Summary
A 61-year-old Systems Test Engineer with a Bachelor’s degree in Electrical Engineering was denied a security clearance under Guideline F (Financial Considerations). The denial stemmed from significant financial issues, including over $20,000 in delinquent debts. Despite a long career in the defense industry and a high salary, the applicant's unwillingness to address these debts and his reliance on legal arguments regarding the statute of limitations were key factors.
The Statement of Reasons detailed several financial concerns. In 1984, the applicant filed for Chapter 7 Bankruptcy, discharging approximately $40,000, primarily credit card debt. Additionally, nine specific delinquent debts were cited, ranging from $1,868.00 to $4,044.00, all of which remained owing. These issues raised Disqualifying Conditions 19.(a) and 19.(c).
The denial was based on the applicant's significant delinquent debts, which demonstrated financial irresponsibility. The applicant had not made a good faith effort to resolve these debts, choosing not to pay them despite having the financial means. His reliance on the Fair Debt Collection Act and the statute of limitations was not seen as demonstrating sufficient good judgment or financial responsibility, leading to the conclusion that he lacked the necessary trustworthiness and reliability for clearance.
Why the Applicant Was Denied
- The applicant has significant delinquent debts totaling over $20,000, indicating financial irresponsibility.
- The applicant has not made a good faith effort to resolve his debts and has chosen not to pay them despite having the financial means to do so.
- The applicant's reliance on the Fair Debt Collection Act and the statute of limitations does not demonstrate sufficient good judgment or financial responsibility.
Conditions Referenced
- 19.(a)raisedInability or Unwillingness to Satisfy Debts
- 19.(c)raisedA History of Not Meeting Financial Obligation
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 issuedAug 17, 2010
- Answer filedSep 4, 2010
- Hearing heldJan 21, 2011
- Decision dateMar 23, 2011
Cite For
- Financial Irresponsibility as a Disqualifying Factor Under Guideline F
- The Importance of Good Faith Efforts to Resolve Debts in Security Clearance Cases
- The Impact of Financial Issues on Trustworthiness and Reliability for Security Clearance Eligibility