Summary
A 39-year-old tactical communicator with military service was denied a security clearance under Guideline F, Financial Considerations. The applicant admitted to approximately $27,000 in delinquent debts, which were primarily incurred by his wife without his knowledge. These debts included a military credit card account of $13,877, a bank loan of $3,497, and various other charged-off or collected accounts for credit cards, charge accounts, rent, a payday loan, and satellite television service.
Despite completing a financial counseling program, the applicant did not provide sufficient evidence of significant actions taken to resolve these debts before the Statement of Reasons was issued. The judge noted that while the debts were largely incurred by his wife, the applicant failed to demonstrate adequate mitigation efforts.
Consequently, the security clearance was denied. The decision highlighted the applicant's admission of multiple delinquent debts and the lack of documented progress in resolving them, leading to the conclusion that the security concerns raised by his financial history were not mitigated.
Why the Applicant Was Denied
- The applicant admitted to multiple delinquent debts totaling approximately $27,000.
- The debts were primarily incurred by the applicant's wife without his knowledge.
- The applicant failed to provide documentary evidence of significant actions taken to resolve the debts prior to the Statement of Reasons.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's delinquent debts are numerous, recent, and were not incurred under circumstances making them unlikely to recur.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile the financial irresponsibility of the applicant's wife was beyond his control, he did not provide evidence of responsible conduct.
- AG ¶ 20(c)rejectedReceived or Is Receiving Financial CounselingThe applicant completed a financial counseling course but did not show clear indications that his financial problems are under control.
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant has a plan but did not present evidence of significant actions to implement it.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not submit evidence disputing any of the debts alleged in the SOR.
Key Rule Quoted
“An applicant has the ultimate burden of demonstrating that it is clearly consistent with the national interest to grant or continue his security clearance.”
Procedural Posture
- SOR issuedMar 9, 2018
- Answer filedApr 5, 2018
- Hearing heldOct 17, 2018Hearing was convened as scheduled despite reassignment of judges.
- Decision dateDec 26, 2018
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Failure to Demonstrate Significant Actions to Resolve Delinquent Debts
- Impact of Spouse's Financial Actions on Applicant's Security Clearance Eligibility