Summary
A 53-year-old resident engineer, employed by a defense contractor, was denied a security clearance under Guideline F (Financial Considerations) due to significant and recent financial difficulties. The Statement of Reasons (SOR) alleged a second mortgage delinquency, which the applicant admitted, and a $500 debt, which the applicant denied.
The applicant had nearly $215,000 in delinquent debt pending since at least November 2012. Disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c) were raised. While mitigating conditions under AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were considered, they were not sufficient to overcome the concerns.
The denial was based on the applicant's substantial and recent delinquent debt, the lack of corroboration for claims of contacting creditors prior to receiving the SOR, and the finding that the applicant had not demonstrated a good-faith effort to resolve the debts. The judge concluded that granting a clearance was not consistent with national interest.
Why the Applicant Was Denied
- Applicant has nearly $215,000 in delinquent debt pending since at least November 2012.
- Applicant did not corroborate claims of contacting creditors before receiving the SOR.
- Applicant's financial difficulties are recent and not infrequent, and he has not demonstrated a good-faith effort to resolve his 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)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurApplicant's financial difficulties are recent and not infrequent.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlApplicant's mishandling of home ownership was a deliberate choice.
- 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 ControlApplicant has not received credit or financial counseling.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant's efforts to resolve debts were only made after receiving the SOR.
Key Rule Quoted
“The Government expects applicants to deal with their delinquent debts because of their legal and moral obligation to do so, not because they face the risk of adverse administrative action.”
Procedural Posture
- SOR issuedDec 30, 2015
- Answer filedJan 22, 2016
- Hearing heldNov 30, 2016via in-person hearing
- Decision dateMar 1, 2017
Cite For
- Denial of Clearance Due to Significant Financial Issues Under Guideline F
- Failure to Demonstrate Good-faith Efforts to Resolve Debts
- Recent Financial Difficulties Not Mitigated by Circumstances Beyond Control