Summary
The applicant, a 37-year-old former Navy petty officer, faced security clearance denial under Guideline F due to significant financial issues, including multiple delinquent debts totaling approximately $13,000 and a prior Chapter 7 bankruptcy. The judge found that the applicant failed to provide sufficient evidence to mitigate the financial concerns, leading to a decision against granting security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: three credit card debts used to purchase personal items in collection to different creditors for $4,837 (1.a). three credit card debts used to purchase personal items in collection to different creditors for $4,105 (1.b). three credit card debts used to purchase personal items in collection to different creditors for $1,044 (1.c). a telephone debt in collection for $469 (1.d). a medical debt in collection for $125 (1.e). four communication debts in collection for $119 (1.f). four communication debts in collection for $95 (1.g). four communication debts in collection for $95 (1.h). a judgment for $1,005 for past due rent from 2010 (1.i). a Chapter 7 bankruptcy action that was filed in December 2008 with debts discharged in April 2009 (1.j). four communication debts in collection for $1,152 (1.k). a medical debt in collection for $138 (1.l).
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). The decision turned on the following: The applicant did not provide documentation to mitigate financial concerns; The applicant admitted to multiple delinquent debts incurred after a bankruptcy discharge; The applicant failed to demonstrate a good-faith effort to resolve his financial issues.
Why the Applicant Was Denied
- The applicant did not provide documentation to mitigate financial concerns.
- The applicant admitted to multiple delinquent debts incurred after a bankruptcy discharge.
- The applicant failed to demonstrate a good-faith effort to resolve his financial issues.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Unlikely to RecurThe applicant's recent debts were numerous and not incurred under circumstances making recurrence unlikely.
- AG ¶ 20(b)rejectedConditions Largely Beyond ControlThe applicant did not provide evidence of circumstances beyond his control leading to financial issues.
- AG ¶ 20(c)rejectedCounseling ReceivedThe applicant did not provide evidence of receiving financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant did not document any efforts to repay or resolve his debts.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedJun 7, 2016
- Answer filedJul 11, 2016Applicant admitted all allegations.
- Hearing held—Applicant elected to have the matter decided on the written record.
- Decision dateJul 27, 2017
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Failure to Provide Evidence of Debt Resolution Efforts
- Impact of Financial Issues on Trustworthiness and Reliability for Security Clearance Eligibility