Summary
This case concerns a 48-year-old defense contractor with over two decades of security clearance history, whose clearance was initially questioned under Guideline F (Financial Considerations) due to significant past-due debts. The Statement of Reasons cited a $23,053 delinquency on a mortgage with a $99,433 balance, and approximately $102,557 in unsecured credit card debt owed by the applicant and his wife. These issues raised disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a), (c), and (e).
The applicant demonstrated a strong commitment to resolving these financial difficulties, which had stemmed from real estate investments and a prior job loss. He successfully settled significant debts, including a second mortgage for a fraction of the original amount owed. Furthermore, the applicant sought and received financial counseling, establishing a positive cash flow and demonstrating sufficient assets to manage future financial contingencies.
These actions satisfied mitigating conditions under AG ¶ 20(b), (c), and (d), indicating that his financial problems were under control. Consequently, the security clearance was GRANTED.
Why the Applicant Prevailed
- Applicant settled significant debts, including a second mortgage for a fraction of the owed amount.
- He has a positive cash flow and sufficient assets to manage future contingencies.
- Applicant received financial counseling and has shown clear indications that his financial problems are under control.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(e)raisedConsistent Spending Beyond One’s Means
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlApplicant's financial problems were mainly related to his real estate investments and job loss.
- AG ¶ 20(c)appliedReceived or Is Receiving CounselingApplicant has received financial counseling and has shown clear indications that his financial problems are being resolved.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsApplicant settled his mortgage debt after the issuance of the SOR for a fraction of the amount owed.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedJun 10, 2010
- Answer filedJun 22, 2010
- Hearing heldAug 18, 2010
- Decision dateSep 23, 2010
Cite For
- Mitigation of Financial Concerns Under Guideline F
- Consideration of the Whole-person Concept in Security Clearance Decisions
- Impact of Financial Counseling on Security Clearance Eligibility