Summary
The applicant, a 48-year-old defense contractor employee, faced security concerns under Guideline F due to significant financial issues, including a mortgage foreclosure, failure to file and pay taxes, and multiple delinquent debts totaling approximately $57,000. The judge found that the applicant failed to provide sufficient evidence to mitigate these concerns, leading to a denial of her security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The debt alleged in SOR ¶ 1.a is a delinquent mortgage loan. The amount of the debt was approximately $325,000. The mortgage holder foreclosed on the debt (1.a). The allegations listed in SOR ¶¶ 1.b and 1.c state Applicant failed to file and pay her federal tax returns for years 2007, 2008, and 2009, and her state tax returns for 2008 and 2009, as required (1.b). The allegations listed in SOR ¶¶ 1.b and 1.c state Applicant failed to file and pay her federal tax returns for years 2007, 2008, and 2009, and her state tax returns for 2008 and 2009, as required (1.c). The debt alleged in SOR ¶ 1.d is a delinquent credit card debt for $3,148 (1.d). The debt alleged in SOR ¶ 1.e is a state tax lien for $2,015 (1.e). The debt alleged in SOR ¶ 1.f is the same debt as SOR ¶ 1.j (1.f). The debt alleged in SOR ¶ 1.g is a delinquent second mortgage loan for $33,043 (1.g). The debts alleged in SOR ¶¶ 1.h and 1.i are delinquent consumer debts for $13,453 and $319 (1.h). The debts alleged in SOR ¶¶ 1.h and 1.i are delinquent consumer debts for $13,453 and $319 (1.i). The debt alleged in SOR ¶ 1.j is a delinquent credit card debt for $5,637 (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(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant has numerous unresolved debts, including a mortgage foreclosure and delinquent taxes; The applicant's financial difficulties were primarily due to lifestyle choices rather than circumstances beyond her control; There is no evidence of financial counseling or a viable plan to address the outstanding debts.
Why the Applicant Was Denied
- The applicant has numerous unresolved debts, including a mortgage foreclosure and delinquent taxes.
- The applicant's financial difficulties were primarily due to lifestyle choices rather than circumstances beyond her control.
- There is no evidence of financial counseling or a viable plan to address the outstanding debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlThe applicant's financial hardships were primarily due to her own choices.
- AG ¶ 20(c)rejectedReceived or Receiving CounselingThere is no evidence of financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant did not demonstrate a good-faith effort to resolve her debts.
- AG ¶ 20(e)rejectedDispute of Legitimacy of DebtsThe applicant failed to document any disputes regarding her debts.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedMar 28, 2011
- Answer filedMay 6, 2011Applicant elected to have her case decided on the written record.
- Hearing held—No hearing; decided on written record.
- Decision dateOct 27, 2011
Cite For
- Failure to Mitigate Financial Concerns Under Guideline F
- Impact of Lifestyle Choices on Financial Stability
- Importance of Demonstrating Good-faith Efforts to Resolve Debts