Summary
A 41-year-old defense contractor and former Navy service member was denied a security clearance under Guideline F, Financial Considerations, due to unresolved financial difficulties. The Statement of Reasons (SOR) listed 13 delinquent debts, primarily medical, along with a car loan and a mortgage. The applicant testified that several medical debts, ranging from $28 to $569, remained unpaid.
Regarding a $347 medical debt, the applicant claimed payment but provided no documentation, and no evidence was submitted after the record was left open. For a $28,648 car loan, the applicant believed it was paid, but evidence presented at the hearing indicated it was a different debt, and the SOR-listed debt remained outstanding. Similarly, for a mortgage with a total balance of $352,481, the applicant claimed it was no longer delinquent, with his mother making payments, but no supporting documents were provided.
The judge found that the applicant failed to resolve or reduce any of the 13 delinquent debts and did not provide documentation to support claims of debt resolution. Despite the applicant's claims of future financial responsibility and plans for credit counseling, the judge concluded there was insufficient evidence of action taken to mitigate the debts, raising concerns about the applicant's reliability and trustworthiness. The security clearance was therefore denied.
Why the Applicant Was Denied
- The applicant failed to resolve or reduce any of the 13 delinquent debts listed in the SOR.
- The applicant did not provide documentation to support claims of debt resolution.
- The applicant's financial difficulties raised concerns about his reliability and trustworthiness.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not act responsibly under the circumstances.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not initiate a good-faith effort to resolve debts.
Key Rule Quoted
“Failure or inability to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness and ability to protect classified information.”
Procedural Posture
- SOR issuedSep 19, 2015
- Answer filedOct 14, 2015
- Hearing heldJan 26, 2016
- Decision dateAug 24, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Insufficient Evidence of Mitigation Efforts in Financial Matters