Summary
A 35-year-old systems engineer for a defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to significant delinquent debts totaling approximately $82,853. The Statement of Reasons detailed ten specific debts in collection, including multiple credit card accounts ranging from $1,104 to $35,656, a car repossession debt of $10,953, a telephone debt of $207, and a medical account for $100.
The applicant admitted to these debts and attributed his financial difficulties to his divorce and his former wife's addiction. Disqualifying conditions under Guideline F, specifically AG ¶ 19(a) and AG ¶ 19(c), were raised.
While mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), and AG ¶ 20(d) were applied, the clearance was ultimately denied. The denial was based on the applicant's failure to provide evidence of a plan to manage or resolve his debts and his inability to demonstrate responsible financial management, leading to concerns about his reliability and trustworthiness.
Why the Applicant Was Denied
- Applicant admitted to significant delinquent debts totaling approximately $82,853.
- He failed to provide evidence of a plan to manage or resolve his debts.
- The applicant did not demonstrate responsible management of his finances.
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 and Does Not Cast Doubt on the Individual’s Current Reliability, Trustworthiness, or Good JudgmentThe debts were incurred in the normal course of living and were not under unusual circumstances.
- AG ¶ 20(b)rejectedThe Conditions That Resulted in the Financial Problems Were Largely Beyond the Person’s ControlThe applicant did not adjust his financial situation after his wife's departure from the workforce.
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem And/or There Are Clear Indications That the Problem Is Being Resolved or Is Under ControlNo evidence of counseling or resolution of financial issues was presented.
- AG ¶ 20(d)rejectedThe Individual Has Initiated a Good-faith Effort to Repay the Overdue Creditors or Otherwise Resolve DebtsThe applicant did not show a meaningful track record of debt payment or a credible plan to resolve debts.
Key Rule Quoted
“A person who seeks access to classified information enters into a fiduciary relationship with the Government predicated upon trust and confidence.”
Procedural Posture
- SOR issuedSep 14, 2011
- Answer filedOct 11, 2011Applicant admitted all allegations.
- Hearing held—Decided on the written record.
- Decision dateFeb 23, 2012
Cite For
- Denial of Security Clearance Due to Significant Financial Issues Under Guideline F
- Failure to Demonstrate Responsible Management of Finances
- Lack of Evidence for Mitigating Financial Conditions