Summary
A 47-year-old defense contractor and former U.S. Air Force member was denied a security clearance under Guideline F (Financial Considerations) due to multiple unresolved delinquent debts totaling approximately $19,890. The Statement of Reasons detailed nine specific debts, including two medical debts, a $723 debt to a jewelry store, and a $900 debt to the same jewelry store. Other debts included $6,721 and $8,976 owed to collection companies for car loan deficiencies after repossession, a $702 debt for a women’s fitness center, a $352 debt for cellular telephone services, and a $175 debt to a bank.
The applicant attributed his financial difficulties to unemployment and identity theft by his ex-wife. However, the judge found that the applicant failed to make any payments on the listed debts and did not demonstrate responsible action to address his financial issues.
Despite the application of mitigating conditions, the judge determined there was insufficient evidence of financial counseling or a realistic plan to resolve the debts. Consequently, the applicant was denied eligibility for access to classified information.
Why the Applicant Was Denied
- Applicant failed to make any payments on the debts listed in the SOR.
- The applicant did not demonstrate responsible action to address his financial issues.
- There was insufficient evidence of financial counseling or a realistic plan to resolve debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlApplicant attributed financial problems to unemployment and identity theft.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsApplicant has not made any payments on the debts alleged in the SOR.
- AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the ProblemApplicant has not received financial counseling.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtApplicant initially disputed debts but later admitted responsibility for many.
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 issuedJul 11, 2008
- Answer filedAug 4, 2008
- Hearing heldOct 23, 2008Originally scheduled for September 24, 2008.
- Decision date—
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Insufficient Evidence of Responsible Action to Mitigate Financial Concerns
- Impact of Identity Theft on Financial Obligations in Security Clearance Cases