Summary
A 31-year-old defense contractor employee and former Marine was granted a security clearance despite initial concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons detailed several delinquent debts, including a deficiency from a returned leased vehicle in 1998, and two debts to a collection agency for a department store and a credit card. The credit card debt, originally listed at $11,348, was settled on September 25, 2006, for $5,000. Another debt of $2,397 was believed to be for furniture.
The applicant successfully resolved all delinquent debts prior to the hearing. He credibly testified that he believed these debts were older than seven years and therefore did not need to be listed on his security clearance application. The judge found that the applicant did not intentionally falsify his application.
Mitigating factors included the resolution of all debts and the finding that the applicant's financial issues were largely due to circumstances beyond his control, such as living in a high-cost area and military obligations. Based on these findings, the security clearance was granted.
Why the Applicant Prevailed
- Applicant resolved all delinquent debts prior to the hearing.
- Applicant credibly testified that he believed the debts were more than seven years old and did not need to be listed.
- The applicant's financial issues were attributed to circumstances largely beyond his control, such as living in a high-cost area and military obligations.
Conditions Referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A6.1.3.1rejectedThe Behavior Was Not Recent
- E2.A6.1.3.2rejectedIt Was an Isolated Incident
- E2.A6.1.3.3rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's Control
- E2.A6.1.3.4rejectedThe 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
- E2.A6.1.3.6appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“An individual who is financially overextended is at risk of having to engage in illegal or unethical acts to generate funds to meet financial obligations.”
Procedural Posture
- SOR issuedAug 30, 2006
- Answer filedSep 26, 2006
- Hearing heldFeb 6, 2007
- Decision dateMar 26, 2007
Cite For
- Resolution of Delinquent Debts as a Mitigating Factor Under Guideline F
- Credibility of Applicant's Testimony Regarding Financial History
- Interpretation of Financial Questions on SF-86 Regarding Age of Debts