Summary
A 45-year-old naturalized U.S. citizen from Nigeria, employed by a Department of Defense contractor, was denied a security clearance under Guideline F (Financial Considerations). The denial stemmed from 33 delinquent accounts totaling approximately $49,126. These included various collection accounts for medical bills, cell phone services, satellite television, and credit cards, as well as several charged-off credit card accounts and a judgment. The earliest delinquency was recorded in April 2000, and the latest in October 2007.
The Statement of Reasons detailed each of the 33 delinquent accounts, ranging from $54 to $9,327. Disqualifying conditions related to an inability to meet financial obligations and a history of not meeting them were raised. While mitigating conditions such as the debt not being recent, the circumstances being largely beyond the applicant's control, and the applicant having initiated a good-faith effort to resolve the debts were considered, they were not sufficient.
The judge determined that the applicant failed to provide adequate evidence to mitigate the financial concerns. Specifically, the applicant did not offer proof of current financial status or demonstrate steps taken to resolve the outstanding debts. Additionally, the applicant denied several debts without providing explanations or supporting documentation. Consequently, the security clearance was denied.
Why the Applicant Was Denied
- The applicant had 33 delinquent accounts totaling approximately $49,126, indicating an inability to meet financial obligations.
- The applicant did not provide evidence of current financial status or steps taken to resolve debts.
- The applicant denied several debts without providing explanations or supporting 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 MC 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant did not provide information on the causes of financial problems or evidence of resolution.
- FC MC 20(b)rejectedConditions Largely Beyond ControlNo evidence suggested that the financial issues were beyond the applicant's control.
- FC MC 20(c)rejectedReceived Counseling for Financial ProblemsNo evidence of financial counseling was provided.
- FC MC 20(d)appliedGood-faith Effort to Repay CreditorsApplied only to one debt that was paid; overall debts remained unresolved.
- FC MC 20(e)rejectedReasonable Basis to Dispute DebtsThe applicant denied debts without providing explanations or documentation.
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 issuedNov 15, 2007
- Answer filedDec 5, 2007Requested decision on written record.
- Hearing held—No hearing; decided on written record.
- Decision dateMay 2, 2008
Cite For
- Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
- Failure to Provide Evidence of Financial Stability or Resolution of Debts
- Impact of Financial Irresponsibility on Security Clearance Eligibility