Summary
A 46-year-old government contractor with a 20-year security clearance history was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant failed to disclose a July 2005 job termination on his e-QIP.
Under Guideline F, the applicant admitted to several financial delinquencies. These included an approximately $10,560 charged-off debt that remained unpaid as of July 2010, and a past-due first mortgage amount of $4,364, with a total loan balance of $399,602 at foreclosure, which also remained unpaid. Additionally, a second mortgage debt of $101,377 was more than 120 days past due and unsatisfied at the time of the Statement of Reasons.
While some concerns under Guideline E were mitigated, the applicant failed to adequately address the financial issues. The denial was based on the applicant's history of not meeting financial obligations, including a significant foreclosure-related deficiency, and a lack of demonstrated good-faith effort to resolve debts or seek financial counseling.
Why the Applicant Was Denied
- The applicant failed to mitigate security concerns under Guideline F due to unresolved financial delinquencies.
- The applicant had a history of not meeting financial obligations, including a significant deficiency from a foreclosure.
- The applicant did not demonstrate a good-faith effort to resolve his debts or seek financial counseling.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.20(a)rejectedUnresolved Financial Delinquency Occurred so Long Ago, Infrequent, or Unlikely to RecurThe applicant's financial issues were recent and significant.
- F.20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's financial issues were not due to circumstances beyond his control.
- F.20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not demonstrate a good-faith effort to resolve his debts.
Key Rule Quoted
“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”
Procedural Posture
- SOR issuedJul 7, 2010
- Answer filedJul 27, 2010
- Hearing heldNov 1, 2010Applicant was overseas prior to the hearing.
- Decision dateDec 13, 2010
Cite For
- Failure to Mitigate Financial Concerns Under Guideline F
- Impact of Unresolved Financial Delinquencies on Security Clearance Eligibility
- Criteria for Evaluating Financial Considerations in Security Clearance Cases