Summary
A 57-year-old logistics management analyst was denied a security clearance under Guideline F (Financial Considerations) due to multiple unresolved financial issues. The Statement of Reasons detailed several delinquent debts, including two judgments: one for $2,770 filed in June 2014 and another for $4,883 filed in July 2012, both reflected in his October 2015 credit report. Additionally, a delinquent medical bill for $148 appeared on his March 2015 and June 2016 credit reports, and a credit card account was charged off for $6,555 in April 2010, as shown in his October 2015 report.
The judge found that the applicant failed to provide sufficient evidence to mitigate these financial concerns. Specifically, he did not submit documentation of payment agreements, proof of financial counseling, or demonstrate a good-faith effort to resolve the debts. The applicant also did not dispute the legitimacy of any of the outstanding obligations.
Given the presence of multiple unsatisfied debts and the lack of mitigating evidence, the security clearance was denied.
Why the Applicant Was Denied
- The applicant had multiple unsatisfied debts, including judgments and a charged-off credit card account.
- He failed to provide documentation of payment agreements or evidence of financial counseling.
- The applicant did not dispute the legitimacy of the debts or demonstrate a good-faith effort to resolve them.
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 Unlikely to RecurThe applicant's delinquent debts are recent and numerous.
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlThe applicant did not provide sufficient information regarding the circumstances of the debts.
- AG ¶ 20(c)rejectedFinancial Counseling ReceivedThe applicant submitted no evidence of financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant provided no evidence of payments on the debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute DebtThe applicant did not attempt to identify or dispute the debts.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedJun 20, 2016
- Answer filedJul 16, 2016Requested decision on the record without a hearing.
- Hearing held—No hearing; decision made on the record.
- Decision dateJul 14, 2017
Cite For
- Failure to Provide Evidence of Financial Responsibility Under Guideline F
- Insufficient Documentation to Mitigate Financial Concerns
- Importance of Demonstrating Good-faith Efforts to Resolve Debts