Summary
A 60-year-old defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to a history of financial irresponsibility. The Statement of Reasons cited an educational loan in collection for $51,850, along with three separate instances of three consumer accounts in collection, each for $240, $196, and $145. These issues raised disqualifying conditions under Adjudicative Guidelines Paragraphs 19(a) and 19(c).
While mitigating conditions under Paragraphs 20(b), 20(c), and 20(d) were considered, the applicant failed to provide sufficient evidence to explain or mitigate the financial problems. Specifically, there was no evidence of a payment plan for the defaulted educational loan.
The judge concluded that the applicant's history of not meeting financial obligations, including the significant delinquent student loan, demonstrated a lack of reliability and trustworthiness. Consequently, the applicant was deemed unsuitable for access to classified information, and the security clearance was denied.
Why the applicant was denied
- The applicant failed to provide sufficient evidence to explain or mitigate his financial issues.
- The applicant has a history of not meeting financial obligations, including a significant delinquent student loan.
- There was no evidence of a payment plan in place for the defaulted educational loan.
Conditions referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant's financial problems were not due to conditions largely beyond his control.
- AG ¶ 20(c)rejectedClear Indications That the Problem Is Being ResolvedThere was no evidence that the financial problems were being resolved or under control.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not demonstrate a good-faith effort to repay overdue creditors.
Key rule quoted
“A security clearance adjudication is not a proceeding aimed at collecting an applicant's debts. Rather, it is a proceeding aimed at evaluating an applicant's judgment, reliability, and trustworthiness.”
Procedural posture
- SOR issuedApr 9, 2016
- Answer filedMay 3, 2016Requested decision based on written record without a hearing.
- Hearing held—No hearing; decision based on written record.
- Decision dateMar 23, 2017
Cite for
- Evaluation of Financial Considerations Under Guideline F
- Insufficient Evidence to Mitigate Financial Issues
- Importance of Demonstrating Reliability and Trustworthiness in Security Clearance Cases