Summary
A 38-year-old facility security officer for a defense contractor was denied a security clearance due to financial considerations under Guideline F. The applicant had accumulated nearly $90,000 in delinquent debts, including two student loans totaling over $25,000 that had been in default since 2003, and two auto repossessions, each exceeding $19,000. Additionally, the applicant had delinquent federal taxes for tax years 2004 and 2005, totaling $5,000. These issues raised disqualifying conditions AG ¶ 19 a and AG ¶ 19 c.
While mitigating conditions AG ¶ 20 b, AG ¶ 20 c, and AG ¶ 20 d were applied, they were insufficient to overcome the concerns. The applicant had filed for Chapter 13 bankruptcy in July 2007, but had made only one payment, and had a prior Chapter 7 bankruptcy in 1996.
The denial was based on the applicant's failure to demonstrate responsible behavior in addressing financial obligations over an extended period. The newly initiated Chapter 13 bankruptcy lacked an established payment history or definitive debt resolution, and the applicant's financial problems were not sufficiently linked to the family issues cited as contributing factors.
Why the Applicant Was Denied
- Applicant failed to demonstrate responsible behavior in addressing his financial obligations over a long period.
- The Chapter 13 bankruptcy was newly initiated, with no established payment history or definitive resolution of debts.
- Applicant's financial issues were not sufficiently linked to the family problems he cited as contributing factors.
Conditions Referenced
- AG ¶ 19 araisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19 craisedHistory of Not Meeting Financial Obligations
- AG ¶ 20 brejectedConditions Largely Beyond the Person's ControlWhile family problems were cited, the judge found insufficient evidence of a nexus to the financial difficulties.
- AG ¶ 20 crejectedIndications That the Problem Is Being Resolved or Is Under ControlThe judge concluded it was premature to determine that mitigating conditions applied.
- AG ¶ 20 drejectedGood Faith Effort to Repay Overdue CreditorsThe judge noted the lack of evidence of responsible behavior in settling debts.
Key Rule Quoted
“"[N]o one has a ‘right’ to a security clearance."”
Procedural Posture
- SOR issuedApr 6, 2007
- Answer filedApr 24, 2007
- Hearing heldJun 26, 2007
- Decision dateSep 19, 2007
Cite For
- Denial of Clearance Due to Significant Delinquent Debts Under Guideline F
- Insufficient Evidence of Responsible Financial Behavior Despite Personal Hardships
- Premature Application of Mitigating Conditions in Financial Cases