Summary
The applicant, a 38-year-old single male employed by a defense contractor, sought a security clearance under Guideline F concerning financial considerations. He admitted to over $30,000 in unpaid debts, including multiple medical bills and defaulted student loans, which raised concerns about his reliability and trustworthiness. The judge concluded that the applicant failed to mitigate the financial issues, resulting in a denial of his security clearance application.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The Applicant admits that he is indebted to a collection agency in the amount of $929 for a department store account since 2001. This debt has not been paid (1.a). The Applicant admits that he is indebted to a collection agency in the amount of $503 for a telephone bill since 2002. This debt has not been paid (1.b). The Applicant denies that he is indebted to a collection agency in the amount of $312 for a credit card account. He states in his Answer that this debt was paid. The Applicant did not submit any documentary evidence to support this statement. The most recent credit report in the file, dated September 30, 2008, shows this debt as being due and owing (1.c). The Applicant admits that he is indebted to a medical provider in the amount of $124 since 2002. This debt has not been paid (1.d). The Applicant admits that he is indebted to another medical provider in the amount of $425 since 2003. This debt has not been paid (1.e). The Applicant admits that he is indebted to a third medical provider in the amount of $200 since 2003. This debt has not been paid (1.f). The Applicant admits that he is indebted to a collection agency in the amount of $606 for a telephone bill since 2004. This debt has not been paid (1.g). The Applicant admits that he is indebted to a collection agency in the amount of $643 for a telephone bill since 2004. This debt has not been paid (1.h). The Applicant admits that he is indebted to a fourth medical provider in the amount of $237 since 2005. This debt has not been paid (1.i). The Applicant admits that he is indebted to a collection agency in the amount of $307 for a past due bill since 2005. This debt has not been paid (1.j). The Applicant admits that he is indebted to a fifth medical provider in the amount of $863 since 2006. This debt has not been paid (1.k). The Applicant admits that he is indebted to a sixth medical provider in the amount of $1,308 since 2007. This debt has not been paid (1.l). The Applicant admits that he is indebted to the Department of Education in the approximate amount of $9,873 for a defaulted student loan since 2007. This debt has not been paid. The Applicant states in Applicant’s Exhibit A at 5 that he has been in contact with the Department of Education about this debt, and will “determine immediate plans of action to make my account current.” (1.m). The Applicant admits that he is indebted to the Department of Education in the approximate amount of $14,475 for a defaulted student loan since 2007. This debt has not been paid. The Applicant states in Applicant’s Exhibit A at 5 that he has been in contact with the Department of Education about this debt, and will “determine immediate plans of action to make my account current.” (1.n).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c). The decision turned on the following: The applicant admitted to being financially overextended with over $30,000 in unpaid debts; He failed to provide evidence of resolving his debts or acting responsibly regarding his financial obligations; The applicant's history of not paying debts raised concerns about his reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant admitted to being financially overextended with over $30,000 in unpaid debts.
- He failed to provide evidence of resolving his debts or acting responsibly regarding his financial obligations.
- The applicant's history of not paying debts raised concerns about his reliability and trustworthiness.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's financial difficulties have persisted for several years.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant has been employed since 2005 and did not act responsibly regarding his debts.
- AG ¶ 20(c)rejectedClear Indications That the Problem Is Being Resolved or Under ControlThe applicant's intentions to resolve debts were insufficient without evidence of action.
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 31, 2008
- Answer filedJan 5, 2009
- Hearing held—Decision made without a hearing.
- Decision dateSep 15, 2009
Cite For
- Financial Overextension as a Disqualifying Condition Under Guideline F
- Insufficient Evidence of Debt Resolution as a Basis for Denial
- The Importance of Demonstrating Responsible Financial Behavior for Security Clearance Eligibility