Summary
The applicant, a 61-year-old defense contractor and former Marine, sought a security clearance despite financial difficulties stemming from his wife's failed business and tax issues. The judge found that the applicant had made significant efforts to resolve his debts and did not intend to mislead the government regarding his financial situation, ultimately granting the clearance.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant admitted in a Subject Interview, dated December 1, 2009, that he failed to list his debts on his SCA because of embarrassment (2.a). Applicant failed to provide truthful and candid answers to several of the subsections of Question 26 (2.b). This overdue debt is cited in the SOR in the amount of $32,296 to the Internal Revenue Service (IRS) for a tax lien entered against him in 2002 (1.a). This overdue, charged off debt is cited in the SOR in the amount of $563 (1.b). This overdue, charged off debt is cited in the SOR in the amount of $11,611 (1.c). This overdue debt is cited in the SOR in the amount of $45 (1.d).
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(d). The decision turned on the following: The applicant demonstrated a good faith effort to resolve his financial issues, including repayment of debts and attempts to refinance his home to pay off a tax lien; The applicant's financial difficulties were primarily due to his wife's business failures, which were beyond his control; The applicant provided credible testimony indicating he was unaware of certain debts when completing his Security Clearance Application.
Why the Applicant Prevailed
- The applicant demonstrated a good faith effort to resolve his financial issues, including repayment of debts and attempts to refinance his home to pay off a tax lien.
- The applicant's financial difficulties were primarily due to his wife's business failures, which were beyond his control.
- The applicant provided credible testimony indicating he was unaware of certain debts when completing his Security Clearance Application.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Beyond the Person's Control
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedJun 9, 2010
- Answer filedJul 7, 2010
- Hearing heldNov 22, 2010
- Decision dateMay 10, 2011
Cite For
- Mitigation of Financial Difficulties Under Guideline F Due to Circumstances Beyond Control
- Credibility of Applicant's Testimony Regarding Financial Awareness
- Good Faith Efforts in Resolving Debts and Improving Financial Stability