Summary
A 39-year-old defense contractor was denied security clearance eligibility under Guideline F (Financial Considerations) due to significant delinquent debts. The applicant admitted to 10 of 12 alleged debts, totaling approximately $98,700, which included six individual accounts that had been charged off. The applicant denied two other alleged debts, stating he did not recognize the listed creditors.
Disqualifying conditions were raised under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c). While mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e) were considered, they were not found sufficient to overcome the concerns.
The denial was based on the applicant's admission of the substantial delinquent debts, a lack of documentary evidence to explain the circumstances or support his case, and the recent and ongoing nature of the financial issues, with most debts remaining unresolved.
Why the Applicant Was Denied
- The applicant admitted to 10 out of 12 delinquent debts totaling approximately $98,700.
- The applicant did not provide documentary evidence to support his case or explain the circumstances leading to his financial problems.
- The applicant's financial issues were recent and ongoing, with most debts remaining unresolved.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant's delinquent debts are recent and ongoing.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not provide evidence that his financial problems were due to circumstances beyond his control.
- AG ¶ 20(c)rejectedReceived Financial CounselingThe applicant did not provide evidence of receiving financial counseling.
- AG ¶ 20(d)notedGood-faith Effort to Repay DebtsThe applicant made some efforts to address two debts but denied others without persuasive evidence.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute DebtsThe applicant failed to establish he disputed any debt with supporting evidence.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedJan 17, 2023
- Answer filedJan 27, 2023Applicant elected to have the case decided on the written record.
- Hearing held—Decision made based on written record.
- Decision dateJul 28, 2023
Cite For
- Insufficient Evidence to Mitigate Financial Concerns Under Guideline F
- Recent and Ongoing Financial Issues as Disqualifying Factors
- Lack of Documentary Evidence to Support Claims of Financial Stability