Summary
The applicant, a 39-year-old employee of a federal contractor, faced security clearance denial under Guideline F due to a significant history of financial problems, including three bankruptcies and numerous delinquent debts. The judge found that the applicant failed to provide sufficient evidence to mitigate the security concerns stemming from his ongoing financial difficulties, leading to a decision against him.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Four medical accounts, to unnamed creditors, that were placed for collection in the amounts of $282, $98, $52, and $273, for a total of $705 (1.d). Four collection accounts and one charged-off account in the amounts of $338, $414, $160, $895, and $215, for a total of $2,022 (1.e). Two student loan accounts in the amounts of $8,512 and $4,074 that were placed for collection with the same creditor (1.m). The debt from the second mortgage loan remains unresolved (1.o). Two charged-off debts in the amounts of $11,619 and $7,680 stemming from auto loans (1.p).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant has a history of financial problems, including three bankruptcies and ongoing delinquent debts; The applicant did not present sufficient evidence to rebut or mitigate the security concerns related to his financial difficulties.
Why the Applicant Was Denied
- The applicant has a history of financial problems, including three bankruptcies and ongoing delinquent debts.
- The applicant did not present sufficient evidence to rebut or mitigate the security concerns related to his financial difficulties.
Conditions Referenced
- AG ¶ 19(a)raisedFinancial ConsiderationsThe applicant has a history of excessive indebtedness or financial problems.
- AG ¶ 19(c)raisedFinancial ConsiderationsThe applicant's financial problems indicate an inability or unwillingness to satisfy debts.
- AG ¶ 20(b)rejectedFinancial ConsiderationsWhile the applicant experienced life events beyond his control, this did not sufficiently mitigate the security concerns.
- AG ¶ 20(d)rejectedFinancial ConsiderationsThe applicant did not demonstrate a good-faith effort to repay overdue creditors or resolve 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 issuedJul 8, 2010
- Answer filed—
- Hearing heldNov 8, 2010
- Decision dateMar 18, 2011
Cite For
- Denial of Security Clearance Due to Ongoing Financial Difficulties
- Impact of Multiple Bankruptcies on Security Clearance Eligibility
- Insufficient Mitigation of Financial Concerns Under Guideline F