Summary
A 42-year-old interpreter for a U.S. defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to significant and ongoing financial difficulties. The Statement of Reasons alleged the applicant owed over $78,000 across five delinquent debts, including a credit account exceeding $50,000 opened to consolidate other credit card balances.
While the applicant claimed to have settled a $20,000 judgment in 2010, with documentation showing its release that April, he failed to provide evidence for other claimed repayment plans. The applicant also admitted he lacked the current income to satisfy all delinquent debts and had not sought credit or financial counseling.
The decision to deny the clearance was based on the applicant's history of substantial delinquent debts, his failure to seek financial counseling or provide a personal financial statement, and the conclusion that his financial issues were ongoing and unlikely to be resolved in the near future. Disqualifying conditions under AG ¶ 19(a) and AG ¶ 19(c) were raised, while mitigating conditions under AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were applied but ultimately did not overcome the security concerns.
Why the Applicant Was Denied
- Applicant has over $78,000 in delinquent debts, indicating a history of financial difficulties.
- Applicant has not sought credit or financial counseling, nor provided a personal financial statement or budget.
- The applicant's financial issues are ongoing and seem unlikely to be resolved soon.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedThe Behavior Happened so Long Ago, Was so Infrequent, or Occurred Under Such Circumstances That It Is Unlikely to Recur
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problem Were Largely Beyond the Person’s Control
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem and There Are Clear Indications That the Problem Is Being Resolved or Is Under Control
- AG ¶ 20(d)rejectedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve Debts
Key Rule Quoted
“The Government has a compelling interest in ensuring each applicant possesses the requisite judgement, reliability, and trustworthiness of those who must protect national interests as their own.”
Procedural Posture
- SOR issuedMay 10, 2011
- Answer filedJun 1, 2011Applicant requested a decision without hearing.
- Hearing held—No hearing was conducted.
- Decision dateFeb 23, 2012
Cite For
- Denial of Security Clearance Due to Significant Financial Difficulties Under Guideline F
- Failure to Provide Evidence of Financial Counseling or Repayment Plans
- Ongoing Financial Issues Deemed Unlikely to Be Resolved in the Near Future