Summary
A 62-year-old defense contractor and retired Air Force major was granted a security clearance despite concerns under Guideline F (Financial Considerations). The primary issue involved a charged-off second mortgage on a former residence. This financial difficulty arose after the applicant relocated, his wife lost her job, and the economic downturn began, making him unable to continue payments. He is currently paying taxes related to the abandonment of that property.
Disqualifying conditions F.19(a) and F.19(c) were raised, but the judge found sufficient mitigation. The applicant's financial struggles were largely attributed to circumstances beyond his control. He demonstrated responsible financial management by consistently making timely payments on all other obligations and entering an agreement to repay tax debt.
Furthermore, the applicant's current financial situation is stable, marked by no new delinquencies and the successful refinancing of his current mortgage. Based on these mitigating factors, including F.20(a), F.20(b), F.20(c), F.20(d), and F.20(e), the applicant was found eligible for a security clearance.
Why the Applicant Prevailed
- The applicant's financial difficulties were largely due to circumstances beyond his control, including his wife's job loss and the economic downturn.
- The applicant demonstrated responsible financial management by maintaining timely payments on all other obligations and entering into an agreement to repay tax debt.
- The applicant's current financial situation is stable, with no new delinquencies and a successful refinancing of his current mortgage.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.20(a)appliedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good Judgment
- F.20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- F.20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under ControlThe applicant did not undergo financial counseling but demonstrated effective financial management.
- F.20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- F.20(e)notedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt Which Is the Cause of the Problem
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 issuedJan 7, 2013
- Answer filedFeb 15, 2013
- Hearing heldMay 7, 2013Hearing conducted in person with Department Counsel participating via video teleconference.
- Decision dateJun 7, 2013
Cite For
- Mitigation of Financial Issues Under Guideline F Due to Economic Downturn
- Consideration of Circumstances Beyond the Applicant's Control in Financial Matters
- Whole-person Assessment in Security Clearance Decisions