Summary
A 50-year-old federal contractor employee with military service was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from over $27,600 in delinquent debts and a failure to demonstrate consistent financial responsibility.
Specific financial issues included a government credit card with a balance consistently between $6,500 and $7,000 since at least April 2008, and significant mortgage arrears totaling $11,868 for a first mortgage (seven months past due) and $2,252 for a second mortgage (four months past due). Other debts included a $195 medical bill from 2005, another medical bill attributed to his adult daughter, a $1,617 dental services debt, a $2,433 charged-off credit card account, and a $2,413 debt incurred by his wife in his name. The applicant did not deliberately falsify his application and successfully disputed one debt that was removed from his credit reports.
Despite acknowledging some debts and taking steps to address them, the applicant had not established a track record of financial responsibility or solvency. The significant and ongoing financial delinquencies, particularly the mortgage arrears, raised questions about his reliability and trustworthiness, leading to the denial of his security clearance.
Why the Applicant Was Denied
- Applicant owes more than $27,600 in delinquent debts, including significant mortgage arrears.
- He has not established a track record of financial responsibility or solvency despite recent efforts to address some debts.
- The applicant's financial issues raise questions about his reliability and trustworthiness.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(c)rejectedReceiving Counseling for the ProblemApplicant received financial counseling but did not demonstrate meaningful mitigation of his debts.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsWhile the applicant made some payments, he did not establish a good-faith track record of financial responsibility.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of the national security.”
Procedural Posture
- SOR issuedMay 12, 2009
- Answer filedMay 28, 2009
- Hearing heldJul 7, 2009
- Decision dateOct 23, 2009
Cite For
- Financial Responsibility Under Guideline F
- Impact of Financial Delinquencies on Security Clearance Eligibility
- Mitigation of Financial Issues in Security Clearance Cases