Summary
A 45-year-old logistics management specialist and retired Army sergeant was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons (SOR) alleged that the applicant falsified his security clearance application by answering "No" to all financial questions and failing to disclose multiple delinquent debts.
These debts included a charge account of $14,340 from March 2011, another charge account of $2,600 from September 2011, and an unsecured loan with a past due balance of $2,727, opened in June 2010. Additionally, a home mortgage loan of $173,655 was in foreclosure as of August 2011. Other debts referred for collection included an electronics store debt of $828 from December 2010, a telecommunications debt of $199 from February 2011, and a medical bill of $69 from July 2014.
Although the applicant attributed his omissions to medication for PTSD, the judge found that he failed to mitigate the financial concerns. The denial was based on numerous unresolved debts, a lack of evidence of efforts to resolve these debts or engage with creditors, and a failure to demonstrate a good-faith effort to repay overdue creditors.
Why the Applicant Was Denied
- The applicant has numerous unresolved debts, indicating an inability to satisfy financial obligations.
- He provided no evidence of efforts to resolve his debts or to engage with creditors.
- The applicant's financial situation was not under control, and he failed to demonstrate a good-faith effort to repay overdue creditors.
Conditions Referenced
- AG ¶ 19(a)appliedInability to Satisfy Debts
- AG ¶ 19(b)appliedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to Recur
- AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedReceived or Is Receiving Financial Counseling
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(e)rejectedHas a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedSep 24, 2015
- Answer filedJun 3, 2016
- Hearing heldJun 8, 2017Applicant requested to keep the record open for additional evidence.
- Decision dateSep 7, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Failure to Demonstrate Responsible Financial Management
- Impact of Personal Conduct on Security Clearance Eligibility