Summary
A 53-year-old defense contractor employee was denied a security clearance under Guideline F, Financial Considerations, due to unresolved financial issues. The applicant had eight delinquent debts totaling $24,543, all incurred after a prior bankruptcy discharge. The judge determined there was insufficient evidence of the applicant's efforts to resolve these debts, leading to concerns about his reliability and trustworthiness.
Specific allegations included a $167 telecommunications debt, which the applicant disputed and for which a settlement offer was refused. A related $1,109 telecommunications debt was also disputed. Other debts included a $104 medical debt, which the applicant admitted and paid on July 2, 2009, and a $42 debt, also admitted and paid on November 5, 2008. Additionally, a $1,695 debt was denied by the applicant, who claimed it was in dispute.
The denial was based on the applicant's history of financial problems and the failure to provide sufficient evidence of efforts to resolve four of the delinquent debts. Disqualifying conditions under Adjudicative Guidelines 19(a) and 19(c) were raised, while mitigating conditions under 20(b), 20(c), and 20(d) were applied.
Why the Applicant Was Denied
- The applicant has a history of financial problems, including eight delinquent debts totaling $24,543, incurred after a bankruptcy discharge.
- The applicant failed to provide sufficient evidence of efforts to resolve four of the delinquent debts, raising security concerns about his reliability and trustworthiness.
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 Largely Beyond the Person's ControlThe applicant's financial situation was impacted by past unemployment, but he has not acted responsibly to resolve current debts.
- AG ¶ 20(c)appliedReceived Financial CounselingThe applicant and his wife received financial counseling, but did not demonstrate adequate resolution of debts.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant admitted responsibility for most debts and made some payments, but did not provide sufficient evidence of ongoing efforts.
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 issuedJun 12, 2009
- Answer filedJul 8, 2009Applicant elected to have the case decided on the written record.
- Hearing held—No hearing; decided on the written record.
- Decision dateFeb 25, 2010
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Impact of Financial Instability on Security Clearance Eligibility
- Consideration of Good Faith Efforts in Resolving Debts for Security Clearance Decisions.