Summary
The applicant, a 55-year-old electronic technician with a history of financial difficulties and a reprimand for personal conduct, faced security clearance denial under Guidelines E and F. The judge found that while the personal conduct issues were mitigated, the financial concerns were not, primarily due to the applicant's failure to resolve numerous delinquent debts.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant was reprimanded for viewing pornography on his company computer (2.a). Applicant has 27 delinquent debts, 24 of which he admitted, corroborated by credit reports (1.a). Applicant has a $5,559 debt that he asserted he made payments on, but provided no proof (1.b). Applicant has a $390 telephone bill that he disputed without documentation (1.c). Applicant has two home mortgages with balances of $98,789 and $111,000, which he denied, claiming they were paid off (1.d). Applicant's financial history raises concerns about his reliability and trustworthiness due to his inability to meet financial obligations (1.e). Applicant's draft bankruptcy petition includes creditors alleged in the SOR, indicating a significant financial issue (1.f). Applicant's financial problems were attributed to his unjust firing, but he has not taken action to resolve his debts (1.g). Applicant's income declined significantly from 2007 to 2009, contributing to his financial difficulties (1.h). Applicant has not provided evidence of any counseling or resolution of his financial issues (1.i). Applicant has not initiated a good-faith effort to repay overdue creditors or resolve debts, as evidenced by lack of payments or settlements (1.j). Applicant denied three debts alleged in the SOR but provided no evidence to document the basis of the dispute (1.k).
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(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: The applicant admitted to 24 out of 27 delinquent debts, demonstrating an inability to manage financial obligations; The applicant failed to provide evidence of actions taken to resolve debts, despite being employed for over two years; The applicant's financial issues were recent and numerous, indicating a lack of responsible conduct.
Why the Applicant Was Denied
- The applicant admitted to 24 out of 27 delinquent debts, demonstrating an inability to manage financial obligations.
- The applicant failed to provide evidence of actions taken to resolve debts, despite being employed for over two years.
- The applicant's financial issues were recent and numerous, indicating a lack of responsible conduct.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's debts are recent and numerous.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile unemployment was a factor, the applicant did not act responsibly to resolve debts.
- AG ¶ 20(c)rejectedReceived Counseling for the Problem And/or Clear Indications That the Problem Is Being ResolvedNo evidence of counseling or resolution of debts was presented.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsNo evidence of payments or settlement of debts was provided.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant provided no documentation to support disputes of debts.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedAug 27, 2010
- Answer filedOct 27, 2010
- Hearing held—Applicant requested a decision on the record without a hearing.
- Decision dateApr 29, 2011
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Mitigation of Personal Conduct Issues Under Guideline E
- Criteria for Evaluating Financial Considerations Under Guideline F