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Summary

The applicant, a 53-year-old retired Navy Captain, faced security clearance denial under Guideline F due to significant financial issues, including over $110,000 in credit card debt and $200,000 in student loans. Despite acknowledging his financial difficulties and making minimal payments, the judge found insufficient evidence of effective management or resolution of these debts, raising concerns about the applicant's judgment and reliability.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: SOR ¶ 1.a alleges a $301 medical debt. He has been paying $25 per month for several months. The balance is $100 (1.a). SOR ¶ 1.b alleges a $13,116 debt owed to a credit card company. He spoke to the creditor but has not made any payments on the debt because the company will not establish a small monthly repayment schedule (1.b). SOR ¶ 1.c alleges a $28,459 debt owed to a credit card company. He made one payment within the last six months (1.c). SOR ¶ 1.d alleges a $6,068 debt owed to a credit card company. Since April 2009, he has been paying $100 a month (1.d). SOR ¶ 1.e alleges a $26,824 debt owed to a credit card company. He recently spoke to the creditor, who is unwilling to negotiate a small monthly payment (1.e). SOR ¶ 1.f alleges a $13,377 debt owed to a credit card company. He has been paying $125 per month. The balance is $12,000 (1.f). SOR ¶ 1.g alleges a $10,097 debt owed to a credit card company. He is paying $100 per month. It is the same debt as listed in ¶ 1.h (1.g). SOR ¶ 1.h alleges a $9,332 debt owed to the above referenced credit card company (1.h). SOR ¶ 1.i alleges a $5,384 debt owed to a credit card company. He is paying $54.95 per month. The balance is $5,700 (1.i).

The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(e). The judge applied mitigating conditions AG ¶ 20(d), AG ¶ 20(b), AG ¶ 20(c). The decision turned on the following: The applicant has a history of significant financial delinquencies totaling over $110,000 in credit card debt and $200,000 in student loans; The applicant failed to demonstrate effective management of his financial obligations or seek professional help, raising questions about his judgment; The applicant's financial issues have persisted for several years without adequate resolution.

Why the Applicant Was Denied

• The applicant has a history of significant financial delinquencies totaling over $110,000 in credit card debt and $200,000 in student loans.
• The applicant failed to demonstrate effective management of his financial obligations or seek professional help, raising questions about his judgment.
• The applicant's financial issues have persisted for several years without adequate resolution.

Conditions Referenced

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 issuedNov 20, 2008
• Answer filedDec 18, 2008
• Hearing heldMay 12, 2009
• Decision dateJun 23, 2009

Cite For

• Denial of Security Clearance Due to Unresolved Financial Delinquencies
• Impact of Financial Management on Security Clearance Eligibility
• Consideration of the Whole Person Concept in Financial Cases