Summary
A 39-year-old principal information engineer for a defense contractor was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from approximately $17,500 in admitted delinquent debts. Disqualifying conditions were raised under Adjudicative Guidelines (AG) ¶ 19(a) and AG ¶ 19(c).
Despite a positive job performance and a recent salary increase, the applicant's financial situation showed only $11 remaining each month after expenses, which did not account for payments toward any of his delinquent debts. As of the hearing, none of the debts listed in the Statement of Reasons had been paid or resolved.
While the applicant attributed his financial difficulties to past unemployment, he failed to demonstrate how this impacted his current ability to manage or resolve his outstanding debts. Mitigating conditions AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were applied, but ultimately, the applicant did not demonstrate effective management of his financial obligations, leading to the conclusion that granting clearance was not consistent with national interest.
Why the Applicant Was Denied
- Applicant has approximately $17,500 in delinquent debts, which he admitted.
- As of the hearing, none of the debts listed in the SOR had been paid or resolved.
- Applicant's financial difficulties were attributed to past unemployment, but he did not show how this affected his current ability to pay debts.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlApplicant's past unemployment was too dated to mitigate current financial issues.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemNo evidence that the debt resolution plan was effective or that payments were being made.
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant did not take action to address debts until after receiving the SOR.
Key Rule Quoted
“A security clearance decision is intended to resolve whether it is clearly consistent with the national interest for an applicant to either receive or continue to have access to classified information.”
Procedural Posture
- SOR issuedDec 8, 2008
- Answer filedTimely
- Hearing heldMar 31, 2009
- Decision dateMay 27, 2009
Cite For
- Financial Considerations Under Guideline F
- Impact of Unresolved Debts on Security Clearance
- Evaluation of Mitigating Conditions Related to Financial Issues