Summary
The applicant, a 52-year-old government contractor, faced security clearance denial under Guideline F due to significant unresolved financial delinquencies totaling approximately $32,000. Despite attributing his financial issues to past unemployment, he failed to provide evidence of any efforts to resolve his debts or demonstrate responsible financial behavior, leading to the conclusion that he did not mitigate the security concerns.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant was indebted on a charged-off account in the amount of $14,982 (1.a). Applicant was indebted on a charged-off account in the amount of $6,700 (1.b). Applicant was indebted on a delinquent account in the amount of $3,760 (1.c). Applicant was indebted on a collection account in the amount of $3,011 (1.d). Applicant was indebted on a collection account in the amount of $561 (1.e). Applicant was indebted on a charged-off account in the amount of $514 (1.f). Applicant was indebted on a collection account in the amount of $2,910 (1.g). Applicant was indebted on a medical collection account in the amount of $273 (1.h).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b). The decision turned on the following: Applicant is indebted to eight creditors totaling approximately $32,000; Applicant failed to produce documentation showing resolution of any delinquencies; No evidence of financial counseling or character references was submitted.
Why the Applicant Was Denied
- Applicant is indebted to eight creditors totaling approximately $32,000.
- Applicant failed to produce documentation showing resolution of any delinquencies.
- No evidence of financial counseling or character references was submitted.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's ControlApplicant's unemployment was beyond his control, but he did not act responsibly regarding his debts.
Key Rule Quoted
“Failure to live within one's means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual's reliability, trustworthiness, and ability to protect classified or sensitive information.”
Procedural Posture
- SOR issuedJul 12, 2016
- Answer filedSep 10, 2016
- Hearing held—Decided on the written record without a hearing.
- Decision dateAug 10, 2017
Cite For
- Denial of Security Clearance Due to Unresolved Financial Delinquencies
- Failure to Demonstrate Responsible Financial Behavior
- Impact of Financial Issues on Reliability and Trustworthiness Under Guideline F