Summary
The applicant, a 54-year-old Reliability Engineer, faced allegations under Guideline F for financial considerations, admitting to multiple delinquent debts totaling approximately $96,000 and an unpaid judgment of $1.5 million. Despite his employment and income of $162,000, he failed to provide evidence of resolving his debts. The administrative judge concluded that the applicant did not mitigate the financial concerns, resulting in a denial of his security clearance application.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: A delinquent debt owed to a creditor was placed for collection in the approximate amount of $25,682 (1.a). A delinquent debt owed to a creditor was charged off in the approximate amount of $21,646 (1.b). A delinquent debt owed to a creditor was placed for collection in the approximate amount of $11,382 (1.c). A delinquent debt owed to a creditor was charged off in the approximate amount of $2,894 (1.d). A delinquent debt owed to a creditor was placed for collection in the approximate amount of $1,668 (1.e). A delinquent debt owed to a creditor was placed for collection in the approximate amount of $367 (1.f). A delinquent mortgage account was reported as past due in the approximate amount of $30,688 (1.g). A delinquent mortgage account was reported as past due in the approximate amount of $1,324 (1.h). A delinquent credit card debt was reported as past due in the approximate amount of $632 (1.i). A judgment was filed against the Applicant in 2017 in the approximate amount of $1,511,304 (1.j).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant admitted to multiple delinquent debts totaling approximately $96,000 and an unpaid judgment of $1.5 million; The applicant failed to provide documentary evidence of resolving his debts or making significant progress towards repayment; The applicant's financial problems were not demonstrated to be under control, raising concerns about his reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant admitted to multiple delinquent debts totaling approximately $96,000 and an unpaid judgment of $1.5 million.
- The applicant failed to provide documentary evidence of resolving his debts or making significant progress towards repayment.
- The applicant's financial problems were not demonstrated to be under control, raising 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(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant did not demonstrate that he acted responsibly under the circumstances.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant failed to provide evidence of any efforts to resolve his 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 issuedMay 29, 2023
- Answer filedApr 25, 2023
- Hearing heldAug 24, 2023
- Decision dateSep 29, 2023
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Failure to Demonstrate Financial Responsibility Under Guideline F
- Insufficient Evidence of Mitigating Circumstances Related to Financial Issues