Summary
The applicant, a 62-year-old information technology specialist and U.S. Marine Corps veteran, sought a security clearance under Guideline F due to financial considerations stemming from a divorce and the recession. The applicant demonstrated a commitment to resolving his debts, including making payments on multiple accounts and seeking financial counseling, leading to the granting of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Four state tax liens for $415, $2,453, $1,229, and $733. Paid in full in 2013 (1.a). Deficiency balance of $7,508 owed for repossessed automobile. Applicant is making $100 monthly payments (1.b). Charged-off financial services account for $2,549. Applicant is making $65 monthly payments (1.c). Collection account for $1,181. Applicant is making $107.60 monthly payments (1.d). Water utility collection account $56. Paid in full in May 2014 (1.e). Foreclosure mortgage account for $152,312 with a past-due balance of $82,916. Applicant used his credit along with another individual to purchase an investment property in 2008. The property went into foreclosure in November 2010 (1.f). Judgment in favor of a credit union for $23,007. Applicant co-signed for his daughter’s automobile loan and she failed to make payments. Applicant is making $100 monthly payments (1.g). Security services collection account for $509. Applicant settled and paid off account for lesser amount of $255 in May 2014 (1.h). Collection account for $65. Paid in full in May 2014 (1.i). Cable company collection account for $552. Paid in full in May 2014 (1.j). Internal Revenue Service (IRS) tax lien - $7,243 for 2004. In May 2014, Applicant began a monthly payment plan with the IRS to repay his back taxes (1.k). Internal Revenue Service (IRS) tax lien - $3,691 for 2005. In May 2014, Applicant began a monthly payment plan with the IRS to repay his back taxes (1.l). Internal Revenue Service (IRS) tax lien - $4,354 for 2006. In May 2014, Applicant began a monthly payment plan with the IRS to repay his back taxes (1.m). Internal Revenue Service (IRS) tax lien - $2,188 for 2007. In May 2014, Applicant began a monthly payment plan with the IRS to repay his back taxes (1.n). Internal Revenue Service (IRS) tax lien - $2,407 for 2009. In May 2014, Applicant began a monthly payment plan with the IRS to repay his back taxes (1.o). Internal Revenue Service (IRS) tax lien - $957 for 2010. In May 2014, Applicant began a monthly payment plan with the IRS to repay his back taxes (1.p).
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(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant has made a concerted effort to repay creditors and regain financial responsibility; The applicant's financial issues were largely due to circumstances beyond his control, including a divorce and economic downturn; The applicant is current on his day-to-day expenses and has established a budget that reflects responsible financial management.
Why the Applicant Prevailed
- The applicant has made a concerted effort to repay creditors and regain financial responsibility.
- The applicant's financial issues were largely due to circumstances beyond his control, including a divorce and economic downturn.
- The applicant is current on his day-to-day expenses and has established a budget that reflects responsible financial management.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedFeb 26, 2014
- Answer filedMar 15, 2014Applicant elected to have the case decided on the written record.
- Hearing heldJun 25, 2014
- Decision dateAug 8, 2014
Cite For
- Mitigation of Financial Issues Under Guideline F
- Consideration of Circumstances Beyond the Applicant's Control in Financial Cases
- Importance of Demonstrating a Good-faith Effort to Resolve Debts