Summary
A long-term employee of a Department of Defense contractor was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from significant financial issues and the misuse of a company credit card.
The applicant faced ten delinquent debts totaling approximately $220,825. These included a home mortgage past due by $162,678, another delinquent mortgage of $16,555 with a total balance of $52,655, and a $28,457 deficiency balance from a mortgage foreclosure. Other debts included a $9,554 federal student loan placed for collection, a defaulted student loan with a claim filed, and several collection accounts for amounts such as $1,638, $851, and $660, along with a $432 delinquent cable account.
Additionally, the applicant was verbally warned and counseled in 2012 for using a company credit card for personal purchases. While some mitigating factors were considered, the applicant did not provide sufficient evidence to resolve the ongoing financial concerns or demonstrate adequate steps taken to address the debts. The misuse of the company credit card further indicated a lack of compliance with regulations, ultimately leading to the denial of eligibility for access to classified information.
Why the applicant was denied
- The applicant had ten delinquent debts totaling approximately $220,825, including a home mortgage foreclosure.
- The applicant did not provide sufficient evidence to mitigate the financial concerns, failing to demonstrate steps taken to resolve debts.
- The applicant's misuse of a company credit card indicated a lack of compliance with rules and regulations.
Conditions referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 16(c)appliedCredible Adverse Information in Several Adjudicative Issue Areas
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlThe applicant's financial issues began when his wife left him, leaving him responsible for all debts.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant paid some delinquent student loans.
- AG ¶ 17(c)appliedMinor Offense or Infrequent Behavior Unlikely to RecurThe applicant's misuse of the company credit card was a one-time incident.
Key rule quoted
“An individual who is financially irresponsible may also be irresponsible, unconcerned, or careless in their obligations to protect classified information.”
Procedural posture
- SOR issuedNov 25, 2015
- Answer filedMay 20, 2016Requested decision based on written record.
- Hearing heldOct 11, 2016FORM forwarded to Hearing Office.
- Decision dateMay 30, 2017
Cite for
- Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
- Impact of Personal Conduct on Security Clearance Eligibility Under Guideline E
- Consideration of Mitigating Factors in Financial Difficulties Related to Personal Circumstances.