Summary
A 52-year-old defense contractor and veteran was denied a security clearance under Guideline F (Financial Considerations) due to approximately $40,000 in unresolved delinquent debts. These debts included tax liens, wage garnishments, and various outstanding accounts. Specific allegations noted in the Statement of Reasons included a 2006-2007 wage garnishment for an apartment lease judgment of $1,896, an $8,288 military credit card charge-off, and a $2,311 debt to a theological college on which he was making monthly payments.
Further financial issues included unpaid legal fees from a 2005 divorce, a $301 delinquent account, and a $10 parking ticket. While the applicant made some payments, such as a first payment of $382 on one debt in March 2010 and a partial payment to settle a medical bill account, these efforts were deemed insufficient.
The denial was based on the applicant's failure to demonstrate good-faith efforts to repay overdue creditors or resolve debts in a timely manner. His financial difficulties were also exacerbated by poor financial decisions, including co-signing loans and incurring additional expenses, leading to the conclusion that his financial management was inadequate.
Why the Applicant Was Denied
- The applicant has unresolved delinquent debts totaling approximately $40,000.
- He failed to demonstrate good-faith efforts to repay overdue creditors or resolve debts in a timely manner.
- The applicant's financial difficulties were exacerbated by poor financial decisions, including co-signing loans and incurring additional expenses.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlThe applicant's financial difficulties began with his divorce, but he did not act responsibly under the circumstances.
- AG ¶ 20(c)rejectedEvidence of Counseling or Resolution of Financial ProblemsThe applicant has not received financial counseling and did not show good-faith efforts to pay his debts.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant's efforts to repay debts were insufficient and did not demonstrate a commitment to resolving his financial issues.
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 issuedJun 1, 2010
- Answer filed—Applicant denied allegations without explanation.
- Hearing heldOct 6, 2010Record kept open until October 15, 2010.
- Decision dateOct 28, 2010
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Mismanagement on Security Clearance Eligibility
- Consideration of Mitigating Conditions Under Guideline F