Summary
The Applicant, a 62-year-old retired Army Colonel, faced issues under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to past due debts resulting from unexpected medical expenses. The judge found that the Applicant made an honest mistake in not disclosing these debts on his Security Clearance Application and that he had taken significant steps to address his financial obligations. Consequently, the security clearance was granted.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: In answer to question 38 on his May 2000 SCA, the Applicant failed to divulge his financial delinquencies in excess of 180 days (2.a). The Applicant answered question 32 "No" on his May 2000 SCA. The posited questions asks, in part, if the Applicant "ever had a clearance . . . suspended" (2.b). The Applicant has been making monthly payments of $75 towards a debt to a bank totaling about $3,070 (1.a). The Applicant has paid a $578 debt to the same bank listed in subparagraph 1.a (1.b). The Applicant has been making monthly payments of $75 towards a debt to a second bank totaling about $2,871 (1.c). The Applicant has been making monthly payments of $240 towards a debt to a military exchange totaling about $864 (1.d). The Applicant has paid two credit card debts totaling about $14,624 (1.e). The Applicant has settled, to the satisfaction of the creditor, a debt of about $484 to a catalog store (1.g). The Applicant has been making monthly payments of $45 towards another debt to the second bank totaling about $1,843 (1.h). The Applicant has paid a debt to a third bank totaling about $635 (1.i). The Applicant has been making monthly payments of $120 towards another debt to "Palisades" totaling about $8,905 (1.j). The Applicant has paid a debt to a credit union totaling about $725 (1.k). The Applicant has been making monthly payments of $200 towards another debt to department store totaling about $3,255 (1.l). The Applicant has been making monthly payments of $45 towards a debt to a collection company totaling about $2,612 (1.m).
The judge granted the clearance. The government raised disqualifying conditions F3, F1. The judge applied mitigating conditions F3, F4, E2. The decision turned on the following: The Applicant addressed all alleged past due debts, reducing them significantly; The financial difficulties were largely due to circumstances beyond his control, specifically unexpected medical expenses; The Applicant's credibility was corroborated by three witnesses who attested to his truthfulness.
Why the Applicant Prevailed
- The Applicant addressed all alleged past due debts, reducing them significantly.
- The financial difficulties were largely due to circumstances beyond his control, specifically unexpected medical expenses.
- The Applicant's credibility was corroborated by three witnesses who attested to his truthfulness.
Conditions Referenced
- F3raisedInability or Unwillingness to Satisfy Debts
- F1raisedHistory of Not Meeting Financial Obligations
- F3appliedMitigating CircumstancesThe Applicant's financial difficulties were largely due to unexpected medical expenses.
- F4appliedGood-faith Effort to Repay Overdue CreditorsThe Applicant has initiated efforts to resolve his debts.
- E2appliedHonest MistakeThe Applicant made an honest mistake in not disclosing his debts.
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 issuedSep 8, 2004
- Answer filedOct 4, 2004
- Hearing heldMar 31, 2005
- Decision dateMay 11, 2005
Cite For
- Mitigation of Financial Difficulties Due to Medical Expenses
- Credibility Supported by Witness Testimony
- Honest Mistake in Disclosure on Security Clearance Application