Summary
A 32-year-old defense contractor employee and Army Reserve sergeant was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) detailed seven delinquent debts totaling $11,935. These included medical collection debts of $38 and $130, and other collection debts for $628, $284, $651, and $883. The most significant debt was $9,321 owed to the IRS, stemming from his former spouse's underreported income in 2009, which the applicant was unaware of until their divorce.
The applicant successfully mitigated these financial concerns. He paid the $284 debt on May 23, 2013, and his credit report confirmed the $883 debt was paid. While he stated he paid the $651 debt, no documentation was provided. Crucially, he paid off significant debts, including the federal income taxes, reducing his total unresolved debt to less than $1,000.
The judge found that the applicant's financial difficulties were largely due to circumstances beyond his control, specifically his former spouse's actions, and that he demonstrated a good faith effort to resolve his debts. Given these mitigating factors and his responsible financial behavior following his divorce, the security clearance was granted, consistent with national security.
Why the Applicant Prevailed
- The applicant paid off significant debts, including federal income taxes, reducing unresolved debt to less than $1,000.
- The applicant's financial issues were largely due to circumstances beyond his control, such as his former spouse's actions.
- The applicant demonstrated a good faith effort to resolve his debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(g)rejectedFailure to File Annual Federal, State, or Local Income Tax Returns as Required or the Fraudulent Filing of the SameThe evidence did not establish that the applicant's 2009 tax return was filed late or that he knew it intentionally understated his income.
- AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good Judgment
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(c)rejectedThe 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 ControlThe applicant did not describe receipt of financial counseling.
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(e)notedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt Which Is the Cause of the Problem
Key Rule Quoted
“Eligibility for a security clearance is predicated upon meeting the criteria contained in the adjudicative guidelines (AG).”
Procedural Posture
- SOR issuedFeb 6, 2013
- Answer filedMar 13, 2013undated response to the SOR
- Hearing heldJun 10, 2013via video teleconference
- Decision dateJun 25, 2013
Cite For
- Mitigation of Financial Concerns Under Guideline F
- Impact of Personal Circumstances on Financial Obligations
- Good Faith Efforts in Debt Resolution