Summary
A 58-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial irresponsibility. The Statement of Reasons cited several financial allegations, including a $43 medical debt, a $2,690 student loan debt, a $452 medical debt, and a $1,070 bank debt.
The applicant provided documentation showing full resolution of the $43 medical debt, the $452 medical debt, and the $1,070 bank debt. For the $2,690 student loan, he stated he was making $50 monthly payments. Disqualifying conditions under AG ¶ 19(a), AG ¶ 19(c), and AG ¶ 19(e) were raised, while mitigating conditions under AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were considered.
Ultimately, the clearance was denied because the applicant failed to demonstrate ongoing solvency or adequately mitigate security concerns. His financial history included multiple bankruptcies and unresolved debts over a ten-year period, and insufficient evidence was presented to alleviate these substantial security concerns.
Why the Applicant Was Denied
- Applicant failed to demonstrate ongoing solvency or mitigate security concerns related to financial irresponsibility.
- He has a ten-year history of not meeting financial obligations, including multiple bankruptcies and unresolved debts.
- Insufficient evidence was presented to alleviate substantial security concerns regarding his financial history.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 19(e)appliedConsistent Spending Beyond One’s Means
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlApplicant did not demonstrate that he responsibly reduced non-essential spending in reaction to his mounting debts.
- AG ¶ 20(c)rejectedReceived Counseling for the Problem And/or Clear Indications That the Problem Is Being ResolvedInsufficient evidence was presented to show that the financial problems are under control.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsRecent debt resolutions were insufficient to demonstrate a good-faith effort.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedMay 27, 2009
- Answer filedJun 25, 2009Applicant requested a decision on the written record.
- Hearing held—No hearing was held.
- Decision dateDec 23, 2009
Cite For
- Financial Irresponsibility Leading to Security Clearance Denial Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Insufficient Evidence of Financial Rehabilitation or Solvency as a Basis for Denial