Summary
Applicant, a 56-year-old test operator for a defense contractor since 1974, faced financial issues including unpaid federal tax debt and a judgment for rent and possession. His financial difficulties were exacerbated by his spouse's loss of income and medical expenses. The judge found that the applicant had taken significant steps to address his financial problems, including financial counseling and debt resolution efforts, leading to the granting of his security clearance.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant did not report a 2001 judgment for rent and possession on his security clearance application, but he did not knowingly and willfully conceal that information from the government (2.a). Applicant owed a delinquent federal tax debt of $6,334.32 for tax year 1996 (1.a). Applicant owed a charged off credit card balance of $4,311, run up in part because of cash advances to pay the IRS (1.b). Applicant owed a $68 anesthesiology debt in collection since April 2000 (1.c). Applicant had a March 2001 judgment of about $1,100 for rent and possession (1.d). Applicant owed a $3,325 debt in collection (1.e). Applicant owed a $70 debt for a financial publication on a debt repayment plan that Applicant elected to not pursue (1.f).
The judge granted the clearance. The government raised disqualifying conditions E2.A6.1.2.1, E2.A6.1.2.3. The judge applied mitigating conditions E2.A6.1.3.3, E2.A6.1.3.4. The decision turned on the following: Applicant demonstrated proactive steps to address financial issues through counseling and debt resolution services; The judge found that the financial difficulties were largely due to circumstances beyond the applicant's control, including his spouse's medical condition and loss of income; The applicant did not knowingly conceal relevant financial information on his security clearance application.
Why the Applicant Prevailed
- Applicant demonstrated proactive steps to address financial issues through counseling and debt resolution services.
- The judge found that the financial difficulties were largely due to circumstances beyond the applicant's control, including his spouse's medical condition and loss of income.
- The applicant did not knowingly conceal relevant financial information on his security clearance application.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A6.1.3.3appliedThe Conditions That Resulted in the Financial Difficulties Were Largely Beyond the Person's Control
- E2.A6.1.3.4appliedThe Person Has Received or Is Receiving Counseling for the Financial Problems
Key Rule Quoted
“Indebtedness can be mitigated where it was incurred largely beyond a person's control (¶ E2.A6.1.3.3.)”
Procedural Posture
- SOR issuedAug 19, 2004
- Answer filedAug 31, 2004
- Hearing heldMay 27, 2005
- Decision dateNov 30, 2005
Cite For
- Mitigating Conditions for Financial Difficulties Due to Circumstances Beyond Control
- Proactive Measures in Addressing Financial Issues
- Non-willful Omission of Financial Information on Security Clearance Applications