Summary
The applicant, a 41-year-old government contractor, faced security clearance denial under Guideline F due to significant financial delinquencies totaling $71,375. Despite attributing his financial issues to unemployment and a fluctuating mortgage, he failed to provide documentation of any efforts to resolve his debts, leading to the conclusion that he did not mitigate the financial concerns.
Under Guideline F (Financial Considerations), the Statement of Reasons alleged the following: Applicant is indebted to a bank in the amount of $10,935, as stated in SOR allegation 1.a. He testified that this debt was for a car loan. He claimed that he fully resolved the debt and later sold the vehicle. He failed to produce any documentation to support his claims. This debt is unresolved (1.a). Applicant is indebted to a creditor for two delinquent student loans in the amounts of $1,361 and $814, as alleged in SOR subparagraphs 1.b and 1.d, respectively. Applicant testified that his Federal income tax refunds have been garnished toward the repayment of this debt. He failed to produce any documentation to support his claims. This debt is unresolved (1.b). Applicant is indebted to a bank for a charged-off account in the amount of $1,569, as stated in SOR allegation 1.c. Applicant testified he did not recognize this debt. This debt is unresolved (1.c). Applicant is indebted to a creditor for two delinquent student loans in the amounts of $1,361 and $814, as alleged in SOR subparagraphs 1.b and 1.d, respectively. Applicant testified that his Federal income tax refunds have been garnished toward the repayment of this debt. He failed to produce any documentation to support his claims. This debt is unresolved (1.d). Applicant is indebted to a city for a rental business tax in the amount of $335, as stated in SOR allegation 1.e. Applicant testified he contacted this creditor and was told the debt was 'closed out.' He failed to present any documentation with respect to the status of this debt. This debt is unresolved (1.e). Applicant is indebted to a bank in the amount of $43,000, as stated in SOR allegation 1.f. Applicant testified that this debt was for a home equity line of credit. The home that secured the loan was foreclosed upon by the primary mortgage holder in 2008. Applicant failed to introduce documentation showing the status of this debt. It is unresolved (1.f). Applicant is indebted on a medical collections account in the approximate amount of $3,858, as stated in SOR allegation 1.g. Applicant testified that this debt was an error because it should have been covered as part of a medical study that he was enrolled in. However, he failed to present documentation showing that he disputed this debt. It remains unresolved (1.g). Applicant is indebted on a judgment in the amount of $9,503, as stated in SOR allegation 1.h. Applicant testified that this debt related to his foreclosed property. It is unresolved (1.h).
The judge denied the clearance. The government raised disqualifying conditions AG ¶ 19(a), AG ¶ 19(c). The judge applied mitigating conditions AG ¶ 20(a), AG ¶ 20(b), AG ¶ 20(c), AG ¶ 20(d), AG ¶ 20(e). The decision turned on the following: Applicant is delinquent on eight debts totaling $71,375; He failed to produce documentation showing he has addressed any of his delinquencies; The applicant did not undergo financial counseling or demonstrate efforts to resolve his debts.
Why the Applicant Was Denied
- Applicant is delinquent on eight debts totaling $71,375.
- He failed to produce documentation showing he has addressed any of his delinquencies.
- The applicant did not undergo financial counseling or demonstrate efforts to resolve his debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(a)rejectedBehavior Happened so Long Ago, Was Infrequent, or Unlikely to RecurApplicant's substantial delinquent debts are recent and ongoing.
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlWhile unemployment is beyond his control, the mortgage decision was a risk he accepted.
- AG ¶ 20(c)rejectedReceived or Receiving Counseling for the ProblemApplicant did not undergo financial counseling.
- AG ¶ 20(d)rejectedInitiated a Good-faith Effort to Repay Overdue CreditorsApplicant failed to document any effort to resolve the debts.
- AG ¶ 20(e)rejectedReasonable Basis to Dispute the Legitimacy of the Past-due DebtApplicant failed to provide documented proof to substantiate his disputes.
Key Rule Quoted
“The protection of the national security is the paramount consideration.”
Procedural Posture
- SOR issuedSep 25, 2014
- Answer filedNov 18, 2014
- Hearing heldApr 20, 2015
- Decision dateMay 22, 2015
Cite For
- Denial of Security Clearance Due to Unresolved Financial Delinquencies
- Failure to Provide Evidence of Debt Resolution Efforts
- Impact of Financial Irresponsibility on Security Clearance Eligibility