Summary
A 51-year-old electronics technician with military service was denied a security clearance under Guideline F (Financial Considerations) due to significant financial issues. The Statement of Reasons detailed a Chapter 13 bankruptcy filed in January 2004 and dismissed in September 2006.
Additionally, the applicant had numerous outstanding debts, including a $4,425 car repossession debt, a $228 medical debt, and a $516 charged-off credit card debt. Other collection accounts included an automobile loan for $1,198, a discount store account for $590, and a bank debt for $530. The applicant also had three charged-off finance company accounts totaling $2,510, along with two other charged-off accounts for $1,962 and $10,149, respectively. Further debts included a $391 credit card bad debt, a $97 department store account in collection, and a $16,763 second mortgage account in collection. Finally, a bank account was over 120 days past due for $1,018 on a $7,180 balance.
Despite stable current employment, the judge found that the applicant's financial management raised concerns about reliability and trustworthiness. The denial was based on a history of serious financial difficulties, inadequate action to resolve delinquent debts after obtaining stable employment, and the determination that the financial problems were not largely beyond his control, as he failed to change professions despite recognizing issues with his previous career.
Why the Applicant Was Denied
- The applicant has a history of serious financial difficulties, including numerous delinquent debts and a dismissed bankruptcy.
- The applicant did not take adequate action to resolve his delinquent debts after obtaining stable employment.
- The applicant's financial problems were not largely beyond his control, as he failed to change professions despite recognizing the issues with his previous career.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good JudgmentThe applicant's financial problems are recent and ongoing.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problems Were Largely Beyond the Person’s ControlThe applicant's financial issues stemmed from his own career choices and management.
- AG ¶ 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 ControlThe applicant has not received financial counseling and his debts remain unresolved.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedMar 8, 2010
- Answer filedMar 25, 2010
- Hearing heldSep 22, 2010
- Decision dateDec 10, 2010
Cite For
- Financial Considerations Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Importance of Financial Responsibility in Maintaining Trustworthiness