Summary
A 29-year-old system engineer was denied a security clearance under Guideline F, Financial Considerations, due to approximately $60,000 in delinquent debts. These debts were primarily from credit cards used by his parents, and were itemized across four accounts: approximately $22,473, $12,306, $11,760, and $13,596.
Despite the applicant's stable income and significant personal savings, the denial was based on his failure to demonstrate responsibility for these debts. Specifically, he did not provide evidence of efforts to resolve the outstanding amounts or communicate with creditors.
The adjudicator concluded that the debts remained unpaid and unresolved, indicating a lack of financial responsibility. Disqualifying conditions under AG ¶ 19(a) and AG ¶ 19(c) were raised, while mitigating conditions under AG ¶ 20(d), AG ¶ 20(a), AG ¶ 20(b), and AG ¶ 20(c) were applied but ultimately did not overcome the security concerns.
Why the Applicant Was Denied
- Applicant failed to demonstrate responsibility for approximately $60,000 in delinquent debts.
- Applicant did not provide evidence of efforts to resolve the debts or communicate with creditors.
- The debts remained unpaid and unresolved, indicating a lack of financial responsibility.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant provided a stipulation to settle one debt but failed to show timely payment.
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurDelinquent debts remain unresolved and indicate a continuing course of conduct.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Behavior Were Largely Beyond the Person’s ControlApplicant voluntarily provided credit cards to his parents despite their financial difficulties.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem and There Are Clear Indications That the Problem Is Being Resolved or Is Under ControlNo evidence of financial counseling was presented.
Key Rule Quoted
“"The ultimate burden of persuasion is on the applicant seeking a security clearance."”
Procedural Posture
- SOR issuedMar 3, 2010
- Answer filedMar 16, 2010Applicant denied all allegations.
- Hearing heldN/AApplicant declined a hearing.
- Decision dateJun 25, 2010
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Responsibility for Debts Incurred by Family Members
- Lack of Evidence to Mitigate Financial Considerations Under Guideline F