Summary
A 50-year-old senior engineer and retired Navy master chief petty officer was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues and a prior larceny conviction. The Statement of Reasons detailed several financial concerns, including a Chapter 13 bankruptcy filing in September 2008 that was dismissed in April 2009.
The applicant had several outstanding debts, with one consumer debt of $27,008 and a second mortgage of $29,665 remaining unresolved. While other consumer debts totaling $5,257, $14,168, $1,712, and $25,913 were resolved, the significant outstanding amounts contributed to the denial. Additionally, a 2004 special court-martial conviction for larceny while in the Navy was a key factor.
Despite some mitigating conditions being applied, the applicant's unresolved debts, totaling over $29,000, and the past larceny conviction raised significant questions about his reliability and trustworthiness. The applicant failed to provide sufficient evidence to mitigate these security concerns, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant has unresolved debts totaling over $29,000, including a second mortgage that remains unpaid.
- The applicant's prior conviction for larceny raises significant questions about his reliability and trustworthiness.
- The applicant failed to demonstrate sufficient evidence to mitigate the security concerns related to his financial situation.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(d)raisedDeceptive or Illegal Financial Practices
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant made payments on several debts, demonstrating a good-faith effort to resolve them.
- AG ¶ 20(a)appliedBehavior Occurred Long Ago or Under Circumstances Unlikely to RecurThe applicant's bankruptcy filing and subsequent dismissal do not cast doubt on his current reliability.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant's lack of action in resolving the second mortgage debt does not demonstrate responsible action.
- AG ¶ 20(c)rejectedReceiving Counseling or Evidence of Problem ResolutionThe applicant has not shown evidence of counseling or that his financial issues are under control.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedNov 11, 2010
- Answer filedDec 13, 2010
- Hearing held—Decided on the written record.
- Decision dateApr 4, 2011
Cite For
- Unresolved Financial Obligations Under Guideline F
- Impact of Criminal Conduct on Security Clearance Eligibility
- Good-faith Efforts to Resolve Debts as a Mitigating Factor