Summary
The applicant, a 51-year-old defense contractor employee, faced security concerns under Guideline F due to numerous delinquent debts, including child support and credit card debts. Despite some evidence of good character and attempts to address his financial issues through bankruptcy, the judge found insufficient mitigation of the financial concerns, leading to a denial of security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The debt alleged in SOR ¶ 1.a is for 2008 state income tax in the amount of $2,743 (1.a). SOR ¶ 1.b alleges a rental car collection account in the amount of $1,136 (1.b). The debts alleged in SOR ¶¶ 1.c and 1.d are collections on consumer debts for $25 and $1,213, respectively (1.c). The debts alleged in SOR ¶¶ 1.c and 1.d are collections on consumer debts for $25 and $1,213, respectively (1.d). The debt alleged in SOR ¶ 1.e is a medical collection debt for $1,001 (1.e). The debts alleged in SOR ¶¶ 1.f and 1.g are credit card debts for $8,763 and $4,296, respectively (1.f). The debts alleged in SOR ¶¶ 1.f and 1.g are credit card debts for $8,763 and $4,296, respectively (1.g). The debt alleged in SOR ¶ 1.h is a child support account debt for $14,310 (1.h). The debts alleged in SOR ¶¶ 1.i and 1.j are collections resulting from vehicle repossessions for $6,869 and $9,156, respectively (1.i). The debts alleged in SOR ¶¶ 1.i and 1.j are collections resulting from vehicle repossessions for $6,869 and $9,156, respectively (1.j).
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(c), AG ¶ 20(d). The decision turned on the following: The applicant failed to demonstrate a responsible effort to resolve his financial obligations; The applicant's financial issues were recent and numerous, raising concerns about his reliability and trustworthiness; The applicant's reliance on bankruptcy was deemed insufficient to constitute a good-faith effort to repay debts.
Why the Applicant Was Denied
- The applicant failed to demonstrate a responsible effort to resolve his financial obligations.
- The applicant's financial issues were recent and numerous, raising concerns about his reliability and trustworthiness.
- The applicant's reliance on bankruptcy was deemed insufficient to constitute a good-faith effort to repay debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- 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 ControlAlthough the applicant experienced personal setbacks, he did not act responsibly to resolve his debts.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant's bankruptcy action was incomplete and did not demonstrate a good-faith effort.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsSeeking bankruptcy relief was not considered a good-faith effort to repay debts.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedMay 14, 2010
- Answer filedJun 3, 2010
- Hearing heldJan 12, 2011
- Decision date—
Cite For
- Insufficient Mitigation of Financial Issues Under Guideline F
- Impact of Recent and Numerous Debts on Security Clearance Eligibility
- Criteria for Evaluating Good-faith Efforts to Resolve Financial Obligations