Summary
A 47-year-old costing and scheduling planner was denied a security clearance under Guideline F (Financial Considerations) due to approximately $120,200 in significant financial delinquencies. The Statement of Reasons detailed several specific debts, including $14,947 and $10,872 related to renovations on two properties following a hurricane, and $5,250 owed to a furniture company. Additionally, the applicant had delinquent home equity/mortgage accounts totaling $46,185 and $42,954, which financed the purchase of two condominiums that were subsequently foreclosed.
Disqualifying conditions under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c) were raised. While mitigating conditions AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were considered, they were not sufficient to overcome the concerns.
The denial was based on the applicant's history of unpaid financial delinquencies, which were deemed likely to recur. Despite possessing sufficient income and assets, the applicant failed to demonstrate good faith attempts to satisfy these debts or provide evidence of responsible actions or financial counseling. This led to concerns regarding his judgment and reliability.
Why the Applicant Was Denied
- The applicant has a history of financial delinquencies that remain unpaid and are likely to recur.
- The applicant failed to show good faith attempts to satisfy his delinquent debts despite having sufficient financial resources.
- The applicant's financial difficulties were not mitigated by evidence of responsible actions or counseling.
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 Largely Beyond the Person's ControlThe applicant's financial difficulties were partly due to a downturn in the housing market and property damage from a hurricane.
- AG ¶ 20(c)rejectedEvidence of Receiving CounselingThe record does not reflect that the applicant has had consumer credit counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not initiate actions to satisfy his smaller debts even when he had sufficient funds.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedOct 17, 2008
- Answer filedundatedRequested a decision on the record.
- Hearing heldN/ANo hearing; decision on the record.
- Decision dateMay 6, 2009
Cite For
- Financial Delinquencies as a Basis for Security Clearance Denial
- Importance of Demonstrating Good Faith Efforts to Resolve Debts
- Impact of Financial Judgment on Security Clearance Eligibility