Summary
The applicant, a 59-year-old self-employed individual, faced security concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to undisclosed debts attributed to his ex-wife's financial mismanagement during their marriage. The applicant credibly demonstrated that he was unaware of these debts and has since taken steps to resolve his financial issues, leading to a favorable outcome in his security clearance application.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant falsified material facts on his security clearance application of December 2012 when he did not disclose he had debts in collection; accounts suspended or charged off; accounts cancelled for failing to pay as agreed; or accounts that were more than 120 days delinquent (2.a). Applicant disputed the credit card account alleged in SOR ¶ 1.a ($10,545) because he never used it and was unaware it was a joint account (1.a). Medical debt in SOR ¶ 1.b, $333 (1.b). Medical debt in SOR ¶ 1.c, $146 (1.c). Medical debt in SOR ¶ 1.d, $141 (1.d). Medical debt in SOR ¶ 1.e, $816 (1.e). Medical debt in SOR ¶ 1.f, $275 (1.f).
The judge granted the clearance. The government raised disqualifying conditions F.19(a), F.19(c). The judge applied mitigating conditions F.20(a), F.20(b), F.20(c), F.20(d), E.15. The decision turned on the following: The applicant credibly testified that he was unaware of the debts attributed to him due to his ex-wife's financial management; He entered into an installment agreement with the IRS and resolved his tax debt by making timely payments; The applicant made good-faith efforts to address and resolve the remaining debts, demonstrating responsible financial behavior.
Why the Applicant Prevailed
- The applicant credibly testified that he was unaware of the debts attributed to him due to his ex-wife's financial management.
- He entered into an installment agreement with the IRS and resolved his tax debt by making timely payments.
- The applicant made good-faith efforts to address and resolve the remaining debts, demonstrating responsible financial behavior.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- F.20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- F.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
- F.20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- E.15rejectedConduct Involving Questionable Judgment, Lack of Candor, Dishonesty, or Unwillingness to Comply with Rules and RegulationsThe applicant did not deliberately omit or falsify relevant facts on his security clearance application.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedOct 19, 2015
- Answer filedNov 10, 2015
- Hearing heldMay 10, 2016
- Decision dateJun 13, 2016
Cite For
- Mitigation of Financial Issues Due to Circumstances Beyond Control
- Credibility of Applicant's Testimony Regarding Financial Management
- Refutation of Personal Conduct Allegations Based on Lack of Intent to Deceive