Summary
A 54-year-old federal contractor and U.S. Navy veteran was denied a security clearance under Guideline F (Financial Considerations) due to $70,862 in delinquent medical debts, unresolved since 2006. The applicant attributed these financial issues to a heart attack and his wife's illness.
Specific allegations included a May 2007 judgment for $39,614, plus $9,997 in fees, with an outstanding balance of $61,934, on which only one $50 payment was made in June 2008. Another judgment from April 2007, originally for $2,466.25, had an outstanding balance of $3,218.15, also with a single $50 payment in June 2008. While the applicant settled a $4,749 debt for $2,374.50, making an annotated first payment, documentary proof was not provided. One debt of $960.75 was fully paid on January 23, 2013.
The denial was based on the substantial, unresolved delinquent debts, the lack of sufficient evidence of actions taken to address these debts after obtaining employment in 2009, and the applicant's minimal stated financial resources to resolve them. The judge concluded that the applicant failed to mitigate the security concerns.
Why the Applicant Was Denied
- Applicant has $70,862 in delinquent debts related to unpaid medical expenses, which remain unresolved since 2006.
- The applicant did not provide sufficient evidence of actions taken to address his delinquent debts after obtaining employment in 2009.
- The applicant's personal financial statement indicated minimal resources to pay his delinquent debts.
Conditions Referenced
- AG ¶ 19(a)raisedInability or Unwillingness to Satisfy Debts
- AG ¶ 19(c)raisedA History of Not Meeting Financial Obligations
- AG ¶ 20(b)appliedConditions That Resulted in the Financial Problem Were Largely Beyond the Person's ControlApplicant experienced unemployment and medical emergencies that contributed to his financial issues.
- AG ¶ 20(c)appliedThe Person Has Received or Is Receiving Counseling for the ProblemThere is marginal evidence that the applicant had some financial counseling.
- AG ¶ 20(d)appliedThe Individual Initiated a Good-faith Effort to Repay Overdue Creditors or Otherwise Resolve DebtsApplicant made a payment on one debt and negotiated a settlement on another.
Key Rule Quoted
“Any doubt concerning personnel being considered for access to classified information will be resolved in favor of national security.”
Procedural Posture
- SOR issuedDec 5, 2012
- Answer filedUndatedApplicant elected to have the case decided on the written record.
- Hearing heldN/ADecision based on written record.
- Decision dateMar 18, 2013
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Impact of Unresolved Medical Debts on Security Clearance Eligibility
- Importance of Demonstrating Responsible Financial Behavior in Security Clearance Cases