Summary
The applicant, a 49-year-old defense contractor and former Navy service member, faced security concerns under Guideline F due to significant financial delinquencies totaling over $33,000. Despite some past accomplishments and character references, the applicant failed to demonstrate responsible management of his debts, leading to a denial of his security clearance application.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant is indebted on a state tax lien for the approximate amount of $5,143. Applicant incurred this debt when he failed to file his state corporate taxes in 2007 (1.a). Applicant is indebted on a credit card placed with a collection agent in the approximate amount of $6,440. This was a corporate card, which Applicant failed to repay (1.b). Applicant is indebted on a credit card placed with a collection agent in the approximate amount of $13,012. This was a corporate card, which Applicant failed to repay (1.c). Applicant is indebted to his former wife in the approximate amount of $6,000 for child support. This account was settled in 2005, and Applicant presented documentation from his attorney as proof of payment (1.d). Applicant is indebted on a credit card placed with a collection agent in the approximate amount of $8,694. This was a personal credit card, which Applicant used for both personal and corporate purchases (1.e). Applicant is indebted to a phone company in the approximate amount of $263. Applicant presented a canceled check, dated November 20, 2002, as proof that this debt had been satisfied (1.f).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(d), AG ¶ 20(b), AG ¶ 20(c). The decision turned on the following: The applicant has significant unresolved financial delinquencies totaling over $33,000; He has not made any attempts to address or repay his outstanding debts; The applicant failed to seek financial counseling or demonstrate responsible financial behavior.
Why the Applicant Was Denied
- The applicant has significant unresolved financial delinquencies totaling over $33,000.
- He has not made any attempts to address or repay his outstanding debts.
- The applicant failed to seek financial counseling or demonstrate responsible financial behavior.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant has not made payment arrangements with any of his creditors.
- AG ¶ 20(b)appliedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant's financial difficulties were partly caused by the downturn in his construction business.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant did not abide by his agreement with the debt management company.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedMar 19, 2010
- Answer filedApr 13, 2010
- Hearing heldJun 8, 2010
- Decision dateAug 3, 2010
Cite For
- Failure to Demonstrate Responsible Management of Financial Obligations Under Guideline F
- Impact of Financial Delinquencies on Security Clearance Eligibility
- Consideration of the Whole-person Concept in Security Clearance Decisions