Summary
The applicant, a 38-year-old former U.S. Navy service member, faced security clearance denial under Guideline F due to significant financial issues, including 16 delinquent debts totaling over $52,000 and additional debts not listed in the Statement of Reasons. The judge found that the applicant failed to demonstrate responsible financial management or a plan to address his debts, leading to concerns about his reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant has 16 delinquent debts listed in the SOR. They total $52,601. He admits eight debts and denies the remaining eight debts (1.a). Applicant owes $2,000 for 2014 Federal income tax obligation that he is paying on an installment agreement at $100 monthly (1.b). Applicant owes $2,636 on a state tax lien that he did not recognize as being owed. The lien was filed against him in August 2014 (1.c). Applicant owes several other debts not listed in the SOR. An energy company is owed $384, on which Applicant says he paid $100 on April 6, 2015 (1.d). Applicant owes $498 on a medical debt. He claims his physician sends the bill to him first expecting payment, and then submits the bill to the insurance company (1.e). Applicant has a second medical debt for $250 that is unpaid. It is not listed on the SOR (1.f). Applicant owes two education loans for $5,831 that remains unpaid. They are not listed in the SOR (1.g). Applicant owes $791 on a credit card. This debt was for furniture his wife purchased. This debt is unpaid and is not listed in the SOR (1.h). Applicant owes $3,033 on a credit card debt. It is not listed in the SOR and is unpaid (1.i). Applicant owes $2,302 to a bank. This debt is owed on an automobile purchase. Applicant did not know what this debt was borrowed for originally. It is unpaid and not listed on the SOR (1.j). Applicant owes $2,887 on a bank credit card. This debt is not listed in the SOR. It remains unpaid (1.k). Applicant owes $27 on an internet debt. It is unpaid and not listed in the SOR. Applicant claims he paid it and has a receipt (1.l). Applicant has a charged-off debt owed to a bank for $22,974. Applicant stated it was for a credit card. This debt is not listed in the SOR and has not been paid (1.m). Applicant has not paid any of the delinquent debts listed in the SOR. These debts include two for vehicles he purchased within the past ten years, credit card debts, property taxes for the first house he owned, money owed on an apartment lease, furniture he purchased, a credit card processing machine when he tried to start a home business, a utility bill, two telephone bills, and three medical debts (1.n). Applicant has not taken any action to resolve his debts except to pay his federal tax debt for 2014 of $2,000 on an installment agreement (1.o). Applicant would like to file bankruptcy but was told by one attorney the fee would be $10,000 for Applicant and his wife, each. Also, someone told him bankruptcy would ruin his chances for a security clearance (1.p).
The judge denied the clearance. The government raised disqualifying conditions F.1.a, F.1.c. The judge applied mitigating conditions F.2.b, F.2.c. The decision turned on the following: The applicant has 16 delinquent debts totaling $52,601, with additional debts bringing the total to $94,214; The applicant has not repaid any of the debts except for a federal tax debt and has no plan to address his financial obligations; The applicant's financial issues raise concerns about his reliability and potential for coercion or exploitation.
Why the Applicant Was Denied
- The applicant has 16 delinquent debts totaling $52,601, with additional debts bringing the total to $94,214.
- The applicant has not repaid any of the debts except for a federal tax debt and has no plan to address his financial obligations.
- The applicant's financial issues raise concerns about his reliability and potential for coercion or exploitation.
Conditions Referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- F.2.brejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's periods of unemployment were not long enough to adversely affect his finances.
- F.2.crejectedThe Person Has Received or Is Receiving Counseling for the ProblemThere was no evidence that prior financial counseling had any beneficial effect on the applicant's debts.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedJan 5, 2015
- Answer filedFeb 17, 2015
- Hearing heldMay 15, 2015
- Decision dateSep 23, 2015
Cite For
- Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
- Failure to Demonstrate Responsible Financial Management
- Potential for Coercion or Exploitation Due to Financial Instability