Summary
A 45-year-old defense contractor employee was denied a security clearance due to significant financial concerns under Guideline F. The applicant faced allegations of 15 delinquent debts totaling approximately $55,032, including medical bills, credit card balances, a returned check, and outstanding amounts for telephone, cable, and electric services. Additionally, the applicant was indebted on a home mortgage, to a homeowner's association, and for child support. A foreclosure on his home in 2008, which was over 120 days past due, also contributed to the concerns.
While the applicant attributed his financial difficulties to a layoff and a business failure, these circumstances did not sufficiently mitigate the concerns. The applicant failed to provide evidence of any attempts to resolve his financial obligations or make payments to creditors.
Ultimately, the applicant was denied a security clearance because he accumulated numerous delinquent debts and did not demonstrate responsible actions or engage in financial counseling to address his financial issues. This indicated an inability or unwillingness to satisfy his debts.
Why the Applicant Was Denied
- The applicant has accumulated 15 delinquent debts totaling approximately $55,032, demonstrating an inability or unwillingness to satisfy debts.
- The applicant did not provide evidence of any attempts to resolve his financial obligations or make payments to creditors.
- The applicant's financial difficulties were not mitigated by responsible actions or financial counseling.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlAlthough the applicant's financial difficulties were caused by a layoff and business failure, he did not act responsibly to address his debts.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant failed to show any good-faith efforts to repay his overdue creditors.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtThe applicant did not provide documented proof to substantiate any disputes with creditors.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedDec 9, 2009
- Answer filedApr 4, 2010
- Hearing heldAug 18, 2010
- Decision dateOct 6, 2010
Cite For
- Failure to Demonstrate Responsible Financial Management Under Guideline F
- Inability to Mitigate Financial Concerns Despite Extenuating Circumstances
- Lack of Evidence for Good-faith Efforts to Resolve Debts