Summary
A 46-year-old defense contractor employee was denied a security clearance under Guideline F, Financial Considerations, due to significant delinquent debts. The Statement of Reasons detailed multiple outstanding obligations, including 18 delinquent medical debts totaling $4,202, utility bills and an apartment cleaning fee amounting to $660, and several other delinquent debts totaling approximately $22,000. One debt of $7,383 was resolved in 2005.
Disqualifying conditions were raised under Adjudicative Guideline (AG) ¶ 19(a) and AG ¶ 19(c). While mitigating conditions AG ¶ 20(b), AG ¶ 20(d), and AG ¶ 20(e) were considered, they were not sufficient to overcome the concerns.
The denial was based on the finding that the applicant's substantial delinquent debts, which he did not plan to repay for at least another year, presented an unmitigated financial risk. The applicant disputed some debts but failed to provide supporting documentation. Furthermore, the judge noted the applicant's tenuous financial situation, compounded by ongoing family obligations and informal debts.
Why the Applicant Was Denied
- The applicant has significant delinquent debts totaling approximately $22,000, which he does not intend to repay for at least another year.
- The applicant disputes the legitimacy of some debts but provided no documentation to substantiate these claims.
- The applicant's financial situation remains tenuous with ongoing family obligations and informal debts.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's Control
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue CreditorsThe applicant is making payments on some debts but does not intend to resume payments on SOR-listed debts for at least a year.
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not provide documented proof to substantiate the basis of the disputes.
Key Rule Quoted
“"Failure or inability 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 information."”
Procedural Posture
- SOR issuedMay 25, 2007
- Answer filedJul 3, 2007Applicant admitted some allegations and denied others.
- Hearing heldAug 28, 2007
- Decision dateSep 25, 2007
Cite For
- Denial of Clearance Due to Significant Delinquent Debts Under Guideline F
- Impact of Financial Instability on Security Clearance Eligibility
- Consideration of Mitigating Conditions Related to Financial Issues