Summary
A 56-year-old federal contractor employee was denied a security clearance under Guideline F, Financial Considerations. The denial stemmed from a history of ongoing financial difficulties, specifically nine delinquent debts totaling approximately $66,000. These debts included three unpaid judgments for $1,238, $1,000, and $5,409, respectively.
Additionally, the applicant had four collection accounts for $886, $810, $1,509, and $769, along with two charged-off accounts for $406 and $24,484. Two student loans were also in collection, amounting to $27,460 and $17,069. While the applicant attributed these issues to past unemployment, the decision noted a lack of significant progress in resolving the debts since returning to full-time employment in 2008.
The adjudicator found that the applicant's financial problems were not under control and were unlikely to be resolved in the near future. Despite the application of mitigating conditions, the applicant failed to meet the burden of persuasion for a favorable clearance decision, leading to the denial.
Why the Applicant Was Denied
- Applicant has a history of ongoing financial problems, including nine delinquent debts totaling about $66,000.
- Applicant made little progress in resolving his debts since returning to full-time employment in 2008.
- The evidence did not indicate that the applicant's financial problems were under control or likely to be resolved in the near future.
Conditions Referenced
- AG ¶ 19raisedFinancial ConsiderationsApplicant's history of excessive indebtedness and financial difficulties raises security concerns.
- AG ¶ 20(b)appliedMitigating ConditionApplicant's unemployment during 2006-2008 was largely beyond his control.
- AG ¶ 20(d)rejectedMitigating ConditionApplicant did not demonstrate a good-faith effort to repay overdue creditors or resolve debts.
- AG ¶ 20(e)rejectedMitigating ConditionApplicant did not provide sufficient evidence to dispute the legitimacy of the debts.
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 issuedMar 15, 2010
- Answer filed—
- Hearing heldSep 17, 2010
- Decision dateJan 7, 2011
Cite For
- Ongoing Financial Difficulties as a Disqualifying Condition Under Guideline F
- Insufficient Evidence of Debt Resolution Efforts
- Impact of Unemployment on Financial Responsibility