Summary
The applicant, a 39-year-old single man, faced security clearance denial under Guideline F due to significant financial delinquencies, including a $15,000 mortgage arrearage and nearly $28,000 in non-mortgage debts. Despite efforts to address his mortgage issues, the applicant failed to demonstrate a commitment to resolving his other financial obligations, leading to the conclusion that he did not mitigate the security concerns.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Owes a tax debt of $1,500 that resulted from his failure to file business taxes in the 1990s (1.a). Owes $5,000 on a credit card account (1.b). Owes $7,000 on a credit card account (1.c). Owes $3,000 on a credit card account (1.d). Owes $2,000 on a credit card account (1.e). Owes $1,500 on a credit card account (1.f). Owes $1,000 on a credit card account (1.g). Owes $1,500 on a personal loan account (1.h). Owes $5,000 on a second mortgage account (1.i). Owes $15,000 in mortgage payments that are past due (1.j).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: Applicant has approximately $15,000 in mortgage arrears and nearly $28,000 in non-mortgage debts; Applicant did not take reasonable steps to address his non-mortgage debts, which continued to accumulate over two years; Applicant's efforts to file for bankruptcy were inconsistent and unconvincing.
Why the Applicant Was Denied
- Applicant has approximately $15,000 in mortgage arrears and nearly $28,000 in non-mortgage debts.
- Applicant did not take reasonable steps to address his non-mortgage debts, which continued to accumulate over two years.
- Applicant's efforts to file for bankruptcy were inconsistent and unconvincing.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlApplicant's financial difficulties were exacerbated by his fiancée's job loss and subsequent departure.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant made no effort to resolve significant non-mortgage debts.
Key Rule Quoted
“A security clearance decision is intended only to resolve the questions of whether it is clearly consistent with the national interest for an applicant to either receive or continue to have access to classified information.”
Procedural Posture
- SOR issuedJun 15, 2010
- Answer filedJul 1, 2010
- Hearing heldAug 24, 2010
- Decision dateDec 14, 2010
Cite For
- Failure to Mitigate Financial Delinquencies Under Guideline F
- Lack of Commitment to Resolving Debts as a Security Concern
- Consideration of Whole-person Factors in Financial Cases