Summary
A 48-year-old former U.S. Navy service member was denied a security clearance due to unmitigated financial concerns under Guideline F. The applicant admitted to over $120,000 in delinquent debts, including a $92,375 outstanding balance on which no payments had been made, and $26,657 owed to a credit union for four charged-off debts. Additionally, the applicant acknowledged a $99 delinquent debt to a fitness center from February 2018 and a $1,620 delinquent balance placed for collection. While the applicant claimed to have repaid a separate $99 debt, no documentation was provided to support this assertion.
The applicant failed to demonstrate financial responsibility or provide evidence of efforts to resolve these debts or seek financial counseling. Disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a), (b), and (c) were raised. Although mitigating conditions under AG ¶ 20(a), (b), (c), and (d) were considered, they were not sufficient to overcome the concerns.
The denial was based on the applicant's admission of substantial delinquent debts, lack of demonstrated effort to resolve them, and a prior security clearance denial in 2006 for similar financial issues. The judge concluded that significant security concerns remained unresolved.
Why the Applicant Was Denied
- The applicant admitted to over $120,000 in delinquent debts, demonstrating financial irresponsibility.
- No evidence was provided to show efforts to resolve the debts or obtain financial counseling.
- The applicant's previous security clearance was denied in 2006 due to similar financial issues.
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 so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial issues are ongoing and not infrequent.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant's debts were voluntarily incurred and not due to uncontrollable circumstances.
- AG ¶ 20(c)rejectedReceived or Is Receiving Financial CounselingNo evidence of financial counseling was presented.
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsThe applicant did not demonstrate any good-faith efforts to repay debts.
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 issuedJan 18, 2022
- Answer filedJul 13, 2022
- Hearing held—Case decided on the written record without a hearing.
- Decision dateApr 24, 2023
Cite For
- Unmitigated Financial Concerns Under Guideline F
- Failure to Demonstrate Financial Responsibility
- Impact of Past Financial Issues on Current Security Clearance Eligibility