Summary
A 50-year-old employee of a Department of Defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to a history of significant financial issues. The Statement of Reasons (SOR) detailed eight delinquent accounts, primarily charged-off credit cards, totaling approximately $92,732. These included a $5,866 account, a $7,139 account charged off in March 2002, a $3,500 account, a $60,045 account (originally $27,024), a $9,551 account, a $2,242 account, a $918 account, and a $3,471 account.
The applicant admitted to all allegations in the SOR, acknowledging a pattern of financial irresponsibility dating back to at least 1987. While some efforts were made to settle debts, the applicant did not provide sufficient evidence to dispute the legitimacy of the outstanding amounts or demonstrate active efforts to resolve most of them. Claims regarding the statute of limitations on certain debts also lacked adequate documentation.
Disqualifying conditions FC DC 19(a), FC DC 19(c), and FC DC 19(e) were raised, while mitigating conditions FC MC 20(a), FC MC 20(b), FC MC 20(c), FC MC 20(d), and FC MC 20(e) were considered. Ultimately, the applicant's failure to actively resolve most debts and provide substantiating evidence led to the denial of the security clearance.
Why the Applicant Was Denied
- The applicant admitted to all allegations in the SOR, demonstrating a history of financial irresponsibility since at least 1987.
- The applicant failed to provide sufficient evidence to dispute the legitimacy of the debts or to show that he actively sought to resolve them.
- The applicant's claims regarding the statute of limitations on debts were not substantiated with adequate documentation.
Conditions Referenced
- FC DC 19(a)appliedInability or Unwillingness to Satisfy Debts
- FC DC 19(c)appliedA History of Not Meeting Financial Obligations
- FC DC 19(e)appliedConsistent Spending Beyond One’s Means
- FC MC 20(a)rejectedBehavior Happened so Long Ago or Under Circumstances Unlikely to RecurThe applicant's financial irresponsibility dates back to 1987 and is ongoing.
- FC MC 20(b)rejectedConditions Beyond the Person's ControlWhile the applicant faced serious family health issues, most debts were consumer-related.
- FC MC 20(c)rejectedReceived Counseling for the ProblemNo evidence of financial counseling was provided.
- FC MC 20(d)rejectedGood-faith Effort to Repay CreditorsThe applicant only settled debts when contacted by creditors.
- FC MC 20(e)rejectedReasonable Basis to Dispute Legitimacy of DebtThe applicant did not provide documentation to support his claim regarding the disputed debt.
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 issuedOct 24, 2007
- Answer filedNov 28, 2007Applicant requested decision on written record.
- Hearing heldMar 5, 2008Assigned to judge.
- Decision dateFeb 27, 2008
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Consideration of the Whole Person Concept in Financial Cases