Summary
The applicant, a 37-year-old part-time employee of a defense contractor, faced security concerns under Guideline F due to multiple delinquent debts totaling over $100,000. Despite some payments made on certain debts, the applicant's ongoing financial issues and lack of financial counseling led to the denial of his security clearance application.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: allege medical debts totaling about $1,208 (1.a). allege medical debts totaling about $1,208 (1.b). debts have been deleted from his credit report because they were his wife’s medical bills (1.c). debts have been deleted from his credit report because they were his wife’s medical bills (1.d). delinquent debt of $11,963 (1.e). delinquent debt of $211 (1.f). delinquent debts totaling $5,906 (1.g). delinquent debt of $11,963 (1.h). lost his home to foreclosure in 2005, owed about $101,500 on the mortgage (1.k). delinquent debt of $211 (1.l). delinquent debt of $95 to a jeweler (1.m).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(e). The decision turned on the following: The applicant has not mitigated the Financial Considerations security concerns; The applicant has ongoing financial issues and has not made payments on most of the debts alleged in the SOR; The applicant voluntarily left his previous job, which contributed to his financial difficulties.
Why the Applicant Was Denied
- The applicant has not mitigated the Financial Considerations security concerns.
- The applicant has ongoing financial issues and has not made payments on most of the debts alleged in the SOR.
- The applicant voluntarily left his previous job, which contributed to his financial difficulties.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant provided testimony that some medical debts were incurred by his wife and were deleted from his credit report.
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 3, 2008
- Answer filedNov 3, 2008
- Hearing heldApr 8, 2009
- Decision dateApr 30, 2009
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Voluntary Job Resignation on Financial Stability
- Consideration of the Whole Person Concept in Security Clearance Decisions