Summary
A 61-year-old defense contractor employee was denied a security clearance due to financial considerations under Guideline F. The applicant had three delinquent credit card debts, totaling approximately $24,000, which he stated were incurred during a period of unemployment and while his wife's dental practice was stagnant.
While the applicant arranged a settlement for one debt of $6,570, he still owed the remaining two credit card debts with no payment plan in place. The decision noted that his financial issues were recent and ongoing, raising questions about his current reliability.
Despite the presence of some mitigating conditions, including the circumstances surrounding the debt incurrence and his wife's legal issues, the applicant failed to demonstrate responsible action or a good-faith effort to resolve his outstanding financial obligations. Consequently, his security clearance application was denied.
Why the Applicant Was Denied
- The applicant has unresolved delinquent debts totaling approximately $24,000.
- He failed to demonstrate responsible action regarding his financial obligations.
- There was insufficient evidence of a good-faith effort to repay or settle debts.
Conditions Referenced
- F.19(a)raisedInability or Unwillingness to Satisfy Debts
- F.19(c)raisedA History of Not Meeting Financial Obligations
- F.20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to RecurThe applicant's financial issues are recent and ongoing.
- F.20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlWhile some conditions were beyond his control, the applicant did not demonstrate responsible action.
- F.20(c)rejectedThe Person Has Received or Is Receiving Counseling for the ProblemThe applicant presented no evidence of seeking financial counseling.
- F.20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant's limited payment toward one debt is insufficient to support a finding of good-faith effort.
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 issuedDec 16, 2010
- Answer filedDec 22, 2010
- Hearing heldMay 9, 2011Rescheduled due to potential government shutdown.
- Decision dateJun 20, 2011
Cite For
- Failure to Demonstrate Responsible Action Under Financial Obligations
- Insufficient Evidence of Good-faith Efforts to Resolve Debts
- Impact of Personal Circumstances on Financial Considerations