineer with a Master's Degree in Electrical Engineering, faced allegations under Guideline F (Financial Considerations) due to significant financial indebtedness, including federal tax liens totaling approximately $100,000. The applicant demonstrated that his financial issues were largely due to circumstances beyond his control, including failed business ventures and poor financial decisions made during that time. The judge found that the applicant had made substantial efforts to resolve his debts and had received positive character references, ultimately granting the security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: indebted in the amount of approximately $100,000 for federal tax liens as well as other debts (1.a). tax lien in the amount of $25,058.00 (1.b). tax lien in the amount of $38,671.00 (1.c). tax lien in the amount of $33,505.00 (1.d). delinquent debt to a creditor in the amount of $848.00 (1.e). delinquent debt to a bank in the amount of $959.00 (1.f). delinquent debt to a bank in the amount of $1,800.00 (1.g). delinquent debt to a bank in the amount of $1,279.00 (1.h).
The judge granted the clearance. The government raised disqualifying conditions 19(a), 19(c). The judge applied mitigating conditions 20(b), 20(c), 20(d). The decision turned on the following: The applicant's financial difficulties were largely due to circumstances beyond his control, including failed business ventures; The applicant demonstrated a good faith effort to resolve his debts, including settling several delinquent accounts and submitting offers of compromise to the IRS; Positive character references from colleagues supported the applicant's trustworthiness and reliability.
Why the Applicant Prevailed
- The applicant's financial difficulties were largely due to circumstances beyond his control, including failed business ventures.
- The applicant demonstrated a good faith effort to resolve his debts, including settling several delinquent accounts and submitting offers of compromise to the IRS.
- Positive character references from colleagues supported the applicant's trustworthiness and reliability.
Conditions Referenced
- 19(a)raisedInability or Unwillingness to Satisfy Debts
- 19(c)raisedA History of Not Meeting Financial Obligations
- 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- 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
- 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The adjudicative process is an examination of a sufficient period of a person’s life to make an affirmative determination that the person is an acceptable security risk.”
Procedural Posture
- SOR issuedApr 29, 2009
- Answer filedMay 14, 2009
- Hearing heldJul 29, 2009
- Decision dateSep 22, 2009
Cite For
- Mitigating Conditions Under Guideline F Due to Circumstances Beyond Control
- Good Faith Efforts to Resolve Financial Issues
- Importance of Character References in Security Clearance Determinations