Summary
The applicant, a 41-year-old defense contractor, faced security clearance denial under Guideline F due to unresolved delinquent debts totaling $67,247, despite having made payments on other debts. The judge found that the applicant's financial issues raised concerns about his reliability and trustworthiness, leading to the denial of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: $852—medical (1.a). $65,000—student loan (1.e). $164—credit card (1.f). $2,247—credit card (1.g). $704—state taxes (1.h). $2,170—medical debt (1.k). $708—medical (1.m). $362—credit card (1.p).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(d), AG ¶ 20(c). The decision turned on the following: The applicant had unresolved debts totaling $67,247, which were not adequately addressed or resolved; The applicant's financial issues indicated a lack of self-control and poor judgment regarding financial obligations.
Why the Applicant Was Denied
- The applicant had unresolved debts totaling $67,247, which were not adequately addressed or resolved.
- The applicant's financial issues indicated a lack of self-control and poor judgment regarding financial obligations.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant's efforts were insufficient to resolve significant debts.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under ControlNo evidence of effective counseling or resolution of financial issues was presented.
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 issuedFeb 5, 2009
- Answer filedFeb 24, 2009
- Hearing heldNov 10, 2009
- Decision dateNot specified
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Criteria for Evaluating Financial Considerations Under Guideline F