Summary
A 49-year-old Navy veteran and electronics technician was denied a security clearance under Guideline F, Financial Considerations, due to significant delinquent debt. The Statement of Reasons cited two specific allegations: a credit card debt in collection for $20,884 and another for $19,172, totaling approximately $40,000. These issues raised disqualifying conditions related to financial irresponsibility.
While the applicant acknowledged the debts and maintained a steady income, he failed to provide adequate information to mitigate the security concerns. The decision noted a history of substantial delinquent debt and a lack of sufficient evidence demonstrating a plan to resolve these financial issues or responsible management of his finances.
Despite the application of several mitigating conditions, the applicant did not present enough information to overcome the concerns about his reliability and trustworthiness. Consequently, the security clearance was denied.
Why the Applicant Was Denied
- The applicant failed to provide adequate information to mitigate security concerns under Guideline F.
- The applicant has a history of significant delinquent debt totaling over $40,000, which he admitted.
- The applicant did not present sufficient evidence of a plan to resolve his financial issues or demonstrate responsible management of his finances.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good JudgmentThe applicant's debts were incurred in the normal course of living and not under unusual circumstances.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problems Were Largely Beyond the Person’s ControlThe applicant had sufficient income from retirement pay and failed to manage his finances responsibly.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under ControlThe applicant did not provide evidence of counseling or that his financial problems are being resolved.
- AG ¶ 20(d)rejectedThe Individual Has Initiated a Good-faith Effort to Repay the Overdue Creditors or Otherwise Resolve DebtsThe applicant failed to demonstrate a meaningful track record of debt repayment or a credible plan to resolve debts.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedJun 21, 2011
- Answer filedJul 22, 2011
- Hearing held—Applicant elected to have the matter decided on the written record.
- Decision dateDec 8, 2011
Cite For
- Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
- Failure to Provide Evidence of Financial Management and Resolution Efforts
- Importance of Demonstrating Responsible Management of Finances for Security Clearance Eligibility