Summary
The applicant, a 39-year-old DOD contractor, faced security clearance denial under Guideline F due to unresolved financial issues, including multiple delinquent debts and judgments totaling over $23,000. Despite some debts being found in his favor, the applicant failed to demonstrate responsible management of his financial obligations, leading to the conclusion that he did not mitigate the financial considerations security concerns.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant has an auto loan in collection for $8,803, co-signed with his ex-spouse during their marriage (1.a). Applicant has a credit card in collection for $2,637, which he used for daily living expenses (1.b). Applicant has an account in collection for $2,097, which he does not recognize (1.c). Applicant has three credit cards in collection totaling $3,260 (1.d). Applicant has a home improvement store account in collection for $1,435 (1.e). Applicant has an account in collection for $1,124, which he disputed (1.f). Applicant has a store credit card in collection for $1,004, which he believes is his ex-spouse's responsibility (1.g). Applicant has a credit card charged off for $786, which he believes also belongs to his ex-spouse (1.h). Applicant has a charged-off account for $523, which he believes also belongs to his ex-spouse (1.i). Applicant has an insurance account in collection for $251, which is reported as paid (1.j). Applicant has judgments entered against him totaling $5,004 (1.k). Applicant has a judgment entered against him for $1,205, which he believes is related to a home improvement debt (1.l). Applicant has a judgment entered against him for $1,601, which he believes is related to a disputed debt (1.m). Applicant has a judgment entered against him for $834 (1.n). Applicant has a judgment entered against him for $3,170, which he believes is related to a disputed debt (1.o). Applicant has a judgment entered against him for $2,431 (1.p). Applicant has a judgment entered against him for $1,832, which he believes is related to a disputed debt (1.q). Applicant has a judgment entered against him for $1,601, which he believes is related to a disputed debt (1.r). Applicant has a judgment entered against him for $1,205, which he believes is related to a disputed debt (1.s).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The decision turned on the following: The applicant has a history of not paying his debts, which raises security concerns; He did not provide documentation to show that he paid or resolved several debts; The applicant's financial problems are ongoing and have not been adequately addressed.
Why the Applicant Was Denied
- The applicant has a history of not paying his debts, which raises security concerns.
- He did not provide documentation to show that he paid or resolved several debts.
- The applicant's financial problems are ongoing and have not been adequately addressed.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
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 issuedJul 20, 2022
- Answer filed—
- Hearing heldJun 14, 2023via video teleconference
- Decision dateNov 8, 2023
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Importance of Demonstrating Responsible Management of Financial Obligations
- Ongoing Financial Problems as a Basis for Security Concerns