Summary
A 46-year-old retired Air Force veteran was denied a security clearance under Guideline F (Financial Considerations) due to approximately $245,000 in significant financial delinquencies. The Statement of Reasons detailed four specific allegations: a $1,974 dental bill, a foreclosed home mortgage with an unclear balance or deficiency of $227,000, a credit card account delinquent since November 2008 with an $8,250 balance, and another delinquent credit card account for $8,000.
The applicant disputed the dental bill, claiming his insurance failed to pay, and stated he was making monthly payments on one credit card. He also contended that the other $8,000 credit card account was satisfied in August 2009. Despite these claims and efforts such as negotiating with lenders and borrowing from his 401(k), the applicant failed to provide sufficient documentation to support his assertions or demonstrate resolution of the debts.
The denial was based on the four delinquent debts totaling approximately $245,000, the lack of documented proof for his disputes or resolution efforts, and the conclusion that his financial problems were likely to continue without sufficient evidence of rehabilitation. Disqualifying conditions under AG ¶ 19(a) and AG ¶ 19(c) were raised, while mitigating conditions under AG ¶ 20(b) and AG ¶ 20(e) were applied.
Why the Applicant Was Denied
- Applicant has four delinquent debts totaling approximately $245,000, including a foreclosed mortgage and credit card debts.
- Applicant failed to provide documented proof to substantiate disputes regarding his debts or evidence of actions taken to resolve them.
- The applicant's financial problems were deemed likely to continue without sufficient proof of rehabilitation.
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 ControlApplicant's financial issues were exacerbated by a significant increase in mortgage payments coinciding with a major medical bill for a child.
- AG ¶ 20(e)rejectedThe Individual Has Made Good Faith Efforts to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant did not provide sufficient evidence to support his claims of making payments or resolving disputes.
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 issuedSep 2, 2009
- Answer filedSep 30, 2009Applicant denied all allegations except one.
- Hearing held—
- Decision dateFeb 26, 2010
Cite For
- Denial of Security Clearance Due to Significant Financial Delinquencies Under Guideline F
- Failure to Provide Sufficient Documentation to Support Claims of Financial Rehabilitation
- Impact of Financial Issues on Security Clearance Eligibility Under the Whole Person Concept