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Summary

The applicant, a 50-year-old defense contractor, sought a security clearance under Guideline F due to financial difficulties, admitting to 13 delinquent debts totaling approximately $36,997. Despite his military service and positive recommendations, the judge found that the applicant failed to demonstrate a good-faith effort to resolve his debts, leading to a denial of his security clearance.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant admits this judgment in the amount of $1,379. He stated that it is being collected by means of a garnishment (1.a). Applicant admits this judgment in the amount of $10,931. He stated that it is being collected by means of a garnishment (1.b). Applicant admits this debt in the amount of $510. He testified that he could not state with certainty whether this debt had been paid or not (1.c). Applicant admits this debt in the amount of $4,480. He testified that this debt has not been paid (1.d). Applicant admits this debt in the amount of $11,517 for a time share. He states that his wife is negotiating with the creditor (1.e). Applicant admits this debt in the amount of $89. He testified that he could not state with certainty whether this debt had been paid or not (1.f). Applicant admits this debt in the amount of $2,059. He testified that he could not state with certainty whether this debt had been paid or not (1.g). Applicant admits this debt in the amount of $1,637 for a student loan. He testified that he has been paying some amount of money on his student loans (1.h). Applicant admits this debt in the amount of $3,086 for a student loan. He testified that he has been paying some amount of money on his student loans (1.i). Applicant admits this debt in the amount of $217 for a student loan. He testified that he has been paying some amount of money on his student loans (1.j). Applicant admits this debt in the amount of $124 for a student loan. He testified that he has been paying some amount of money on his student loans (1.k). Applicant admits this debt in the amount of $421. He testified that he believed his wife had paid this debt (1.l). Applicant admits this debt in the amount of $547. He testified that he could not state with certainty whether this debt had been paid or not (1.m).

The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(c), AG ¶ 20(d). The decision turned on the following: The applicant has over $36,000 in past due debts, which have been outstanding for several years; The applicant did not provide evidence of a reasonable plan to pay off his debts or any payments made towards them; The applicant's financial difficulties raise concerns about his reliability and trustworthiness.

Why the Applicant Was Denied

• The applicant has over $36,000 in past due debts, which have been outstanding for several years.
• The applicant did not provide evidence of a reasonable plan to pay off his debts or any payments made towards them.
• The applicant's financial difficulties raise concerns about his reliability and trustworthiness.

Conditions Referenced

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 30, 2009
• Answer filedSep 24, 2009
• Hearing heldJan 27, 2010
• Decision dateNov 10, 2010

Cite For

• Financial Overextension as a Disqualifying Condition Under Guideline F
• Insufficient Evidence of Debt Resolution as a Basis for Denial
• The Importance of Demonstrating Good-faith Efforts to Address Financial Obligations