Summary
A 43-year-old material handler for a defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to significant and persistent financial issues. The Statement of Reasons detailed approximately $86,000 in debt, including a federal tax lien, delinquent child support, and delinquent student loan payments. Specific allegations included a child support delinquency being addressed by a $300 monthly wage garnishment since July 2008, and a student loan delinquency totaling $27,821 as of June 2008. Additionally, the applicant opened a cell phone account that became delinquent within three months and remained outstanding.
Disqualifying conditions related to a history of not meeting financial obligations and an inability to satisfy debts were raised. While mitigating conditions concerning the debt not being recent or isolated, and the applicant demonstrating a good-faith effort to resolve the issues, were considered, they were ultimately insufficient.
The denial was based on the applicant's failure to provide comprehensive evidence of consistent student loan payments, the accrual of an additional cell phone bill delinquency within the last two years, and the judge's conclusion that the overall financial rehabilitation was inadequate given the remaining debt.
Why the Applicant Was Denied
- The applicant failed to provide comprehensive evidence of consistent student loan payments.
- The applicant accrued an additional delinquency on a cell phone bill within the last two years.
- The judge concluded that the applicant's financial rehabilitation was insufficient given the remaining debt.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions Largely Beyond the Person's Control
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue Creditors
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 issuedMar 25, 2009
- Answer filedApr 17, 2009Applicant admitted all allegations.
- Hearing held—
- Decision dateSep 30, 2009
Cite For
- Evaluation of Financial Rehabilitation Under Guideline F
- Impact of Additional Delinquencies on Security Clearance Eligibility
- Consideration of the Whole Person Concept in Financial Cases