Summary
The applicant, a 51-year-old Quality Analyst employed by a defense contractor, faced security clearance denial under Guideline F due to significant financial difficulties totaling $265,645. Despite some efforts to address his debts, the applicant's history of poor financial management and failure to resolve most overdue debts led to the conclusion that he posed a risk to national security.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: This overdue debt is cited in the SOR in the amount of $229. Applicant testified that he plans to contact this creditor and work out a payment arrangement. However, at the time of the hearing, this debt has not been paid or reduced (1.a). This overdue debt is cited in the SOR in the amount of $185,000. Applicant testified that, as of three months before the hearing, he has become current on this debt for the mortgage on his home (1.b). This overdue debt is cited in the SOR in the amount of $1,157. Applicant testified that he plans to contact the creditor for this credit card debt and work out a payment arrangement. However, at this time, this debt has not been paid or reduced (1.c). This overdue debt is cited in the SOR in the amount of $17,000. Applicant testified that a judgement has been entered against him on this credit card debt. At this time, this debt has not been paid or reduced (1.d). This overdue debt is cited in the SOR in the amount of $5,553. Applicant testified that a judgement is in the process of being entered against him on this credit card debt. At this time, this debt has not been paid or reduced (1.e). This overdue debt is cited in the SOR in the amount of $3,014. Applicant testified that he plans to contact the creditor for this credit card debt for the purchase of a computer and equipment to work out a payment arrangement. However, at the time of the hearing, this debt had not been paid or reduced (1.f). This overdue debt is cited in the SOR in the amount of $13,000. Applicant testified that this debt is for a car that he purchased. He had allowed his former girlfriend to use it, and although he now has possession of the vehicle, he has not returned it to the creditor to potentially reduce the size of the debt. This debt has not been paid or reduced (1.g). This overdue debt is cited in the SOR in the amount of $13,000. As stated above, Applicant denied this allegation in his RSOR. At the hearing, he stated that he is paying $100 a month on this debt for more than one year (1.h). This overdue debt is cited in the SOR in the amount of $692. Applicant testified that he plans to contact the creditor for this credit card debt and work out a payment arrangement. However, at this time, this debt has not been paid or reduced (1.i). This overdue debt is cited in the SOR in the amount of $11,000. Applicant testified that this credit card debt has not been paid or reduced (1.j). This overdue debt is cited in the SOR in the amount of $16,000. Applicant testified that this credit card debt has not been paid or reduced (1.k).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19 (a), AG ¶ 19 (c). The judge applied mitigating conditions AG ¶ 20 (b). The decision turned on the following: The applicant accumulated significant delinquent debt and has been unable to pay or resolve most of his obligations for several years; The applicant's financial problems were largely self-inflicted due to poor business decisions and continued borrowing on credit cards; The applicant did not demonstrate responsible actions to mitigate his financial issues, failing to significantly reduce his overdue debt.
Why the Applicant Was Denied
- The applicant accumulated significant delinquent debt and has been unable to pay or resolve most of his obligations for several years.
- The applicant's financial problems were largely self-inflicted due to poor business decisions and continued borrowing on credit cards.
- The applicant did not demonstrate responsible actions to mitigate his financial issues, failing to significantly reduce his overdue debt.
Conditions Referenced
- AG ¶ 19 (a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19 (c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20 (b)rejectedConditions Largely Beyond the Person's ControlThe applicant's financial problems were due to poor business choices and continued borrowing.
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 issuedJun 30, 2009
- Answer filedJul 22, 2009
- Hearing heldOct 15, 2009in Las Vegas, Nevada
- Decision dateMar 9, 2010
Cite For
- Financial Considerations Under Guideline F
- Impact of Poor Financial Management on Security Clearance Eligibility
- Whole Person Concept in Evaluating Security Clearance Cases