Summary
The applicant, a 53-year-old field program manager and former U.S. Marine Corps colonel, sought a security clearance but was denied due to unresolved financial obligations under Guideline F. Despite acknowledging some debts, he failed to provide evidence of efforts to mitigate these financial issues, leading to concerns about his reliability and trustworthiness.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: In Applicant’s December 2014 Electronic Questionnaires for Investigations Processing (e-QIP), he indicated he owed the creditor listed in SOR 1.g $10,000. He indicated the debt was due to job loss. He also indicated that he was negotiating with the creditor to establish a payment plan since he had obtained a new job in November 2014 (1.a). In Applicant’s March 2015 enhanced subject interview he was questioned about his delinquent obligations. During that interview he stated he had lost his sub-contractor job and was self-employed. The prime contractor had not provided any notice prior to termination of his job. He was attempting to establish a payment plan with the mortgage holder to repay approximately $50,000 that was 180 days or more past due (SOR 1.g). The balance on the mortgage was $468,000 (1.b). Applicant was unfamiliar with the medical debts listed in SOR 1.a ($367) and 1.c ($108). He stated he would contact the creditors and hoped to have the debt resolved by the end of 2015 (1.c). Applicant denies having a mortgage with the company listed in SOR 1.d. His credit reports show he had a mortgage with the company, which was agreeably paid. The credit reports indicate there is a $531 balance, however, no amount is indicated as past due (1.d). The amount past due for the debt listed in SOR 1.e ($14,482) is $3,966 and the amount past due on the debt listed in SOR 1.h ($23,763) is $5,461 as of January 2016. The SOR listed the balance of these two debts not the past-due amount. Even though the amount past due is considerable less than the balance on the debts the approximately $9,500 past-due amount has yet to be paid and still remains a security concern (1.e). He disagreed with the debt listed in SOR 1.f ($10,188) stating he had paid the debt in full in December 2013 with a loan from his 401(k) retirement plan. He was not familiar with the debts in SOR 1.i ($4,516) and SOR 1.j ($112) owed the same creditor. He stated he would contact the creditor and if the debts were legitimate debts, he would pay them (1.f). Applicant’s debts remain unpaid, obtaining the delinquent obligation did not occur under unusual conditions, and the failure to timely pay those obligations is not an unusual condition unlikely to recur (1.g). The debts in SOR 1.i ($4,516) and SOR 1.j ($112) were not discussed during the interview. He disagreed with the debt listed in SOR 1.f ($10,188) stating he had paid the debt in full in December 2013 with a loan from his 401(k) retirement plan. He was not familiar with the debts in SOR 1.i ($4,516) and SOR 1.j ($112) owed the same creditor. He stated he would contact the creditor and if the debts were legitimate debts, he would pay them (1.h). Applicant was unfamiliar with the medical debts listed in SOR 1.a ($367) and 1.c ($108). He stated he would contact the creditors and hoped to have the debt resolved by the end of 2015 (1.i). Applicant denies having a mortgage with the company listed in SOR 1.d. His credit reports show he had a mortgage with the company, which was agreeably paid. The credit reports indicate there is a $531 balance, however, no amount is indicated as past due (1.j).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), 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 failed to provide evidence of efforts to resolve delinquent debts; Applicant did not submit documentation to support claims of payment or repayment plans; The applicant's financial issues raised concerns about his reliability and trustworthiness.
Why the Applicant Was Denied
- Applicant failed to provide evidence of efforts to resolve delinquent debts.
- Applicant did not submit documentation to support claims of payment or repayment plans.
- The applicant's financial issues raised concerns about his reliability and trustworthiness.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- 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 issues are ongoing and have not been resolved.
- AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlWhile divorce and unemployment impacted finances, the applicant has not taken responsible steps to address debts.
- AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the ProblemNo evidence of financial counseling was provided.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsApplicant did not demonstrate any good-faith efforts to resolve debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtApplicant did not provide documented proof to substantiate disputes over debts.
Key Rule Quoted
“An applicant is not required to be debt free, but is required to manage his finances to meet his financial obligations.”
Procedural Posture
- SOR issuedFeb 6, 2016
- Answer filedMar 31, 2016Applicant elected to proceed without a hearing.
- Hearing held—Decision made based on written record.
- Decision dateJul 27, 2017
Cite For
- Failure to Mitigate Financial Obligations Under Guideline F
- Importance of Providing Evidence of Financial Responsibility
- Impact of Unresolved Debts on Security Clearance Eligibility