Summary
A 56-year-old IT system administrator was granted a security clearance despite concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) detailed several financial issues, including a $236,150 deficiency balance from a foreclosed mortgage, a $595 charged-off account, and a $180,000 IRS tax lien from March 2011 for unpaid income taxes from 2004 and 2005. Additionally, the applicant failed to file income tax returns for 2005, 2007, and 2010.
Further allegations included a $962 judgment from his homeowners’ association in March 2011 and a $3,825 judgment from a bank in June 2012. These issues raised disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a), ¶ 19(c), and ¶ 19(g).
However, the judge applied mitigating conditions under AG ¶ 20(a), ¶ 20(b), ¶ 20(c), and ¶ 20(d). The applicant demonstrated financial responsibility by resolving all debts listed in the SOR and maintaining contact with creditors. The judge found that the applicant's financial issues were largely resolved, some were beyond his control, and he had learned from past mistakes, ultimately granting the security clearance.
Why the Applicant Prevailed
- Applicant maintained contact with creditors and resolved all debts alleged in the SOR.
- He demonstrated a commitment to financial responsibility and learned from past mistakes.
- The applicant's financial issues were largely beyond his control and have been addressed.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- AG ¶ 20(a)appliedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to Recur
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(c)appliedReceived or Is Receiving Counseling for the Problem And/or Clear Indications That the Problem Is Being Resolved
- AG ¶ 20(d)appliedInitiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“Eligibility for access to classified information may be granted "only upon a finding that it is clearly consistent with the national interest to do so."”
Procedural Posture
- SOR issuedMay 19, 2015
- Answer filedJul 1, 2015
- Hearing heldOct 29, 2015Rescheduled from original date.
- Decision dateMar 8, 2016
Cite For
- Demonstrating Financial Responsibility Under Guideline F
- Mitigating Financial Issues Due to Circumstances Beyond Control
- Successful Resolution of Debts as a Basis for Clearance Approval