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Summary

This 60-year-old engineer faced issues under Guideline F (Financial Considerations) and Guideline J (Criminal Conduct) due to significant debts incurred primarily by his deceased wife. The applicant was unaware of many debts until informed by a DSS agent and has since made substantial efforts to pay off the debts, demonstrating willingness and ability to resolve his financial issues. The judge found that the applicant's actions mitigated the concerns, leading to a granted security clearance.

Under Guideline F (Financial Considerations) and Guideline J (Criminal Conduct), the Statement of Reasons alleged the following: Credit Card Company A - $6,530; The creditor offered a settlement amount of $1.626.35, which has been accepted and paid by Applicant (1.a). Credit Card Company B - $1,332; This debt does not appear on the credit report introduced by Applicant at the hearing (1.b). Department Store C - $827; This debt was paid off on November 11, 2003 (1.c). Department Store D - $5,953; This debt was paid off on November 18, 2003 (1.d). Credit Card Company E - $3,000; This debt was paid in full to the creditor's collection agency on November 17, 2003 (1.e). Department Store F - $5,114; This debt was settled for $4,500 and was paid off on November 18, 2003 (1.f). Phone Company G - $146; This debt and the one in SOR 1.h. are to the same company and have been paid off (1.g). Phone Company H - $216; See 1.g., above (1.h). State A Tax Authority - $2,445.81. As a result of this debt, Applicant's wages were garnished. The amount due was recovered by November 2002 (1.i). Applicant's Personal Financial statement (PFS), dated October 30, 2001, indicated that Applicant was financially able to make payment on the above debts, because it showed a monthly net remainder of $1,380 after expenses (1.j). Applicant did not intentionally falsify material facts on his July 10, 2000 Questionnaire for National Security Positions (SF 86) when he answered "No" to Question 39 - Your Financial Delinquencies - 90 days. He did not intentionally omit the debts cited in SOR 1.b., 1.d., and 1.e., above, because he was not aware of them when he completed the SF 86 on July 10, 2001 (2.a).

The judge granted the clearance. The government raised disqualifying conditions F1. The judge applied mitigating conditions F6, E2. The decision turned on the following: The applicant demonstrated a good-faith effort to repay overdue creditors and resolve debts; He was unaware of many debts until informed by a DSS agent, negating intent to deceive on his application; The applicant has paid off the majority of his delinquent debts and is willing to resolve the remaining amounts.

Why the applicant prevailed

• The applicant demonstrated a good-faith effort to repay overdue creditors and resolve debts.
• He was unaware of many debts until informed by a DSS agent, negating intent to deceive on his application.
• The applicant has paid off the majority of his delinquent debts and is willing to resolve the remaining amounts.

Conditions referenced

Key rule quoted

“An applicant's admission of the information in specific allegations relieves the Government of having to prove those allegations.”

Procedural posture

• SOR issuedMay 1, 2003
• Answer filedMay 19, 2003Applicant elected for a hearing.
• Hearing heldNov 5, 2003Government did not present witnesses.
• Decision dateFeb 20, 2004

Cite for

• Mitigation of Financial Issues Under Guideline F
• Lack of Intent to Deceive Regarding Financial Disclosures Under Guideline J
• Good-faith Efforts to Resolve Debts as a Mitigating Factor