Summary
A 58-year-old systems engineer was denied a security clearance under Guideline F, Financial Considerations, due to approximately $31,000 in unresolved financial issues. Despite continuous employment since 2010, the applicant did not demonstrate responsible debt management or provide evidence of resolution efforts, raising concerns about reliability and trustworthiness.
The Statement of Reasons detailed several specific financial problems. The applicant admitted to a charged-off credit card debt of $14,116 and a credit card judgment of $10,776, which he stated he would address in court in November 2017. He also acknowledged being three to four months behind on his mortgage, for which he was seeking a loan modification. Additionally, the applicant knew of four months of unpaid rent but disputed the total balance and stated he had no plans to resolve it.
The denial was based on the applicant's approximately $31,000 in delinquent and unresolved debt. The applicant failed to provide corroborating documentation for any claimed payments and did not demonstrate reasonable action in dealing with his creditors. Disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a), (b), and (c) were raised, while mitigating conditions under AG ¶ 20(b), (c), (d), and (e) were applied.
Why the Applicant Was Denied
- Applicant has approximately $31,000 of delinquent debt that is unpaid and unresolved.
- Applicant did not provide any corroborating documentation for claimed payments on debts.
- Applicant failed to demonstrate that he acted reasonably under the circumstances in dealing with his creditors.
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 ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlApplicant did not show that he acted responsibly under the circumstances.
- AG ¶ 20(c)rejectedReceived Financial CounselingNo evidence of financial counseling was provided.
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue CreditorsApplicant did not initiate efforts to resolve debts until after wage garnishment.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtApplicant did not provide evidence to substantiate disputes with creditors.
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 issuedOct 27, 2017
- Answer filedNov 21, 2017
- Hearing held—Applicant requested a decision on the written record.
- Decision dateMay 25, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Failure to Provide Evidence of Responsible Financial Management
- Impact of Financial Distress on Reliability and Trustworthiness Assessments