Summary
A financial analyst and former U.S. Navy service member was denied a security clearance due to concerns under Guideline F (Financial Considerations) and Guideline E (Personal Conduct). The Statement of Reasons cited multiple financial issues, including two bankruptcies. The applicant and his wife filed a joint Chapter 13 bankruptcy in February 2014, which was dismissed in October 2014 for non-payment. They subsequently filed a joint Chapter 7 bankruptcy in November 2014, receiving a discharge in March 2015.
Additional financial concerns included eight delinquent student loans totaling approximately $28,565, a charged-off car loan for $147, and two government debts of $91 and $85, respectively. A medical bill of $118 was also referred for collection, and a judgment for $18,998 was issued for another delinquent car loan.
While the judge found the applicant's personal conduct acceptable, the security clearance was ultimately denied. The denial was based on the applicant's multiple unresolved financial issues and a failure to demonstrate a good-faith effort to resolve his debts or manage his financial obligations responsibly.
Why the Applicant Was Denied
- The applicant had multiple unresolved financial issues, including bankruptcies and delinquent debts.
- The applicant did not demonstrate a good-faith effort to resolve his debts or manage his financial obligations responsibly.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 16(c)notedCredible Adverse Information in Several Adjudicative Issue Areas
- AG ¶ 16(d)notedCredible Adverse Information That Is Not Explicitly Covered Under Any Other Guideline
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's delinquent debts are numerous and recent.
- AG ¶ 20(b)notedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedThe Individual Has Received or Is Receiving Financial CounselingThe applicant's financial situation is not under control.
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant has made no payments on several debts.
- AG ¶ 20(e)notedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedOct 29, 2018
- Answer filedNov 19, 2018
- Hearing heldMar 27, 2019
- Decision dateMay 2, 2019
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Evaluation of Personal Conduct Under Guideline E
- Consideration of the Whole-person Concept in Security Clearance Determinations