Summary
The applicant, a 53-year-old training manager and retired Navy veteran, faced security clearance denial under Guideline F due to multiple delinquent debts totaling over $81,000. Despite some payments made on certain debts, the judge found insufficient evidence of responsible financial management or resolution of outstanding obligations, leading to the conclusion that the applicant's financial issues raised significant security concerns.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: student loans placed for collection of $20,865 (1.a). student loans placed for collection of $18,369 (1.b). student loans placed for collection of $8,302 (1.c). student loans placed for collection of $6,027 (1.d). cellphone account placed for collection of $224 (1.e). medical debt placed for collection of $118 (1.f). credit-card account charged off for $1,376 (1.g). credit-card account placed for collection of $2,540 (1.h).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c), AG ¶ 19(e). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant has numerous ongoing delinquent debts that he has not resolved; He has not demonstrated responsible financial management or a good-faith effort to repay overdue creditors; The applicant's recent financial decisions, including purchasing a luxury vehicle and a house, indicate continued financial irresponsibility.
Why the Applicant Was Denied
- The applicant has numerous ongoing delinquent debts that he has not resolved.
- He has not demonstrated responsible financial management or a good-faith effort to repay overdue creditors.
- The applicant's recent financial decisions, including purchasing a luxury vehicle and a house, indicate continued financial irresponsibility.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(b)appliedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 19(e)appliedConsistent Spending Beyond One's Means
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to Recur
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedReceived Financial Counseling
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Debts
- AG ¶ 20(e)rejectedReasonable Basis to Dispute Legitimacy of Debt
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedMay 2, 2017
- Answer filedJul 10, 2017
- Hearing heldMar 1, 2018
- Decision dateMay 14, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Evaluation of Mitigating Conditions Under Guideline F