Summary
The applicant, a 49-year-old program management principal for a U.S. Government contractor, faced security concerns under Guideline F due to significant debts and multiple bankruptcy filings stemming from financial hardship related to a divorce and custody battle. The judge denied the applicant's security clearance, citing ongoing financial issues, a lack of responsible debt management, and insufficient evidence of rehabilitation or resolution of financial problems.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant filed a bankruptcy petition under Chapter 13, but it was administratively dismissed (1.a). Applicant refiled under Chapter 13 with the same result as the previous filing (1.b). Debt owed to lender placed for collection in the amount of $13,509 (1.c). Debt owed to a lender charged off in the amount of $32,143 (1.e). Debt owed to a lender charged off in the amount of $27,105 (1.f). Debt owed to computer manufacturer placed for collection in the amount of $1,443 (1.j). Debt owed to a lender placed for collection in the amount of $15,473 (1.l). Debt owed to a credit union on a credit-card account in the amount of $25,886 (1.m). Debt owed to Applicant’s ex-wife in the amount of $19,762 (1.q). Court ruling holding Applicant in contempt for failure to make required payments and ordering him to serve two days in jail (1.u).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: The applicant has significant debts totaling over $700,000 and multiple bankruptcy filings that were unsuccessful; The applicant failed to demonstrate responsible management of debts and did not provide evidence of a legitimate financial counseling source; The applicant's financial problems are recent and frequent, raising doubts about his judgment and reliability.
Why the Applicant Was Denied
- The applicant has significant debts totaling over $700,000 and multiple bankruptcy filings that were unsuccessful.
- The applicant failed to demonstrate responsible management of debts and did not provide evidence of a legitimate financial counseling source.
- The applicant's financial problems are recent and frequent, raising doubts about his judgment and reliability.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(c)rejectedReceived Financial Counseling From a Legitimate SourceThe applicant's financial counseling source was not established as legitimate or credible.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay CreditorsThe applicant's bankruptcy filings cannot be considered a good-faith effort to resolve debts.
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 12, 2019
- Answer filedMay 10, 2019Applicant admitted to several allegations.
- Hearing heldJul 24, 2019Hearing convened as scheduled.
- Decision dateAug 28, 2019
Cite For
- Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
- Insufficient Evidence of Responsible Debt Management
- Impact of Personal Circumstances on Financial Obligations and Security Clearance Eligibility