Summary
A 42-year-old defense contractor and Army Captain was denied a security clearance under Guideline F (Financial Considerations) due to a long history of financial delinquencies. The applicant had 22 delinquent debts totaling $85,057, raising concerns under Disqualifying Conditions AG ¶ 19(a), AG ¶ 19(c), and AG ¶ 19(e).
Despite the application of Mitigating Conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), and AG ¶ 20(e), the judge found that the applicant failed to provide sufficient evidence of debt resolution. Specifically, he did not submit proof of payment or resolution for any of the outstanding debts.
Ultimately, the denial was based on the applicant's extensive financial indebtedness and his failure to demonstrate a good-faith effort to repay or resolve these financial obligations.
Why the Applicant Was Denied
- The applicant has a long history of financial indebtedness with 22 delinquent debts totaling $85,057.
- He failed to submit proof of payment or resolution for any of the debts.
- The applicant did not demonstrate a good-faith effort to repay or resolve his debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 19(e)raisedConsistent Spending Beyond One’s Means
- AG ¶ 20(a)rejectedBehavior Happened Long Ago or InfrequentlyThe applicant's financial issues are recent and ongoing.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant did not provide evidence of responsible actions under the circumstances.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemThe applicant did not produce evidence of financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant has not made a good-faith effort to pay or resolve his debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute DebtsThe applicant admitted to all debts and did not provide evidence of disputes.
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 issuedNov 30, 2009
- Answer filedDec 30, 2009Applicant elected to proceed without a hearing.
- Hearing held—Case decided on written record.
- Decision dateMar 31, 2010
Cite For
- Denial of Security Clearance Due to Unresolved Financial Delinquencies
- Failure to Demonstrate Good-faith Efforts in Addressing Debts
- Impact of Financial Irresponsibility on Security Clearance Eligibility