Summary
A 51-year-old single woman with a background in public administration and education was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from significant financial delinquencies and misrepresentations on her August 2010 security clearance application.
The applicant failed to disclose several critical financial issues. While she noted a $250,000 mortgage "pending mitigation for modification" and a $400,000 loan "approved for short sale," she omitted that a Property B loan was 150 days delinquent by March 2010, with a notice of intent to foreclose issued in May 2010. She also did not disclose that a Property D loan was 90 days past due by March 2010, with foreclosure proceedings initiated. Other undisclosed debts included a $44,000 past-due amount on a $214,000 first mortgage, a $38,000 second mortgage, a $31,000 second mortgage, and a $35,000 second mortgage related to a short sale. Additionally, several smaller debts ranging from $51 to $406 remained unresolved, though one $1,150 debt was paid and a $1,734 debt was deferred.
The judge found that the applicant did not mitigate the security concerns arising from her financial issues and lack of transparency. Specifically, she had multiple unresolved financial delinquencies, including foreclosures and debts in collection, and misrepresented her financial situation on her application. The applicant also failed to provide sufficient evidence of financial rehabilitation or counseling.
Why the Applicant Was Denied
- The applicant had multiple unresolved financial delinquencies, including foreclosures and debts in collection status.
- The applicant misrepresented her financial situation on her security clearance application, failing to disclose significant delinquencies and foreclosures.
- The applicant did not demonstrate sufficient evidence of financial rehabilitation or counseling.
Conditions Referenced
- F3raisedInability or Unwillingness to Satisfy Debts
- E2raisedPersonal Conduct That Creates a Risk of Adverse Impact on National Security
- F2rejectedThe Conditions That Resulted in the Financial Difficulties Were Largely Beyond the Person's ControlThe judge found that the applicant's financial issues were not solely due to circumstances beyond her control.
- E2rejectedThe Individual Has Taken Positive Steps to Reduce or Eliminate Financial ProblemsThe applicant did not provide sufficient evidence of effective steps taken to resolve her financial issues.
Key Rule Quoted
“Each security clearance decision must be a fair and commonsense determination based on examination of all available relevant and material information, and consideration of the pertinent criteria and adjudication policy in the AG.”
Procedural Posture
- SOR issuedNov 13, 2012
- Answer filedDec 7, 2012
- Hearing heldMay 30, 2013Applicant submitted additional documentation after the hearing.
- Decision dateJun 26, 2013
Cite For
- Denial Based on Financial Mismanagement Under Guideline F
- Misrepresentation of Financial Status on Security Clearance Application Under Guideline E
- Failure to Demonstrate Rehabilitation From Financial Difficulties.