Summary
The applicant, a 58-year-old defense contractor employee, faced security concerns under Guideline F due to substantial delinquent debts totaling $342,272, primarily from past-due mortgages on rental properties. Despite some efforts to address her debts, the judge found that the applicant's financial problems were not under control and lacked a realistic plan for resolution, leading to the denial of her security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: for a past-due amount of $7,624 on a real estate mortgage balance of $103,593 (1.a). for a past-due amount of $3,004 on a real estate mortgage balance of $98,522 (1.b). for a past-due amount of approximately $50,977 on a rental property that foreclosed in 2014 (1.c). for a past-due amount of $1,746 on a real estate mortgage balance of $41,736 (1.d). for a past-due amount of $1,582, with a total mortgage balance of $19,883 (1.e). for a charged off amount of $11,152 (1.f). for an account charged off in the amount of $10,294 (1.g). for an account in the amount of $6,115 that was settled for $2,100 (1.h).
The judge denied the clearance. The government raised disqualifying conditions FC DC AG ¶ 19(a), FC DC AG ¶ 19(c). The judge applied mitigating conditions FC MC AG ¶ 20(d), FC MC AG ¶ 20(c), FC MC AG ¶ 20(b), FC MC AG ¶ 20(a). The decision turned on the following: The applicant has substantial delinquent debt totaling $342,272, primarily from mortgages on rental properties; The applicant admitted to failure to live within her means and did not demonstrate responsible action in addressing her debts; The applicant's financial problems are not under control, and she presented no realistic plan for resolving them.
Why the Applicant Was Denied
- The applicant has substantial delinquent debt totaling $342,272, primarily from mortgages on rental properties.
- The applicant admitted to failure to live within her means and did not demonstrate responsible action in addressing her debts.
- The applicant's financial problems are not under control, and she presented no realistic plan for resolving them.
Conditions Referenced
- FC DC AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- FC DC AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- FC MC AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant resolved one debt and has payment plans in place for others.
- FC MC AG ¶ 20(c)rejectedThe 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 did not demonstrate that her financial issues are under control.
- FC MC AG ¶ 20(b)rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person’s ControlThe applicant acknowledged her failure to live within her means.
- FC MC AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial issues are ongoing and substantial.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedDec 18, 2014
- Answer filed—Applicant requested a review based on the written record.
- Hearing held—No hearing; review based on written record.
- Decision dateSep 30, 2015
Cite For
- Substantial Delinquent Debt Under Guideline F
- Failure to Live Within One's Means as a Disqualifying Factor
- Lack of a Realistic Plan for Resolving Financial Issues.