Summary
The applicant, a 34-year-old senior software engineer, faced security clearance denial under Guideline F due to significant financial issues, including a history of excessive debt and failure to meet financial obligations. Despite recent efforts to establish payment plans and resolve debts, the judge found that the applicant's financial problems were recent and indicative of poor judgment, leading to the denial of his security clearance.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Credit card (judgment) $410 (1.a). Credit card $3,286 (1.b). Telephone $132 (1.c). Telephone $63 (1.d). Past due 2nd mortgage payments $3,669 (1.e). Past due 1st mortgage payments $30,560 (1.f). Auto loan $31,517 (1.g). Auto loan $47,540 (1.h). Auto loan $41,652 (1.i).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(b), AG ¶ 19(c), AG ¶ 19(e). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant had a history of excessive debt and financial irresponsibility; Recent financial actions were motivated by the desire to retain his clearance rather than genuine obligation to creditors; The applicant failed to establish a solid track record of financial responsibility despite initiating payment plans.
Why the Applicant Was Denied
- The applicant had a history of excessive debt and financial irresponsibility.
- Recent financial actions were motivated by the desire to retain his clearance rather than genuine obligation to creditors.
- The applicant failed to establish a solid track record of financial responsibility despite initiating payment plans.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(b)raisedIndebtedness Caused by Frivolous or Irresponsible Spending
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 19(e)raisedConsistent Spending Beyond One's Means
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's delinquent debts were numerous and recent.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not adjust his lifestyle to his income.
- AG ¶ 20(c)notedReceived Counseling for the Problem
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant's recent actions were not motivated by a sense of obligation to creditors.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the DebtThe applicant did not dispute any of the debts alleged in the SOR.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the revised adjudicative guidelines (AG).”
Procedural Posture
- SOR issuedMar 27, 2009Details basis for preliminary decision to deny application.
- Answer filedMay 8, 2009Applicant responded to SOR.
- Hearing heldAug 19, 2009Hearing convened as scheduled.
- Decision dateOct 14, 2009
Cite For
- Denial of Security Clearance Due to Financial Irresponsibility Under Guideline F
- Importance of Establishing a Track Record of Financial Responsibility
- Recent Financial Actions May Not Be Sufficient to Mitigate Security Concerns.