Summary
A 59-year-old engineer with a history in defense contracting was denied a security clearance under Guideline F (Financial Considerations) due to significant unresolved financial issues. The Statement of Reasons detailed six delinquent accounts, including an $8,483 judgment from October 2009, a $311 satellite television account from July 2009, and a $12,909 charged-off line of credit from September 2006.
Further allegations included a $56,117 delinquent line of credit from June 2009, a $74,267 delinquent mortgage account placed for foreclosure in 2010, and a $10,396 line of credit from July 2009. These issues raised disqualifying conditions under Adjudicative Guidelines Paragraphs 19(a) and 19(c).
While mitigating conditions under Adjudicative Guidelines Paragraphs 20(b), 20(d), and 20(e) were considered, the clearance was denied. The judge found that the applicant had numerous unresolved delinquent debts totaling approximately $162,482. The primary cause of these financial problems was attributed to the applicant's decision to build a new home, which was deemed within his control, and he did not demonstrate a responsible approach to resolving his financial problems.
Why the Applicant Was Denied
- The applicant has numerous unresolved delinquent debts totaling approximately $162,482.
- The applicant's financial issues were primarily due to his decision to build a new home, which he could control.
- The applicant did not demonstrate a responsible approach to resolving his financial problems.
Conditions Referenced
- AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)appliedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)raisedConditions Largely Beyond the Person's ControlThe applicant's wife's illness and inability to work contributed to financial burdens.
- AG ¶ 20(d)appliedGood-faith Effort to Repay Overdue CreditorsThe applicant paid off one debt but has many unresolved debts.
- AG ¶ 20(e)raisedDispute of Legitimacy of Past-due DebtThe applicant alleged violations of the Truth in Lending Act but did not provide sufficient details.
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 26, 2011
- Answer filedSep 15, 2011Requested decision on written record.
- Hearing heldJan 18, 2012
- Decision dateJan 18, 2012
Cite For
- Financial Responsibility Under Guideline F
- Impact of Unresolved Debts on Security Clearance Eligibility
- Consideration of Personal Circumstances in Financial Issues