Loading case…

Summary

The Applicant, a 39-year-old employed by a defense contractor, faced issues under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to past due debts incurred during a period of unemployment. The Applicant successfully addressed all debts and demonstrated a good-faith effort to resolve financial issues, leading to a decision to grant security clearance.

Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The Applicant tried to register for the draft with the Selective Service; but was told that at 37 years of age, he was too old (2.a). When the Applicant answered Question 36 "No" on his June 2002 SCA, he failed to list his tax liens (2.b). When the Applicant answered the electronic SCA, he was unable to answer "Yes" to Questions 37 and 38, as he did not know the particulars of his past due indebtedness (2.c). The Applicant owes back taxes to the Internal Revenue Service (IRS) in the amount of about $7,168 (1.a). The Applicant had three past due debts on credit cards totaling about $1,335 (1.b). The Applicant had a past due debt on a bank card in the amount of about $612 (1.e). The Applicant avers credibly that a $257 debt to a financial corporation is not his (1.f). The Applicant had a past due debt on another bank card in the amount of about $1,143 (1.g). The Applicant had a past due debt to a medical group in the amount of about $138 (1.h). The Applicant had a past due debt to a cable company in the amount of about $176 (1.i). The Applicant credibly disputes a debt to a cell phone company in the amount of about $979 (1.j). The Applicant avers credibly that a $62 debt to a pizza parlor has been paid (1.k). The Applicant credibly disputes the amount of a debt, about $1,138, to a finance company (1.l). The Applicant avers credibly that a $2,927 debt to a phone company is not his (1.m). The Applicant avers credibly that a $23 debt to a court has been paid (1.n). Through the services of a consumer counseling service, the Applicant has successfully disputed a $325 debt to a bank (1.o). The Applicant owes about $16,484 on a truck loan (1.p).

The judge granted the clearance. The government raised disqualifying conditions F3, F1. The judge applied mitigating conditions F3, F4. The decision turned on the following: The Applicant addressed all past due indebtedness, demonstrating financial responsibility; The financial difficulties were largely due to unemployment, which was beyond the Applicant's control; The Applicant voluntarily disclosed requested information regarding debts shortly after submitting his Security Clearance Application.

Why the Applicant Prevailed

• The Applicant addressed all past due indebtedness, demonstrating financial responsibility.
• The financial difficulties were largely due to unemployment, which was beyond the Applicant's control.
• The Applicant voluntarily disclosed requested information regarding debts shortly after submitting his Security Clearance Application.

Conditions Referenced

Key Rule Quoted

“The Government must be able to place a high degree of confidence in a security clearance holder to abide by all security rules and regulations at all times and in all places.”

Procedural Posture

• SOR issuedNov 5, 2003
• Answer filedDec 4, 2003
• Hearing heldMar 12, 2004
• Decision dateMay 14, 2004

Cite For

• Mitigation of Financial Difficulties Due to Unemployment Under Guideline F
• Voluntary Disclosure of Financial Information as a Mitigating Factor Under Guideline E
• Good-faith Efforts to Resolve Debts as a Basis for Granting Security Clearance