Summary
The applicant, a 37-year-old telecommunications technician, faced security concerns under Guideline F due to financial issues stemming from a failed business and subsequent tax liabilities. Despite having unresolved debts, the applicant demonstrated significant efforts to address his financial problems, leading to a decision to grant his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: home improvement loan to build a deck, referred for collection in August 2010 ($15,409) (1.a). credit card account, charged off in March 2012 ($9,657) (1.b). collection account, referred for collection in September 2010 ($4,533) (1.c). furniture purchase, placed for collection in October 2010 ($1,394) (1.d). credit card account, placed for collection in February 2011 ($963) (1.e). credit card account, charged off in February 2011 ($895) (1.f). delinquent medical bill ($260) (1.g). delinquent medical bill ($40) (1.h). tax lien for unpaid payroll taxes ($unknown) (1.i). tax lien for unpaid payroll taxes ($unknown) (1.j). tax lien for unpaid payroll taxes ($unknown) (1.k). tax lien for unpaid personal income tax ($unknown) (1.l).
The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant's financial issues were largely due to circumstances beyond his control, including a failed business and divorce; He has made good-faith efforts to resolve his debts, including negotiating with the IRS and hiring a CPA for assistance; The applicant has a stable job and a history of reliability and trustworthiness in his employment.
Why the Applicant Prevailed
- The applicant's financial issues were largely due to circumstances beyond his control, including a failed business and divorce.
- He has made good-faith efforts to resolve his debts, including negotiating with the IRS and hiring a CPA for assistance.
- The applicant has a stable job and a history of reliability and trustworthiness in his employment.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedBehavior Happened Long Ago or Infrequently
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors
Key Rule Quoted
“An applicant is not required to establish resolution of every debt alleged in the SOR. He or she need only establish a plan to resolve financial problems and take significant actions to implement the plan.”
Procedural Posture
- SOR issuedJun 20, 2015
- Answer filedJul 16, 2015
- Hearing heldOct 16, 2015
- Decision dateDec 24, 2015
Cite For
- Mitigating Conditions Under Guideline F Due to Circumstances Beyond Control
- Good-faith Efforts to Resolve Financial Issues
- Whole-person Analysis in Security Clearance Determinations