Summary
The applicant, a 55-year-old systems engineer and veteran, faced security clearance concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to a 2011 arrest for solicitation and significant financial delinquencies totaling $36,022. Despite mitigating the personal conduct issue, the applicant failed to demonstrate sufficient efforts to resolve his financial problems, leading to a denial of his security clearance.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant was arrested and charged with solicitation of a prostitute in June 2011 (2.a). $14,505 delinquency balance for repossessed vehicle – unpaid (1.a). $6,072 charged-off credit card – unpaid (1.b). $4,532 charged-off credit card – unpaid (1.c). $3,854 delinquent credit card – settlement agreement reached (1.d). $2,765 delinquent credit card – payment plan established (1.e). $813 delinquent cell phone account – settlement agreement reached (1.f). $808 delinquent credit card – settlement agreement reached (1.g). $684 charged off credit card – unpaid (1.h). $111 past-due bank-debt with a total balance $564 – disputed (1.i). $872 delinquent credit card – resolved (1.j). $553 delinquent electronic-payment debt – charged off (1.k).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(e), AG ¶ 16(c). The decision turned on the following: The applicant failed to resolve the majority of his financial delinquencies, only addressing two of eleven debts prior to the hearing; The applicant's financial issues were primarily unresolved, and he did not demonstrate a good-faith effort to repay overdue creditors or otherwise resolve debts; The applicant's choice not to file for bankruptcy, despite previously indicating it as a solution, did not excuse his failure to address his debts.
Why the Applicant Was Denied
- The applicant failed to resolve the majority of his financial delinquencies, only addressing two of eleven debts prior to the hearing.
- The applicant's financial issues were primarily unresolved, and he did not demonstrate a good-faith effort to repay overdue creditors or otherwise resolve debts.
- The applicant's choice not to file for bankruptcy, despite previously indicating it as a solution, did not excuse his failure to address his debts.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
- AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
- AG ¶ 20(d)rejectedIndividual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(e)rejectedIndividual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
- AG ¶ 16(c)appliedThe Offense Is so Minor, or so Much Time Has Passed, or the Behavior Is so Infrequent
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant’s meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedOct 13, 2016
- Answer filedDec 8, 2016
- Hearing heldNov 30, 2017
- Decision dateAug 31, 2018
Cite For
- Denial Based on Unresolved Financial Delinquencies Under Guideline F
- Mitigation of Personal Conduct Issues Under Guideline E
- Evaluation of Good-faith Efforts to Resolve Debts in Security Clearance Cases