Summary
A 52-year-old systems administrator, employed by a defense contractor for over seven years, was denied a security clearance under Guideline F (Financial Considerations). The denial stemmed from significant financial difficulties, including delinquent debts totaling approximately $147,400 and two Chapter 7 bankruptcies filed in 1988 and 1998. Specific allegations included approximately $134,000 owed on a foreclosure and about $12,000 on a car loan, alongside a history of not meeting financial obligations.
The applicant admitted to these financial issues, which were exacerbated by his wife's unresolved gambling addiction. Despite acknowledging the problems, he failed to provide sufficient evidence of efforts to mitigate these concerns. Specifically, he did not present a plan to address his current financial situation, nor did he demonstrate progress in resolving his debts or provide evidence of financial counseling.
Although several mitigating conditions were considered, the applicant's inability to demonstrate financial stability or a concrete plan for debt resolution ultimately led to the denial of his security clearance. The unresolved nature of his wife's gambling problem was also cited as a contributing factor to his ongoing financial instability.
Why the Applicant Was Denied
- Applicant admitted to significant financial difficulties and multiple bankruptcies.
- He failed to provide evidence of a plan to address his delinquent debts or to demonstrate financial stability.
- The applicant's wife's gambling problem remained unresolved, contributing to his financial instability.
Conditions Referenced
- FC DC AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- FC DC AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- FC MC AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlWhile the applicant attributed his financial issues to his wife's gambling, he did not provide evidence that the situation was under control.
- FC MC AG ¶ 20(a)rejectedBehavior Unlikely to RecurThe applicant's history of financial instability recurred every ten years without evidence of resolution.
- FC MC AG ¶ 20(c)rejectedReceived or Receiving CounselingThere was no evidence of financial counseling or progress in addressing debts.
- FC MC AG ¶ 20(d)rejectedGood-faith Effort to Repay CreditorsThe applicant did not demonstrate a viable plan to address his debts.
Key Rule Quoted
“The ultimate burden of persuasion is on the applicant seeking a security clearance.”
Procedural Posture
- SOR issuedDec 12, 2008
- Answer filedDec 29, 2008Applicant admitted allegations and declined a hearing.
- Hearing held—No hearing was conducted.
- Decision dateJul 27, 2009
Cite For
- Financial Instability as a Disqualifying Factor Under Guideline F
- The Burden of Proof Rests on the Applicant in Security Clearance Cases
- The Impact of Unresolved Personal Issues on Financial Obligations