Summary
A 32-year-old defense contractor employee was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons cited over $40,000 in missed mortgage payments and a credit card judgment. While the applicant did pay the credit card judgment, the significant mortgage debt remained an active concern.
Disqualifying conditions under Guideline F were raised, specifically F.19(a) and F.19(c), relating to financial irresponsibility and a history of not meeting financial obligations. Although several mitigating conditions (F.20(a) through F.20(e)) were considered, they were ultimately not sufficient to overcome the security concerns.
The denial was based on the applicant's ongoing financial issues, particularly the substantial mortgage delinquency. The judge determined that the applicant had not made a good-faith effort to resolve these debts or seek financial counseling beyond a single loan modification application. Furthermore, the financial problems were not found to be caused by circumstances beyond the applicant's control, leading to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant has ongoing financial issues, including over $40,000 in missed mortgage payments.
- The applicant did not demonstrate a good-faith effort to resolve his debts or seek financial counseling beyond a loan modification application.
- The applicant's financial problems were not caused by circumstances beyond his control.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial issues are current and ongoing.
- F.20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant's financial issues were due to his own decisions.
- F.20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant did not seek financial counseling beyond the loan modification.
- F.20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue CreditorsThe applicant's actions did not constitute a good-faith effort to resolve debts.
- F.20(e)notedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedJan 8, 2010
- Answer filedFeb 1, 2010Supplemental answer on March 2, 2010
- Hearing heldMay 27, 2010
- Decision dateJul 29, 2010
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Failure to Demonstrate Good-faith Efforts in Resolving Debts
- Consideration of Personal Conduct in Relation to Financial Issues