Summary
A 50-year-old defense contractor and U.S. Navy veteran was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from over $106,315 in unresolved delinquent debts, which included medical, credit card, and a charged-off second mortgage. Specifically, the applicant owed $166 to a medical provider, $81,695 on a second mortgage, and $24,454 across three delinquent credit card accounts.
Disqualifying conditions F.1.a, F.1.b, and F.1.c were raised, while mitigating conditions F.2.a, F.2.b, F.2.c, and F.2.d were considered. However, the judge determined that the applicant had incurred substantial delinquent debts he remained unable to repay.
The applicant failed to provide sufficient documentation of efforts to resolve these debts or participation in financial counseling. Consequently, the judge found no clear indications that the applicant's financial problems were under control, leading to the conclusion that granting clearance was not consistent with national security interests. The security clearance was therefore DENIED.
Why the Applicant Was Denied
- Applicant incurred over $106,315 in delinquent debts that he remains unable to repay.
- Applicant failed to provide documentation showing efforts to resolve his debts or financial counseling.
- The judge found no clear indications that the applicant's financial problems were under control.
Conditions Referenced
- F.1.araisedInability to Satisfy Debts
- F.1.braisedUnwillingness to Satisfy Debts Regardless of the Ability to Do So
- F.1.craisedHistory of Not Meeting Financial Obligations
- F.2.arejectedBehavior Happened so Long Ago, Was Infrequent, or Occurred Under Circumstances Unlikely to RecurThe applicant's financial issues are recent and ongoing.
- F.2.brejectedConditions Largely Beyond the Person's ControlInsufficient evidence to establish causation or responsible action.
- F.2.crejectedReceived Financial Counseling From a Legitimate SourceNo evidence of credible financial counseling provided.
- F.2.drejectedGood-faith Effort to Repay Overdue CreditorsNo documentation of efforts to address delinquent accounts.
Key Rule Quoted
“Any doubt concerning personnel being considered for national security eligibility will be resolved in favor of the national security.”
Procedural Posture
- SOR issuedJun 7, 2016
- Answer filedJul 8, 2016
- Hearing held—Decided on the written record without a hearing.
- Decision dateJun 21, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Insufficient Evidence of Financial Responsibility Under Guideline F
- Impact of Financial Distress on National Security Eligibility