Summary
A 36-year-old security officer for a Department of Defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to significant unresolved financial issues. The Statement of Reasons (SOR) detailed five delinquent accounts, including credit cards and a department store account, totaling over $24,000. These debts included a $5,110 credit card charged off in April 2006, an $8,331 credit card charged off in May 2006, an $1,898 account charged off in April 2007, a $6,382 department store account placed for collection in May 2006, and a $3,035 account also placed for collection in May 2006.
The applicant admitted to all allegations in the SOR. Disqualifying conditions FC DC 19(a) and FC DC 19(c) were raised, while mitigating conditions FC MC 20(b) and FC MC 20(d) were applied. However, the applicant's financial problems were recent and unresolved, with no evidence of timely payments or financial counseling.
Despite claims of financial hardship due to unemployment, the applicant failed to provide sufficient evidence of efforts to resolve the debts or maintain financial stability. His monthly expenses exceeded his income, resulting in a negative balance each month. Consequently, the applicant did not mitigate the security concerns, and the security clearance was denied.
Why the Applicant Was Denied
- The applicant admitted to all allegations in the SOR, including multiple delinquent debts totaling over $24,000.
- The applicant's financial problems were recent and unresolved, with no evidence of timely payments or financial counseling.
- The applicant's monthly expenses exceeded his income, resulting in a negative balance each month.
Conditions Referenced
- FC DC 19(a)appliedInability or Unwillingness to Satisfy Debts
- FC DC 19(c)appliedA History of Not Meeting Financial Obligations
- FC MC 20(b)appliedConditions Largely Beyond the Person's ControlThe applicant and his wife experienced multiple layoffs affecting their financial situation.
- FC MC 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant claimed to be making payments but provided no documentation to support this.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedFeb 9, 2009
- Answer filedMar 17, 2009Requested decision on written record.
- Hearing heldJun 24, 2009
- Decision dateJul 1, 2009
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Instability on Security Clearance Eligibility
- Insufficient Evidence of Debt Resolution Efforts in Financial Considerations Cases