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Summary

The applicant, a 35-year-old program analyst for a defense contractor, faced security clearance denial under Guideline F due to significant financial issues, including approximately $17,500 in delinquent debts. Despite efforts to manage his finances and recent counseling, the judge found insufficient evidence of responsible financial behavior and good-faith efforts to resolve debts, leading to concerns about the applicant's reliability and trustworthiness.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: a charged off student loan for $3,368 (1.a). four charged off credit card accounts for different stores to the same bank for $906 (1.b). four charged off credit card accounts for different stores to the same bank for $670 (1.c). four charged off credit card accounts for different stores to the same bank for $521 (1.d). four charged off credit card accounts for different stores to the same bank for $522 (1.e). two store credit card accounts in collection for the same collection agency for $976 (1.f). two store credit card accounts in collection for the same collection agency for $1,055 (1.g). two store credit card accounts for the same bank for $663 (1.h). two store credit card accounts for the same bank for $712 (1.i). an electronics store credit card account in collection for $851 (1.j). a telephone service debt charged off for $100 (1.k). a department store account charged off for $1,257 (1.l). a store credit card account charged off for $1,072 (1.m). a department store credit account 150 days past due for $325, on a balance of $444 (1.n). another credit card account charged off for a different department store for $886 (1.o). a credit account charged off for $1,078 (1.p). a department store account charged off for $1,855 (1.q). an account charged off for $615 (1.r).

The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c), AG ¶ 19(e). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(g). The decision turned on the following: Applicant failed to demonstrate sufficient information to mitigate financial considerations security concerns; The applicant's debts were numerous, recent, and incurred under circumstances making recurrence likely; The applicant's financial management and payment efforts were deemed insufficient and too late to establish good-faith efforts.

Why the Applicant Was Denied

• Applicant failed to demonstrate sufficient information to mitigate financial considerations security concerns.
• The applicant's debts were numerous, recent, and incurred under circumstances making recurrence likely.
• The applicant's financial management and payment efforts were deemed insufficient and too late to establish good-faith efforts.

Conditions Referenced

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 1, 2015
• Answer filedSep 30, 2015Applicant admitted all allegations.
• Hearing heldAug 10, 2017
• Decision dateDec 13, 2017

Cite For

• Insufficient Evidence of Financial Responsibility Under Guideline F
• Impact of Financial Management on Security Clearance Eligibility
• Criteria for Evaluating Good-faith Efforts to Resolve Debts