Summary
The applicant, a 58-year-old defense contractor with a long history of financial difficulties, faced security concerns under Guideline F due to multiple delinquent debts totaling approximately $141,729. Despite admitting to some debts and attributing his financial issues to family support, he failed to provide sufficient evidence of repayment or financial management, leading to the denial of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: past-due mortgage account $7,388 (1.a). delinquent student loan debt $14,027 (1.b). collection account for student loan debt $10,118 (1.c). five delinquent accounts $825; $6,994; $6,765; $4,146; $3,200 (1.d). collection account for consumer debt $1,878 (1.i). judgment $71,981 (1.j). judgments $11,790 (1.k). judgments $2,617 (1.l).
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.e. The decision turned on the following: Applicant has multiple unresolved delinquent debts totaling approximately $141,729; He failed to provide evidence of payment plans or financial counseling; The applicant did not demonstrate a track record of financial stability.
Why the Applicant Was Denied
- Applicant has multiple unresolved delinquent debts totaling approximately $141,729.
- He failed to provide evidence of payment plans or financial counseling.
- The applicant did not demonstrate a track record of financial stability.
Conditions Referenced
- F.1.araisedInability or Unwillingness to Satisfy Debts
- F.1.craisedA History of Not Meeting Financial Obligations
- F.2.bappliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlApplicant attributed his financial problems to helping his daughter with college and living expenses.
- F.2.eappliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtTwo judgments were released, indicating some debts were resolved.
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 issuedSep 14, 2015
- Answer filedDec 12, 2015Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; decision made on the written record.
- Decision dateSep 22, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Failure to Demonstrate Financial Responsibility
- Impact of Financial Issues on Security Clearance Eligibility