Summary
A 49-year-old defense contractor employee was denied a security clearance under Guideline F (Financial Considerations) due to three delinquent debts totaling $28,428. The Statement of Reasons (SOR) alleged two recognized debts of $9,226 and $17,999, which the applicant admitted owing. A third alleged debt of $1,203 was not recognized by the applicant.
Disqualifying conditions F.19(a) and F.19(c) were raised, indicating a history of not meeting financial obligations and an inability or unwillingness to satisfy debts. While mitigating conditions F.20(b), F.20(c), and F.20(d) were applied, acknowledging efforts to resolve the issues, the applicant ultimately failed to demonstrate sufficient progress.
The denial was based on the applicant's failure to make payments on the alleged debts, the ongoing nature of the financial issues, and insufficient evidence of responsible action regarding his financial obligations. These factors raised concerns about the applicant's reliability and trustworthiness, leading to the denial of his security clearance.
Why the Applicant Was Denied
- The applicant has not made payments on the debts alleged in the SOR.
- Financial issues are current and ongoing, raising concerns about reliability and trustworthiness.
- The applicant did not provide sufficient evidence to show responsible action regarding his financial obligations.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant voluntarily left his managerial position, which contributed to his financial issues.
- F.20(c)rejectedReceived or Receiving Counseling for the ProblemThe applicant's financial counseling did not demonstrate clear indications that the problem is being resolved.
- F.20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsThe applicant has not made sufficient payments on the debts alleged in the SOR.
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 issuedOct 28, 2009
- Answer filedNov 13, 2009
- Hearing heldMar 9, 2010
- Decision dateMar 29, 2010
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Management on Security Clearance Eligibility
- Evaluation of Mitigating Conditions Under Guideline F