Loading case…

Summary

The applicant, a 29-year-old employee of a federal contractor, sought a security clearance under Guideline F due to a history of financial difficulties, including approximately $30,000 in delinquent debt. Despite efforts to address some debts, the judge found that the applicant's financial issues were ongoing and unresolved, leading to a denial of the security clearance.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: The debt in SOR ¶ 1.a is for an unpaid judgment for $779 owed to an apartment complex. It was settled in full for $900 in February 2011 (1.a). The debt in SOR ¶ 1.b is for a $5,494 charged-off account. Applicant explained this debt stems from an credit card account he openly jointly with his mother when he was 17 years old, and they are working to pay it off. It remains unresolved (1.b). The debt in SOR ¶ 1.c is for a $10,753 charged-off account. It stems from an auto loan in which the car was repossessed in 2008 after Applicant defaulted on the loan. In his post-hearing submission, he presented paperwork from the creditor showing a total deficiency owed of $6,021 as of January 2009. It remains unresolved (1.c). Concerning the ten debts Applicant admits owing, SOR ¶ 1.d, 1.j, and 1.k address three delinquent student loans in amounts of $15,965, $13,893, and $16,129, respectively. He consolidated his multiple students loans into one loan with the same lender (1.d). Concerning the ten debts Applicant admits owing, SOR ¶ 1.d, 1.j, and 1.k address three delinquent student loans in amounts of $15,965, $13,893, and $16,129, respectively. He consolidated his multiple students loans into one loan with the same lender (1.e). The debt in SOR ¶ 1.f for $2,845 stems from an apartment he once rented. He contends that he owes a lesser amount (about $680 plus late fees of $180). He has not paid, settled, or otherwise resolved that particular debt (1.f). The debt in SOR ¶ 1.g is for a $891 collection account. It stems from an apartment he once rented. At hearing, there was some confusion about documentation related to the debt, but it appears that Applicant attempted to settle it for $657 in February 2011. It remains unresolved (1.g). The two debts in SOR ¶¶ 1.h for $77 and 1.i for $520 are both collection accounts relating to the same overdrawn checking account. The debts were settled or satisfied in March 2011 for $54 and $364, respectively (1.h). The two debts in SOR ¶¶ 1.h for $77 and 1.i for $520 are both collection accounts relating to the same overdrawn checking account. The debts were settled or satisfied in March 2011 for $54 and $364, respectively (1.i). Concerning the ten debts Applicant admits owing, SOR ¶ 1.d, 1.j, and 1.k address three delinquent student loans in amounts of $15,965, $13,893, and $16,129, respectively. He consolidated his multiple students loans into one loan with the same lender (1.j). Concerning the ten debts Applicant admits owing, SOR ¶ 1.d, 1.j, and 1.k address three delinquent student loans in amounts of $15,965, $13,893, and $16,129, respectively. He consolidated his multiple students loans into one loan with the same lender (1.k). Concerning the ten debts Applicant admits owing, SOR ¶ 1.d, 1.j, and 1.k address three delinquent student loans in amounts of $15,965, $13,893, and $16,129, respectively. He consolidated his multiple students loans into one loan with the same lender (1.l). Concerning the ten debts Applicant admits owing, SOR ¶ 1.d, 1.j, and 1.k address three delinquent student loans in amounts of $15,965, $13,893, and $16,129, respectively. He consolidated his multiple students loans into one loan with the same lender (1.m). Concerning the ten debts Applicant admits owing, SOR ¶ 1.d, 1.j, and 1.k address three delinquent student loans in amounts of $15,965, $13,893, and $16,129, respectively. He consolidated his multiple students loans into one loan with the same lender (1.n). The debt in SOR ¶ 1.o is for a $14,463 collection account. The debt stems from an auto loan for a vehicle involved in an accident. The accident resulted in a total loss and then the insurance company denied coverage. Applicant admits that he owes something on the debt, but disputes the amount owed. It remains unresolved (1.o). Concerning the ten debts Applicant admits owing, SOR ¶ 1.d, 1.j, and 1.k address three delinquent student loans in amounts of $15,965, $13,893, and $16,129, respectively. He consolidated his multiple students loans into one loan with the same lender (1.p).

The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e), AG ¶ 20(f). The decision turned on the following: The applicant has a history of excessive indebtedness and financial problems; Five of the sixteen debts remain unresolved, totaling nearly $30,000 in delinquent debt; The applicant lacks a realistic plan to address his financial obligations.

Why the Applicant Was Denied

• The applicant has a history of excessive indebtedness and financial problems.
• Five of the sixteen debts remain unresolved, totaling nearly $30,000 in delinquent debt.
• The applicant lacks a realistic plan to address his financial obligations.

Conditions Referenced

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 issuedFeb 4, 2011
• Answer filed—
• Hearing heldJun 8, 2011
• Decision dateAug 26, 2011

Cite For

• Denial Based on Unresolved Financial Obligations Under Guideline F
• Impact of Ongoing Financial Difficulties on Security Clearance Eligibility
• Insufficient Evidence to Mitigate Financial Concerns in Security Clearance Cases