Summary
The applicant, a 56-year-old senior manager at a defense contractor, faced security clearance denial under Guideline F due to unresolved financial issues stemming from a combination of personal and economic factors. Despite a history of good credit, the applicant's financial situation deteriorated after his wife's illness and the housing market collapse, leading to significant delinquencies and a pending bankruptcy. The judge found that the applicant failed to demonstrate sufficient efforts to mitigate the financial concerns.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: First mortgage with an unpaid balance of $550,000 (1.a). Second mortgage or home equity loan with an unpaid balance of $73,822 (1.b). Credit card account with an unpaid balance of $34,620 (1.c). Credit card account with an unpaid balance of $24,224 (1.d). Credit card account with an unpaid balance of $6,425 (1.e). Credit card account with an unpaid balance of $4,182 (1.f). Credit card account with an unpaid balance of $4,570 (1.g). Credit card account with an unpaid balance of $3,198 (1.h). Credit card account with an unpaid balance of $18,572 (1.i). Credit card account with an unpaid balance of $34,620 (1.j).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The decision turned on the following: The applicant admitted to all allegations of financial delinquencies totaling approximately $725,152; The applicant's financial difficulties were ongoing and unresolved, with no significant efforts made to address the delinquencies; The applicant's reliance on credit cards for living expenses and failure to initiate bankruptcy proceedings until after the SOR was issued indicated poor financial management.
Why the Applicant Was Denied
- The applicant admitted to all allegations of financial delinquencies totaling approximately $725,152.
- The applicant's financial difficulties were ongoing and unresolved, with no significant efforts made to address the delinquencies.
- The applicant's reliance on credit cards for living expenses and failure to initiate bankruptcy proceedings until after the SOR was issued indicated poor financial management.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
Key Rule Quoted
“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”
Procedural Posture
- SOR issuedMay 4, 2012
- Answer filedJun 14, 2012Applicant requested a hearing.
- Hearing heldSep 25, 2012
- Decision dateOct 18, 2012
Cite For
- Denial of Security Clearance Due to Unresolved Financial Delinquencies Under Guideline F
- Failure to Demonstrate Good-faith Efforts to Resolve Financial Issues
- Impact of Personal Circumstances on Financial Stability and Security Clearance Eligibility