Summary
A 55-year-old veteran with three decades of experience in aviation was granted a security clearance despite initial concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons cited three debts totaling $35,931: a state tax lien for $2,455, a $31,540 debt to a former employer, and a $1,936 rental car debt. Additionally, the applicant answered "No" on his August 16, 2013 SF 86 regarding debts, despite two of these appearing on his credit report.
Disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c) were raised. However, the applicant successfully mitigated these concerns. He paid one debt, successfully disputed another, and negotiated the third, demonstrating responsible financial behavior.
The judge found that the applicant was unaware of the debts when completing the SF 86, indicating no intent to conceal information. Furthermore, the applicant's financial difficulties were largely attributed to circumstances beyond his control, including unemployment and divorce. Mitigating conditions under AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(d), and AG ¶ 20(e) were applied, leading to the decision to grant the applicant eligibility for access to classified information.
Why the Applicant Prevailed
- The applicant paid one debt and successfully disputed another, demonstrating responsible financial behavior.
- The applicant was unaware of the debts at the time of completing the SF 86, indicating no intent to conceal information.
- The applicant's financial issues were largely due to circumstances beyond his control, such as unemployment and divorce.
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(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(e)appliedThe 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 issuedMay 1, 2014
- Answer filedJun 3, 2014
- Hearing heldDec 17, 2014Applicant waived his right to 15 days of notice.
- Decision dateJan 14, 2015
Cite For
- Mitigation of Financial Issues Under Guideline F Due to Circumstances Beyond Control
- Lack of Intent to Conceal Debts During the Security Clearance Process
- Good-faith Efforts to Resolve Debts as a Mitigating Factor Under AG ¶ 20