Summary
A 36-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to significant and unresolved delinquent debts totaling approximately $39,648. These debts, substantiated by government exhibits and admitted by the applicant, began accumulating in 2006.
During a January 2010 interview, the applicant stated he could meet current expenses but was unable to pay past-due debts. By October 2010, he provided proof of payment for only one debt of $356.39. While he claimed to have made a $200 monthly payment arrangement for an $11,908 debt, he failed to provide evidence of this or any other good-faith effort to resolve his outstanding financial obligations.
The denial was based on the applicant's admission of substantial delinquent debts, his failure to demonstrate progress in addressing them, and the lack of documentation for payment arrangements or a track record of payments. His longstanding financial difficulties were not mitigated by recent positive actions, leading to concerns about his reliability and trustworthiness.
Why the Applicant Was Denied
- The applicant admitted to having over $39,000 in delinquent debts, which he had not resolved or made substantial progress in addressing.
- He failed to provide evidence of a good-faith effort to pay off his creditors or any documentation of payment arrangements.
- The applicant's financial difficulties were longstanding and not mitigated by any recent positive actions or changes.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurThe applicant's financial difficulties are longstanding and ongoing.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlInsufficient evidence to show responsible actions taken during divorce.
- AG ¶ 20(c)rejectedClear Indications That the Problem Is Being Resolved or Under ControlNo evidence of debt resolution or payment history.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsNo track record of payments or substantial efforts to resolve debts.
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 issuedDec 7, 2010
- Answer filedFeb 4, 2011Applicant requested decision without a hearing.
- Hearing held—No hearing; decision made based on written submissions.
- Decision dateMay 31, 2011
Cite For
- Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
- Insufficient Evidence of Debt Resolution and Responsible Financial Management
- Impact of Personal Circumstances (divorce) on Financial Stability and Security Clearance Eligibility