Summary
A 33-year-old ship fitter and Navy veteran was denied a security clearance under Guideline F, Financial Considerations, due to nine delinquent debts totaling $56,804. The Statement of Reasons (SOR) detailed these debts, which included four charged-off or collection debts owed to the same bank for $7,561, $2,888, $1,755, and $16,205.
Additionally, the applicant had three delinquent student loan debts for $6,901, $4,147, and $4,978, a judgment owed to a utility company for $4,145, and a debt owed to a college that was placed for collection for $8,224. Disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a), (b), and (c) were raised.
Despite the applicant's partial admissions of responsibility and claims of making payments, the denial was based on a lack of sufficient documentary evidence to demonstrate resolution of the financial issues. The applicant's response to the SOR did not include corroborating documentation of payments or financial counseling, leading to the conclusion that the financial problems raised unmitigated questions about his reliability and trustworthiness. Mitigating conditions under AG ¶ 20(a), (b), (c), (d), and (e) were considered but ultimately not applied.
Why the Applicant Was Denied
- The applicant did not provide sufficient evidence of resolution of his financial issues.
- The applicant's response to the SOR did not include corroborating documentation of payments or financial counseling.
- The applicant's financial problems raised unmitigated questions 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 Recur
- AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's Control
- AG ¶ 20(c)rejectedReceived or Is Receiving Financial Counseling
- AG ¶ 20(d)rejectedInitiated and Is Adhering to a Good-faith Effort to Repay Overdue Creditors
- AG ¶ 20(e)rejectedHas a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedMay 9, 2016
- Answer filedMay 22, 2016Applicant did not request a hearing.
- Hearing held—
- Decision dateJul 24, 2017
Cite For
- Insufficient Evidence of Financial Responsibility Under Guideline F
- Importance of Corroborating Documentation in Financial Cases
- Burden of Proof on Applicant to Mitigate Financial Concerns