Summary
The applicant, a 32-year-old training systems operator with a history of financial difficulties, faced security concerns under Guideline F (Financial Considerations) due to numerous delinquent debts totaling approximately $40,000. Despite some mitigating circumstances, the judge found that the applicant's financial irresponsibility and lack of proactive measures to resolve debts raised significant concerns about his reliability and trustworthiness, leading to a denial of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: default judgment for $18,698 filed in January 2015, for an automobile repossession deficiency (1.a). unsecured loans charged off for $3,359 (1.b). unsecured loans charged off for $2,751 (1.c). cellphone account placed for collection of $1,499 (1.d). collection account for $1,304 (1.e). indebtedness to Department of Veterans Affairs placed for collection of $913 (1.f). charge accounts charged off for $776 (1.g). charge accounts charged off for $688 (1.h). unsecured loans from a credit union charged off for $639 (1.i). unsecured loans from a credit union charged off for $609 (1.j). unsecured loans from a credit union charged off for $590 (1.k). medical debt placed for collection of $542 (1.l). loan placed for collection of $378 (1.m). medical debt placed for collection of $50 (1.n). vacuum cleaner purchase placed for collection of $3,286 (1.o). cable-service debt placed for collection of $899 (1.p). telecommunications debt placed for collection of $514 (1.q). cable-service debt placed for collection of $439 (1.r). federal tax debt of $1,754 for tax year 2014 (1.t). unpaid traffic ticket for $570 (failure to stop for school bus) (1.u).
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: The applicant has numerous ongoing delinquent debts totaling approximately $40,000; He failed to demonstrate a proactive approach to resolving his debts, with most remaining unaddressed; The applicant did not establish that his financial issues were largely beyond his control or that he was receiving financial counseling.
Why the Applicant Was Denied
- The applicant has numerous ongoing delinquent debts totaling approximately $40,000.
- He failed to demonstrate a proactive approach to resolving his debts, with most remaining unaddressed.
- The applicant did not establish that his financial issues were largely beyond his control or that he was receiving financial counseling.
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 ¶ 19(f)raisedFailure to File or Fraudulently Filing Annual Federal, State, or Local Income Tax Returns or Failure to Pay Annual Federal, State, or Local Income Tax as Required
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedReceived or Is Receiving Financial Counseling
- AG ¶ 20(d)appliedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(e)rejectedHas a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
- AG ¶ 20(g)appliedMade Arrangements with the Appropriate Tax Authority to File or Pay the Amount Owed
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedSep 7, 2017
- Answer filedOct 3, 2017
- Hearing heldFeb 28, 2018
- Decision dateMay 15, 2018
Cite For
- Financial Irresponsibility Under Guideline F
- Lack of Proactive Measures to Resolve Debts
- Impact of Financial Issues on Security Clearance Eligibility