Summary
The applicant, a 35-year-old defense contractor, sought a security clearance under Guideline F due to financial considerations. He admitted to being over $25,000 in debt, primarily from student loans, and failed to provide evidence of a plan to resolve these debts. The judge found that the applicant's financial irresponsibility indicated poor judgment and unreliability, leading to a denial of the security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: A delinquent debt to CBCS/MCI Com in the amount of $29.00 remains owing (1.a). A delinquent debt to EQUIDATA in the amount of $522.00 remains owing (1.b). A delinquent debt to HILCORECV/DOMINION in the amount of $187.00 remains owing (1.c). Two delinquent debts to SALLIE MAE in the amount of $2,625.00 and $4,000.00 remain owing (1.d). Two delinquent debts to the Department of Education in the amount of $4,065.00 and $3,282.00 remain owing (1.e). Two delinquent debts to AMS-SG in the amounts of $2,000.00 and $500.00 remain owing (1.f). A delinquent debt to US DEPT ED in the amount of $8,411.00 remains owing (1.g).
The judge denied the clearance. The government raised disqualifying conditions 19(a), 19(c). The decision turned on the following: The applicant has significant delinquent debts totaling over $25,000; He failed to demonstrate a plan or evidence to resolve his financial obligations; The applicant did not provide any evidence of financial rehabilitation or good faith efforts to repay debts.
Why the Applicant Was Denied
- The applicant has significant delinquent debts totaling over $25,000.
- He failed to demonstrate a plan or evidence to resolve his financial obligations.
- The applicant did not provide any evidence of financial rehabilitation or good faith efforts to repay debts.
Conditions Referenced
- 19(a)appliedInability or Unwillingness to Satisfy Debts
- 19(c)appliedA History of Not Meeting Financial Obligations
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 26, 2007Applicant elected to proceed without a hearing.
- Hearing held—Written record only.
- Decision dateApr 9, 2008
Cite For
- Financial Irresponsibility as a Basis for Security Clearance Denial
- Lack of Evidence for Financial Rehabilitation
- Impact of Financial Obligations on Reliability and Trustworthiness