Summary
The applicant, a 33-year-old former part-time employee of a defense contractor, faced security concerns under Guideline F due to substantial delinquent debts, including a second mortgage and a repossessed car loan. Despite some efforts to address his debts, the applicant's ongoing financial instability and lack of steady income led to the denial of his security clearance application.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $293 medical debt for services received by his son (1.a). $1,509 debt for a Dell computer that was settled for $987 (1.b). $174,000 first mortgage loan (1.c). $43,500 second mortgage loan (1.d). $12,089 collection account related to a repossessed car (1.e). $17 collection account for traffic fines (1.f). $128 collection account for traffic fines (1.g). $81 garbage collection bill placed for collection (1.h).
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: The applicant incurred substantial delinquent debts exceeding $53,000, including a second mortgage and a repossessed car loan; He has been financially dependent on his brother and has not demonstrated a source of steady income; The applicant failed to mitigate the security concerns related to his financial situation.
Why the Applicant Was Denied
- The applicant incurred substantial delinquent debts exceeding $53,000, including a second mortgage and a repossessed car loan.
- He has been financially dependent on his brother and has not demonstrated a source of steady income.
- The applicant failed 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 ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant's financial problems were not caused by his wife's departure, as she contributed little to the family finances.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not demonstrate a reasonable plan to continue resolving his debts.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedApr 8, 2011
- Answer filedApr 25, 2011
- Hearing heldSep 13, 2011
- Decision dateJan 19, 2012
Cite For
- Financial Instability as a Disqualifying Factor Under Guideline F
- Failure to Demonstrate a Reasonable Plan to Resolve Debts
- Impact of Personal Circumstances on Financial Responsibility