Summary
A 46-year-old electrical technician was denied a security clearance under Guideline F, Financial Considerations, due to over $11,000 in delinquent debts. The Statement of Reasons alleged the applicant owed $11,069 across four delinquent credit card accounts, and an additional $337 from two medical debts and one utility account. These issues raised disqualifying conditions under Adjudicative Guidelines ¶¶ 19(a), 19(b), and 19(c).
While the applicant acknowledged his financial difficulties, attributing them to a divorce and failed investments, he did not provide sufficient evidence to mitigate the concerns. Specifically, he failed to demonstrate a good-faith effort to resolve his debts, offer evidence of financial counseling, or present a budget to show future solvency.
Despite the consideration of mitigating conditions under Adjudicative Guidelines ¶¶ 20(a), 20(b), 20(c), and 20(d), the applicant's inability to repay the over $11,000 in delinquent debt and lack of a clear resolution plan led to the determination that he posed a risk to national security. The security clearance was therefore denied.
Why the Applicant Was Denied
- Applicant incurred over $11,000 in delinquent debt that he remains unable to repay.
- He did not provide evidence of financial counseling or a budget to demonstrate future solvency.
- Applicant failed to show a good-faith effort to resolve his debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Unlikely to RecurApplicant's financial issues are ongoing and have not been resolved.
- AG ¶ 20(b)rejectedConditions Largely Beyond ControlWhile some circumstances were beyond his control, the applicant's poor financial decisions contributed to his situation.
- AG ¶ 20(c)rejectedReceived Financial CounselingNo evidence of financial counseling was provided.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsInsufficient evidence of a good-faith effort to resolve debts.
Key Rule Quoted
“Failure 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 or sensitive information.”
Procedural Posture
- SOR issuedMar 25, 2016
- Answer filedApr 12, 2016
- Hearing held—Decided on the written record without a hearing.
- Decision dateJun 21, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Distress on National Security Eligibility
- Insufficient Evidence of Mitigation Under Guideline F