Summary
The applicant, a 47-year-old Division Manager with a Bachelor's Degree in Electrical Engineering, faced allegations under Guideline F (Financial Considerations) due to significant debt resulting from a failed business venture. Despite the financial issues, the applicant demonstrated a good-faith effort to resolve his debts and showed evidence of financial rehabilitation, leading to a decision to grant his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: A state tax lien was filed against the Applicant for tax year 2008, in the amount of $1,390.00 (1.a). A state tax lien was filed against the Applicant for tax years 2007, in the amount of approximately $25,700.00 (1.b). The Applicant became indebted to a creditor for a debt owed in the amount of approximately $5,212.00 (1.c). The Applicant became indebted to a creditor in the amount of approximately $12,000.00 in credit card debt (1.d). The Applicant was indebted to a creditor in the amount of $541.00 (1.e).
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, specifically a failed business; He has made significant progress in repaying debts, having paid off over $36,000 since 2009; The applicant demonstrated responsible financial behavior and a commitment to resolving his financial issues.
Why the Applicant Prevailed
- The applicant's financial difficulties were largely due to circumstances beyond his control, specifically a failed business.
- He has made significant progress in repaying debts, having paid off over $36,000 since 2009.
- The applicant demonstrated responsible financial behavior and a commitment to resolving his financial issues.
Conditions Referenced
- 19.(a)raisedInability or Unwillingness to Satisfy Debts
- 19.(c)raisedA History of Not Meeting Financial Obligation
- 20.(b)appliedConditions 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 issuedFeb 9, 2011
- Answer filedFeb 27, 2011
- Hearing heldApr 12, 2011
- Decision dateAug 30, 2011
Cite For
- Mitigating Conditions for Financial Difficulties Under Guideline F
- Evidence of Financial Rehabilitation and Responsible Behavior
- Impact of Circumstances Beyond Control on Financial Obligations