Summary
A 40-year-old single man, employed by a defense contractor, was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The Statement of Reasons (SOR) detailed multiple financial delinquencies, including six accounts totaling $6,635 submitted for collection, two accounts totaling $4,402 that resulted in judgments, and one account owing $679 charged off as bad debt.
Additionally, the SOR alleged the applicant deliberately falsified his June 2007 security clearance application by failing to disclose the two judgments against him. These issues raised Disqualifying Conditions 19(a) and 19(c).
Despite the application of Mitigating Conditions 20(b), 20(c), and 20(d), the applicant failed to provide sufficient evidence of a repayment plan or to adequately explain the reasons for his financial irresponsibility. The decision concluded that the applicant did not mitigate the security concerns, leading to the denial of his security clearance.
Why the Applicant Was Denied
- Applicant has multiple delinquent debts totaling over $11,000 that have remained unresolved for years.
- Applicant failed to provide a clear repayment plan or evidence of financial counseling.
- Applicant's financial irresponsibility raises concerns about his reliability and trustworthiness.
Conditions Referenced
- DC 19(a)raisedInability or Unwillingness to Satisfy Debts
- DC 19(c)raisedA History of Not Meeting Financial Obligations
- MC 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlApplicant has been continuously employed since January 2001, and the debts became delinquent during this period.
- MC 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemApplicant's vague statements about debt counseling do not provide sufficient evidence of a repayment plan.
- MC 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant did not demonstrate a good-faith effort to resolve the debts.
Key Rule Quoted
“The clearly consistent standard indicates that security clearance determinations should err, if they must, on the side of denials.”
Procedural Posture
- SOR issuedApr 16, 2008
- Answer filedJun 5, 2008Applicant admitted all Guideline F allegations and denied the sole Guideline E allegation.
- Hearing held—Applicant requested a decision based on the written record without a hearing.
- Decision dateNov 5, 2008
Cite For
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- Failure to Provide Evidence of Debt Repayment Plans as a Basis for Denial
- The Importance of Full Disclosure in Security Clearance Applications Under Guideline E