Summary
This security clearance decision involved a 48-year-old business owner and former U.S. Air Force member, whose eligibility was reviewed under Guideline F, Financial Considerations. The Statement of Reasons detailed several financial allegations, including a second mortgage charged off for $60,448, a 2013 state tax lien of $11,624, and a 2010 judgment for $2,333. Additionally, the applicant failed to file federal and state tax returns for the 2010, 2011, and 2012 tax years. These issues raised disqualifying conditions under Adjudicative Guidelines paragraphs 19(a), 19(c), and 19(g).
However, the judge applied mitigating conditions under paragraphs 20(a), 20(b), 20(c), and 20(d). The applicant successfully demonstrated that his financial difficulties stemmed from poor advice provided by his accountant and that he had taken proactive steps to resolve all delinquent debts.
Evidence presented showed the applicant's current financial stability, including approximately $2 million in assets and a monthly net remainder of $6,000. Based on the resolution of the financial issues and demonstrated stability, the applicant was GRANTED eligibility for a security clearance.
Why the Applicant Prevailed
- The applicant demonstrated that financial issues were due to poor advice from his accountant and were resolved.
- He provided evidence of financial stability, including assets worth approximately $2 million and a monthly net remainder of $6,000.
- The applicant took proactive steps to address and resolve all delinquent debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(g)raisedFailure to File Annual Federal, State, or Local Income Tax Returns as Required
- AG ¶ 20(a)appliedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)appliedReceived or Is Receiving Counseling for the Problem And/or Clear Indications That the Problem Is Being Resolved
- AG ¶ 20(d)appliedInitiated 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 issuedMay 16, 2015
- Answer filedJun 22, 2015
- Hearing heldJan 14, 2016Applicant requested to keep the record open until February 8, 2016.
- Decision dateMar 31, 2016
Cite For
- Mitigating Conditions for Financial Issues Under Guideline F
- Impact of Poor Professional Advice on Financial Obligations
- Consideration of Overall Financial Stability in Security Clearance Decisions