Summary
The applicant, a 43-year-old defense contractor, faced security concerns under Guidelines E, F, and J due to past financial issues, including bankruptcy and unreported debts. He successfully mitigated these concerns by demonstrating financial responsibility, resolving most debts through bankruptcy, and consulting a financial advisor. The judge found that the applicant's omissions were not intentional and that he had a good reputation for honesty and conscientiousness in his job, leading to the granting of his security clearance.
Under Guideline E (Personal Conduct), Guideline F (Financial Considerations), and Guideline J (Criminal Conduct), the Statement of Reasons alleged the following: In his July 2001 unsigned SF 86 Applicant failed to disclose in response to Questions 38 and 39 any of his financial delinquencies; in response to Question 33 he failed to disclose that he had just filed for bankruptcy (1.a). Applicant filed for bankruptcy in July 2001 where he listed liabilities with creditors holding security claims of over $58,000 and liabilities with creditors holding unsecured nonpriority claims of almost $25,000 (3.a). Applicant disclosed the foreclosure of his home in February 2002 (3.b). Applicant failed to include a $2,000 debt to Creditor #1 in his bankruptcy, but intended to set up a payment plan to pay it off (3.c). Applicant disclosed a $50 debt to Creditor #2 that he intended to pay 'ASAP.' (3.d).
The judge granted the clearance. The government raised disqualifying conditions DC 1, DC 3. The judge applied mitigating conditions MC 2, MC 3, MC 1, MC 4, MC 6. The decision turned on the following: The applicant resolved outstanding debts through a bankruptcy discharge in 2002; He demonstrated financial responsibility by consulting a financial advisor and living within his income; The applicant's character was supported by positive testimonials from supervisors and colleagues.
Why the Applicant Prevailed
- The applicant resolved outstanding debts through a bankruptcy discharge in 2002.
- He demonstrated financial responsibility by consulting a financial advisor and living within his income.
- The applicant's character was supported by positive testimonials from supervisors and colleagues.
Conditions Referenced
- DC 1raisedA History of Not Meeting Financial Obligations
- DC 3raisedInability or Unwillingness to Satisfy Debts
- MC 2appliedThe Falsification Was an Isolated Incident, Was Not Recent, and the Individual Has Subsequently Provided Correct Information Voluntarily
- MC 3appliedThe Individual Made Prompt, Good-faith Efforts to Correct the Falsification Before Being Confronted with the Facts
- MC 1appliedThe Behavior Was Not Recent
- MC 4appliedThere Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- MC 6appliedThe Individual Initiated a Good-faith Effort to . . . Otherwise Resolve Debts
Key Rule Quoted
“The responsibility for producing evidence initially falls on the Government to demonstrate that it is not clearly consistent with the national interest to grant or continue Applicant's access to classified information.”
Procedural Posture
- SOR issuedApr 16, 2003
- Answer filedMay 5, 2003undated notarized Answer
- Hearing heldOct 6, 2003Applicant requested expedited hearing
- Decision dateOct 20, 2003
Cite For
- Mitigation of Financial Issues Under Guideline F
- Consideration of Character References in Security Clearance Cases
- Impact of Bankruptcy Discharge on Security Clearance Eligibility