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Summary

The applicant, a 31-year-old logistics manager and former Army specialist, faced security clearance denial under Guideline F due to financial overextension and inability to manage debts. Despite demonstrating good character and work performance, the applicant failed to provide sufficient evidence of efforts to resolve his financial issues, leading to the conclusion that he posed a security risk.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The SOR alleges 10 delinquent and/or charged off debts that have been delinquent for a number of years. The debts are Applicant’s debts as established by the evidence and Applicant’s admissions (1.a). Applicant has a student loan that was deferred and will become due during the summer of 2009 (1.b). The largest debt (SOR ¶ 1.f ($8,627)) concerns a repossessed car that Applicant bought for his wife in 2006 (1.c). Applicant has not been making enough money to pay his bills and for his family’s day-to-day living expenses (1.d). Applicant disputed SOR ¶ 1.e ($130), because he believed his wife paid it (1.e). Applicant disputed SOR ¶ 1.i ($440), because he returned the cable T.V. company’s equipment and was not given credit for it (1.f). Applicant disputed SOR ¶ 1.j ($671), because he did not recognize the creditor (1.g). Applicant has been consistently employed since July 2003 (1.h). Applicant expressed remorse for his financial problems and claimed he was not deliberately ignoring his financial obligations (1.i). Applicant failed to present evidence of such efforts to resolve his debts (1.j). Applicant has not provided sufficient evidence of efforts to resolve his debts, resulting in a ruling against him on all allegations under Guideline F (1.k).

The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b). The decision turned on the following: Applicant is financially overextended and lacks the means to resolve his debts; He failed to provide evidence of good-faith efforts to repay or negotiate his debts; The applicant's financial problems are not under control, raising concerns about his reliability and trustworthiness.

Why the Applicant Was Denied

• Applicant is financially overextended and lacks the means to resolve his debts.
• He failed to provide evidence of good-faith efforts to repay or negotiate his debts.
• The applicant's financial problems are not under control, raising concerns about his reliability and trustworthiness.

Conditions Referenced

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

• SOR issuedFeb 19, 2009
• Answer filedMar 23, 2009
• Hearing heldMay 28, 2009
• Decision dateAug 21, 2009

Cite For

• Financial Overextension Under Guideline F
• Insufficient Evidence of Debt Resolution Efforts
• Impact of Personal Circumstances on Financial Obligations