Summary
A 52-year-old male applicant with an associate's degree and military service was denied a security clearance under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial primarily stemmed from unresolved financial issues totaling approximately $33,380, which were attributed to a divorce and poor financial management.
The Statement of Reasons detailed numerous debts, including two charged-off credit card accounts for $9,461 and $4,887, a $5,486 car loan for which the applicant was a cosigner and the car was voluntarily repossessed, and a 2010 judgment for $1,870 that was settled in 2015. Additional debts included various consumer and medical debts ranging from $102 to $1,137, an unspecified but unresolved federal tax debt from a house sale, and a resolved state tax debt of an unspecified amount.
Despite being aware of security concerns since 2015, the applicant failed to provide evidence of responsible financial management, resolution of debts, or a good-faith effort to repay overdue creditors. While some debts were resolved, the applicant did not demonstrate consistent responsible financial behavior or provide evidence of financial counseling, leading to concerns about his reliability and trustworthiness.
Why the Applicant Was Denied
- Applicant has numerous unresolved delinquent debts totaling approximately $33,380.
- Applicant failed to provide evidence of responsible financial management or resolution of debts despite being aware of the security concerns since 2015.
- Applicant did not demonstrate adherence to a good-faith effort to repay overdue creditors or resolve financial issues.
Conditions Referenced
- F.1.araisedInability to Satisfy Debts
- F.1.braisedUnwillingness to Satisfy Debts
- F.1.craisedHistory of Not Meeting Financial Obligations
- F.1.fraisedFailure to File or Fraudulently Filing Income Tax Returns
- F.2.bappliedConditions Largely Beyond the Person's ControlApplicant attributed financial problems to divorce and loss on the sale of the marital home.
- F.2.drejectedGood-faith Effort to Repay Overdue CreditorsInsufficient evidence of adherence to a repayment plan for remaining debts.
- F.2.grejectedArrangements with Tax AuthorityApplicant claimed federal tax debt was resolved but did not provide proof.
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 issuedNov 17, 2016
- Answer filedDec 19, 2016
- Hearing heldJan 16, 2018held due to federal budget issues
- Decision dateFeb 12, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Mismanagement on Security Clearance Eligibility
- Consideration of Personal Circumstances in Financial Security Concerns