Summary
A 58-year-old federal contractor was granted a security clearance despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons (SOR) alleged the applicant falsified her security clearance application by answering "No" to all questions regarding financial delinquencies. Additionally, the SOR cited 12 delinquent debts, including judgments, a home foreclosure, vehicle repossession, and collection accounts.
The applicant admitted to the delinquencies, explaining they resulted from two strokes that prevented her from working. She had used her savings and retirement funds to attempt to pay bills. In 2014, she filed for Chapter 13 bankruptcy, electing a five-year plan to pay all creditors, and is currently current on her payments, providing supporting documentation. Her net monthly income is $3,673.
The judge found that the applicant's financial difficulties stemmed from medical hardships and a lack of support, which were largely beyond her control. Her actions, including filing for Chapter 13 bankruptcy and maintaining current payments, demonstrated responsible behavior. The applicant's testimony was deemed credible, indicating no intent to falsify her application. Consequently, the judge determined that the mitigating factors outweighed the security concerns, and the security clearance was granted.
Why the Applicant Prevailed
- The applicant's financial difficulties were largely due to medical issues and lack of child support, which were beyond her control.
- She filed for Chapter 13 bankruptcy and is compliant with her payment plan, demonstrating responsible behavior.
- The applicant's testimony was credible, showing no intent to falsify her security clearance application.
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 Behavior Were Largely Beyond the Person’s Control
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(c)appliedThe 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 Control
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedApr 30, 2014
- Answer filed—
- Hearing heldOct 8, 2015
- Decision dateOct 28, 2015
Cite For
- Mitigation of Financial Considerations Under AG ¶ 20
- Credibility of Applicant's Testimony Regarding Personal Conduct
- Impact of Medical Conditions on Financial Stability and Personal Conduct