Summary
A 48-year-old training specialist and retired Navy chief was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant admitted to 21 delinquent debts, including collection accounts for a cell phone, medical services, and a sports store, as well as charged-off accounts for a university, an automobile loan, and a health club. Additionally, he had multiple past-due credit card debts and several judgments, including one for a furniture company and another for a landlord.
While the judge found no intentional falsification on his security clearance application regarding financial questions, the applicant's financial irresponsibility was a significant concern. He failed to demonstrate a systematic method for managing his debts or provide evidence of a good-faith effort to resolve them.
The applicant's intention to file for Chapter 13 bankruptcy did not sufficiently mitigate the concerns. Ultimately, the judge concluded that the applicant's financial issues raised questions about his reliability and trustworthiness, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant admitted to 21 delinquent debts, indicating financial irresponsibility.
- He failed to provide a systematic method for managing his debts or evidence of a good-faith effort to resolve them.
- The applicant's financial issues raised questions about his reliability and trustworthiness.
Conditions Referenced
- FC DC ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- FC DC ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- PC DC AG ¶ 16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant and Material Facts
- FC MC ¶ 20(d)rejectedThe Individual Has Initiated a Good-faith Effort to Repay the Overdue Creditors or Otherwise Resolve DebtsThe applicant filed for bankruptcy but had not established a track record of debt payment.
- FC MC ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlThe applicant did not provide specifics on how his circumstances impacted his ability to pay debts.
- FC MC ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant had 21 ongoing debts, indicating a pattern of financial irresponsibility.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedNov 29, 2007
- Answer filedDec 24, 2007Mistakenly dated December 24, 2006.
- Hearing heldMay 1, 2008
- Decision dateJun 23, 2008
Cite For
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- Incomplete Financial Disclosures Raising Personal Conduct Concerns Under Guideline E
- The Importance of Demonstrating a Good-faith Effort to Resolve Financial Issues for Security Clearance Eligibility