Summary
The applicant, a 32-year-old engineer and former Navy service member, faced security concerns under Guideline F (Financial Considerations) due to multiple unsatisfied judgments and delinquent debts. The administrative judge found that the applicant failed to demonstrate sufficient efforts to mitigate these financial issues, leading to a denial of his security clearance application.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Judgment for $16,634 due on an auto loan after the auto was stolen and totaled (1.a). Judgment for $5,379 due to the loss of an auto that was destroyed in a flood (1.b). Judgment for $1,780 for unpaid rent for the family residence (1.c). Delinquent child-support payments totaling $8,300 (1.d). Delinquent debt charged off for $45,752, which is a duplicate of SOR 1.a (1.e). Delinquent debt charged off for $15,752, a joint auto loan account with his wife (1.f). Delinquent debts charged off for $9,133 (1.g). Delinquent debts charged off for $8,347 (1.h). Delinquent credit-card account placed for collection of $3,832 (1.i). Delinquent debt placed for collection of $1,365 (1.j). Delinquent debt charged off for $1,236 (1.k). Telecommunications debt past due for $726 (1.l). Utility bill past due for $352 (1.m). Insurance debt past due for $283 (1.n). Delinquent debt charged off for $1,364 (1.o). Delinquent auto loan charged off for $7,055 (1.p). Failure to file federal and state income tax returns for 2016, 2017, and 2018 (1.q).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(f). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e), AG ¶ 20(g). The decision turned on the following: The applicant admitted to multiple unsatisfied judgments and delinquent debts; He failed to provide documentation of efforts to resolve his financial issues; The applicant did not demonstrate a clear understanding of his financial problems or a credible plan to address them.
Why the Applicant Was Denied
- The applicant admitted to multiple unsatisfied judgments and delinquent debts.
- He failed to provide documentation of efforts to resolve his financial issues.
- The applicant did not demonstrate a clear understanding of his financial problems or a credible plan to address them.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)appliedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns or Failure to Pay Annual Federal, State, or Local Income Tax as Required
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual's Current Reliability, Trustworthiness, or Good Judgment
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedThe Individual Has Received or Is Receiving Financial Counseling for the Problem From a Legitimate and Credible Source
- AG ¶ 20(d)rejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt Which Is the Cause of the Problem
- AG ¶ 20(g)rejectedThe Individual Has Made Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed and Is in Compliance with Those Arrangements
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedDec 22, 2021
- Answer filedMay 24, 2022
- Hearing heldJan 19, 2023
- Decision dateFeb 15, 2023
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Failure to Mitigate Financial Issues Despite Personal Circumstances
- Importance of Providing Documentation to Support Claims of Financial Resolution Efforts