Summary
The applicant, a 47-year-old former Navy service member and current defense contractor, faced security clearance denial under Guideline F due to significant unresolved financial issues totaling approximately $36,000. Despite some debts being satisfied through garnishment, the applicant failed to demonstrate a credible plan for managing and repaying his debts, leading to concerns about his reliability and judgment.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: There are two judgments for late payment of apartment rent for the same apartment for $1,101 (1.a). There are two judgments for late payment of apartment rent for the same apartment for $1,040 (1.b). There is a judgment for a car repair bill of $1,810 (1.c). There are judgments on loans from different financial companies for $2,278 (1.d). There are judgments on loans from different financial companies for $1,911 (1.e). There are judgments on loans from different financial companies for $1,995 (1.f). There are judgments for medical debts of $389 (1.g). There are judgments for medical debts of $290 (1.h). There are judgments for medical debts of $713 (1.i). There are judgments for medical debts of $190 (1.j). There is a debt for Applicant’s state in collection for $3,323 (1.k). There is a charged-off debt for $2,370 (1.l). There is a charged-off credit card debt for $432 (1.m). There is an account more than 120 days past due for $2,043 (1.n). There is a debt to a bank more than 120 days past due for $850 (1.o). There is a debt in collection for $9,531 (1.p). There is a credit card debt in collection for $1,514 (1.q). There is a medical debt in collection for $534 (1.r). There is a television service debt in collection for $215 (1.s). There is a child support account in arrears for $3,474 (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(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: The applicant did not present sufficient information to mitigate financial security concerns; The applicant's financial issues stemmed from poor money management and were exacerbated by personal circumstances such as divorce and child support obligations; The applicant failed to provide credible evidence of a reasonable plan to resolve his debts or a track record of voluntary debt repayment.
Why the applicant was denied
- The applicant did not present sufficient information to mitigate financial security concerns.
- The applicant's financial issues stemmed from poor money management and were exacerbated by personal circumstances such as divorce and child support obligations.
- The applicant failed to provide credible evidence of a reasonable plan to resolve his debts or a track record of voluntary debt repayment.
Conditions referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happens so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurThe applicant's financial problems are recent and numerous.
- AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlWhile some circumstances were beyond the applicant's control, the underlying issue was poor money management.
- AG ¶ 20(c)rejectedReceived or Receiving Counseling for the ProblemThe applicant did not provide evidence of receiving financial counseling.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsThe applicant did not demonstrate a systematic method of handling debts or a meaningful track record of debt payment.
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 issuedDec 6, 2015
- Answer filedDec 18, 2015
- Hearing heldOct 27, 2016
- Decision dateFeb 3, 2017
Cite for
- Insufficient Evidence of Financial Responsibility Under Guideline F
- Impact of Poor Money Management on Security Clearance Eligibility
- Importance of Demonstrating a Credible Debt Repayment Plan in Security Clearance Cases