Summary
The applicant, a 44-year-old defense contractor and retired Navy veteran, faced security clearance denial under Guideline F due to significant financial issues, including a history of delinquent debts totaling approximately $98,000 and child support arrears. Despite a commendable military record and attempts to manage his financial situation, the judge found insufficient mitigation of the security concerns related to his financial irresponsibility and lack of a firm plan to resolve his debts.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: SOR ¶ 1.a is the Chapter 7 bankruptcy. Applicant and his wife filed jointly in June 2002. The bankruptcy ($93,622.60) was discharged in September 2002 (1.a). SOR ¶ 1.b is a judgment in the amount of $6,025. Applicant admits this is not paid (1.b). SOR ¶ 1.c is a collection account in the amount of $103. Applicant admits this is not paid (1.c). SOR ¶ 1.d is a collection account in the amount of $104. Applicant admits this is not paid (1.d). SOR ¶ 1.e is a charged-off account in the amount of $305. Applicant admits this is not paid (1.e). SOR ¶ 1.f is for a charged-off account in the amount of $8,391. Applicant denied owing this because he had no knowledge of the account. He believes his wife opened the account when they were separated (1.f). SOR ¶ 1.g is a charged-off account in the amount of $952 that is not paid (1.g). SOR ¶ 1.h is a charged-off account in the amount of $7,377. Applicant admits this debt and acknowledges that it is not paid (1.h). SOR ¶ 1.i is a charged-off account in the amount of $817. Applicant admits this account is not paid (1.i). SOR ¶ 1.j is a collection account for $17,896. This has been removed from Applicant’s credit report. This account was included in Applicant’s 2002 bankruptcy (1.j). SOR ¶ 1.k is a collection account in the amount of $4,311. Applicant denies this account. This is unpaid (1.k). SOR ¶ 1.l is a child/family support account that is 120 days delinquent in the amount of $24,459. Applicant denied this allegation because the amount is incorrect (1.l). SOR ¶ 1.m is another child/family support delinquent account in the amount of $16,660. Applicant denies this allegation because the amount is incorrect. He owes less than this amount (1.m). SOR ¶ 1.n is for an auto loan charged-off in the amount of $1,335. Applicant admits that this account is not paid (1.n). SOR ¶ 1.o is a collection account in the amount of $7,688. Applicant disputed this account to the credit bureau because he had no knowledge of it. It is unpaid (1.o). SOR ¶ 1.p is a collection account in the amount of $94. Applicant denied this account (1.p). SOR ¶ 1.q is a collection account in the amount of $1,906. Applicant admits this account is not paid (1.q).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: The applicant has a history of financial irresponsibility, including a Chapter 7 bankruptcy and significant delinquent debts; He is in arrears for child support payments totaling approximately $30,767, which exacerbates his financial issues; The applicant did not demonstrate sufficient evidence of a plan to resolve his financial obligations.
Why the applicant was denied
- The applicant has a history of financial irresponsibility, including a Chapter 7 bankruptcy and significant delinquent debts.
- He is in arrears for child support payments totaling approximately $30,767, which exacerbates his financial issues.
- The applicant did not demonstrate sufficient evidence of a plan to resolve his financial obligations.
Conditions referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(c)appliedEvidence of Financial CounselingThe applicant received financial counseling in the past but lacks control over his financial affairs.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant filed for bankruptcy and has made some payments on smaller debts.
Key rule quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural posture
- SOR issuedOct 15, 2008
- Answer filedNov 3, 2008
- Hearing heldFeb 3, 2009
- Decision dateFeb 23, 2009
Cite for
- Financial Irresponsibility Under Guideline F
- Impact of Child Support Obligations on Financial Stability
- Insufficient Mitigation of Financial Issues Leading to Security Clearance Denial