Summary
A 28-year-old defense contractor employee was denied a security clearance due to concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The denial stemmed from unresolved debts totaling approximately $31,800, which raised questions about his reliability and trustworthiness.
Specifically, the applicant had several outstanding debts. An education loan of $7,312, delinquent since 2008, lacked proof of claimed payments. Another education loan for $5,603 remained unresolved, with the applicant confused about a settlement offer and no recent payments made. A significant debt of $18,065 had only two payments of $265 each in early 2009, with no further payments in the 90 days preceding the hearing despite discussions of a payment plan. Additionally, a telecommunications debt of $188 was unresolved, with no post-hearing documentation provided.
While some debts were paid, including a credit card debt of $1,213, medical debts totaling $157 and $142, and a utility debt of $425, the judge found that the applicant failed to resolve five significant debts. The applicant did not present a credible plan to address his delinquent financial obligations, and his ongoing financial issues indicated poor self-control and judgment, leading to the denial of his security clearance.
Why the applicant was denied
- The applicant failed to resolve five significant debts totaling about $31,800.
- The applicant did not demonstrate a credible plan to address his delinquent debts.
- The applicant's financial issues were ongoing and indicated poor self-control and judgment.
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's financial problems initially resulted from unemployment and underemployment.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant made some payments on several debts and resolved seven debts.
Key rule quoted
“Eligibility for a security clearance is predicated upon the Applicant meeting the criteria contained in the revised adjudicative guidelines (AG).”
Procedural posture
- SOR issuedMar 5, 2009
- Answer filedMar 22, 2009
- Hearing heldJun 30, 2009
- Decision dateJul 29, 2009
Cite for
- Denial Based on Unresolved Financial Obligations Under Guideline F
- Impact of Ongoing Financial Mismanagement on Security Clearance Eligibility
- Consideration of Personal Conduct in Relation to Financial Issues Under Guideline E