Summary
A 71-year-old program manager for a Department of Defense contractor was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from significant unresolved financial issues, including multiple delinquent debts totaling over $128,000 and a prior home foreclosure.
The Statement of Reasons detailed eleven delinquent accounts, with collection dates ranging from October 2002 to April 2008. These included credit card accounts charged off or placed for collection, with individual amounts ranging from $1,327 to $50,000. Additionally, one of the applicant's homes, with a mortgage of $456,996, was foreclosed in February 2005, though the debt was settled after the home's sale in September 2005.
Despite being employed since 2004 and having some disposable income, the applicant failed to take steps to address his financial obligations. The decision concluded that the applicant's history of not meeting financial obligations and his failure to resolve delinquent accounts were not sufficiently mitigated by his current income or circumstances, leading to concerns about his reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant has a history of not meeting financial obligations, with 11 delinquent debts totaling $128,033.
- The applicant failed to take action to resolve his delinquent accounts despite being employed since 2004.
- The applicant's financial problems were not sufficiently mitigated by his current income or circumstances.
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 continued to incur delinquent accounts as recently as May 2008.
- FC MC 20(b)appliedConditions Largely Beyond ControlThe applicant was fired from a job in April 2003, impacting his finances.
- FC MC 20(c)rejectedReceived Counseling for Financial ProblemsThere is no evidence that the applicant attended financial counseling.
- FC MC 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant took no action towards resolving his delinquent accounts.
- FC MC 20(e)rejectedReasonable Basis to Dispute DebtThe applicant provided no evidence of taking action to dispute the debt.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedJul 9, 2008
- Answer filedJul 21, 2008Requested decision on written record.
- Hearing heldApr 27, 2009Case assigned to judge.
- Decision dateMay 4, 2009
Cite For
- Financial Irresponsibility Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Consideration of the Whole Person Concept in Financial Cases