Summary
The applicant, a 50-year-old former U.S. Marine Corps member, faced security clearance denial under Guideline E (Personal Conduct) and Guideline F (Financial Considerations) due to unresolved debts and a history of financial mismanagement. Despite some efforts to address his debts through a debt consolidation plan, the applicant failed to provide sufficient evidence of financial stability or responsible conduct, leading to the denial of his security clearance.
Under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant admitted the 29 disciplinary infractions alleged, which were issued throughout his employment with his current employer (2.b). Applicant answered 'no' to questions regarding receiving warnings or being disciplined for misconduct in the workplace (2.c). Applicant denied having any other security violations at his current employment (2.d). In September 1997, Applicant filed a Chapter 13 bankruptcy that was dismissed in August 2000 for noncompliance (1.a). $680, cellular phone debt, Unresolved. The debt became delinquent in September 2011 (1.b). $958, judgment filed in January 2008, Unresolved (1.c). $5,023, judgment filed in January 2007, Unresolved (1.d). $584, credit card, Unresolved. The account became delinquent in July 2007 (1.e). $1,086, credit card, Unresolved. The debt became delinquent in July 2009 (1.f). $784, credit card, Resolved. The account became delinquent in July 2009 (1.g). $1,384, credit card, Resolved. The account became delinquent in September 2005 (1.h). $1,944, credit card, Unresolved. The account became delinquent in October 2005 (1.i). $502, credit card, Unresolved. Applicant testified the account is listed in his plan, but the plan does not confirm his claim (1.j). $650, credit card, Unresolved. The delinquent account is included in his plan, but it has not been paid (1.k). $3,037, credit card, Resolved. The account became delinquent in August 2010 (1.l). $172, storage space, Resolved. The account was transferred for collection in June 2008 (1.m). $260, 3 parking tickets, Resolved. Applicant believed he received the tickets in 2005 (1.n). $400, credit card, Resolved. The account is a duplicate of SOR 1.p (1.o).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c), AG ¶ 16(a), AG ¶ 16(b). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(d). The decision turned on the following: The applicant has unresolved debts totaling over $18,000, indicating an inability to meet financial obligations; The applicant's history of financial mismanagement includes a dismissed Chapter 13 bankruptcy and multiple delinquent accounts; The applicant provided insufficient evidence of financial counseling or a clear plan to resolve his debts.
Why the Applicant Was Denied
- The applicant has unresolved debts totaling over $18,000, indicating an inability to meet financial obligations.
- The applicant's history of financial mismanagement includes a dismissed Chapter 13 bankruptcy and multiple delinquent accounts.
- The applicant provided insufficient evidence of financial counseling or a clear plan to resolve his debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Failing to Meet Financial Obligations
- AG ¶ 16(a)raisedDeliberate Omission, Concealment, or Falsification of Relevant Facts
- AG ¶ 16(b)raisedDeliberately Providing False or Misleading Information
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant's divorce and subsequent financial issues were considered beyond his control, but limited mitigation was granted due to lack of action on debts.
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant enrolled in a debt repayment plan, but only a few debts were resolved.
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 issuedNov 15, 2012
- Answer filedDec 18, 2012Notarized response to SOR.
- Hearing heldApr 17, 2013Hearing conducted as scheduled.
- Decision dateJul 11, 2013
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Impact of Personal Conduct on Security Clearance Eligibility Under Guideline E
- Insufficient Evidence of Financial Responsibility and Stability Leading to Clearance Denial.