Summary
The applicant, a 57-year-old senior systems engineer, faced security clearance denial under Guideline F due to significant financial issues, including approximately $58,000 in delinquent debt. Despite some evidence of payments made, the applicant failed to provide sufficient documentation to demonstrate resolution of debts or proactive financial management, leading to the conclusion that financial considerations security concerns remained unmitigated.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: CREDITOR (MEDICAL) – $431 owed. Unknown account. Applicant stated that he has disputed this debt’s inclusion on his credit report, but has yet to receive a response (1.a). CREDITOR (MEDICAL) – $360 owed. Unknown account. Applicant stated that he has disputed its inclusion on his credit report, but has yet to receive a response (1.b). CREDITOR – $199 owed. Paid (1.c). UTILITY – $915 in collection. Under investigation. Applicant stated that he remembers paying this utility balance, but did not retain evidence of payment (1.d). CREDITOR – $7.00 owed. Paid (1.e). CREDITOR (MEDICAL) – $827 owed. Prepared to pay. Applicant states he has made arrangements to pay off this balance in two payments in February and March 2010 (1.f). CREDITOR – $272 owed. Paid (1.g). CREDITOR – $117 owed. Paid (1.h). TELECOMMUNICATIONS – $57 owed. Unpaid. Applicant contacted this creditor. He was told that the account was so old, no record of the debt was maintained (1.i). SUMMARY JUDGMENT REGARDING BOAT – $44,833 owed. Unpaid/Unresolved. This entry is related to a recreational boat purchased by Applicant and his ex-wife in 1992 (1.j). CREDITOR – $2,146 owed. Payment plan arranged. Applicant received a settlement offer from this creditor on January 4, 2010 (1.k). TELECOMMUNICATIONS – $314 owed. No evidence of payment. Applicant testified that he paid this balance “a long time ago,” but provided no evidence of payment (1.l). CREDITOR – $60. No evidence of payment. Applicant testified that he paid this balance, but provided no evidence of payment (1.m). CREDITOR – $3,082. No evidence of payment. Applicant provided evidence that he satisfied an account with this creditor, but his credit report notes that he has had more than one account with that creditor (1.n). CREDITOR – $2,283. Unpaid. Applicant is trying to determine the status and origin of this obligation (1.o). CREDITOR – $301 owed. Paid. Applicant stated that he paid this balance a number of years ago through a settlement offer (1.p). CREDITOR (MEDICAL) – $1,149 owed. No evidence of payment. Applicant testified that while he is willing to pay this debt, he “has done everything in [his] power to find out who this is owed to [but] hasn’t been able to identify the creditor on [it.].” (1.q). PUBLISHING ACCOUNT – $93. No evidence of payment. Applicant has been aware of this entry on his credit report “for a while,” but has never ordered anything from this company (1.r). TELECOMMUNICATIONS – $587. No evidence of payment. Applicant provided evidence of payment to this entity which he then believed showed payment of the debt at issue (1.s). CREDITOR (MEDICAL) – $264. Unpaid. Applicant has tried to identify this creditor, but has been “unable to discover any additional information” regarding this debt (1.t).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: Applicant failed to provide evidence of timely payments or resolution of significant debts; Most debts were incurred and remained delinquent for several years without adequate effort to address them; Applicant did not seek financial counseling or demonstrate a good-faith effort to repay overdue creditors.
Why the Applicant Was Denied
- Applicant failed to provide evidence of timely payments or resolution of significant debts.
- Most debts were incurred and remained delinquent for several years without adequate effort to address them.
- Applicant did not seek financial counseling or demonstrate a good-faith effort to repay overdue creditors.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Behavior Were Largely Beyond the Person’s Control
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemApplicant failed to begin or complete financial counseling before the record closed.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant provided minimal evidence of payments and did not demonstrate significant progress on debts.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedSep 9, 2009
- Answer filedOct 9, 2009Undated response received.
- Hearing heldDec 18, 2009
- Decision dateMar 16, 2010
Cite For
- Financial Considerations Security Concerns Under Guideline F
- Burden of Proof on the Applicant to Mitigate Financial Issues
- Importance of Providing Documentary Evidence for Debt Resolution