Summary
A 42-year-old information systems engineer was denied a security clearance under Guideline F, Financial Considerations, due to an unresolved debt of approximately $146,000. This debt originated from a failed business venture, and while the applicant acknowledged the obligation, the security concerns centered on insufficient efforts to resolve it.
The Statement of Reasons alleged an unsatisfied judgment of $168,000, though evidence confirmed the balance due was $146,625. Disqualifying conditions under Guideline F, specifically AG ¶ 19(a) and AG ¶ 19(c), were raised. Mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were considered.
Ultimately, the clearance was denied because the significant unresolved debt raised concerns about the applicant's reliability and trustworthiness. The applicant's settlement offers were deemed unrealistic and insufficient, indicating a lack of good faith effort. Furthermore, the applicant had not taken reasonable measures to address the debt, which cast doubt on his judgment and ability to manage financial obligations.
Why the Applicant Was Denied
- The applicant has a significant unresolved debt of approximately $146,000, which raises concerns about his reliability and trustworthiness.
- The applicant's offers to settle the debt were deemed unrealistic and insufficient, indicating a lack of good faith effort to resolve the financial issue.
- The applicant has not taken reasonable measures to address the debt, which raises doubts about his judgment and ability to manage financial obligations.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(a)appliedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant incurred the debt almost seven years ago and it was a single incident.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant made a deliberate decision to borrow money and buy the business.
- AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the Problem And/or Clear Indications That the Problem Is Being Resolved or Is Under ControlThere is no evidence that the applicant's financial problem is being resolved.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant's settlement offers were not reasonable and he has not taken significant action to resolve the debt.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the revised adjudicative guidelines (AG).”
Procedural Posture
- SOR issuedSep 15, 2008
- Answer filedOct 13, 2008
- Hearing heldDec 18, 2008
- Decision dateJan 30, 2009
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Insufficient Good Faith Efforts to Resolve Debts as a Basis for Denial
- Impact of Financial Irresponsibility on Security Clearance Eligibility