Summary
The applicant, a 48-year-old federal contractor, faced security concerns under Guideline F due to unresolved financial issues, including a history of bankruptcy and significant tax debts. Despite attributing his financial difficulties to unemployment, underemployment, and identity theft, the judge found insufficient evidence of responsible financial management or mitigation of the concerns, leading to a denial of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $470 has a zero balance from the collection agency (1.e). debt has a zero balance and was settled for less than the full amount owed (1.f). $223 medical debt (1.g). $553 medical debt (1.h). $514 medical debt (1.i). $1,378 medical debt (1.j). $674 medical debt (1.k). $3,245 attributed to an apartment lease that Applicant broke (1.m). $630 cell phone account (1.n). $232 medical debt (1.o). $230 medical debt (1.p). $5,636 owed to a university for a class not completed (1.q). $2,477 cell phone account (1.r).
The judge denied the clearance. The government raised disqualifying conditions F.1.a, F.1.b, F.1.c. The judge applied mitigating conditions F.2.b, F.2.d. The decision turned on the following: Applicant failed to provide sufficient evidence of responsible financial management; Significant unresolved debts and a history of bankruptcy raised security concerns; Insufficient documentation to support claims of debt resolution or disputes.
Why the Applicant Was Denied
- Applicant failed to provide sufficient evidence of responsible financial management.
- Significant unresolved debts and a history of bankruptcy raised security concerns.
- Insufficient documentation to support claims of debt resolution or disputes.
Conditions Referenced
- F.1.araisedInability to Satisfy Debts
- F.1.braisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- F.1.craisedA History of Not Meeting Financial Obligations
- F.2.bappliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlApplicant attributed financial problems to unemployment, underemployment, and identity theft.
- F.2.drejectedThe Individual Initiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsWhile some debts were settled, the overall financial management did not demonstrate good faith.
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 8, 2017
- Answer filedMay 30, 2017Applicant requested a hearing.
- Hearing heldSep 20, 2017Hearing conducted as scheduled.
- Decision dateNov 2, 2017
Cite For
- Insufficient Evidence of Financial Responsibility Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Consideration of Identity Theft in Financial Assessments