Summary
The applicant, a 47-year-old government contractor and retired Army Master Sergeant, faced security clearance denial under Guideline F due to unresolved financial delinquencies exceeding $16,000, including a history of bankruptcy. Despite attributing his financial issues to circumstances beyond his control, he failed to provide sufficient documentation to mitigate concerns about his judgment and reliability.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant is indebted to a medical creditor on a collection account in the amount of $12, as alleged in SOR ¶ 1.a (1.a). Applicant is indebted on a charged-off account in the approximate amount of $8,097, as alleged in SOR ¶ 1.b (1.b). Applicant is indebted on a charged-off account in the approximate amount of $1,115, as alleged in SOR ¶ 1.c (1.c). Applicant was indebted on a collection account in the approximate amount of $349, as alleged in SOR ¶ 1.d (1.d). Applicant is indebted on a collection account in the approximate amount of $8,097, as alleged in SOR ¶ 1.e (1.e). Applicant was indebted on a charged-off account in the approximate amount of $3,177, as alleged in SOR ¶ 1.f (1.f). Applicant is alleged to be indebted on a collection account in the approximate amount of $1,632, as alleged in SOR ¶ 1.g (1.g). Applicant is alleged to be indebted on a collection account in the approximate amount of $288, as alleged in SOR ¶ 1.h (1.h).
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), AG ¶ 20(e). The decision turned on the following: Applicant has unresolved debts totaling over $16,000; He failed to document the resolution of five out of eight alleged delinquencies; The applicant's financial problems are ongoing and he has not demonstrated responsible management of his debts.
Why the Applicant Was Denied
- Applicant has unresolved debts totaling over $16,000.
- He failed to document the resolution of five out of eight alleged delinquencies.
- The applicant's financial problems are ongoing and he has not demonstrated responsible management of his debts.
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 Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurApplicant's financial problems are ongoing and he has a long history of delinquencies.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile circumstances were beyond his control, he failed to act responsibly with respect to his debts.
- AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the ProblemApplicant provided no evidence of financial counseling.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsApplicant has not demonstrated timely addressing of his debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtApplicant did not provide evidence of any formal dispute regarding his debts.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedMar 23, 2016
- Answer filedJun 16, 2016
- Hearing heldDec 20, 2016
- Decision dateApr 28, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Financial Delinquencies
- Impact of Bankruptcy on Security Clearance Eligibility
- Failure to Demonstrate Responsible Financial Management as a Disqualifying Factor