Summary
A 48-year-old married U.S. Navy veteran and defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to significant delinquent debts. The Statement of Reasons detailed several outstanding financial obligations, including $2,700 in unpaid state income taxes from 2014, a mortgage delinquency of approximately $1,698, and a credit union debt of $7,972. Additional debts included a hardware store credit card for $5,036, a $1,212 loan for a dental bill, and a $1,679 medical account.
The applicant admitted to all alleged debts. While the adjudicator acknowledged that some financial problems were due to circumstances beyond the applicant's control, he failed to provide sufficient evidence of progress in resolving these obligations. Specifically, he did not demonstrate a good-faith effort to repay the debts.
Disqualifying conditions under Guideline F were raised, and several mitigating conditions were considered. However, the applicant's inability to show substantial progress toward resolving his financial issues ultimately led to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant admitted to all allegations of delinquent debts.
- He failed to provide sufficient evidence of progress in resolving his financial obligations.
- The applicant's financial problems were exacerbated by circumstances beyond his control, but he did not demonstrate a good-faith effort to repay debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to Pay Annual Federal, State, or Local Income Tax as Required
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlApplicant's financial problems stemmed from unemployment and relocation.
- AG ¶ 20(c)rejectedReceiving Financial Counseling
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue Creditors
- AG ¶ 20(g)rejectedArrangements with Tax Authority
Key Rule Quoted
“Failure or inability 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 information.”
Procedural Posture
- SOR issuedApr 3, 2017
- Answer filedApr 25, 2017
- Hearing heldApr 11, 2018
- Decision dateJul 24, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Distress on Security Clearance Eligibility
- Consideration of Mitigating Conditions Under Guideline F