Summary
A 50-year-old defense contractor employee was granted a security clearance despite concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The issues stemmed from financial difficulties related to a failed business venture.
Under Guideline F, the applicant had several delinquent debts, including multiple credit cards (some used primarily for business, others for personal use), an automobile loan where he was a cosigner, and a 2002 federal income tax deficiency. Under Guideline E, the applicant submitted a Security Clearance Application (SF 86) in June 2003 where he denied having property repossessed, being over 180 days delinquent on any debt in the last seven years, or being currently 90 days delinquent on any debt. While he acknowledged he should have been more accurate given changes in his financial circumstances, his actions were deemed questionable judgment rather than intentional falsification.
The judge found that the applicant successfully mitigated the government's concerns. He sought credit counseling, established a budget, and filed for bankruptcy, discharging nearly $25,000 in liabilities. These actions demonstrated a proactive approach to resolving his financial issues. At the time of the decision, the applicant's financial situation showed a positive net remainder, and he was current on all obligations, leading to the clearance being granted.
Why the Applicant Prevailed
- The applicant obtained credit counseling and set up a budget to manage his finances.
- He filed for bankruptcy, discharging nearly $25,000 in liabilities, which demonstrated a proactive approach to resolving his financial issues.
- The applicant's current financial situation showed a positive net remainder and he was current on all obligations.
Conditions Referenced
- E2.A6.1.2.1raisedHistory of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A5.1.2.2raisedDeliberate Omission, Concealment, or Falsification of Relevant and Material Facts
- E2.A6.1.3.3appliedConditions That Resulted in the Behavior Were Largely Beyond the Person's Control
- E2.A6.1.3.4appliedThe Person Has Received or Is Receiving Counseling for the Problem
- E2.A6.1.3.6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- E2.A5.1.3.5appliedThe Individual Has Taken Positive Steps to Significantly Reduce or Eliminate Vulnerability to Coercion, Exploitation, or Duress
Key Rule Quoted
“The issuance of the clearance is "clearly consistent with the interests of national security," or "clearly consistent with the national interest."”
Procedural Posture
- SOR issuedMar 23, 2005
- Answer filedApr 12, 2005Notarized response to SOR.
- Hearing heldNov 15, 2005
- Decision dateJan 31, 2006
Cite For
- Mitigation of Financial Issues Under Guideline F
- Personal Conduct Considerations Under Guideline E
- Impact of Bankruptcy on Security Clearance Eligibility