Summary
This case concerns a 44-year-old security manager for a defense contractor whose security clearance was initially questioned under Guideline F (Financial Considerations). The Statement of Reasons cited several financial delinquencies: a home mortgage past due by $14,387 with a remaining balance of $175,288, a $270 delinquent cable bill, a $159 delinquent satellite television bill, and a $15,000 federal income tax debt. These issues raised disqualifying conditions under Adjudicative Guidelines paragraphs 19(a), 19(c), 19(e), and 19(g).
However, the judge applied mitigating conditions under Adjudicative Guidelines paragraphs 20(a), 20(b), 20(c), 20(d), and 20(e). The applicant demonstrated a good-faith effort to resolve his financial issues, including making timely payments on debts and securing a loan modification for his mortgage. His financial difficulties were attributed to circumstances beyond his control, specifically a period of unemployment and the need to support a pregnant daughter.
Furthermore, the applicant's long history of service and a prior security clearance without incident supported a finding of reliability and trustworthiness. Ultimately, the judge concluded that the applicant's financial problems were largely resolved and unlikely to recur. Based on these factors, the security clearance was GRANTED.
Why the applicant prevailed
- The applicant demonstrated a good-faith effort to resolve his financial issues, including timely payments on debts and a loan modification for his mortgage.
- The applicant's financial problems arose from circumstances beyond his control, including a loss of employment and supporting a pregnant daughter.
- The applicant's long history of service and prior security clearance without incident contributed to the conclusion of his reliability and trustworthiness.
Conditions referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(e)raisedConsistent Spending Beyond One’s Means
- AG ¶ 19(g)rejectedFailure to File Annual Federal, State, or Local Income Tax ReturnsThe applicant filed all required tax returns but was unable to pay due to underwithholding.
- AG ¶ 20(a)appliedBehavior Unlikely to Recur
- AG ¶ 20(b)rejectedConditions Largely Beyond ControlThe applicant did not act responsibly in providing for his daughter's needs.
- AG ¶ 20(c)appliedCounseling Received or Problem Under ControlThe applicant's financial problems are under control.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Debts
- AG ¶ 20(e)notedDispute Legitimacy of Past-due Debt
Key rule quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural posture
- SOR issuedJul 7, 2011
- Answer filedJul 29, 2011
- Hearing heldOct 20, 2011
- Decision dateNov 30, 2011
Cite for
- Mitigation of Financial Issues Under Guideline F
- Consideration of Circumstances Beyond the Applicant's Control
- Good-faith Efforts to Resolve Debts as a Mitigating Factor