Summary
A 33-year-old research analyst, employed by a defense contractor, was granted a security clearance for access to sensitive information, despite initial concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant faced allegations of 17 debts totaling approximately $23,200, including a judgment and various collection accounts, and failing to disclose a March 2009 judgment and delinquent loans on her September 2009 SF-85P.
Her financial problems, which began around 2008, were attributed to a combination of factors, including her separation from her husband in July 2005, a boyfriend's unemployment, a payroll error during maternity leave, and some poor money management. The applicant, earning approximately $35,000 annually, filed for Chapter 13 bankruptcy on November 16, 2010, including all outstanding debts.
The clearance was granted because the applicant demonstrated a good-faith effort to resolve her financial issues. She established a six-month track record of timely payments under her bankruptcy plan, which became effective in December 2010, and was living within her means. Her omissions on the SF-85P were deemed unintentional, and her financial difficulties were largely due to circumstances beyond her control, mitigating concerns under personal conduct.
Why the Applicant Prevailed
- The applicant filed for Chapter 13 bankruptcy, including all SOR debts, and established a track record of timely payments.
- The applicant's financial difficulties were largely due to circumstances beyond her control, including a separation, unemployment, and a payroll error during maternity leave.
- The applicant credibly explained her omissions on the SF-85P as unintentional and not willful, mitigating concerns under personal conduct.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant did not take timely action to address her financial situation from 2005 to 2010.
- AG ¶ 20(c)appliedThe Person Has Received Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The standard that must be met for . . . assignment to sensitive duties is that, based on all available information, the person’s loyalty, reliability, and trustworthiness are such that . . . assigning the person to sensitive duties is clearly consistent with the interests of national security.”
Procedural Posture
- SOR issuedDec 9, 2010
- Answer filedJan 24, 2011undated response received
- Hearing heldJun 21, 2011
- Decision dateJul 7, 2011
Cite For
- Mitigating Conditions Under Guideline F for Financial Difficulties Due to Circumstances Beyond Control
- Credibility of Applicant's Explanations for Omissions Under Guideline E
- Good-faith Efforts in Bankruptcy Proceedings as a Mitigating Factor