Summary
A 45-year-old warehouse worker for a defense contractor was denied a security clearance under Guideline F, Financial Considerations, due to significant and unresolved financial issues. The applicant's Statement of Reasons detailed a Chapter 13 bankruptcy filed in September 2010 that was in default, along with multiple delinquent debts totaling $76,265. These debts included a charged-off credit union debt of $14,000, a second mortgage 120 days past due with a $3,000 delinquency and a $27,000 loan balance, and a homeowners’ association lien from 2010 for $1,983.25.
Further financial concerns involved an IRS debt for unpaid taxes of $4,065, a credit card debt in collection for $23,940.11, another credit card debt from 2010 for $4,919.71, and an unpaid state tax debt of $657. The judge identified disqualifying conditions under Adjudicative Guidelines Paragraphs 19(a) and 19(c).
Despite considering mitigating conditions under Adjudicative Guidelines Paragraphs 20(a), 20(b), 20(c), and 20(d), the applicant failed to provide sufficient information to alleviate the security concerns. The judge concluded that the applicant did not demonstrate responsible financial management or provide adequate evidence of efforts to resolve his financial problems, leading to doubts about his reliability and trustworthiness. The security clearance was therefore denied.
Why the Applicant Was Denied
- The applicant failed to provide adequate information to mitigate security concerns under Guideline F.
- The applicant's financial issues included a Chapter 13 bankruptcy in default and multiple delinquent debts totaling $76,265.
- The applicant did not demonstrate responsible management of his finances or provide evidence of efforts to resolve his financial problems.
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
- AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problems Were Largely Beyond the Person’s Control
- AG ¶ 20(c)rejectedThe Person Has Received or Is Receiving Counseling for the Problem
- AG ¶ 20(d)rejectedThe Individual Has Initiated a Good-faith Effort to Repay the Overdue Creditors or Otherwise 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 issuedDec 3, 2012
- Answer filedJan 3, 2013
- Hearing held—Decided on the written record.
- Decision dateJun 13, 2013
Cite For
- Failure to Mitigate Financial Considerations Under Guideline F
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Whole-person Concept in Evaluating Security Clearance Cases