Summary
The applicant, a 53-year-old defense contractor employee, faced security clearance denial under Guideline F due to unresolved financial issues, including multiple bankruptcies and ongoing delinquencies totaling approximately $20,743. The judge found that the applicant failed to demonstrate sufficient mitigation of the financial concerns, which raised questions about his reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Income tax $281 Dec. 1998 lien. Purportedly paid. No documentary support (1.a). Mortgage $4,000 2008 delinquency purportedly eliminated by loan modification agreement, dated Sep. 15, 2009. $1,926 remains delinquent (1.b). Credit card $3,461 Collection. Charged off. Unpaid (1.c). Student loan $1,208 Delinquent in 2006. Charged off. As of hearing, paid $175 at $25 per month. Last payment on Sep. 30, 2009 (1.d). Furniture loan $1,661 Collection. Charged off. As of hearing, paid $325 at $25 per month. Last payment on Oct. 16, 2009 (1.e). Credit card $3,096 Collection. Charged off. Unpaid (1.f). Credit card $251 Collection. Charged off. Unpaid (1.g). Mobile phone service $706 Collection. Charged off. As of hearing, paid $175, with last $25 payment on Oct. 3, 2009 (1.h). Credit card $1,833 Collection. Unpaid (1.i). Unspecified loan $806 Collection. Applicant does not recall creditor or account. Unpaid (1.j). Medical service $238 Collection. Paid $75 during 2009, with most recent $50 payment on Sep. 3, 2009. Purportedly paid off, but no documentary support (1.k). Credit card $442 Collection. Unpaid (1.l). Gym membership & personal trainer $353 Collection. Paid $100 during 2009, with most recent $25 payment on Oct. 23, 2009 (1.m). Unspecified account $1,200 Charged off. Unpaid (1.n). Community association dues $1,488 Past due. Judgment. Unpaid (1.o). Ch. 13 bankruptcy Dismissed Apr. 2000 (1.p). Ch. 13 bankruptcy Dismissed Jan. 2002 (1.q). Ch. 13 to 7 bankruptcy Unsecured consumer debt discharged Jul. 1997 (1.r).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 19(e). The decision turned on the following: The applicant had a history of financial difficulties, including two bankruptcies and multiple delinquencies; The applicant failed to provide sufficient evidence of resolving his financial issues or mitigating the concerns raised by the Government.
Why the Applicant Was Denied
- The applicant had a history of financial difficulties, including two bankruptcies and multiple delinquencies.
- The applicant failed to provide sufficient evidence of resolving his financial issues or mitigating the concerns raised by the Government.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(e)raisedConsistent Spending Beyond One’s Means
Key Rule Quoted
“Failure or inability to live within one=s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual=s reliability, trustworthiness and ability to protect classified information.”
Procedural Posture
- SOR issuedNov 3, 2009
- Answer filedNov 24, 2009Applicant requested a hearing.
- Hearing heldMar 30, 2010
- Decision dateMay 17, 2010
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Impact of Multiple Bankruptcies on Security Clearance Eligibility
- Failure to Demonstrate Mitigation of Financial Concerns in Security Clearance Cases