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Summary

The applicant, a 33-year-old electronic technician and veteran, faced security concerns under Guideline F due to financial difficulties stemming from various life events. He successfully mitigated these concerns by demonstrating proactive financial management and a commitment to resolving his debts, leading to the granting of his security clearance.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant sought guidance from his noncommissioned officer, and he was advised to file for bankruptcy (1.a). Lease for an apartment in the disputed amount of $1,741 that Applicant sublet to a friend for the remaining four months of the lease with the understanding that she would pay the remaining rent (1.b). The loan was not forgiven by the finance company, and it charged off $5,947 (1.c). An account related to the lease issue is with a furniture store for furniture that was in the apartment, in the amount of $3,077 (1.d). His ex-wife’s cell phone account in the disputed amount of $1,019 that was settled for $713.59, and paid off in August 2012 (1.e). A credit card account in the disputed amount of $616 that was settled for $462.35, and paid off in September 2012 (1.f). An advanced payment account with the U.S. Government regarding a military move in the amount of $969 that Applicant has been paying $50 intermittently since October 2012 (1.g). An automobile loan for his ex-wife’s automobile in the amount of $10,186 that she was supposed to pay but failed to do so without Applicant’s knowledge, and the vehicle was repossessed and sold at auction (1.h). Two student loans in the disputed amounts of $1,312 and $2,000 that were paid off in February 2011 (1.i). Two student loans in the disputed amounts of $1,312 and $2,000 that were paid off in February 2011 (1.j). A credit union loan for $805 that was charged off (1.l). A separate $25 delinquency for the same account (1.m). Child support arrearage in the disputed amount of $22,430, that one state is enforcing for another state (1.n). A cable account in the amount of $355 that was placed for collection (1.o). Three parking tickets (incurred by a friend without Applicant’s knowledge), each in the amount of $65 (1.q). A bank credit card account for $505 that was charged off in 2009 that Applicant initially thought was his account, but subsequently denied ownership and disputed the account (1.t). Issuing a worthless check for $500 that was actually a stopped check initially made to Applicant’s divorce attorney and subsequently paid off (1.x).

The judge granted the clearance. The government raised disqualifying conditions F.3, F.2. The judge applied mitigating conditions F.1, F.2, F.3, F.4. The decision turned on the following: The applicant took responsibility for his financial issues and demonstrated a commitment to resolving them; He successfully paid off several delinquent accounts and established a repayment plan for remaining debts; The applicant provided evidence of improved financial management and support from character references.

Why the Applicant Prevailed

• The applicant took responsibility for his financial issues and demonstrated a commitment to resolving them.
• He successfully paid off several delinquent accounts and established a repayment plan for remaining debts.
• The applicant provided evidence of improved financial management and support from character references.

Conditions Referenced

Key Rule Quoted

“Eligibility for a security clearance and access to classified information is granted.”

Procedural Posture

• SOR issuedSep 13, 2012
• Answer filedSep 27, 2012
• Hearing heldDec 12, 2012
• Decision dateJan 18, 2013

Cite For

• Mitigation of Financial Concerns Under Guideline F
• Good Faith Efforts to Resolve Debts
• Impact of Life Events on Financial Stability