Summary
A 55-year-old aircraft painter was granted a security clearance despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant faced allegations of failing to disclose a tax delinquency on his July 1999 security clearance application and owing over $24,000 in back property taxes as of 2002. This debt stemmed from a vacant parcel of real estate where his spouse's café was destroyed by fire in 1991.
The applicant was unaware of these tax obligations, partly due to the fire and misdirected tax bills. However, he demonstrated a good-faith effort to resolve his financial issues. This included paying off water and sewer charges and actively negotiating with the city regarding the property taxes.
The decision to grant the clearance acknowledged that the applicant's financial difficulties were largely due to circumstances beyond his control, such as the arson incident. His recent actions showed a clear commitment to resolving his outstanding debts, leading to the favorable outcome.
Why the Applicant Prevailed
- The applicant demonstrated a good-faith effort to resolve his financial obligations, including paying off water/sewer charges and negotiating with the city regarding property taxes.
- The applicant's financial difficulties were largely due to circumstances beyond his control, including an arson incident and misdirected tax bills.
- The applicant's recent actions indicated a commitment to resolving his outstanding debts.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.3.3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control
- E2.A6.1.3.6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“Under the Directive, security significant financial indebtedness may be mitigated where the financial difficulties are not recent, were isolated in nature, the conditions that resulted in the behavior were largely beyond the person's control, the person has received or is receiving counseling for the problem and there are clear indications that the problem is being resolved or is under control, or the individual has initiated a good faith effort to repay overdue creditors or otherwise resolve debts.”
Procedural Posture
- SOR issuedNov 2, 2001
- Answer filedJan 4, 2002
- Hearing heldApr 17, 2002
- Decision dateJun 17, 2002
Cite For
- Mitigation of Financial Obligations Due to Circumstances Beyond Control
- Good-faith Efforts to Resolve Debts
- Non-disclosure of Financial Issues on Security Clearance Applications