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Summary

The applicant, a 57-year-old single male employed by a defense contractor, sought a security clearance under Guideline F due to significant financial issues, including multiple unpaid debts totaling over $29,000. The judge found that the applicant's financial difficulties were longstanding and unresolved, leading to a denial of his security clearance application.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant admits that a judgment was entered against him in the amount of approximately $12,649. This judgment was entered in 2004. While Applicant admits the existence of this judgement, he was unable to provide the name of the creditor. This debt has not been paid, and he has no current intentions to pay this debt (1.a). Applicant admits that he was indebted to a department store in the amount of $79. He submitted documentary evidence showing that he has paid this debt. This subparagraph is found for the Applicant (1.b). Applicant admits that a judgment was entered against him in the amount of approximately $10,216. This judgment was entered in 2004. This debt has not been paid, and he has no current intentions to pay this debt (1.c). Applicant admits that a judgment was entered against him in the amount of approximately $1,236. This judgment was entered in 2003. This debt has not been paid, and he has no current intentions to pay this debt (1.d). Applicant admits that a judgment was entered against him in the amount of approximately $10,891. This judgment was entered in 2006. The Applicant paid this judgment pursuant to a garnishment on his wages. This allegation is found for the Applicant (1.e). Applicant admits that he owes a debt to a creditor in the amount of $1,513. This account was opened in 2000 and has been delinquent since at least 2002. Applicant has not paid this debt and has no current plans to pay this debt (1.f). Applicant admits that he owes a debt to a creditor in the amount of $1,965. Applicant has not paid this debt and has no current plans to pay this debt (1.g). Applicant admits that he owes a debt to a creditor in the amount of $2,234. Applicant has not paid this debt and has no current plans to pay this debt (1.h).

The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: The applicant has over $29,000 in past due debts, all of which have been due for several years; He has not initiated a good-faith effort to pay off his creditors or resolve his debts; The applicant's financial situation is not under control, and there is a high likelihood of recurrence.

Why the Applicant Was Denied

• The applicant has over $29,000 in past due debts, all of which have been due for several years.
• He has not initiated a good-faith effort to pay off his creditors or resolve his debts.
• The applicant's financial situation is not under control, and there is a high likelihood of recurrence.

Conditions Referenced

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 issuedApr 3, 2009
• Answer filedMay 5, 2009
• Hearing heldAug 4, 2009
• Decision dateJan 22, 2010

Cite For

• Financial Overextension as a Disqualifying Condition Under Guideline F
• Lack of Good-faith Effort to Resolve Debts as a Basis for Denial
• The Importance of the Whole Person Concept in Security Clearance Evaluations