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Summary

The applicant, a 44-year-old defense contractor, faced security concerns under Guideline F due to significant delinquent debts totaling over $150,000, including an IRS judgment and a mortgage in foreclosure. Despite admitting to some debts and claiming to have settled others, he provided no documentary evidence to support his assertions or demonstrate financial responsibility. The judge found that the applicant failed to mitigate the financial concerns, leading to a denial of his security clearance.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant has a delinquent debt owed to the IRS for a judgment filed in November 2016 for $51,355 (1.a). Applicant has a delinquent debt for $931 (1.b). Applicant has a delinquent debt for $2,784 (1.c). Applicant has a delinquent debt for $1,635 (1.d). Applicant has a delinquent debt for $1,603, which he claims to have paid (1.e). Applicant has a delinquent debt for $611, which he denies owing (1.f). Applicant has a delinquent debt for $383, which he claims to have paid (1.g). Applicant has a delinquent debt for $104, which he denies owing (1.h). Applicant has a delinquent debt for $41, which he denies owing (1.i). Applicant has a delinquent debt for $75,322, which he claims to have paid (1.j). Applicant has a delinquent debt for $14,556, which he claims to have paid (1.k). Applicant has a delinquent debt for $240 (1.l). Applicant has a delinquent debt for $205 (1.m). Applicant has a delinquent debt for $177, which he claims to have paid (1.n). Applicant has a delinquent debt for $66 (1.o). Applicant has a delinquent debt for $26, which he denies owing (1.p).

The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c), AG ¶ 19(f). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e), AG ¶ 20(g). The decision turned on the following: Applicant failed to provide evidence of resolving or managing his delinquent debts; The applicant did not demonstrate a good-faith effort to repay overdue creditors or provide proof of financial counseling; The applicant's financial issues raised concerns about his reliability and trustworthiness.

Why the Applicant Was Denied

• Applicant failed to provide evidence of resolving or managing his delinquent debts.
• The applicant did not demonstrate a good-faith effort to repay overdue creditors or provide proof of financial counseling.
• The applicant's financial issues raised concerns about his reliability and trustworthiness.

Conditions Referenced

Key Rule Quoted

“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”

Procedural Posture

• SOR issuedSep 15, 2017
• Answer filedNov 13, 2017Applicant requested decision on the written record.
• Hearing held—No hearing; decision made on the written record.
• Decision dateOct 3, 2018

Cite For

• Failure to Mitigate Financial Considerations Under Guideline F
• Insufficient Evidence of Financial Responsibility
• Impact of Delinquent Debts on National Security Eligibility