Summary
The applicant, a 48-year-old defense contractor, faced security clearance denial under Guideline F due to unresolved financial delinquencies totaling over $21,600. Despite resolving three debts, he failed to provide documentation for five remaining delinquencies, raising concerns about his reliability and judgment.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant is indebted to a collection agent on a judgment filed against him in August 2011, in the amount of $4,455 (1.a). Applicant was indebted to a law office on a judgment filed against him in September 2013, in the amount of $3,506 (1.b). Applicant was indebted to a bank for a delinquent credit card in the amount of $6,909 (1.c). Applicant is indebted to a collection agent on a delinquent medical account in the approximate amount of $232 (1.d). Applicant is indebted to a collection agent on a delinquent credit card debt in the amount of $1,973 (1.e). Applicant is indebted to a collection agent on a delinquent credit card debt in the amount of $4,238 (1.f). Applicant is indebted to a collection agent on a delinquent medical account in the approximate amount of $125 (1.g). Applicant is indebted debt for a water cooler he purchased five to six years ago in the amount of $201 (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(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: Applicant has unresolved debts totaling over $21,600, indicating financial irresponsibility; He failed to demonstrate a reasonable effort to address his financial delinquencies since gaining employment in 2013; No evidence of financial counseling or a household budget was provided, leaving doubts about his financial management.
Why the Applicant Was Denied
- Applicant has unresolved debts totaling over $21,600, indicating financial irresponsibility.
- He failed to demonstrate a reasonable effort to address his financial delinquencies since gaining employment in 2013.
- No evidence of financial counseling or a household budget was provided, leaving doubts about his financial management.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile circumstances like divorce and unemployment were cited, the applicant did not act responsibly after gaining employment.
- AG ¶ 20(c)rejectedReceived or Receiving CounselingNo evidence of financial counseling was provided.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant did not demonstrate timely actions to address his debts.
- AG ¶ 20(e)rejectedDispute Legitimacy of DebtsNo documented proof of disputes or actions to resolve issues was presented.
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 issuedMay 16, 2016
- Answer filedJun 21, 2016
- Hearing heldSep 14, 2016Hearing convened as scheduled.
- Decision dateNov 28, 2016
Cite For
- Denial of Security Clearance Due to Unresolved Financial Delinquencies Under Guideline F
- Importance of Demonstrating Financial Responsibility for Security Clearance Eligibility
- Impact of Lack of Documentation on Mitigating Financial Concerns