Summary
A 42-year-old defense contractor's security clearance was granted despite allegations under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The allegations stemmed from financial indebtedness and a "NO" answer to Question 38 on his September 26, 2000, Security Clearance Application (SF-86), which asked if he had been over 180 days delinquent on debts in the last seven years. The government alleged this answer was false, citing his indebtedness to multiple creditors.
The applicant admitted responsibility for two credit card debts totaling approximately $10,000 but contended these were fraudulently incurred by his ex-wife, who forged his signature and incurred debt in his name while he was deployed overseas. He reported the matter to the United States Attorney General's Office and contacted credit agencies. A court judgment was also entered against him without his knowledge or notice.
The judge found that the applicant made a good faith effort to resolve his debts, including repaying creditors and re-establishing his credit. He is now current with all expenses, pays taxes timely, has no current debt, and his credit rating is in good standing. The judge concluded that the applicant did not intentionally falsify information on his application, as his financial issues were primarily caused by his ex-wife's misuse of power of attorney, and he provided notice of potential issues. The clearance was granted.
Why the Applicant Prevailed
- The applicant's financial issues were primarily caused by his ex-wife's misuse of power of attorney during their marriage and after divorce.
- The applicant demonstrated a good faith effort to repay creditors and resolve his financial situation.
- The applicant did not intentionally conceal his financial delinquencies, as he provided notice of potential issues in his application.
Conditions Referenced
- F.1raisedA History of Not Meeting Financial Obligations
- F.3raisedInability or Unwillingness to Satisfy Debts
- F.3appliedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control (e.g., Loss of Employment, a Business Downturn, Unexpected Medical Emergency, or a Death, Divorce or Separation)
- F.6appliedThe Person Has Initiated a Good Faith Effort to Repay Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The adjudicative process is an examination of a sufficient period of a person's life to make an affirmative determination that the person is an acceptable security risk.”
Procedural Posture
- SOR issuedApr 7, 2005
- Answer filedMay 11, 2005
- Hearing heldSep 8, 2005
- Decision dateJan 6, 2006
Cite For
- Good Faith Effort to Resolve Financial Issues Under Guideline F
- Non-intentional Falsification of Information Under Guideline E
- Impact of Ex-spouse's Actions on Financial Responsibility