Loading case…

Summary

The applicant, a 41-year-old defense contractor and U.S. Army veteran, faced security clearance denial primarily due to unresolved financial issues under Guideline F. Despite acknowledging multiple delinquent accounts totaling approximately $21,395, the applicant failed to provide sufficient documentation of repayment efforts, leading to doubts about his reliability and trustworthiness. The judge concluded that the applicant did not demonstrate a credible plan to resolve his debts, resulting in a denial of his security clearance.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: These are two medical accounts with unpaid balances of $101 and $103 that were placed for collection (1.a). This is a bank-issued charge account with a $1,900 credit limit and a past-due balance of $2,479 that was charged off (1.b). This is a bank-issued charge account with a $100 credit limit and a past-due balance of $192 (1.c). This is a bank-issued charge account with a jewelry store with a $820 credit limit and a past-due balance of $750 (1.d). This is a bank-issued charge account with a high credit of $4,851 and an unpaid and past-due balance of $4,548 (1.e). This is a bank-issued charge account with a $2,000 credit limit and an unpaid balance of $2,673 that was charged off (1.f). This is a bank-issued credit-card account with a $1,400 credit limit and an unpaid and past-due balance of $1,635 that was charged off (1.g). This is a bank-issued credit-card account with a $4,600 credit limit and an unpaid and past-due balance of $4,689 (1.h). This is a bank-issued credit-card account with a $500 credit limit and an unpaid and past-due balance of $842 that was charged off (1.i). This is a bank-issued charge account with a $1,500 credit limit and an unpaid balance of $2,817 (1.j). This is a cellular-telephone account with an unpaid balance of $219 (1.k).

The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c), AG ¶ 19(e). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant admitted to multiple delinquent accounts totaling approximately $21,395, with some charged off and sold to debt purchasers; The applicant provided insufficient documentation to support claims of repayment plans, leading to doubts about his reliability and trustworthiness; The applicant's purchase of a third vehicle while having significant delinquent debts indicated irresponsible financial behavior.

Why the Applicant Was Denied

• The applicant admitted to multiple delinquent accounts totaling approximately $21,395, with some charged off and sold to debt purchasers.
• The applicant provided insufficient documentation to support claims of repayment plans, leading to doubts about his reliability and trustworthiness.
• The applicant's purchase of a third vehicle while having significant delinquent debts indicated irresponsible financial behavior.

Conditions Referenced

Key Rule Quoted

“An applicant who begins to resolve his financial problems only after being placed on notice that his or her security clearance is in jeopardy may be lacking in the judgment and self-discipline to follow rules and regulations over time or when there is no immediate threat to his or her own interests.”

Procedural Posture

• SOR issuedMay 24, 2019
• Answer filedJun 14, 2019Applicant elected to have the case decided on the written record.
• Hearing held—
• Decision dateOct 18, 2019

Cite For

• Failure to Mitigate Financial Concerns Under Guideline F
• Insufficient Documentation of Repayment Efforts
• Irresponsible Financial Behavior Impacting Security Clearance Eligibility