Summary
A 44-year-old mechanic employed by a defense contractor was denied a security clearance under Guideline F (Financial Considerations). The denial stemmed from a history of financial irresponsibility, including significant delinquent debts and child support arrears, as well as past larcenous conduct.
The applicant owed approximately $23,000 in child support for two children and an additional $7,076 for a third child. A $1,006 judgment from May 2011 remained unsatisfied, and he had nine other delinquent debts totaling $9,444, which had been charged off or sent to collections. His home was foreclosed in April 2009. Although he claimed he would pay an attorney to file for Chapter 7 bankruptcy by July 15, 2011, he provided no evidence of this action.
The judge found that the applicant failed to demonstrate responsible financial behavior or efforts to mitigate his financial issues. His past conduct, including a conviction for fraud against the government, raised serious concerns about his reliability and trustworthiness, leading to the conclusion that granting a clearance was not consistent with national interest.
Why the Applicant Was Denied
- Applicant has a history of financial irresponsibility, including significant delinquent debts and child support arrears.
- Applicant failed to provide evidence of efforts to resolve his financial issues or to seek bankruptcy protection as claimed.
- The applicant's past conduct, including a conviction for fraud against the government, raised serious concerns about his reliability and trustworthiness.
Conditions Referenced
- DC 19(a)raisedInability or Unwillingness to Satisfy Debts
- DC 19(c)raisedA History of Not Meeting Financial Obligations
- DC 19(d)raisedDeceptive or Illegal Financial Practices
- MC 20(a)rejectedBehavior Happened so Long Ago or InfrequentlyThe applicant's financial issues are ongoing and have not been resolved.
- MC 20(b)rejectedConditions Largely Beyond the Person's ControlThe applicant has been employed full-time and has not demonstrated responsible financial management.
- MC 20(c)rejectedReceived Counseling or Indications of Problem ResolutionNo evidence of counseling or resolution of financial issues was presented.
- MC 20(d)rejectedGood-faith Effort to Repay CreditorsThe applicant has not made payments toward his delinquent debts despite having a substantial net monthly remainder.
Key Rule Quoted
“No one has a right to a security clearance and the clearly consistent standard indicates that security clearance determinations should err, if they must, on the side of denials.”
Procedural Posture
- SOR issuedAug 26, 2011
- Answer filedSep 26, 2011Applicant requested a decision based on the written record.
- Hearing held—Decision made without a hearing.
- Decision dateFeb 24, 2012
Cite For
- Denial of Clearance Due to Unresolved Financial Obligations Under Guideline F
- Impact of Past Fraudulent Conduct on Security Clearance Eligibility
- Failure to Demonstrate Good-faith Efforts to Resolve Financial Issues as a Basis for Denial.