Summary
This security clearance decision involved a 56-year-old engagement consultant for a defense contractor, whose clearance was initially questioned under Guideline F (Financial Considerations) due to over $104,000 in financial difficulties. The Statement of Reasons cited nearly $100,000 in delinquent mortgage payments on properties totaling nearly $550,000, along with other settled debts. Specifically, two debts (1.c and 1.e) were settled and paid in January 2015, and another (1.d) was settled with a payment plan initiated in September 2010.
Disqualifying conditions F.19(a) and F.19(c) were raised. However, the applicant successfully mitigated these concerns by demonstrating a proactive approach to resolving her financial issues, including loan modifications and debt settlements. Mitigating conditions F.20(a), F.20(b), and F.20(d) were applied.
The decision to grant the clearance was based on several factors: the applicant's proactive efforts to address her debts, the fact that her financial difficulties were largely due to circumstances beyond her control (such as a pay cut and her husband's job loss), and her significantly improved current financial situation, marked by a higher income and completed loan modifications. The security clearance was GRANTED.
Why the Applicant Prevailed
- The applicant demonstrated a proactive approach to resolving her financial issues, including loan modifications and settlements of debts.
- The applicant's financial difficulties were largely due to circumstances beyond her control, such as a pay cut and her husband's job loss.
- The applicant's current financial situation has improved significantly, with a higher income and completed loan modifications.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- F.20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control and the Individual Acted Responsibly Under the Circumstances
- F.20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The Government must prove, by substantial evidence, controverted facts alleged in the SOR. If it does, the burden shifts to applicant to refute, extenuate, or mitigate the Government’s case.”
Procedural Posture
- SOR issuedMar 18, 2015
- Answer filed—
- Hearing heldNov 5, 2015
- Decision dateAug 19, 2016
Cite For
- Mitigation of Financial Issues Under Guideline F
- Proactive Efforts to Resolve Debts as a Mitigating Factor
- Impact of External Circumstances on Financial Difficulties