Summary
The applicant, a 40-year-old defense contractor and Navy veteran, faced security clearance denial under Guideline F due to unresolved financial issues, including nine delinquent debts totaling over $15,000. Despite claiming some debts were resolved through a short sale, he failed to provide sufficient documentation to substantiate his claims, leading to the conclusion that he did not act responsibly in managing his financial obligations.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: collection account in the amount of $870 (1.a). credit card account 120-days past-due in the amount of $567 with a balance of $2,281; (1.b). credit card account 90-days past-due in the amount of $383 with a balance of $3,422; (1.c). credit card account 120-days past-due in the amount of $254 with a balance of $825 (1.d). credit card account 90 days past-due in the amount of $166 with a balance of $825 (1.e). collection account in the amount of $855 (1.f). home mortgage in foreclosure that was past due in the amount of $12,264 with a balance of $126,000 (1.g). charged-off account in the amount of $255 (1.h). collection account in the amount of $54 (1.i).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: Applicant has nine delinquent debts totaling over $15,000 that he has been unable or unwilling to satisfy for a number of years; Insufficient evidence was presented to establish that the debts have been resolved or that he acted responsibly in addressing them.
Why the Applicant Was Denied
- Applicant has nine delinquent debts totaling over $15,000 that he has been unable or unwilling to satisfy for a number of years.
- Insufficient evidence was presented to establish that the debts have been resolved or that he acted responsibly in addressing them.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlApplicant was laid off and subsequently underemployed, contributing to his financial issues.
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the ProblemApplicant received financial counseling before purchasing his home.
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant made some payments towards his debts but did not provide proof of all claims.
- AG ¶ 20(e)rejectedThe Individual Has a Reasonable Basis to Dispute the Legitimacy of the Past-due DebtApplicant disputed some debts but failed to provide documentation to substantiate his claims.
Key Rule Quoted
“Eligibility for a security clearance is predicated upon the applicant meeting the criteria contained in the adjudicative guidelines.”
Procedural Posture
- SOR issuedMar 11, 2011
- Answer filedMar 29, 2011
- Hearing heldAug 30, 2011
- Decision dateSep 29, 2011
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations Under Guideline F
- Importance of Providing Documentation to Substantiate Claims of Debt Resolution
- Consideration of the Whole-person Concept in Security Clearance Determinations