Loading case…

Summary

Darlene D. Lokey Anderson, Administrative Judge, denied the security clearance application of a 47-year-old male defense contractor employee due to financial irresponsibility under Guideline F. The applicant admitted to significant debts totaling approximately $40,000 and failed to demonstrate sufficient efforts to resolve these debts, despite some circumstances being beyond his control. The judge found that the applicant's financial situation indicated poor judgment and unreliability, which raised concerns about his ability to safeguard classified information.

Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant is indebted to a bank for an account placed into collections in the amount of $11,000 (1.a). Applicant is indebted to a bank for an unsecured loan in the amount of $19,000. The last time he made a payment on the debt was in 2008 (1.b). Applicant is indebted to a bank for a delinquent credit card account in the amount of $1,109.00 (1.c). Applicant is indebted to a bank for a delinquent account in the amount of $3,794.00 (1.d). Applicant is indebted to a creditor for a delinquent credit card in the amount of $1,792.00 (1.e). Applicant is indebted to a creditor for an account that was charged off in the amount of $252.00 (1.f). Applicant was indebted in the amount of $222.00 for a state tax lien entered against him in February 2005 (1.g). Applicant was indebted in the amount of $207.00 for a state tax lien entered against him in December 2008 (1.h). Applicant was indebted in the amount of $186.00 for a state tax lien entered against him in December 2009 (1.i). Applicant was indebted in the amount of $162.00 for a state tax lien entered against him in December 2010 (1.j). Applicant is indebted in the amount of $219.00 for a state tax lien entered against him in December 2006 (1.k). Applicant is indebted to a creditor for a delinquent telephone account in the amount of $121.00 (1.l). Applicant is indebted to a creditor for a delinquent account in the amount of $53.00 (1.m). Applicant also failed to file his state and Federal income tax returns for tax years 2009 and 2010 (1.n).

The judge denied the clearance. The government raised disqualifying conditions 19.(a), 19.(c). The judge applied mitigating conditions 20.(b). The decision turned on the following: Applicant has approximately $40,000 in delinquent debts and has not made sufficient efforts to resolve them; Applicant's financial problems began in 2005 due to job loss and living beyond his means, leading to a lack of fiscal responsibility; The applicant failed to demonstrate financial rehabilitation or the ability to manage his financial affairs.

Why the Applicant Was Denied

• Applicant has approximately $40,000 in delinquent debts and has not made sufficient efforts to resolve them.
• Applicant's financial problems began in 2005 due to job loss and living beyond his means, leading to a lack of fiscal responsibility.
• The applicant failed to demonstrate financial rehabilitation or the ability to manage his financial affairs.

Conditions Referenced

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 issuedNov 21, 2012
• Answer filedDec 15, 2012
• Hearing heldMar 18, 2013rescheduled from February 15, 2013
• Decision dateApr 5, 2013

Cite For

• Financial Irresponsibility Under Guideline F
• Impact of Financial Obligations on Security Clearance Eligibility
• Consideration of Mitigating Circumstances in Financial Cases