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Summary

A 44-year-old defense contractor was granted a Secret-Level security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons detailed several outstanding debts. These included a credit card debt of approximately $5,514.10 from 1989, unpaid since 1996, which the applicant stated the creditor would not accept partial payments for. The applicant also admitted to owing approximately $383.17 in 1992 back taxes to the IRS, which had reportedly increased to $864.55. A significant child support obligation of approximately $53,394.00, opened in 1994 and unpaid since December 1996, was also noted, with the applicant claiming it was based on a salary he never earned and that he continued to make bi-weekly payments of $160.00 to $170.00.

Additionally, the government alleged two other debts: $298.56 for an electric service account from 1990-1992, and $1,3820.72 for a telephone service account closed in 1990. For both of these, the applicant was uncertain of his responsibility and had requested explanations, stating he would pay if the debts were confirmed.

The judge determined that the applicant's financial issues largely stemmed from circumstances beyond his control, specifically a divorce and job loss. The applicant is now employed full-time and demonstrated the ability to address his debts. His mitigating evidence successfully outweighed the government's concerns, leading to the security clearance being granted.

Why the applicant prevailed

• The applicant demonstrated that his financial difficulties were largely due to circumstances beyond his control, including a divorce and job loss.
• The applicant is now employed full-time and has the means to address his outstanding debts.
• The applicant provided persuasive evidence in mitigation that outweighed the government's prima facie case.

Conditions referenced

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 issuedJan 28, 1997
• Answer filedFeb 18, 1997Applicant elected to have the case determined on a written record.
• Hearing held—No hearing; case determined on written record.
• Decision dateMay 31, 1997

Cite for

• Mitigation of Financial Issues Under Guideline F Due to Circumstances Beyond Control
• Consideration of Employment Status in Financial Mitigation
• The Importance of Persuasive Evidence in Rebuttal to Government Allegations