Summary
A 60-year-old government contractor with a long history of security clearance was denied a security clearance under Guideline F (Financial Considerations) due to significant financial issues. The Statement of Reasons detailed several allegations, including a primary mortgage delinquent by $150,227 and a second mortgage charged off for approximately $72,056. Additionally, the applicant had discharged about $70,000 in delinquent credit card debt through bankruptcy in October 2000. One alleged debt was contested by the applicant, removed from his credit report, and resolved.
The denial was based on the applicant's default on two mortgages totaling over $220,000, which demonstrated a pattern of failing to meet financial obligations. Despite possessing a stable income and retirement savings, the applicant did not take responsible steps to resolve these mortgage delinquencies.
The adjudicator applied Disqualifying Conditions F.19(a) and F.19(c), while also considering Mitigating Conditions F.20(a), F.20(b), F.20(c), F.20(d), and F.20(e). Ultimately, the applicant's financial history raised doubts about his reliability and trustworthiness, leading to the denial of his security clearance.
Why the Applicant Was Denied
- Applicant defaulted on two mortgages totaling over $220,000, demonstrating a history of not meeting financial obligations.
- Despite having a substantial income and retirement savings, the applicant did not take responsible actions to resolve his mortgage delinquencies.
- The applicant's financial history raised doubts about his reliability and trustworthiness.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial issues are recent and ongoing.
- F.20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlWhile some circumstances were beyond the applicant's control, he did not act responsibly to address his debts.
- F.20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant did not attend formal financial counseling.
- F.20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant has not made a good-faith effort to resolve his delinquent debts.
- F.20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant successfully disputed one debt, which was removed from his credit report.
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 issuedMar 12, 2014
- Answer filedMay 12, 2014
- Hearing heldAug 25, 2014via video teleconference
- Decision dateSep 17, 2014
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Failure to Demonstrate Responsible Financial Management Despite Significant Income and Assets
- Impact of Financial History on Security Clearance Eligibility