Summary
A 49-year-old defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to admitted financial irresponsibility. The applicant acknowledged approximately $60,000 in delinquent debts across multiple accounts. These included one account placed for collection for about $22,974 and another for approximately $399. The remaining ten debts, ranging from about $591 to $10,347, were all charged off.
The Statement of Reasons detailed these twelve specific delinquent debts. Disqualifying conditions under Guideline F, paragraphs 19(a), 19(b), and 19(c), were raised. While mitigating conditions under paragraphs 20(a), 20(b), and 20(d) were applied, they were insufficient to overcome the security concerns.
The denial was based on the applicant's admission of substantial delinquent debts and his failure to provide any evidence of efforts to resolve these financial issues. This history of financial delinquencies ultimately led to concerns regarding his reliability and trustworthiness, resulting in the denial of his security clearance.
Why the Applicant Was Denied
- The applicant admitted to significant delinquent debts totaling approximately $60,000.
- He failed to provide evidence of any efforts to resolve his debts or mitigate the financial issues.
- The applicant's history of financial delinquencies raised concerns about his 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)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurThe applicant's financial issues are ongoing and have not been resolved.
- AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlThe applicant did not provide sufficient evidence to support his claims of external factors contributing to his financial issues.
- AG ¶ 20(d)rejectedIndividual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant expressed a desire to resolve debts but provided no evidence of action taken.
Key Rule Quoted
“Failure to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness, and ability to protect classified or sensitive information.”
Procedural Posture
- SOR issuedSep 4, 2020
- Answer filed—Date uncertain.
- Hearing held—Decided on the written record.
- Decision dateAug 31, 2022
Cite For
- Denial of Security Clearance Due to Unresolved Financial Delinquencies
- Impact of Financial Irresponsibility on Trustworthiness
- Failure to Provide Evidence of Debt Resolution Efforts