Summary
The applicant, a 41-year-old married man with a law degree, sought a top secret security clearance under Guideline F (financial considerations) but was denied due to significant financial delinquencies stemming from a failed real estate investment business. Despite some efforts to settle debts and a stable income, the judge found that the applicant's financial issues raised concerns about his reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $42,410 delinquent on credit card accounts with Creditor A (1.a). $42,410 delinquent on credit card accounts with Creditor A (1.b). $55,334 delinquent on credit card accounts with Creditor B (1.c). $42,410 delinquent on credit card accounts with Creditor A (1.d). $2,000 past due on a mortgage loan with a balance of $463,000 (1.e). $7,000 past due on a mortgage loan with a balance of $387,000 (1.f). $42,410 delinquent on credit card accounts with Creditor A (1.g). $42,410 delinquent on credit card accounts with Creditor A (1.h). $9,542 past due on a mortgage loan with a balance of $210,477 (1.i). $55,334 delinquent on credit card accounts with Creditor B (1.j). $104,749 past due on a mortgage loan with a balance of $725,656 (1.k). $55,334 delinquent on credit card accounts with Creditor B (1.l).
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(a). The decision turned on the following: The applicant admitted to 9 of 12 allegations of financial delinquency; The applicant's financial situation included substantial delinquencies on mortgage loans and credit card accounts totaling over $220,000; The applicant failed to provide sufficient evidence of a debt management plan or consistent efforts to resolve his debts.
Why the Applicant Was Denied
- The applicant admitted to 9 of 12 allegations of financial delinquency.
- The applicant's financial situation included substantial delinquencies on mortgage loans and credit card accounts totaling over $220,000.
- The applicant failed to provide sufficient evidence of a debt management plan or consistent efforts to resolve his debts.
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 Largely Beyond the Person's ControlThe judge found that while the financial downturn impacted the applicant, he did not act responsibly in managing his debts.
- AG ¶ 20(a)rejectedBehavior Occurred so Long Ago or InfrequentlyThe applicant's financial issues were ongoing and not isolated incidents.
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 29, 2013
- Answer filed—
- Hearing heldNov 20, 2013
- Decision dateJan 31, 2014
Cite For
- Denial of Security Clearance Due to Ongoing Financial Delinquencies
- Impact of Financial Management on Security Clearance Eligibility
- Failure to Demonstrate Responsible Debt Management Efforts