Summary
The applicant, a 44-year-old Vice President at a defense contractor with a Master's Degree, faced allegations under Guideline F (Financial Considerations) due to significant financial difficulties stemming from real estate investments and employer financial issues. The judge found that the applicant acted responsibly under circumstances largely beyond his control, resolved most debts, and demonstrated financial rehabilitation, ultimately granting the security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: A delinquent debt owed to a creditor in the amount of $10,430 has been settled (1.a). A delinquent debt owed to a creditor in the amount of $24,536 has been settled (1.b). A delinquent debt owed to a creditor in the amount of $22,194 has been settled (1.c). A delinquent debt owed to a creditor in the amount of $5,168 has been settled (1.d). A delinquent debt owed to a mortgage lender in the amount of $39,000 on a foreclosed property has been forgiven (1.e). A delinquent debt owed to a mortgage lender on a property that was short saled in the amount of $468,000 has been forgiven (1.f). A delinquent debt owed to a creditor in the amount of $21,441 has been settled (1.g). A delinquent debt owed to a bank for a credit card in the amount of $36,110 has been settled (1.h). A delinquent debt owed to a bank for a credit card in the amount of $51,894 has been settled (1.i).
The judge granted the clearance. The government raised disqualifying conditions 19.(a), 19.(c). The judge applied mitigating conditions 20.(b), 20.(c), 20.(d). The decision turned on the following: The applicant acted responsibly under circumstances largely beyond his control; Most debts were resolved, demonstrating a good-faith effort to repay creditors; The applicant's financial issues were due to unforeseen market conditions and employer financial problems.
Why the Applicant Prevailed
- The applicant acted responsibly under circumstances largely beyond his control.
- Most debts were resolved, demonstrating a good-faith effort to repay creditors.
- The applicant's financial issues were due to unforeseen market conditions and employer financial problems.
Conditions Referenced
- 19.(a)raisedInability or Unwillingness to Satisfy Debts
- 19.(c)raisedA History of Not Meeting Financial Obligations
- 20.(b)appliedConditions Largely Beyond the Person’s Control
- 20.(c)appliedReceiving Counseling and Indications That the Problem Is Being Resolved
- 20.(d)appliedGood-faith Effort to Repay Overdue Creditors
Key Rule Quoted
“The adjudicative process is the careful weighing of a number of variables known as the whole-person concept.”
Procedural Posture
- SOR issuedMar 18, 2011
- Answer filedApr 1, 2011
- Hearing heldAug 16, 2011
- Decision dateSep 29, 2011
Cite For
- Financial Rehabilitation Under Guideline F
- Good-faith Efforts to Resolve Debts
- Impact of External Circumstances on Financial Issues