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Summary

The applicant, a 63-year-old aircraft mechanic, faced security concerns under Guideline F due to past financial delinquencies, including a second mortgage, consumer debts, and unpaid federal taxes. He successfully mitigated these concerns by demonstrating responsible financial behavior, resolving all debts, and achieving financial stability. The judge granted national security eligibility based on the applicant's actions and current financial situation.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant fell behind on payments toward his second mortgage loan during early 2013, due to a business downturn that reduced his hours and pay at the job in which he was then working. The credit bureau reports, upon which the SOR ¶ 1.a allegation was based, cited information reported to them on the status of this loan during March 2014 by the creditor then holding the loan (1.a). The debts alleged in SOR ¶¶ 1.b and 1.c involved a $3,160 utility bill and a $400 credit card account that became delinquent around the same time and for the same reasons as Applicant’s second mortgage loan discussed above. Applicant paid both of these debts in full during early 2017, after obtaining his current employment and stabilizing his financial situation (1.b). The debts alleged in SOR ¶¶ 1.b and 1.c involved a $3,160 utility bill and a $400 credit card account that became delinquent around the same time and for the same reasons as Applicant’s second mortgage loan discussed above. Applicant paid both of these debts in full during early 2017, after obtaining his current employment and stabilizing his financial situation (1.c). SOR ¶ 1.d alleged an old charged-off $12,452 debt to a major bank. The account reportedly had a past-due balance of $2,792 and a last-activity date of August 2009, when it was last updated by Equifax in February 2016. Applicant contacted the bank about this entry and asked for verification of the debt since he had no recollection or idea concerning it having been his account (1.d). Applicant reported on his e-QIP that he owed about $6,000 in unpaid Federal income taxes since 2012, as alleged in SOR ¶ 1.e. He had experienced under-withholding during the 2010 and 2011 tax years, partially as a result of the higher tax rates on the combined incomes from his job and his military retirement (1.e).

The judge granted the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(f). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(g), AG ¶ 20(e). The decision turned on the following: The applicant resolved all formerly delinquent debts and is financially stable; He took responsible actions to improve his financial circumstances, including obtaining professional credit counseling; The applicant demonstrated a consistent pattern of financial responsibility and has surplus income after meeting obligations.

Why the Applicant Prevailed

• The applicant resolved all formerly delinquent debts and is financially stable.
• He took responsible actions to improve his financial circumstances, including obtaining professional credit counseling.
• The applicant demonstrated a consistent pattern of financial responsibility and has surplus income after meeting obligations.

Conditions Referenced

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

• SOR issuedMar 13, 2017
• Answer filedMar 31, 2017
• Hearing heldJul 28, 2017Record left open until August 28, 2017.
• Decision dateOct 10, 2018

Cite For

• Mitigation of Financial Concerns Under Guideline F
• Importance of Demonstrating Financial Responsibility
• Impact of Professional Financial Counseling on Security Clearance Decisions