Summary
The applicant, a 51-year-old welder employed by a defense contractor, faced security concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to approximately $30,000 in delinquent debts. The judge found that the applicant failed to mitigate financial concerns, citing insufficient evidence of responsible financial management and lack of documentation regarding disputed debts. The applicant's personal conduct was not found to involve deliberate falsification, but the overall financial situation led to a denial of the security clearance.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: In his April 2015 SCA, Applicant denied that in the preceding seven years he had been subject to any adverse judgments, had any debts turned over to a collection agency, had debts charged-off for failing to pay as agreed, or been over 120 days delinquent on any debts (2.a). $14,204 past due on a home mortgage with an approximate total balance of $189,724. Offer extended; status unclear (1.a). $1,351 charged off account. Status unknown (1.b). $1,306 charged off account. Status unknown (1.c). $1,194 charged off account. Status unknown (1.d). $11,031 charged off account. Status unknown (1.e). $1,003 charged off account. Status unknown (1.f). $169 past due on an account with a total balance of $612. Paid (1.g). $255 collection account. Paid (1.h). $151 collection account. Paid (1.i). $8,026 adverse judgment. Status unknown (1.j). $407 charged off account. Plan initiated; one payment reflected (1.k).
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(d). The decision turned on the following: The applicant failed to provide sufficient evidence of responsible financial management; The applicant did not demonstrate a realistic plan for addressing his significant delinquent debts; The applicant's financial situation was described as 'not good' with minimal efforts documented toward debt resolution.
Why the Applicant Was Denied
- The applicant failed to provide sufficient evidence of responsible financial management.
- The applicant did not demonstrate a realistic plan for addressing his significant delinquent debts.
- The applicant's financial situation was described as 'not good' with minimal efforts documented toward debt resolution.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)raisedConditions Largely Beyond the Person's ControlThe applicant attributed his financial issues to adverse economic conditions affecting his business.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant made some payments toward his debts.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedJun 22, 2016
- Answer filedJul 28, 2016Notarized response admitting one allegation under Guideline F.
- Hearing held—
- Decision dateJun 2, 2017
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Insufficient Evidence of Responsible Financial Management
- Lack of a Realistic Plan for Addressing Delinquent Debts