Summary
A 61-year-old federal contractor was denied a security clearance under Guideline F, Financial Considerations, due to unresolved financial issues. The Statement of Reasons cited two charged-off and collection debts totaling approximately $81,000. Disqualifying conditions under AG ¶ 19(a), (b), and (c) were raised.
Despite the applicant's long employment history and a bachelor's degree, the Adjudicator found that mitigating conditions under AG ¶ 20(a), (b), (c), and (d) were not sufficient. The denial was based on the applicant's failure to resolve the significant debts and lack of evidence for financial counseling or good-faith efforts to address them.
Furthermore, the applicant's decision to cease payments on debts due to frustration with a lender raised concerns about reliability and trustworthiness. Ultimately, the Adjudicator concluded that the financial considerations security concerns were not mitigated, leading to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant has unresolved financial issues, including two significant debts totaling approximately $81,000.
- The applicant failed to provide evidence of financial counseling or good-faith efforts to resolve debts.
- The applicant's decision to stop payments on debts due to frustration with the lender raised doubts about reliability and trustworthiness.
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 ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurThe debts remain unpaid and are deemed continuing obligations.
- AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlWhile the applicant's wife's illness was beyond his control, his actions regarding debt management were not responsible.
- AG ¶ 20(c)rejectedReceived Financial Counseling From a Legitimate SourceThe applicant did not present evidence of financial counseling.
- AG ¶ 20(d)rejectedInitiated and Adhered to a Good-faith Effort to Repay Overdue CreditorsThe applicant failed to establish good-faith efforts to resolve his debts.
Key Rule Quoted
“Eligibility for access to classified information is denied.”
Procedural Posture
- SOR issuedOct 16, 2019
- Answer filedNov 11, 2019
- Hearing heldMar 3, 2020
- Decision dateApr 28, 2020
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Importance of Demonstrating Good-faith Efforts to Resolve Debts
- Impact of Financial Management on Reliability and Trustworthiness Assessments