Summary
A 41-year-old network engineer was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial problems and unresolved debts totaling approximately $15,000. The Statement of Reasons detailed several specific financial issues. These included a $63 collection account for a returned check and a $1,018 state tax lien, both paid in full in February 2009.
Other allegations involved a $159 collection account for a telephone company and a $911 collection account for a bank, both of which the applicant denied, claiming current accounts with the respective entities but failing to provide supporting documentation. Further debts included an $8,242 debt from a repossession, which the applicant stated the creditor indicated was sold or written off, and a $4,078 charged-off bank loan stemming from a personal loan of about $12,000 for snowmobiles and a trailer.
The denial was based on the applicant's well-established history of financial problems, including a Chapter 7 bankruptcy and multiple unresolved debts. The applicant failed to provide sufficient evidence to support claims disputing certain debts or to demonstrate responsible actions regarding his financial obligations. The majority of his debts remained unresolved, and his repayment efforts were deemed insufficient to mitigate the security concerns.
Why the Applicant Was Denied
- The applicant has a well-established history of financial problems, including a Chapter 7 bankruptcy and multiple unresolved debts.
- The applicant did not provide sufficient evidence to support his claims disputing certain debts or to demonstrate responsible actions regarding his financial obligations.
- The majority of the applicant's debts remain unresolved, and his efforts to repay were deemed insufficient.
Conditions Referenced
- DC 1appliedInability or Unwillingness to Satisfy Debts
- DC 3appliedA History of Not Meeting Financial Obligations
- MC 2rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant did not present sufficient evidence showing that he acted responsibly under the circumstances.
- MC 4rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue CreditorsThe applicant's efforts were insufficient as the majority of the debt remains unresolved.
Key Rule Quoted
“No one has a right to a security clearance.”
Procedural Posture
- SOR issuedOct 31, 2008
- Answer filedFeb 17, 2009Applicant elected a decision without a hearing.
- Hearing held—Decision based on written record.
- Decision dateMay 8, 2009
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Insufficient Evidence to Mitigate Financial Disqualifications Under Guideline F