Summary
A 30-year-old security specialist and Army Reserve sergeant was denied a security clearance under Guideline F (Financial Considerations) due to a history of delinquent debts. The Statement of Reasons (SOR) detailed several outstanding financial obligations. These included a mortgage account with past-due payments totaling $129,080 on a $190,471 balance, a child support debt of $6,001, and a charged-off credit card debt for $4,198.
Additionally, the applicant had a $255 debt placed for collection by the Department of Defense, and two separate Department of Veterans Affairs debts placed for collection, totaling $1,221 and $2,430 respectively. These issues raised disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c).
While mitigating conditions under AG ¶ 20(b) and AG ¶ 20(d) were considered, the applicant failed to provide sufficient documented progress in paying his debts. His financial problems were not adequately addressed or resolved, and he did not submit necessary documentation to support claims of debt resolution or dispute, ultimately leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant did not provide sufficient documented progress in paying his debts.
- The applicant's financial problems were not adequately addressed or resolved, raising concerns about his reliability and trustworthiness.
- The applicant failed to submit necessary documentation to support claims of debt resolution or dispute.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlWhile circumstances beyond his control affected his finances, the applicant did not demonstrate responsible actions to address his debts.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant did not provide sufficient evidence of a good-faith effort to resolve his debts.
Key Rule Quoted
“Once a concern arises regarding an Applicant’s security clearance eligibility, there is a strong presumption against the grant or maintenance of a security clearance.”
Procedural Posture
- SOR issuedFeb 20, 2016
- Answer filedMar 10, 2016
- Hearing heldSep 12, 2016via teleconference
- Decision dateNov 8, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Importance of Documented Evidence in Mitigating Financial Concerns
- Presumption Against Granting Security Clearance When Financial Issues Are Present