Summary
A 56-year-old area superintendent for a defense contractor was granted a security clearance despite initial concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons alleged that the applicant omitted material facts regarding financial delinquencies on his security clearance application and detailed six specific unpaid credit debts. These debts included a bank credit card for $4,436, another credit card for $1,972 (paid in full on 2/17/06), a Discover card for $6,390, a department store account for $2,999, a mail order account for $2,236 (paid in full on 11/30/05), and a final credit card for $4,183.
The applicant successfully mitigated these concerns by repaying all outstanding debts through refinancing his home. He demonstrated that he did not intentionally falsify his security clearance application, as he was unaware of the financial issues, which had been managed by his wife.
The administrative judge found that the applicant made a good faith effort to resolve his financial issues. Consequently, the security clearance was granted, consistent with national interest.
Why the applicant prevailed
- The applicant repaid all outstanding debts through refinancing his home.
- He did not intentionally falsify his security clearance application, as he was unaware of the debts managed by his wife.
- The applicant demonstrated a good faith effort to resolve his financial issues.
Conditions referenced
- E2.A6.1.2.1raisedA History of Not Meeting Financial Obligations
- E2.A6.1.2.3raisedInability or Unwillingness to Satisfy Debts
- E2.A5.1.2.2raisedThe Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts From Any Personnel Security Questionnaire
- E2.A5.1.2.3raisedDeliberately Providing False or Misleading Information Concerning Relevant and Material Matters to an Investigator
- E2.A6.1.3.6appliedThe Individual Initiated a Good Faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- E2.A6.1.3.1rejectedThe Behavior Was Not RecentThe applicant's financial problems were ongoing and not isolated.
- E2.A6.1.3.2rejectedIt Was an Isolated IncidentThe applicant's financial issues were not isolated.
- E2.A6.1.3.3rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person's ControlThe applicant and his wife could not explain the reason for not paying debts.
- 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 ControlThe applicant and his wife had not received counseling for their financial problems.
- E2.A5.1.2.2rejectedThe Deliberate Omission, Concealment, or Falsification of Relevant and Material Facts From Any Personnel Security QuestionnaireThe government did not establish that the applicant's omission was deliberate.
Key rule quoted
“The sole purpose of a security clearance determination 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 issuedJan 27, 2006
- Answer filedFeb 20, 2006Applicant submitted a notarized response.
- Hearing heldSep 22, 2006Hearing convened.
- Decision dateOct 31, 2006
Cite for
- Mitigation of Financial Issues Through Good Faith Repayment Efforts
- Non-intentional Falsification of Security Clearance Application Due to Lack of Knowledge
- Consideration of Whole Person Concept in Security Clearance Decisions