Summary
A 51-year-old engineer working for a federal contractor was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from substantial delinquent debts exceeding $15,700, which the applicant had failed to address over a period of seven years, despite maintaining steady, well-paying employment for more than six of those years.
The Statement of Reasons (SOR) detailed several allegations, including the applicant's admission to owing most of the alleged debts and his lack of effort to repay them. Although he denied one $181 debt, he also stated he had not addressed it. The applicant had not contacted creditors to arrange repayments, despite previous statements of intent to do so by the end of 2004.
The judge found that the applicant's financial irresponsibility raised significant security concerns. Disqualifying conditions under AG ¶ 19(a) and AG ¶ 19(c) were raised. While mitigating conditions AG ¶ 20(a), (b), (c), (d), and (e) were considered, the applicant provided no evidence of resolving or formally disputing any of the listed debts, nor did he explain his denial of certain debts in his formal response. Consequently, the security clearance was denied.
Why the Applicant Was Denied
- The applicant has substantial delinquent debt incurred seven years ago that he has made no effort to repay despite more than six years of steady, well-paying employment.
- He provided no evidence that he either resolved or formally disputed any of the SOR-listed debts.
- The applicant did not explain why he denied certain debts in his formal response to the SOR.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's delinquent debts arose seven years ago and remain unresolved.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant voluntarily incurred debts during a period of overspending.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant offered no evidence of financial counseling.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue CreditorsThe applicant demonstrated no effort to resolve or formally dispute any debts.
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not follow through with disputing the alleged debt.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of the national security.”
Procedural Posture
- SOR issuedJun 12, 2008
- Answer filedJul 14, 2008
- Hearing heldSep 26, 2008Applicant was not present.
- Decision dateNov 10, 2008
Cite For
- Failure to Address Substantial Delinquent Debts Under Guideline F
- Lack of Evidence Demonstrating Financial Responsibility
- Insufficient Mitigation of Financial Concerns Despite Steady Employment