Summary
A 43-year-old senior security engineer sought to maintain his security clearance, which was challenged under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons (SOR) alleged that the applicant falsified his Security Clearance Application (SCA) by failing to disclose two delinquent mortgages on properties destroyed by arson, and a credit card account over 90 days delinquent.
Regarding the financial allegations, the applicant experienced fraudulent transactions on a credit card account, with an estimated $2,500 to $3,000 of an $8,000 balance being fraudulent. He contacted credit card companies but was unable to resolve the specific account. One property's loan was paid in full in October 2010, while another first mortgage was foreclosed in June 2008 on a balance of $343,820, with the property selling for $270,000. A debt was referred to a collection agency, and the applicant provided a receipt for payment in full.
The judge ultimately GRANTED the security clearance. The decision noted that the applicant's financial difficulties stemmed largely from circumstances beyond his control, specifically an arson incident and a downturn in the real estate market. He demonstrated responsible efforts to resolve his debts, including negotiating settlements and enrolling in a debt negotiation program. His current financial situation was stable, with no active credit card accounts and a good income.
Why the Applicant Prevailed
- The applicant demonstrated that his financial issues were largely due to circumstances beyond his control, such as arson and market downturns.
- He took responsible actions to resolve his debts, including negotiating settlements and enrolling in a debt negotiation program.
- The applicant's current financial situation is stable, with no active credit card accounts and a good income.
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 Control
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedMar 22, 2012
- Answer filedApr 16, 2012
- Hearing heldJun 12, 2012
- Decision dateJul 27, 2012
Cite For
- Mitigating Conditions Under Guideline F Related to Financial Difficulties Due to Circumstances Beyond Control
- Considerations of Personal Conduct in Relation to Omissions on Security Clearance Applications
- The Importance of Demonstrating Current Financial Responsibility in Security Clearance Evaluations.