Summary
The applicant, a 29-year-old technical support worker for a Department of Defense contractor, faced security concerns under Guideline F due to significant financial difficulties stemming from a failed business partnership and economic downturn. The judge granted the applicant's security clearance, finding that her financial issues were largely beyond her control and that she had acted responsibly in addressing them.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant has a delinquent credit card account with a balance of $5,000 (1.a). Applicant has a delinquent credit card account with a balance of $3,000 (1.b). Applicant has a delinquent credit card account with a balance of $2,500 (1.c). Applicant has a delinquent credit card account with a balance of $1,500 (1.d). Applicant has a delinquent auto loan account with a balance of $10,000 (1.e). Applicant has a delinquent mortgage account with a balance of $410,000 (1.f). Applicant has a tax lien for unpaid income taxes totaling $15,000 (1.g). Applicant has a judgment against her for $7,500 (1.h). Applicant has a personal loan account with a balance of $8,000 (1.i).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(c). The decision turned on the following: The applicant's financial problems were primarily caused by circumstances beyond her control, including a failed business partnership and economic downturn; The applicant demonstrated responsible behavior by seeking financial counseling and attempting to modify her mortgage through court-directed mediation; The applicant's current financial situation is under control, with sufficient income to cover living expenses.
Why the Applicant Prevailed
- The applicant's financial problems were primarily caused by circumstances beyond her control, including a failed business partnership and economic downturn.
- The applicant demonstrated responsible behavior by seeking financial counseling and attempting to modify her mortgage through court-directed mediation.
- The applicant's current financial situation is under control, with sufficient income to cover living expenses.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
- AG ¶ 20(c)appliedReceived Counseling for the Problem
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedJan 26, 2010
- Answer filedFeb 20, 2010
- Hearing heldMay 26, 2010
- Decision date—
Cite For
- Mitigating Conditions Under Guideline F Due to Circumstances Beyond Control
- Responsible Financial Behavior in Response to Economic Hardship
- Impact of Economic Downturn on Financial Obligations