Summary
The applicant, a 45-year-old half-owner of an engineering firm, faced security clearance denial under Guideline F due to unresolved financial obligations totaling $48,687. Despite some debts being discharged, the applicant failed to provide sufficient evidence of payments or resolution for key debts, leading to concerns about his reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: a charged-off credit card debt for $18,696 (1.a). three charged-off debts owed to the Bank C for $15,210, $8,906, and $1,865 (1.b). a charged-off department store debt for $2,165 (1.d). three medical debts placed for collection for $1,370, $305, and $170 (1.e).
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), AG ¶ 20(e). The decision turned on the following: Applicant did not provide evidence of payments to two significant debts totaling $20,861; The applicant's financial issues raised concerns about his reliability and trustworthiness; The applicant's debts were charged off but not resolved, and he did not provide IRS Form 1099-Cs for key debts.
Why the applicant was denied
- Applicant did not provide evidence of payments to two significant debts totaling $20,861.
- The applicant's financial issues raised concerns about his reliability and trustworthiness.
- The applicant's debts were charged off but not resolved, and he did not provide IRS Form 1099-Cs for key debts.
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)raisedA History 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 his financial issues were beyond his control.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not provide evidence of good-faith efforts to resolve the debts in question.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not provide documented proof to substantiate any disputes regarding the debts.
Key rule quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural posture
- SOR issuedDec 29, 2016
- Answer filedJan 30, 2017
- Hearing heldSep 18, 2017Applicant waived right to 15 days notice.
- Decision dateMay 4, 2018Decision on remand.
Cite for
- Insufficient Evidence of Debt Resolution Under Guideline F
- Impact of Charged-off Debts on Security Clearance Eligibility
- Burden of Proof on Applicant to Demonstrate Financial Responsibility