Summary
The applicant, a 42-year-old cable inspector for a defense contractor, faced security clearance denial under Guideline F due to significant financial issues, including multiple delinquent debts totaling over $300,000. Despite claiming that his financial troubles stemmed from a business failure and medical issues, the judge found insufficient evidence of a good-faith effort to resolve these debts, leading to the conclusion that the applicant's financial irresponsibility raised security concerns.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: a credit card debt placed for collection by a bank for $15,575 (1.a). a leasing account placed for collection for $21,837 (1.b). a credit card debt charged off for $2,248 (1.c). a credit card debt charged off for $9,984 (1.d). a credit card debt charged off for $3,414 (1.e). a furniture store account charged off for $5,630 (1.f). a credit card debt charged off for $3,697 (1.g). a credit card debt charged off for $10,297 (1.h). another credit card account charged off for $28,427 (1.i). a credit card debt placed for collection for $944 (1.j). a second mortgage on a house past due for $5,026 on a balance of $29,716 (1.k). a debt for a motorcycle past due for $2,577 on a balance of $14,301 (1.m). a store charge past due for $250 on a balance of $820 (1.n).
The judge denied the clearance. The government raised disqualifying conditions FC DC AG ¶ 19(a), FC DC AG ¶ 19(c). The judge applied mitigating conditions FC MC AG ¶ 20(b), FC MC AG ¶ 20(d). The decision turned on the following: The applicant has a history of significant delinquent debts totaling over $300,000; The applicant failed to demonstrate a meaningful track record of debt repayment or a credible plan to resolve his financial issues; The applicant's financial problems were exacerbated by a lack of responsible financial management and insufficient evidence of good-faith efforts to pay creditors.
Why the Applicant Was Denied
- The applicant has a history of significant delinquent debts totaling over $300,000.
- The applicant failed to demonstrate a meaningful track record of debt repayment or a credible plan to resolve his financial issues.
- The applicant's financial problems were exacerbated by a lack of responsible financial management and insufficient evidence of good-faith efforts to pay creditors.
Conditions Referenced
- FC DC AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- FC DC AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- FC MC AG ¶ 20(b)rejectedConditions That Resulted in Financial Problems Were Largely Beyond the Person's ControlWhile the applicant's illness and injury contributed to financial issues, he did not act responsibly by taking on significant debt without a viable business plan.
- FC MC AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant did not present sufficient evidence of a good-faith effort to repay debts or a realistic plan for debt resolution.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedFeb 12, 2009
- Answer filedApr 14, 2009Undated written response submitted.
- Hearing heldJun 11, 2009Hearing convened as scheduled.
- Decision dateAug 12, 2009
Cite For
- Denial of Security Clearance Due to Significant Financial Irresponsibility
- Insufficient Evidence of Good-faith Efforts to Resolve Debts
- Impact of Financial Issues on Security Clearance Eligibility Under Guideline F