Summary
A 52-year-old defense contractor was granted a security clearance despite concerns under Guidelines E (Personal Conduct), F (Financial Considerations), and J (Criminal Conduct). The Statement of Reasons alleged the applicant falsified a February 2001 security clearance application (SF 86) by failing to disclose several unpaid judgments and delinquent accounts. These included a $3,687 judgment from April 1999, a $6,168 judgment from August 1999, $4,200 in unpaid tuition submitted for collection in May 2001, and a $1,228 account past due since May 2000.
The applicant successfully mitigated these concerns by demonstrating prompt and good-faith efforts to resolve his financial problems. He refinanced his home to pay off creditors and address his debts. The financial issues were largely attributed to circumstances beyond his control, specifically an employment reassignment that led to living apart from his family for work, and a divorce.
The judge found no intent to falsify information on the security clearance application. Given the applicant's proactive steps to resolve his debts and the contextual factors contributing to his financial difficulties, the security clearance was granted.
Why the Applicant Prevailed
- The applicant took prompt action to resolve his financial problems by refinancing his home and paying off debts.
- He demonstrated a good-faith effort to repay overdue creditors and resolve debts.
- The applicant's financial issues were largely due to circumstances beyond his control, including employment reassignment and a divorce.
Conditions Referenced
- DC 1raisedA History of Not Meeting Financial Obligations
- MC 3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control
- MC 4notedThe 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
- MC 6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The sole purpose of a security clearance decision is to decide if it is clearly consistent with the national interest to grant or continue a security clearance for an applicant.”
Procedural Posture
- SOR issuedJan 23, 2004
- Answer filedMar 8, 2004
- Hearing heldFeb 3, 2005
- Decision dateApr 27, 2005
Cite For
- Mitigation of Financial Issues Under Guideline F Due to Employment-related Circumstances
- Lack of Intent to Falsify Information on Security Clearance Applications Under Guideline E
- Consideration of Personal Circumstances in Financial Responsibility Assessments Under Guideline F