Summary
A 52-year-old defense contractor employee was denied a security clearance due to concerns under Guideline F (Financial Considerations). The Statement of Reasons (SOR) cited a charged-off debt of $18,264 to a bank and a $372 delinquent debt. These issues raised disqualifying conditions F.19(a) and F.19(c).
While the applicant had a history of bankruptcies and an unresolved charged-off auto loan, the judge found that mitigating conditions F.20(b), F.20(d), and F.20(e) were not sufficiently met. The applicant failed to demonstrate a good-faith effort to resolve his debts or provide adequate evidence of financial responsibility.
Conversely, an allegation under Guideline E (Personal Conduct), specifically SOR ¶ 2.a regarding the intentional falsification of an SF 86 in September 2011, was found in favor of the applicant due to a lack of evidence. However, the unmitigated financial concerns ultimately led to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant had unresolved financial issues, including a charged-off auto loan and a history of bankruptcies.
- The applicant did not demonstrate a good-faith effort to resolve his debts or provide sufficient evidence of financial responsibility.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- F.20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not provide evidence of a good-faith effort to resolve all debts.
- F.20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtApplicable only to the $372 delinquent debt.
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 issuedAug 28, 2014
- Answer filedAug 28, 2014Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; decision based on written record.
- Decision dateJun 24, 2015
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Lack of Evidence for Personal Conduct Allegations Under Guideline E
- Consideration of the Whole-person Concept in Security Clearance Decisions.