Summary
A 37-year-old defense contractor employee was denied a security clearance due to significant unresolved financial issues under Guideline F (Financial Considerations). The applicant admitted to 15 debts totaling approximately $66,000, which were corroborated by his credit reports. These debts included a $54,787 deficiency from a 2005 truck repossession, with eight other debts each less than $500, and three of those under $200.
The applicant attributed his financial difficulties to periods of unemployment and underemployment. However, he failed to provide any evidence of payments made, settlements reached, or a concrete plan to resolve his outstanding debts.
The judge concluded that the applicant did not mitigate the financial concerns. His admitted inability to satisfy debts, coupled with the lack of evidence for resolving these ongoing financial problems, demonstrated a lack of responsible conduct. Consequently, the security clearance application was denied.
Why the Applicant Was Denied
- Applicant admitted to 15 debts totaling about $66,000, demonstrating an inability to satisfy debts.
- Applicant did not provide evidence of payments, settlements, or a plan to resolve his financial issues.
- The applicant's financial problems were ongoing and unresolved, indicating a lack of responsible conduct.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurApplicant has multiple unresolved debts that are unlikely to recur.
- AG ¶ 20(b)rejectedConditions Beyond the Person's ControlWhile some conditions were beyond his control, he has not shown responsible conduct since then.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemNo evidence of financial counseling was presented.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay CreditorsApplicant did not present evidence of payments or a plan to resolve debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the DebtApplicant did not dispute any of the debts.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the AG.”
Procedural Posture
- SOR issuedAug 3, 2010
- Answer filedAug 31, 2010Applicant requested a determination on the record without a hearing.
- Hearing held—No hearing was held; decision made on the record.
- Decision dateDec 10, 2010
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Failure to Demonstrate Responsible Financial Conduct
- Lack of Evidence for Mitigating Financial Conditions