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Summary

The applicant, a 50-year-old defense contractor, faced security clearance denial under Guideline F due to significant unresolved financial issues totaling approximately $34,935. Despite acknowledging some debts, the applicant failed to provide evidence of efforts to resolve them or mitigate the financial concerns, leading to the conclusion that he posed a potential risk to national security.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant admitted that he was indebted for a past-due payment on an automobile loan in the amount of $867 (1.a). Applicant admitted that he was indebted for a past-due debt on an automobile that was repossessed in 2010 in the amount of $17,181 (1.b). Applicant admitted that he was indebted for past-due debt on an automobile that was repossessed in the amount of $12,246 (1.c). Applicant admitted that he owed a past-due credit card debt in the amount of $750 (1.d). Applicant denied owing a creditor $600 for a past-due account, stating in his answer, 'I am unaware of the debt totally.' (1.e). Applicant admitted that he was indebted for a past-due account in the amount of $580 (1.f). Applicant denied owing a creditor $511 for a past-due account stating in his answer, 'I am unaware of the debt totally.' (1.g). Applicant admitted that he owed a past-due cell phone debt in the amount of $502 (1.h). Applicant admitted that he owed a past-due debt to a creditor in the amount of $469 (1.i). Applicant denied owing a creditor $430 for a past-due account stating in his answer, 'I am unaware of this account.' (1.j). Applicant admitted owing a past-due debt to this creditor in the amount of $357 (1.k). Applicant denied owing a creditor $442 for a past-due account, stating in his answer, 'I am unaware of this debt totally.' (1.l).

The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d), AG ¶ 20(c). The decision turned on the following: The applicant has over $34,000 in past-due debts that have remained unresolved for several years; The applicant did not provide evidence of efforts to mitigate his financial issues or resolve his debts; The applicant's financial difficulties were ongoing and not sufficiently addressed, raising concerns about his reliability and trustworthiness.

Why the Applicant Was Denied

• The applicant has over $34,000 in past-due debts that have remained unresolved for several years.
• The applicant did not provide evidence of efforts to mitigate his financial issues or resolve his debts.
• The applicant's financial difficulties were ongoing and not sufficiently addressed, raising concerns about his reliability and trustworthiness.

Conditions Referenced

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 issuedDec 9, 2014
• Answer filedSep 28, 2015Requested decision without a hearing.
• Hearing held—No hearing; decision made based on written submissions.
• Decision dateSep 19, 2016

Cite For

• Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
• Importance of Providing Evidence of Financial Responsibility
• Impact of Ongoing Financial Difficulties on Security Clearance Eligibility