Summary
A 50-year-old married man with two children was denied a security clearance under Guideline F (Financial Considerations) due to approximately $38,000 in delinquent debts. The Statement of Reasons detailed several outstanding financial obligations. These included a first mortgage on a home in State A, past due by about one year for approximately $16,383, and a second mortgage on the same property for $2,302.
Additionally, the applicant had a charged-off account of $13,019, which he was attempting to settle, and another charged-off account of $334 that was recently resolved. A collection account for $5,686, stemming from a real estate course, also contributed to the financial concerns.
Despite acknowledging his financial difficulties, the administrative judge found the applicant's financial management and judgment inadequate, particularly regarding investments made while already in financial distress. The applicant did not demonstrate a proactive approach to resolving his debts or that his financial situation was under control, leading to the denial of his security clearance.
Why the applicant was denied
- The applicant admitted to significant delinquent debts totaling approximately $38,000.
- The applicant's financial difficulties were exacerbated by poor financial management and judgment, including investments made despite existing financial issues.
- The applicant failed to demonstrate a proactive approach to resolving his debts or that his financial situation was under control.
Conditions referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's financial issues were ongoing and not resolved.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile some circumstances were beyond the applicant's control, he did not act responsibly to mitigate the issues.
- AG ¶ 20(c)rejectedReceiving Financial CounselingThe applicant attended a financial counseling class but did not demonstrate clear indications of resolving his financial issues.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant had not initiated a settlement plan for his debts.
Key rule quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural posture
- SOR issuedMay 23, 2018
- Answer filedAug 3, 2018
- Hearing heldMar 1, 2019Applicant represented himself after counsel withdrew.
- Decision dateApr 15, 2019
Cite for
- Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
- Impact of Poor Financial Management on Security Clearance Eligibility
- Consideration of the Whole-person Concept in Financial Cases