Summary
A 51-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to over $43,000 in delinquent debts. The applicant admitted to owing 19 delinquent debts and provided no proof of payment or agreements to repay them. His financial irresponsibility was deemed recent and ongoing, with a history of not meeting obligations and an apparent inability to maintain stable employment long enough to avoid further delinquencies.
The applicant's medical expenses stemmed from a chronic condition for which he had been under treatment for over 30 years. However, he did not demonstrate the ability to pay these debts going forward, nor did he offer evidence of financial counseling or meaningful efforts to resolve his delinquencies. His insufficient monthly income precluded meaningful payments toward larger debts, and his financial situation suggested that delinquent indebtedness was likely to recur.
The judge found that the applicant did not establish mitigation for any of his debts or his financial history as a whole. He also failed to show that periods of unemployment were beyond his control or that he responsibly reduced non-essential spending in response. Ultimately, the security clearance was denied due to the applicant's admitted delinquent debts, lack of meaningful resolution attempts, and insufficient evidence to mitigate the financial concerns.
Why the Applicant Was Denied
- Applicant admitted owing more than $43,000 in delinquent debts.
- He made no meaningful attempt to resolve any of these debts.
- Insufficient evidence was provided to mitigate the security concerns.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurApplicant's financial irresponsibility is recent and continues to date.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlApplicant did not demonstrate that his periods of unemployment were beyond his control.
- AG ¶ 20(c)rejectedReceived or Is Receiving Counseling for the ProblemNo evidence of financial counseling was provided.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsInsufficient efforts have occurred to alleviate the substantial security concerns.
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 issuedApr 2, 2009
- Answer filedApr 14, 2009Applicant requested a decision on the written record.
- Hearing held—No hearing was held; case decided on the written record.
- Decision dateJul 9, 2009
Cite For
- Denial of Security Clearance Due to Significant Delinquent Debts Under Guideline F
- Insufficient Evidence to Mitigate Financial Concerns
- Lack of Meaningful Efforts to Resolve Financial Obligations