Summary
The 58-year-old applicant sought a security clearance under Guideline F, facing significant financial issues stemming from the 2008 real estate market crash and a pending divorce. Despite some efforts to address certain debts, the applicant failed to demonstrate responsible management of his financial obligations, leading to a denial of his security clearance application.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: It is alleged that Applicant is indebted to Creditor A, as the result of a judgment, in the amount of about $36,726 (1.a). It is alleged that Applicant is indebted to Creditor B, a credit card debt, in the amount of about $2,475 (1.b). It is alleged that Applicant is indebted to Creditor C, also a credit card debt, in the amount of about $15,400~$23,000 (1.c). It is alleged that Applicant is indebted to Creditor D in the amount of about $12,577 (1.d). It is alleged that Applicant is indebted to Creditor N in the amount of about $280,000 on the first mortgage for House #1, and to Creditor E in the amount of about $38,710 on the second mortgage for House #1 (1.e). It is alleged that Applicant is indebted to Creditor F, a credit union, in the amount of about $14,600~$19,200 (1.f). It is alleged that Applicant is indebted to Creditor G, a credit card debt, in the amount of about $14,600~$19,200 (1.g). It is alleged that Applicant is indebted to Creditor H, a medical debt of his wife, in the amount of about $244 (1.h). It is alleged that Applicant is indebted to Creditor I, a cable TV debt of his wife, in the amount of about $827 (1.i). It is alleged that Applicant is indebted to Creditor J in the amount of about $589,000 on the first mortgage for House #2 (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(d). The decision turned on the following: Applicant has over $155,000 in past-due debts that he has yet to address; Applicant failed to act responsibly under the circumstances of his financial difficulties; Applicant did not initiate a good-faith effort to repay overdue creditors or resolve debts.
Why the Applicant Was Denied
- Applicant has over $155,000 in past-due debts that he has yet to address.
- Applicant failed to act responsibly under the circumstances of his financial difficulties.
- Applicant did not initiate a good-faith effort to repay overdue creditors or resolve debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedThe Individual Acted Responsibly Under the CircumstancesApplicant attributed his debts to external factors but did not demonstrate responsible management.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant has not yet addressed debts totaling in excess of $155,000.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedJan 8, 2014
- Answer filedJan 14, 2014
- Hearing heldApr 15, 2014
- Decision dateJul 17, 2014
Cite For
- Failure to Demonstrate Responsible Management of Financial Obligations Under Guideline F
- Significant Past-due Debts as a Disqualifying Factor
- Rejection of Mitigating Conditions Related to Financial Considerations