Summary
A 61-year-old male applicant was denied a security clearance under Guideline F (Financial Considerations) due to unresolved financial issues. The Statement of Reasons detailed several debts, including two charged-off accounts totaling $14,066 and $7,374 respectively, a $26 resolved debt, and a $579 past-due amount on a $21,439 balance. These issues raised disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c).
The applicant acknowledged financial difficulties, citing unemployment and a bankruptcy filing, and noted that some delinquent student loans were co-signed for his children. However, the judge found that the applicant did not demonstrate sufficient responsible actions to resolve his debts.
Specifically, the denial was based on the applicant's unwillingness to satisfy delinquent debts, his mistaken belief that co-signed debts were solely his children's responsibility, and a lack of evidence showing efforts to resolve or pay these outstanding obligations. While mitigating conditions under AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were considered, the applicant ultimately failed to mitigate the security concerns.
Why the Applicant Was Denied
- Applicant has delinquent debts that he is unwilling to satisfy.
- He mistakenly believes that the debts co-signed for his children are their sole responsibility.
- Applicant has not provided evidence of efforts to resolve or pay the delinquent debts.
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 Beyond the Person's ControlWhile the applicant attributed his financial problems to unemployment, he did not act responsibly regarding his legal obligations.
- AG ¶ 20(c)appliedReceived Counseling for the ProblemApplicant participated in financial counseling as part of his bankruptcy.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsApplicant resolved only one minor debt and did not show efforts to address the other delinquent debts.
Key Rule Quoted
“Failure or inability 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 information.”
Procedural Posture
- SOR issuedJun 16, 2016
- Answer filedJun 29, 2016Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; decided on written record.
- Decision dateMay 31, 2017
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Importance of Legal Obligations in Financial Matters
- Impact of Bankruptcy on Security Clearance Eligibility