Summary
A 46-year-old defense contractor and veteran was denied a security clearance under Guideline F, Financial Considerations, due to unresolved financial issues. The Statement of Reasons (SOR) cited several delinquent debts, including a $100 medical debt, and two separate debts of $327 and $257 owed to a collection company for cellular telephone services. Additionally, the applicant owed the Internal Revenue Service for tax years 2002 and 2006.
Disqualifying conditions under Guideline F were raised, specifically regarding a history of not meeting financial obligations and an inability or unwillingness to satisfy debts. While mitigating conditions were considered, the applicant's efforts were deemed insufficient.
The denial was based on the applicant's unresolved delinquent debts and a history of financial irresponsibility. His bankruptcy was dismissed, and he had not made payments on debts since that time. These ongoing financial issues raised concerns about his reliability and trustworthiness, ultimately leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant has unresolved delinquent debts and a history of financial irresponsibility.
- The applicant's bankruptcy was dismissed, and he has not made payments on debts since then.
- The applicant's financial issues are ongoing and raise questions about his reliability and trustworthiness.
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 ControlThe applicant's financial problems were attributed to a separation, divorce, and periods of unemployment.
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant has not received financial counseling.
- AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant disputed several debts listed in the SOR.
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 issuedDec 5, 2008
- Answer filedUndatedApplicant did not specify hearing preference.
- Hearing heldMar 18, 2009Hearing was scheduled after applicant waived 15 days notice.
- Decision dateNot specified
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Bankruptcy Dismissal on Security Clearance Eligibility
- Consideration of Financial Counseling in Mitigating Security Concerns