Summary
A 39-year-old integration mechanical engineer was denied a security clearance due to significant delinquent debts totaling over $96,000, falling under Guideline F (Financial Considerations). The Statement of Reasons detailed several specific allegations, including a credit card account 180 days past due with a balance of $11,714, and three other delinquent accounts placed for collection: one for approximately $4,074 in November 2015, another for about $12,687 also in November 2015, and a third for approximately $11,100 in March 2010.
Disqualifying conditions AG ¶ 19(a) and AG ¶ 19(c) were raised, while mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e) were considered.
Ultimately, the clearance was denied because the applicant admitted to the multiple delinquent debts but failed to present a clear plan for their resolution. The applicant also did not seek financial counseling or demonstrate that his financial problems were under control, leading to concerns about his reliability and judgment.
Why the Applicant Was Denied
- The applicant admitted to multiple delinquent debts and failed to provide a clear plan for resolving them.
- The applicant did not seek financial counseling or demonstrate that his financial problems were under control.
- The applicant's financial irresponsibility raised serious doubts about his reliability and good judgment.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- 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 RecurThe applicant's delinquent debts are numerous and recent.
- AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlThe applicant's inability to resolve the debts was not largely due to conditions beyond his control.
- AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the ProblemThe applicant has not sought or received financial counseling.
- AG ¶ 20(d)appliedInitiated a Good-faith Effort to Repay Overdue CreditorsThe applicant has resolved one debt but not the others.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant has not disputed any of the debts alleged in the SOR.
Key Rule Quoted
“Once a concern arises regarding an Applicant’s security clearance eligibility, there is a strong presumption against the grant or maintenance of a security clearance.”
Procedural Posture
- SOR issuedJun 3, 2016
- Answer filedJun 16, 2016
- Hearing held—Decision made on the record without a hearing.
- Decision dateNov 15, 2016
Cite For
- Denial of Security Clearance Due to Significant Financial Irresponsibility Under Guideline F
- Importance of Demonstrating a Clear Plan for Debt Resolution in Security Clearance Cases
- Presumption Against Granting Security Clearance When Concerns Arise Regarding Eligibility.