Summary
A 51-year-old defense contractor and military veteran was denied a security clearance under Guideline F (Financial Considerations) due to multiple unresolved delinquent debts totaling approximately $21,700. The Statement of Reasons detailed several specific financial issues, including a $940 unpaid judgment from July 2010, a $3,836 judgment from June 2007 owed to a medical center, and a $7,209 delinquent debt to a bank. Additionally, the applicant had five separate delinquent medical debts, each approximately $3,000, and another $6,812 delinquent debt to a bank.
The decision cited Disqualifying Conditions AG ¶ 19(a) and AG ¶ 19(c). While Mitigating Conditions AG ¶ 20(d) and AG ¶ 20(b) were considered, they were not sufficient to overcome the security concerns.
The denial was based on the applicant's failure to resolve his multiple delinquent debts and his inability to demonstrate a good-faith effort to repay them. Despite having a positive cash flow and significant assets, the applicant's recent and ongoing financial issues raised concerns about his reliability, judgment, and current trustworthiness.
Why the Applicant Was Denied
- The applicant has multiple delinquent debts totaling approximately $21,700, which he has not resolved.
- The applicant failed to demonstrate a good-faith effort to repay or resolve his debts, raising concerns about his reliability and judgment.
- The applicant's financial issues are recent and ongoing, casting doubt on his current trustworthiness.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsThe applicant satisfied one judgment to a medical center.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlWhile the applicant cited his wife's illness as a factor, he did not act responsibly regarding 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 issuedAug 9, 2011
- Answer filedUndated
- Hearing heldN/ADecided on the written record
- Decision dateDec 30, 2011
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Consideration of the Whole-person Concept in Financial Cases