Summary
A 37-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to significant and ongoing financial issues. The applicant faced allegations of multiple delinquent debts and unpaid judgments totaling approximately $85,000. Specifically, the Statement of Reasons included a denied delinquent debt of $19,473, an unpaid judgment of $22,000 owed to an insurance company, and an admitted unpaid judgment of $1,302 to a law firm. Additionally, the applicant both admitted and denied debts of $7,265, $4,152, and $980.
The applicant attributed his financial difficulties to his second wife's spending and a protracted custody battle. However, the judge found insufficient evidence of responsible financial conduct or effective mitigation efforts. Disqualifying conditions under Adjudicative Guidelines 19(a) and 19(c) were raised, while mitigating conditions 20(b), 20(c), 20(d), and 20(e) were applied.
The denial was based on the applicant's failure to demonstrate responsible financial conduct, the recent and ongoing nature of over $57,000 in unpaid judgments and delinquent debts, and the fact that his Chapter 13 bankruptcy plan had not been approved, preventing him from establishing a track record of payments.
Why the Applicant Was Denied
- The applicant failed to provide sufficient evidence of responsible financial conduct.
- The applicant's financial issues were recent and ongoing, with over $57,000 in unpaid judgments and delinquent debts.
- The applicant's Chapter 13 bankruptcy plan had not been approved, and he had not established a track record of payments.
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 That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant attributed his financial problems to his second wife's spending and a protracted custody battle.
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant received some financial counseling.
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant paid or settled some debts, but not all.
- AG ¶ 20(e)appliedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant successfully disputed some debts.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedJun 15, 2009
- Answer filedJul 8, 2009
- Hearing heldAug 19, 2009Hearing convened as scheduled.
- Decision dateOct 30, 2009
Cite For
- Insufficient Evidence of Financial Responsibility Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Consideration of Personal Circumstances in Financial Mitigation