Summary
A 53-year-old Navy veteran and aircraft mechanic was granted a security clearance despite initial concerns under Guideline F (Financial Considerations). The Statement of Reasons alleged the applicant owed $91,028 for two mortgage-related debts that were charged off as business losses, raising disqualifying conditions AG ¶ 19(a) and AG ¶ 19(c).
The judge determined that the applicant's financial difficulties were isolated, stemming from unforeseen circumstances related to the housing market crash. The applicant took responsible steps to resolve these debts, which were primarily associated with two mortgage properties.
Mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were applied. The judge found that the applicant demonstrated good judgment in managing his debts, and his current financial situation is sound, with no past-due debts and a good credit score. Consequently, the financial problems were deemed unlikely to recur, and the security clearance was GRANTED.
Why the Applicant Prevailed
- The applicant's financial problems were isolated and arose from unforeseen circumstances.
- He took responsible steps to correct his finances and demonstrated good judgment in managing his debts.
- The applicant's current financial situation is sound, with no past-due debts and a good credit score.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“A security clearance decision is intended only to resolve whether it is clearly consistent with the national interest for an applicant to either receive or continue to have access to classified information.”
Procedural Posture
- SOR issuedNov 19, 2015
- Answer filed—
- Hearing heldApr 25, 2016
- Decision dateJul 22, 2016
Cite For
- Mitigation of Financial Issues Under Guideline F Due to Unforeseen Circumstances
- Responsible Management of Finances Leading to a Favorable Outcome
- Evaluation of Financial Problems in the Context of the Whole-person Concept