Loading case…

Summary

The applicant, a 60-year-old defense contractor, faced security clearance denial under Guideline F due to unresolved financial issues totaling approximately $36,718. Despite admitting to several debts and claiming efforts to settle them, the applicant failed to provide sufficient documentation to demonstrate financial stability or mitigation of concerns, leading to a determination against his eligibility for access to classified information.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant admitted owing a creditor $7,876 for a charged-off credit card account. Applicant stated that this debt was being paid pursuant to a settlement agreement. No further information was provided. This debt is not resolved (1.a). Applicant admitted owing a medical creditor $5,520 for a past-due account. Applicant stated that this debt was being paid pursuant to a settlement agreement. No further information was provided. This debt is not resolved (1.b). Applicant admitted owing a creditor $4,506 for a charged-off credit card account. Applicant stated that this debt was being paid pursuant to a settlement agreement. No further information was provided. This debt is not resolved (1.c). Applicant admitted owing a creditor $4,124 for a charged-off credit card account. Applicant stated that this debt was being paid pursuant to a settlement agreement. No further information was provided. This debt is not resolved (1.d). Applicant admitted owing a creditor $2,360 for a charged-off credit card account. Applicant stated that this debt was being paid pursuant to a settlement agreement. No further information was provided. This debt is not resolved (1.e). Applicant denied owing a creditor $1,726 for a past-due account, stating the account was not his. Item 4, a credit report dated July 14, 2016, states, '[Consumer] disputes – Reinvestigation in progress.' No further information was provided. I find that Applicant has made a good-faith effort to resolve this debt. This allegation is found for Applicant (1.f). Applicant denied owing a creditor $1,512 for a past-due account, stating the account was not his. Item 4 states, 'Consumer disputes this account information.' No further information was provided. I find that Applicant has made a good-faith effort to resolve this debt. This allegation is found for Applicant (1.g). Applicant did not answer the allegation stating that he owed a medical creditor $1,281 for a past-due account. Item 4 states, '[Consumer] disputes – Reinvestigation in progress.' No further information was provided. I find that Applicant has made a good faith-effort to resolve this debt. This allegation is found for Applicant (1.h). Applicant denied owing a creditor $1,197 for a past-due account, stating the account was not his. Item 4 states, 'Consumer disputes this account information.' No further information was provided. I find that Applicant has made a good-faith effort to resolve this debt. This allegation is found for Applicant (1.i). Applicant did not answer the allegation stating that he owed a creditor $868 for a charged-off credit card account. Item 4 states, 'Consumer disputes this account information.' No further information was provided. I find that Applicant has made a good-faith effort to resolve this debt. This allegation is found for Applicant (1.j). Applicant admitted owing a creditor $777 for a charged-off account. Applicant stated that this debt was being paid pursuant to a settlement agreement. No further information was provided. This debt is not resolved (1.k). Applicant denied owing a creditor $645 for a past-due account, stating that the account was not his. Item 4 shows this account as delinquent, and does not show that it is under dispute. No other information was provided. This debt is not resolved (1.l). Applicant denied owing a creditor $475 for a charged-off account, stating that the account was not his. Item 4 shows this account as delinquent, and does not show it as under dispute. No further information was provided. This debt is not resolved (1.m). Applicant denied owing a creditor $315 for a past-due account. Item 4 states, 'Consumer disputes this account information, [Consumer] disputes – Reinvestigation in progress.' No further information was provided. I find that Applicant has made a good-faith effort to resolve this debt. This allegation is found for Applicant (1.n). Applicant denied owing a creditor $136 for a past-due account, stating that it was not his. Item 4 shows that this is a delinquent government debt, and does not show it as under dispute. No further information was provided. This debt is not resolved (1.o). Applicant did not answer this allegation that he owed a creditor $129 for a charged-off account. Item 4 shows that this is a delinquent debt, and does not show it as under dispute. No further information was provided. This debt is not resolved (1.p). Applicant denied owing a creditor $1,319 for a charged-off debt, stating that the account was not his. Items 4 and 5 indicate that this account was purchased by another lender. There is insufficient evidence to find that Applicant has a currently owing debt to this particular creditor. This allegation is found for Applicant (1.q). Applicant denied owing a creditor $1,172 for a past-due debt, stating the account was not his. Item 5 shows the debt as due and owing as of December 18, 2014. No further information was provided. This debt is not resolved (1.r). Applicant denied owing a creditor $780 for a past-due debt, stating the account was not his. Item 6 shows the debt as due and owing as of December 12, 2014. No further information was provided. This debt is not resolved (1.s).

The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant failed to provide sufficient documentation to demonstrate financial stability or mitigation of concerns; The applicant's financial irresponsibility was recent, voluntary, and occurred when he was a mature adult; The applicant did not submit evidence of good judgment, trustworthiness, or reliability.

Why the Applicant Was Denied

• The applicant failed to provide sufficient documentation to demonstrate financial stability or mitigation of concerns.
• The applicant's financial irresponsibility was recent, voluntary, and occurred when he was a mature adult.
• The applicant did not submit evidence of good judgment, trustworthiness, or reliability.

Conditions Referenced

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 15, 2016
• Answer filedDec 8, 2016Applicant requested decision on written record.
• Hearing held—No hearing; case decided on written record.
• Decision dateMar 9, 2018

Cite For

• Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
• Insufficient Documentation to Mitigate Financial Concerns
• Importance of Demonstrating Financial Stability for Security Clearance Eligibility