Summary
A 47-year-old married federal contractor and U.S. Marine Corps veteran was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from approximately $35,000 in delinquent debt, which arose from financial difficulties including reduced rental income and a period of unemployment.
The Statement of Reasons detailed several specific financial issues. These included a Chapter 13 bankruptcy filing, a $396 medical bill, $1,228 in credit card debt, a primary residence mortgage delinquency of $19,865, a $290 debt, a $54 holdover utility balance from a rental property, and an additional $14,703 debt. Disqualifying conditions under Adjudicative Guideline (AG) ¶ 19(a) and AG ¶ 19(c) were raised.
While mitigating conditions under AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e) were applied, the applicant ultimately failed to provide sufficient evidence to mitigate the financial concerns. The denial was based on the applicant's inability to demonstrate mitigation, lack of documentary evidence to support claims of debt payments, and failure to establish a spending plan or budget.
Why the applicant was denied
- The applicant did not provide sufficient evidence to demonstrate that he mitigated the financial considerations security concern.
- The applicant's claims regarding debt payments were unsupported by documentary evidence.
- The applicant failed to establish a spending plan or budget to manage his financial obligations.
Conditions referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Beyond the Person's ControlThe applicant's financial problems were caused by a combination of a downturn in his real estate investment business and a six-month unemployment.
- AG ¶ 20(c)rejectedReceiving Counseling or Evidence of Problem Resolution
- AG ¶ 20(d)appliedGood-faith Effort to Repay CreditorsThe applicant began to resolve his delinquencies by selling his primary residence.
- AG ¶ 20(e)rejectedDispute of Legitimacy of Past-due Debt
Key rule quoted
“The protection of the national security is the paramount consideration.”
Procedural posture
- SOR issuedMay 28, 2015
- Answer filedSep 24, 2015Requested decision based on administrative record.
- Hearing held—No hearing; decision based on administrative record.
- Decision dateMar 17, 2017
Cite for
- Insufficient Evidence to Mitigate Financial Considerations Under Guideline F
- Impact of Financial Difficulties on Security Clearance Eligibility
- Whole-person Concept in Evaluating Security Clearance Cases