Summary
Darlene D. Lokey Anderson, an Administrative Judge, granted security clearance to a 35-year-old applicant with a Bachelor's Degree in IT Security, currently employed as a Product Development Technician. The applicant faced allegations under Guideline E (Personal Conduct) for failing to disclose debts and under Guideline F (Financial Considerations) for being financially overextended. The judge found that the applicant's financial issues were largely due to circumstances beyond his control and that he had made significant efforts to resolve his debts, demonstrating responsibility and reliability.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The Government alleges that the Applicant is ineligible for a security clearance determination because he intentionally falsified material aspects of his personal background during the security clearance process (2.a). The Applicant completed a security clearance application dated February 25, 2010. Question 26 states: “For the following, answer for the last seven years, unless otherwise specified in the question. Disclose all financial obligations including those for which you are a cosigner or guarantor.” (2.b). Question 26.(g) of the application asked the Applicant, “Have you had bills or debts turned over to a collection agency?” The Applicant answered, “NO.” The Applicant failed to disclose those debts set forth in 1(b) and 1(d) through 1(j) of the SOR (2.c). Question 26.(h) of the application asked the Applicant, “Have you had any account or credit card suspended, charged off or cancelled for failing to pay as agreed?” The Applicant answered, “NO.” The Applicant failed to disclose those debts set forth in 1(a) and 1(c) of the SOR (2.d). A debt he owed to a creditor in the amount of $2,586.00 has been negotiated down to $972.00, and he plans to pay it off as soon as possible (1.a). A debt to a creditor in the amount of $7,291.38 is arranged to be settled for $2,906.00. The Applicant is scheduled to start paying $50.00 monthly toward the debt until it is resolved (1.b). A debt owed to a creditor in the amount of $4,020.00 is arranged to be settled for $1,608.00, and the Applicant plans to set up a payment plan and pay the debt (1.c). The Applicant believes that a debt owed to a creditor in the amount of $6,416.00 may be the same debt listed in allegation 1(b) (1.d). A debt owed to a creditor in the amount of $464.00 has been paid (1.e). A debt owed to a creditor in the amount of $76.00 has been paid (1.f). A debt owed to a creditor in the amount of $222.00 has been paid (1.g). A debt owed to a creditor in the amount of $203.00 has been paid (1.h). A debt owed to a creditor in the amount of $148.00 has been paid (1.i). A debt owed to a creditor in the amount of $30.00 has been paid (1.j).
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 demonstrated a good faith effort to repay overdue creditors and resolve debts; Financial difficulties were largely due to circumstances beyond the applicant's control, including a reduction in income and unexpected child support obligations; The applicant's testimony and supporting letters established his reliability and trustworthiness.
Why the applicant prevailed
- The applicant demonstrated a good faith effort to repay overdue creditors and resolve debts.
- Financial difficulties were largely due to circumstances beyond the applicant's control, including a reduction in income and unexpected child support obligations.
- The applicant's testimony and supporting letters established his reliability and trustworthiness.
Conditions referenced
- 19(a)raisedInability or Unwillingness to Satisfy Debts
- 19(c)raisedA History of Not Meeting Financial Obligations
- 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 protection of the national security is the paramount consideration.”
Procedural posture
- SOR issuedFeb 24, 2011
- Answer filedMar 21, 2011
- Hearing heldMay 18, 2011
- Decision dateAug 30, 2011
Cite for
- Mitigating Conditions for Financial Difficulties Under Guideline F
- Credibility of Applicant's Testimony Regarding Personal Conduct Under Guideline E
- Whole-person Assessment in Security Clearance Decisions.