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PSH-12-0042 - In the Matter of Personnel Security Hearing

This case involves an Individual who failed to meet his financial obligations during the final years of his first marriage. The Individual reported the repossession of his motor vehicle and a home foreclosure to the Local Security Office (LSO) in 2008. The LSO subsequently conducted a series of three Personal Security Interviews (PSI) of the Individual, the most recent on February 1, 2012. Unable to resolve the security concerns raised by the Individual’s failure to resolve his financial issues, the LSO initiated administrative review proceedings by issuing a letter (Notification Letter) advising the Individual that it possessed reliable information that created a substantial doubt regarding his eligibility to hold a security clearance. In the Notification Letter, the LSO set forth the derogatory information at issue and advised that the derogatory information fell within the purview of potentially disqualifying criteria set forth in the security regulations at 10 C.F.R. § 710.8, subsection