Summary
The applicant, a 53-year-old Senior Consultant with a Bachelor's degree in Information Technology, sought a security clearance despite financial difficulties stemming from a failed investment in rental properties. The judge found that the applicant's financial issues were largely beyond his control and that he had made significant efforts to resolve his debts, ultimately granting the security clearance under Guideline F.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant became delinquently indebted to a bank for two mortgages, one in the amount of $72,358.18; and the other for $67,517.86 (1.a). Applicant also became delinquently indebted for credit card debt in the amount of $8,292 (1.b).
The judge granted the clearance. The government raised disqualifying conditions 19.(a), 19.(c). The judge applied mitigating conditions 20.(b), 20.(c), 20.(d). The decision turned on the following: The applicant demonstrated that his financial difficulties were largely beyond his control due to a failed investment and loss of employment; He has made a good-faith effort to resolve his debts, including compliance with a Chapter 13 bankruptcy plan; The applicant has a history of responsible financial behavior and has not incurred new debts.
Why the Applicant Prevailed
- The applicant demonstrated that his financial difficulties were largely beyond his control due to a failed investment and loss of employment.
- He has made a good-faith effort to resolve his debts, including compliance with a Chapter 13 bankruptcy plan.
- The applicant has a history of responsible financial behavior and has not incurred new debts.
Conditions Referenced
- 19.(a)raisedInability or Unwillingness to Satisfy Debts
- 19.(c)raisedA History of Not Meeting Financial Obligations
- 20.(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- 20.(c)appliedThe 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 Control
- 20.(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The adjudicative process is an examination of a sufficient period of a person’s life to make an affirmative determination that the person is an acceptable security risk.”
Procedural Posture
- SOR issuedApr 7, 2014
- Answer filedApr 30, 2014
- Hearing heldJun 11, 2014
- Decision dateAug 29, 2014
Cite For
- Mitigating Conditions Under Guideline F for Financial Issues Beyond the Applicant's Control
- Good-faith Efforts to Resolve Financial Obligations
- Whole-person Assessment in Security Clearance Determinations