Summary
A 48-year-old former Navy officer, working as a research analyst, was denied a security clearance under Guideline F (Financial Considerations) due to a history of financial irresponsibility. The Statement of Reasons detailed three primary allegations: a $27,325 deficit from a repossessed recreational vehicle, two delinquent credit card debts totaling $11,692, and a $2,476 medical debt submitted for collection. These issues raised Disqualifying Conditions 19(a) and 19(c).
While the applicant made some efforts to address his debts, the decision concluded that he failed to mitigate the security concern. The record indicated he had not taken action to resolve most of the listed debts and provided insufficient evidence to suggest he would resolve them in the foreseeable future.
Despite the application of Mitigating Conditions 20(a), 20(b), 20(c), 20(d), and 20(e), the applicant's inability to demonstrate a reliable plan for resolving his financial issues led to the denial, as granting a clearance was deemed inconsistent with national interest.
Why the Applicant Was Denied
- The applicant failed to mitigate the security concern created by his history of financial irresponsibility.
- He has not taken any action to resolve most of the debts listed in the Statement of Reasons (SOR).
- His testimony and evidence provided little reason to anticipate he will resolve those debts in the foreseeable future.
Conditions Referenced
- DC 19(a)raisedInability or Unwillingness to Satisfy Debts
- DC 19(c)raisedA History of Not Meeting Financial Obligations
- MC 20(a)rejectedThe Behavior Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good Judgment
- MC 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- MC 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- MC 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
- MC 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due Debt
Key Rule Quoted
“No one has a right to a security clearance and the clearly consistent standard indicates that security clearance determinations should err, if they must, on the side of denials.”
Procedural Posture
- SOR issuedJun 3, 2009
- Answer filedJul 6, 2009Applicant admitted all SOR allegations except one.
- Hearing heldOct 26, 2009Hearing conducted as scheduled.
- Decision dateDec 31, 2009
Cite For
- Denial of Clearance Due to Financial Irresponsibility Under Guideline F
- Failure to Demonstrate a Reliable Plan for Debt Resolution
- Rejection of Mitigating Conditions Related to Financial Issues