Summary
A 49-year-old retired Army lieutenant colonel and defense contractor was granted a security clearance despite concerns under Guideline F (Financial Considerations). The Statement of Reasons detailed eight delinquent debts totaling $107,779. These included two past-due student loans for $1,420 and $2,179, a charged-off account of $31,126, and a mortgage over 180 days past due for $72,053, with a total balance of $348,887. Additionally, four medical debts, amounting to $428, $58, $327, and $188, had been placed for collection.
The applicant attributed these financial difficulties to circumstances beyond his control, specifically job loss and family medical expenses. The judge applied Disqualifying Conditions AG ¶ 19(a) and AG ¶ 19(c), but ultimately found that the applicant had taken reasonable steps to resolve his debts.
Mitigating Conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were applied. The decision to grant the clearance was based on the finding that the applicant's financial problems were largely due to external factors, he demonstrated responsible behavior in addressing his debts, and his financial issues were now under control and unlikely to recur.
Why the Applicant Prevailed
- The applicant demonstrated that his financial problems were largely due to circumstances beyond his control.
- He took reasonable steps to resolve his delinquent debts, showing responsible behavior.
- The applicant's financial issues were found to be under control and unlikely to recur.
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 And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedSep 10, 2015
- Answer filedOct 2, 2015
- Hearing heldFeb 23, 2016
- Decision dateApr 28, 2016
Cite For
- Mitigation of Financial Issues Under Guideline F Due to Circumstances Beyond Control
- Demonstrating Responsible Behavior in Resolving Debts
- Whole-person Analysis in Security Clearance Determinations