Summary
A 60-year-old budget assistant was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial difficulties, including multiple mortgage foreclosures and a prior bankruptcy. The Statement of Reasons detailed three specific delinquent mortgages: one for $247,000 with a $37,948 delinquency, another for $249,000 in foreclosure, and a third for $261,000 that was over 120 days delinquent.
The applicant admitted to all allegations, which collectively involved properties totaling $757,000. While she claimed to be a victim of a fraudulent scheme, the judge determined that her judgment was lacking in entering into risky financial agreements without proper due diligence. This poor judgment was a significant factor in the denial.
Although the applicant's financial situation was stable following her bankruptcy, this did not sufficiently mitigate the concerns stemming from her recent financial decisions. Disqualifying conditions FC DC 19(a) and FC DC 19(c) were raised, and mitigating conditions FC MC 20(a), FC MC 20(b), FC MC 20(c), and FC MC 20(d) were applied, but ultimately the clearance was denied.
Why the Applicant Was Denied
- The applicant admitted to all allegations in the SOR, including three properties in foreclosure totaling $757,000.
- The applicant's poor judgment in entering into a real estate investment agreement without proper due diligence resulted in significant financial obligations.
- The applicant's financial situation, while stable post-bankruptcy, did not mitigate the concerns raised by her recent financial decisions.
Conditions Referenced
- FC DC 19(a)appliedInability or Unwillingness to Satisfy Debts
- FC DC 19(c)appliedHistory of Not Meeting Financial Obligations
- FC MC 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant's financial issues are recent and significant.
- FC MC 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant was not facing uncontrollable financial problems at the time of the conduct.
- FC MC 20(c)appliedReceived Counseling and Indications of ResolutionThe applicant received financial counseling in the past, but recent issues remain unresolved.
- FC MC 20(d)appliedGood-faith Effort to Repay or Resolve DebtsThe applicant is attempting to negotiate with banks regarding the mortgages.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedNov 7, 2008
- Answer filedNov 20, 2008
- Hearing heldMar 4, 2009
- Decision dateApr 8, 2009
Cite For
- Financial Judgment and Reliability Under Guideline F
- Impact of Financial Obligations on Security Clearance Eligibility
- Consideration of the Whole Person Concept in Security Clearance Decisions