Summary
A 32-year-old enterprise management engineer was denied a security clearance under Guideline F (Financial Considerations) due to significant financial delinquencies. Despite a steady income of approximately $75,000, the applicant admitted to multiple debts in collection and failed to present a realistic plan for their resolution, raising concerns about his judgment and reliability.
The Statement of Reasons detailed several financial issues. These included a $2,423 debt with a $137 payment 30 days past due, and a $367 delinquency he intended to pay in three monthly installments. He claimed to have paid a $235 debt but lacked documentation, and planned to pay a $163 delinquency in August 2009. Further, he intended to satisfy a $1,595 delinquency over 12 monthly payments between March 2011 and 2012. The applicant also admitted to being over 180 days past due on two mortgages, owing approximately $10,946 on a $125,776 mortgage and $1,860 on a $30,962 mortgage. He did provide documentation for a paid $624 debt. Other planned payments included a $726 delinquency over seven months from December 2009 to June 2010, and a $476 delinquency over four months from August to November 2009.
The denial was based on the applicant's admitted history of financial difficulties spanning several years, his failure to provide documentation for claimed debt resolution or disputes, and his lack of financial counseling while remaining financially overextended.
Why the Applicant Was Denied
- Applicant admitted to a history of financial difficulties spanning several years.
- He failed to provide documentation to support claims of debt resolution or dispute.
- Applicant has not sought financial counseling and continues to be financially overextended.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 19(e)raisedConsistent Spending Beyond One’s Means
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 issuedMar 31, 2009
- Answer filedApr 23, 2009Applicant elected to have case decided on the record.
- Hearing heldJul 15, 2009Applicant provided additional documents post-hearing.
- Decision dateAug 28, 2009
Cite For
- Denial of Security Clearance Due to Unresolved Financial Delinquencies
- Failure to Demonstrate a Realistic Plan for Debt Resolution
- Lack of Financial Counseling as a Factor in Security Clearance Decisions