Summary
A 63-year-old DOD contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from the applicant's failure to disclose a rental property foreclosure on their security clearance application and unresolved financial obligations related to that property.
Specifically, the applicant's investment property was foreclosed around 2006. A credit report from October 20, 2015, showed a delinquent mortgage account with a balance of $226,131 and a past due amount of $25,911, with comments indicating "foreclosure proceedings initiated." The applicant did not provide documentation to demonstrate that the mortgage debt was resolved through the foreclosure.
Although mitigating factors related to personal conduct were considered, the applicant did not provide sufficient evidence to show that the financial problems were being resolved or would not recur. Consequently, eligibility for access to classified information was denied.
Why the Applicant Was Denied
- The applicant did not disclose a foreclosure on his security clearance application, believing it occurred more than seven years prior.
- The applicant failed to provide documentation showing the mortgage debt was resolved through the foreclosure.
- There was insufficient evidence to demonstrate that the financial problems were being resolved or would not recur.
Conditions Referenced
- F.19.araisedInability to Satisfy Debts
- F.19.braisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- F.19.craisedA History of Not Meeting Financial Obligations
- F.20.arejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- F.20.brejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- F.20.crejectedThe Individual Has Received or Is Receiving Financial Counseling
- F.20.drejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
- F.20.erejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedJun 7, 2016
- Answer filedAug 2, 2016Applicant did not request a hearing.
- Hearing held—
- Decision dateAug 17, 2017
Cite For
- Failure to Disclose Foreclosure Under Guideline E
- Insufficient Evidence to Mitigate Financial Concerns Under Guideline F
- Importance of Providing Documentation to Resolve Financial Obligations