Summary
A 33-year-old communications analyst for a defense contractor was denied a security clearance due to significant financial concerns under Guideline F. The applicant had accrued over $122,000 in delinquent debt over a four-year period while employed in his current position.
The Statement of Reasons detailed numerous delinquent debts, with the applicant admitting to most of them and confirming no payments had been made. One specific debt was denied by the applicant, who claimed it was a duplicate listing of another debt. Disqualifying conditions related to financial irresponsibility were raised.
Despite the application of several mitigating conditions, the judge determined that the applicant failed to demonstrate unusual circumstances for the debts or a good-faith effort to resolve them. There was no evidence of financial counseling or attempts to repay overdue creditors. Consequently, the applicant's security clearance was denied.
Why the Applicant Was Denied
- The applicant accrued over $122,000 in delinquent debt over the past four years while employed.
- He made no payments toward any of the admitted debts and did not demonstrate unusual circumstances leading to the debts.
- The applicant failed to provide evidence of financial counseling or a good-faith effort to repay overdue creditors.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 20(e)appliedDispute of Legitimacy of Past-due DebtThe applicant successfully demonstrated that one debt was a duplicate listing.
- AG ¶ 20(a)rejectedBehavior Unlikely to RecurThe applicant's financial problems were recent and ongoing.
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlThe applicant did not show that his debts arose from circumstances beyond his control.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemThe applicant provided no evidence of financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay CreditorsThe applicant's partial repayment was insufficient to demonstrate a good-faith effort.
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 issuedSep 27, 2010
- Answer filedNov 13, 2010Applicant requested a decision on the written record.
- Hearing held—No hearing; case decided on the written record.
- Decision dateJun 29, 2011
Cite For
- Denial of Security Clearance Due to Significant Delinquent Debt Under Guideline F
- Failure to Demonstrate Mitigation of Financial Irresponsibility
- Impact of Financial Issues on Reliability and Trustworthiness for Security Clearance