Summary
The applicant, a 42-year-old facilities coordinator lead for a defense contractor, faced security concerns under Guideline F due to financial difficulties stemming from unemployment, divorce, and child support issues. The applicant demonstrated significant efforts to mitigate these concerns by resolving many debts and establishing repayment plans, leading to a granted security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: In 2012, there was a judgment entered and a state tax lien filed for $1,479, resulting from a cancellation of Applicant’s overseas tax exemption when the base in Iraq at which she was serving closed and she was returned to the United States before she had been overseas long enough to qualify for the exemption (1.a). In 2009, there was a judgment entered and a state tax lien filed for $408, resulting from a miscalculation of education credits for the tax period 2007 (1.b). In 2012, there was a miscalculation of her 2011 overseas income withholding, resulting in a tax deficiency owed to the Internal Revenue Service (IRS) in the amount of $1,135 (1.c). There is a medical account for professional services in the amount of $75 for which the collection agent is unable or unwilling to furnish Applicant any documentation (1.d). There was a medical account for professional services in the amount of $258 that was erroneously reported to the credit reporting agency as delinquent (1.e). There was a free cable service account that was part of an employment package that, unannounced, went into a charge status once Applicant left the employer. The unpaid balance was $242 (1.f). There was a medical account for professional services in the amount of $100 that was settled for $80 and paid off in November 2013 (1.g). There was a medical account for professional services in the amount of $145 that was settled for $116 and paid off in November 2013 (1.h). There was a medical account for professional services in the amount of $29 that was settled for $23.20 and paid off in November 2013 (1.i). There was a medical account for professional services in the amount of $38.34 that was settled for $30.67 and paid off in November 2013 (1.j). There was an account with a discount tire distributor with a high credit of $974.66 that was sold to a debt purchaser which offered Applicant a settlement for the reduced amount of $584.78 in 2011 (1.k). There was a department store account with a high credit of $395 and outstanding balance of $523.00 that was past due $101 when it was charged off (1.l). There was a telephone and internet account in the amount of $257 that was settled for $128.65 and paid off in January 2014 (1.m). There was a medical account in the amount of $158 for professional services provided to Applicant’s son while Applicant was in Iraq and her family member with the power of attorney failed to inform the hospital that Applicant had insurance coverage (1.n). There was a vehicle loan account for a car that Applicant purchased for about $27,064 and later transferred the registration to her brother, who promised to take over the loan payments. He failed to do so, and the vehicle, with a past-due balance of $4,824, was charged off and sold to a debt purchaser (1.o). There is a bank credit card with a high credit and unpaid balance of $5,463 that was $1,221 past due and charged off (1.p). There is a department store account with an outstanding balance of $1,041.83 which was settled for $521 with the understanding that automatic monthly payments of $43 would be withdrawn from Applicant’s bank account commencing April 2, 2014 (1.q).
The judge granted the clearance. The government raised disqualifying conditions F.3, F.4. The judge applied mitigating conditions F.2, F.3, F.4. The decision turned on the following: The applicant admitted to financial difficulties but provided evidence of efforts to resolve debts and establish repayment plans; The applicant successfully settled several delinquent accounts and maintained ongoing payments on others; Character references supported the applicant's trustworthiness and work performance.
Why the Applicant Prevailed
- The applicant admitted to financial difficulties but provided evidence of efforts to resolve debts and establish repayment plans.
- The applicant successfully settled several delinquent accounts and maintained ongoing payments on others.
- Character references supported the applicant's trustworthiness and work performance.
Conditions Referenced
- F.3raisedInability or Unwillingness to Satisfy Debts
- F.4raisedUnresolved Debts
- F.2appliedThe Conditions That Resulted in the Financial Difficulties Were Largely Beyond the Applicant's Control
- F.3appliedThe Applicant Has Made Good Faith Efforts to Repay Debts
- F.4appliedThe Applicant Has Resolved Many Debts and Established Repayment Plans for Others
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedDec 16, 2013
- Answer filedJan 15, 2014
- Hearing heldFeb 27, 2014
- Decision dateMar 31, 2014
Cite For
- Mitigation of Financial Concerns Under Guideline F
- Good Faith Efforts to Resolve Debts
- Impact of Personal Circumstances on Financial Stability