Summary
The applicant, a 51-year-old defense contractor with a long history of employment and a previously held security clearance, faced allegations under Guideline E for personal conduct and Guideline F for financial considerations due to delinquent debts and a past bankruptcy. The judge found that the applicant had mitigated the security concerns by demonstrating a credible understanding of his financial situation and taking steps to resolve his debts, ultimately granting the security clearance.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant falsified a security clearance application (SF 86) he submitted on April 5, 2000 by failing to list the accounts set forth in SOR subparagraphs 1.a. through 1.e. as currently more than 90 days delinquent (2.b). Collection account for a credit card bill in the amount of $827.00 (1.a). Collection account for tuition owing in the amount of $574.00 (1.b). Collection account for a hospital bill for his son in the amount of $210.00 (1.c). Collection account for another hospital bill totaling $212.00, which has been paid in full (1.d). Collection account for another hospital bill for his son in the amount of $210.00 (1.e). Unpaid income taxes amounting to $1,800.00, including interest and penalties (1.f).
The judge granted the clearance. The government raised disqualifying conditions DC 1, DC 3. The judge applied mitigating conditions MC 3, MC 4, MC 6. The decision turned on the following: The applicant's financial issues stemmed from circumstances largely beyond his control, including a divorce and unexpected medical expenses for his son; The applicant demonstrated a good-faith effort to repay overdue creditors and resolve his debts, including paying off delinquent taxes and beginning payments on remaining accounts; The applicant's explanation for not disclosing certain debts in his security clearance application was credible, as there was no evidence of delinquency at the time of submission.
Why the Applicant Prevailed
- The applicant's financial issues stemmed from circumstances largely beyond his control, including a divorce and unexpected medical expenses for his son.
- The applicant demonstrated a good-faith effort to repay overdue creditors and resolve his debts, including paying off delinquent taxes and beginning payments on remaining accounts.
- The applicant's explanation for not disclosing certain debts in his security clearance application was credible, as there was no evidence of delinquency at the time of submission.
Conditions Referenced
- DC 1raisedA History of Not Meeting Financial Obligations
- DC 3raisedInability or Unwillingness to Satisfy Debts
- MC 3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control
- MC 4appliedThe 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 issuedDec 30, 2003
- Answer filedJan 16, 2004
- Hearing heldDec 15, 2004
- Decision dateFeb 11, 2005
Cite For
- Mitigation of Financial Concerns Due to Personal Circumstances Under Guideline F
- Credibility of Applicant's Explanation Regarding Personal Conduct Under Guideline E
- Good-faith Efforts to Resolve Debts as a Mitigating Factor