Summary
A 50-year-old defense contractor employee sought a public trust position, facing security clearance concerns under Guideline F (Financial Considerations). The Statement of Reasons detailed multiple investment property purchases between December 2006 and January 2008. These included a second investment property purchased in December 2006 for approximately $132,500, financed with an unspecified first mortgage and a $33,125 second mortgage.
In October 2007, the applicant acquired a boarding house with a mortgage of approximately $355,500. The following month, August 2007, a third investment property was purchased for about $235,500, financed by an $188,400 first mortgage and a $47,100 second mortgage. A final investment property was purchased in January 2008 with a mortgage of approximately $349,200. These transactions led to multiple foreclosures.
Despite these past financial issues, the applicant was GRANTED eligibility. The decision recognized that the financial problems were largely due to circumstances beyond the applicant's control, specifically the housing market collapse. The applicant demonstrated a good-faith effort to resolve these issues, including utilizing credit repair services. Furthermore, the applicant's current financial situation showed stability, with a good credit score and no outstanding debts.
Why the Applicant Prevailed
- The applicant's financial problems were largely due to circumstances beyond his control, such as the housing market collapse.
- The applicant demonstrated a good-faith effort to resolve his financial issues, including engaging credit repair services.
- The applicant's current financial situation showed stability, with a good credit score and no outstanding debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedBehavior Happened Long Ago or Infrequently
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
- AG ¶ 20(c)appliedReceived Counseling and Indications of Resolution
- AG ¶ 20(d)appliedGood-faith Effort to Repay Creditors
Key Rule Quoted
“The standard that must be met for . . . assignment to sensitive duties is that, based on all available information, the person’s loyalty, reliability, and trustworthiness are such that . . . assigning the person to sensitive duties is clearly consistent with the interests of national security.”
Procedural Posture
- SOR issuedDec 6, 2015
- Answer filedJan 4, 2016
- Hearing heldMay 18, 2016
- Decision dateAug 29, 2016
Cite For
- Mitigation of Financial Issues Under Guideline F
- Consideration of Circumstances Beyond the Applicant's Control
- Evaluation of Good-faith Efforts to Resolve Debts