Summary
The applicant, a 50-year-old defense contractor employee and retired Marine Corps Gunnery Sergeant, faced security concerns under Guideline F due to approximately $63,177.99 in debt and failure to file tax returns for 2011. The judge found that the applicant's financial difficulties were largely due to circumstances beyond his control and that he had acted responsibly in addressing his debts. The applicant was granted eligibility for a security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant was alleged to be indebted to a creditor in the amount of $15,387 on a total balance of $201,452, as stated in subparagraph 1.a of the SOR. This debt was for the mortgage on Applicant’s rental property. Applicant sold the property, though a short sale, in December 2014 for $184,000. The closing documentation shows this debt was satisfied (1.a). Applicant is indebted to a creditor in the amount of $13,818, as stated in subparagraph 1.b of the SOR. Applicant testified that this debt was incurred when he needed a new transmission and a down payment for his wife’s vehicle. Applicant has been in contact with this creditor, but he had difficulties negotiating a payment arrangement he could afford. On January 15, 2015, Applicant reached a written repayment agreement with this creditor to settle this debt through 12 monthly payments of $350. Applicant is addressing this debt (1.b). Applicant was alleged to be indebted to a creditor in the amount of $287 on a total balance of $8,354, as stated in subparagraph 1.c of the SOR. Applicant testified this debt is for his son’s vehicle and that the account is now current. Applicant’s December 11, 2014 credit report reflects that while this account had fallen $287 past due in December 2013, Applicant appears to be current on his monthly obligation to this creditor (1.c). Applicant is indebted to a creditor in the amount of $5,313, as stated in subparagraph 1.d of the SOR. Applicant testified that this account is current. Applicant’s December 11, 2014 credit report reflects that while this account has fallen past due, he is now current on his monthly payment to this creditor (1.d). Applicant was alleged to be indebted to a creditor in the amount of $653, as stated in subparagraph 1.e of the SOR. Applicant presented a letter from a collection agent for this creditor that indicated this debt “has been settled.” This debt is resolved (1.e). Applicant was alleged to be indebted for state taxes in the amounts of $4,325.75 and $3,978.49, respectively, for the 2009 and 2010 tax years as stated in subparagraphs 1.f and 1.g of the SOR. Applicant has a payment arrangement with his state taxation authority to resolve this debt through monthly payments of $300. He has successfully made his monthly payments on this debt since January 2014. Applicant is resolving this debt (1.f). Applicant was alleged to be indebted for Federal taxes in the amounts of $3,828.89 and $7,499.86, respectively, for the 2009 and 2010 tax years as stated in subparagraphs 1.h and 1.i of the SOR. Applicant has a payment arrangement with the IRS to resolve this debt through monthly payments of $215. His December 2014 IRS installment agreement statement shows that his remaining balance is now $605.90. Applicant is resolving this debt (1.g).
The judge granted the clearance. The government raised disqualifying conditions F.19.a, F.19.c, F.19.g. The judge applied mitigating conditions F.20.b, F.20.d. The decision turned on the following: The applicant's financial difficulties were caused by circumstances beyond his control, including tenant eviction and significant salary reduction; The applicant has made good-faith efforts to repay his debts and has resolved or is making payments on all debts listed in the SOR; The applicant filed his 2011 tax returns and has a credible plan for future tax filings.
Why the Applicant Prevailed
- The applicant's financial difficulties were caused by circumstances beyond his control, including tenant eviction and significant salary reduction.
- The applicant has made good-faith efforts to repay his debts and has resolved or is making payments on all debts listed in the SOR.
- The applicant filed his 2011 tax returns and has a credible plan for future tax filings.
Conditions Referenced
- F.19.araisedInability or Unwillingness to Satisfy Debts
- F.19.craisedA History of Not Meeting Financial Obligations
- F.19.graisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- F.20.bappliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- F.20.dappliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedOct 11, 2014
- Answer filedOct 24, 2014
- Hearing heldJan 6, 2015
- Decision dateJan 23, 2015
Cite For
- Mitigating Conditions Under Guideline F Due to Circumstances Beyond Control
- Good-faith Efforts to Resolve Financial Obligations
- Whole-person Concept in Security Clearance Evaluations