Summary
The applicant, a 37-year-old senior records manager and veteran, faced security clearance denial under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to approximately $37,000 in delinquent debt and failure to disclose this debt on his security clearance application. The judge found that while the applicant had made some efforts to address his debts, the majority remained unresolved, and his financial situation was still precarious, raising concerns about his reliability and trustworthiness.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: University debt - $1,010 – Paid or debt forgiven (1.a). University debt - $3,985 – Valid. Applicant stated that he was charged for classes, but ultimately dropped the courses at this other university (1.b). Medical debt - $652 – Valid. Applicant discussed a payment plan with this office in 2015, but no documented evidence of payments was offered (1.c). Telecommunications debt - $575 – Removed from credit report because it is invalid or stale (1.d). Automotive finance balance - $17,503 – Balance reduced; still disputing (1.e). Veterans Affairs debts - $3,241 – Valid (1.f). Veterans Affairs debts - $5,560 – Valid (1.g). Charged-off account - $595 – Disputed, but no favorable results shown (1.h). Veterans Affairs debt - $422 – Paid, otherwise satisfied, or successfully disputed (1.i). Charged-off telecommunications bill - $2,153 – Disputed, but no favorable results shown (1.j). Medical debts - $213 – Unaddressed (1.k). Medical debts - $25 – Unaddressed (1.l). Insurance-related collection account - $506 – Unaddressed (1.m). State debt - $312 – Disputed (1.n). Collection account - $282 – Disputed, but no favorable results shown (1.o). State traffic camera tickets - $85 – Valid (1.p). State traffic camera tickets - $85 – Valid (1.q).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(d), AG ¶ 20(c). The decision turned on the following: The applicant has approximately $37,000 in delinquent debt, with many debts remaining unaddressed or unpaid; The applicant failed to disclose multiple delinquent debts on his security clearance application, raising questions about his judgment and honesty; Despite some efforts to address his debts, the applicant's financial situation remains tight, and he lacks essential documentary evidence of progress.
Why the Applicant Was Denied
- The applicant has approximately $37,000 in delinquent debt, with many debts remaining unaddressed or unpaid.
- The applicant failed to disclose multiple delinquent debts on his security clearance application, raising questions about his judgment and honesty.
- Despite some efforts to address his debts, the applicant's financial situation remains tight, and he lacks essential documentary evidence of progress.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
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 issuedOct 29, 2015
- Answer filedundated
- Hearing heldJul 27, 2016
- Decision dateOct 26, 2016
Cite For
- Denial Based on Unresolved Financial Obligations Under Guideline F
- Failure to Disclose Debts on Security Clearance Application Under Guideline E
- Consideration of Personal Circumstances Affecting Financial Stability