Summary
The applicant, a 43-year-old defense contractor and former U.S. Navy serviceman, faced security concerns under Guideline F (Financial Considerations) due to multiple delinquent debts totaling approximately $38,000. The judge found that the applicant failed to adequately mitigate these financial issues, leading to the denial of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: rental expense in collection with a balance of $986 (1.a). credit card account in collection with a balance of $1,416 (1.b). vehicle loan charged off for $26,058 (1.c). installment loan charged off for $8,595 (1.d). credit card account charged off for $492 (1.e). delinquent auto insurance and utility bills in collection with a total balance of $169 (1.f). utility debt in the amount of $52 (1.g).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: The applicant had multiple delinquent debts totaling approximately $38,000, with some ongoing and unresolved; The applicant failed to demonstrate a consistent track record of financial responsibility and timely debt resolution; The applicant's efforts to address his debts occurred primarily after receiving the Statement of Reasons, indicating a lack of good faith in managing his financial obligations.
Why the Applicant Was Denied
- The applicant had multiple delinquent debts totaling approximately $38,000, with some ongoing and unresolved.
- The applicant failed to demonstrate a consistent track record of financial responsibility and timely debt resolution.
- The applicant's efforts to address his debts occurred primarily after receiving the Statement of Reasons, indicating a lack of good faith in managing his financial obligations.
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 Infrequent, or Unlikely to RecurSeveral of the applicant's debts were ongoing at the time of the hearing.
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlThe applicant's largest debt arose from his ex-wife's unauthorized actions.
- AG ¶ 20(c)rejectedReceived Financial Counseling From a Legitimate SourceThe applicant did not provide evidence of formal financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay CreditorsThe applicant's efforts to resolve debts were primarily after the SOR was issued.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedMar 30, 2018
- Answer filedAug 21, 2018
- Hearing heldNov 13, 2018via video teleconference
- Decision dateFeb 13, 2019
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Consideration of Whole-person Factors in Security Clearance Decisions