Summary
A 57-year-old Department of Defense contractor applicant was denied a security clearance under Guideline F (Financial Considerations) due to a history of significant unresolved financial issues. These included a Chapter 7 bankruptcy filed in August 2001, with debts discharged in January 2002.
Additionally, the applicant had multiple delinquent accounts placed for collection between August 2005 and February 2006. These included credit card debts of $9,081, $2,466, $1,263, $1,100, and $1,657, along with two other accounts totaling $1,000 and $1,401. A substantial $31,689 debt resulted from an automobile repossession in 2005. The total amount of these delinquent accounts was approximately $50,426.
The denial was based on the applicant's consistent failure to meet financial obligations and lack of effort to resolve these debts, despite having a high income. This pattern indicated poor self-control and judgment, raising concerns about his reliability and trustworthiness in protecting classified information.
Why the Applicant Was Denied
- The applicant has a history of not meeting financial obligations, including a Chapter 7 bankruptcy and multiple delinquent accounts.
- Despite having sufficient income, the applicant did not take steps to resolve his delinquent debts.
- The applicant's financial problems indicate poor self-control and lack of judgment, raising doubts about his ability to protect classified information.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago or InfrequentlyThe applicant has a long history of financial problems and unresolved debts.
- AG ¶ 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant's recent financial problems resulted from irresponsible spending.
- AG ¶ 20(c)rejectedReceived Counseling for the ProblemThe applicant has not received financial counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsThe applicant has not initiated a good-faith effort to resolve his 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 issuedFeb 28, 2012
- Answer filedMar 12, 2012Requested decision on written record.
- Hearing heldJun 1, 2012
- Decision dateJun 13, 2012
Cite For
- Denial of Security Clearance Due to Unresolved Financial Issues Under Guideline F
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Importance of Demonstrating Good-faith Efforts to Resolve Debts in Security Clearance Cases